William Howard Taft

“ The remedy which we think the government is entitled to, unless it is to be defeated for the reasons about to be examined, is not the reforming of a deed and a decree compelling the Shelby Iron Company of New Jersey to substitute its own deed to the Chemical Company for the useless and void deed of the Shelby Iron Company of Alabama. It is rather to give to the government leave to reframe its pleadings, so as to set up therein its ownership of an equitable mortgage upon the land and the plant, to be enforced by a sale thereof and the proper distribution of the proceeds. ”

“ It relies on the principle that the law imputes knowledge, when opportunity and interest, coupled with reasonable care, would necessarily impart it, and that, where one paper refers to another paper within the power of the party, it gives notice of the contents of the other paper to that party. ”

“ This suit was a bill in equity to quiet title to the United States against the two companies, the Alabama company and the New Jersey company. The New Jersey company, relying on the misdescription, answered and denied the title of the United States. Thereupon the government amended its bill and asked that the deed be reformed. Then the New Jersey company, which we shall hereafter call the Iron Company, answered by a recital of facts which, it claimed, showed that it has an equity in the 15 acres of land stronger in right than that of the United States. ”