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Tom Cruise and the Indian Subprime Crisis

It always was, and always is, about the land.

Every so often, arti­cles in The Wall Street Jour­nal (and some­times even This Week From Indian Coun­try Today) tout­ing the advan­tages of pri­vate prop­erty for Indian peo­ple, not to men­tion Supreme Court deci­sions such as Carcieri and U.S. v. Navajo Nation, remind Indian coun­try of what has, and always will, give Indian law its shape: prop­erty rights.

As the Supreme Court said in the 1955 Tee-Hit-Ton Indi­ans v. U.S. case—and these are not the words of some left-wing activist, but of the United States Supreme Court—“the dom­i­nant pur­pose of the whites in Amer­ica was to occupy the land.” And, if we are going to talk about land, we have to talk about Thomas Jefferson.

Why Thomas Jef­fer­son? Because Jefferson’s idea of Amer­ica was that every­one would be a yeo­man farmer with pri­vate prop­erty, and that would pro­mote pri­vate virtue and patriotism.

He wor­ried that, with­out pri­vate prop­erty as a social anchor, the repub­lic would decay in time and become like Europe, with its aris­toc­ra­cies and feu­dal­ism. His philo­soph­i­cal solu­tion to the prob­lem of decay in time was to expand the repub­lic in space, even to empire, so that soci­ety would not turn inward and feu­dally com­pound itself. It is easy to see the effects of that pol­icy: Louisiana. Alaska. Man­i­fest Des­tiny. Tee-Hit-Ton.

And if we are going to under­stand Thomas Jef­fer­son, we have to talk about Tom Cruise.

Why Tom Cruise? He is our biggest movie star and thus our biggest teller of the myths Amer­ica tells itself, myths which can be pow­er­ful and dif­fi­cult to root out from soci­ety and from the law.

One of Cruise’s lesser works, the 1992 film Far and Away, opens with Cruise as a young man in Ire­land, as Eng­lish sol­diers have come to take his family’s land. His father is dying of a heart attack dur­ing the fore­clo­sure, and he grabs Cruise by the lapels and tells him, “Hold onto the land.” Cruise then goes to America.

To digress for a moment, Ire­land was the prac­tice run for the New World. Eliz­a­bethan Eng­land sharp­ened its legal knives about dis­pos­ses­sion in ratio­nal­iz­ing their con­quest of Ire­land, char­ac­ter­iz­ing the Irish as tribal, pagan, matri­ar­chal and with­out a fixed con­cep­tion of indi­vid­ual prop­erty. As the “dis­cov­er­ing” sov­er­eign and with the good for­tune of read­ing John Locke on prop­erty (“What­so­ever then he removes out of the state that nature hath provided…he hath mixed his labor with, and joined to it some­thing that is his own, and [he] thereby makes it his prop­erty.”), the Eng­lish had legal argu­ments to dis­pos­sess the Irish, and this idea was car­ried in ships to America.

Far and Away ends with Cruise at the start­ing line of a land rush, about to race for­ward and claim some land in Okla­homa, fol­low­ing the guide­posts laid forth by Jef­fer­son. Indian land had been opened as part of the Allot­ment process, and he is going to ful­fill his father’s dying wish by tak­ing Indian land, irony notwithstanding.

The dra­matic image of Cruise at the start­ing line, ready to bring progress to the con­ti­nent, is easy to imag­ine upon read­ing Supreme Court Chief Jus­tice John Marshall’s 1823 opin­ion in Indian law’s foun­da­tional case, John­son v. M’Intosh:

Con­quest gives a title which the Courts of the con­queror can­not deny, what­ever the pri­vate and spec­u­la­tive opin­ions of indi­vid­u­als may be, respect­ing the orig­i­nal jus­tice of the claim.”

His­tory was Marshall’s vehi­cle for hold­ing the “Indian inhab­i­tants” as “merely as occu­pants,” with­out the abil­ity to “trans­fer absolute title to oth­ers.” Mar­shall adopted the defendant’s argu­ments that the Indi­ans no more owned the land than the fish­er­man owns the sea, that nat­ural law required hold­ing against their rights, as their lands “were not used by them in such a man­ner as to pre­vent their being appro­pri­ated by a peo­ple of cul­ti­va­tors.” He con­cluded, “to leave them in pos­ses­sion of their coun­try was to leave the coun­try a wilderness.”

John­son is a great read, as his­tory, as lit­er­a­ture, as the best and worst of the lawyer’s art. In the end, though, John­son sim­ply embraces what we are taught is the genius of the com­mon law, the implicit cap­i­tal­ist impulse of the high­est and best use. While Mar­shall, as a fed­er­al­ist, was often opposed to his dis­tant cousin Jef­fer­son, when it came to land, how­ever, they were in agreement.

Felix Cohen, the god­fa­ther of Indian law, pointed out in a 1947 law review arti­cle the fac­tual inac­cu­ra­cies of con­ven­tional Amer­i­can history:

Every Amer­i­can school­boy is taught to believe that the lands of the United States were acquired by pur­chase or treaty from Britain, Spain, France, Mex­ico and Russia…the his­toric fact is that prac­ti­cally all of the real estate acquired by the United States since 1776 was purchased…from its orig­i­nal Indian owners.”

How­ever, it was in pointed rebut­tal to Cohen that the Supreme Court in Tee-Hit-Ton refused to let the myth per­ish, and coun­tered Cohen’s facts with its own ver­sion of the myth:

Every Amer­i­can school­boy knows that the sav­age tribes of this con­ti­nent were deprived of their ances­tral ranges by force and that, even when the Indi­ans ceded mil­lions of acres by treaty in return for blan­kets, food and trin­kets, it was not a sale but the con­querors’ will that deprived them of their land.”

