“ When it is exercised in satisfaction of a meritorious claim which the government created upon valuable consideration and which it must be taken to have intended to satisfy (so far as it may be satisfied within the territorial limits laid down) , it seems to us that lands within those limits should not be excluded simply because in a different event they would have been subject to a paramount claim.'
The ultimate obligation of the government in respect of the indemnity lands is on the same plane as that respecting the lands in place. The only difference is in the mode of identification. ”

“ Its purpose is to make sure that, in accord with that power of supervision and direction, he is to see to it that the right of selection is not abused, that claims arising out of prior settlement and the like are not disturbed, that no indemnity is given except for actual losses of the class intended, and that the lands selected are such as are subject to selection. ”

“ Of course the railroad is limited in choosing by the terms of the indemnity grant, but the so-called grant is rather to be described as a power. Ordinarily no color of title is gained until the power is exercised. ”