Tee-Hit-Ton is a 1955 Supreme Court case turn­ing on whether the lands of the Tlin­git Tee-Hit-Tons were suf­fi­cient to con­sti­tute “prop­erty” under the Fifth Amendment’s Tak­ings Clause. The case’s out­come is clear right off the bat when the court calls John­son a “great case” and states the ques­tion pre­sented as whether “between 60 and 70 indi­vid­u­als” can lay claim to “over 350,000 acres of land.”

Tee-Hit-Ton holds that “It is to be pre­sumed that in this mat­ter the United States would be gov­erned by such con­sid­er­a­tions of jus­tice as would con­trol a Chris­t­ian peo­ple in their treat­ment of an igno­rant and depen­dent race.” The Court sets the inten­tion of the Indi­ans aside, as in John­son, and held that it “[finds] noth­ing to indi­cate any inten­tion by Con­gress (the sov­er­eign) to grant to the Indi­ans any per­ma­nent rights in the lands of Alaska.” Prop­erty is what the sov­er­eign will recognize.

In a foot­note, the Court dis­tin­guishes the 1907 Car­iño case, which arose dur­ing the United States’ occu­pa­tion of the Philip­pines. There, Car­iño made a suc­cess­ful claim to prop­erty, “in which tribal cus­tom and tribal recog­ni­tion of own­er­ship played a part.” Cariño’s claim, though, was to a “370-acre farm which his grand­fa­ther had fenced some 50 years before.” So there it is. Some­one had trans­lated John Locke into Span­ish, or Taga­log, and instructed Cariño’s grand­fa­ther on the impor­tance of fences.

John­son and Tee-Hit-Ton thus set up the poles of what is Indian prop­erty and what isn’t.

The Gen­eral Allot­ment Act of 1887 was the tool for the trans­for­ma­tion of Indian lands from one to the other, from a pro­tected right to use that isn’t prop­erty to an unpro­tected fee sim­ple that is. It was sup­posed to take 25 years, one gen­er­a­tion, to make the transition—dad and mom won’t get it, but their kids will—just like every other immi­grant fam­ily whose par­ents speak a native lan­guage at home while the kids speak per­fect Eng­lish. How­ever, we know the results: 90 mil­lion acres lost between 1887 and Allotment’s end in 1934. As Pres­i­dent Theodore Roo­sevelt put it, in a metaphor redo­lent of canal-building and “big sticks,” Allot­ment was a “mighty pul­ver­iz­ing engine to break up the tribal mass.”

The famous Meriam Report in 1928 and the 1934 Indian Reor­ga­ni­za­tion Act, the so-called “Indian New Deal,” attempted to pick up the pieces left after Allot­ment. As the Meriam Report put it:

It almost seems as if the gov­ern­ment assumed that some magic in indi­vid­ual own­er­ship of prop­erty would in itself prove an edu­ca­tional civ­i­liz­ing fac­tor, but unfor­tu­nately this pol­icy has for the most part oper­ated in the oppo­site direction.”

The Meriam Report thus holds that dis­as­trous results may extend from overemphasis—or at least a mis­placed trust—on indi­vid­u­al­ized prop­erty own­er­ship. In other words, the Gen­eral Allot­ment Act and its after­math were really just the sub­prime cri­sis of the 19th cen­tury. The past is always pro­logue, and we are con­demned to repeat it.

As the U.S. Depart­ment of Hous­ing and Urban Devel­op­ment (HUD) put it even before the Great Recession:

Just as more Amer­i­cans owned their homes than ever before, ‘preda­tory lenders’ tar­geted those which were ‘house rich but cash poor.’ This ‘[dis­lodges] long-standing res­i­dents and [pro­vides] an oppor­tu­nity for resale at a high profit.’”

In the end, we have The Wall Street Jour­nal and a purist view of prop­erty on one hand and, on the other, the Meriam and HUD reports and those fight­ing the sub­prime cri­sis by say­ing that we can­not rely on mar­kets alone to justly run a soci­ety, that the premise of free mar­ket eco­nom­ics, of per­fect infor­ma­tion and equal access to it, is almost never an actual fact.

To con­clude with Tom Cruise, attempt­ing to ensure a free mar­ket while the gov­ern­ment is oblig­ated to pro­tect those to whom it owes both treaty oblig­a­tions and self assumed trust duties is a path that has ulti­mately proved a Mis­sion Impos­si­ble. When forced to choose, the lat­ter is the bet­ter path. Leav­ing Indian prop­erty rights—like sub­prime borrowers—to the whims of the mar­ket is indeed Risky Busi­ness. Indian nations should do as Cruise’s fic­tional father advised and “hold onto the land.”

Steven Paul McSloy is a part­ner in the Indian Law and Tribal Rep­re­sen­ta­tion prac­tice at SNR Den­ton in New York City. He was pre­vi­ously the Gen­eral Coun­sel of the Oneida Indian Nation and has taught Amer­i­can Indian Law at five law schools. Kyle Lein­gang assisted in the prepa­ra­tion of this arti­cle, which is based on a speech given at Har­vard Law School.

http://indiancountrytodaymedianetwork.com/ict_sbc/tom-cruise-and-the-indian-subprime-crisis/

Orig­i­nally By Steven Paul McSloy March 11, 2011

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