United States v. Trinidad Coal Coking Company

This is a suit in equity by the United States against the Trinidad Coal & Coking Company, a corporation created under the laws of Colorado and engaged in the business of mining coal. The defendant holds the legal title to six tracts of coal land within the Pueblo land district, in the county of Las Animas, in that state, containing, in the aggregate, 954 34-100 acres, under conveyances executed to it by various individuals to be presently named, and to whom, respectively, patents were issued.

The relief sought by the government is a decree setting aside these patents, and declaring them void and of no effect, as against the United States. The defendant demurred to the bill upon the ground that it did not make a case for relief in a court of equity, nor allege that any of the entries were fraudulent or in contravention of law. The demurrer was sustained and the bill dismissed, the opinion of the court being reported in 37 Fed. Rep. 180. The sole question is whether the United State is entitled, upon the showing made by the bill, to the relief it asks.

Taking the allegations of the bill to be true, the case made by the government is as follows:

On or about the 4th of June, 1883, T. J. Peter and Robert Savage were officers and stockholders, and William H. Leffingwell, Milford N. Wells, Alexander Craigmyle, Charles F. Schuman, and Thomas Winsheimer were employes, of the defendant corporation. Peter, Savage, and certain other officers and members of that corporation, whose names are unknown to the government, together with Leffingwell, Wells, Craigmyle, Schuman, and Winsheimer, formed a scheme to procure patents for these lands 'for the benefit and on behalf of said defendant corporation, and for the purpose of enabling said corporation to fraudulently obtain titles' from the United States for its 'coal lands in excess of 320 acres, contrary to the statutes of the United States in such cases made and provided.' In furtherance of that scheme, the persons just named, and those associated with them, or some one of them, or some one acting for them and in their behalf, on or about the day above named, wrote and prepared, or caused to be written and prepared, certain affidavits, one of which was in substance and to the effect that 'no portion of the tract of land described as the north-east quarter of section six, township thirty-four south, of range sixty-three west of the sixth principal meridian, and containing one hundred and fifty-two and 53-100ths acres, was in the possession of any other party; that said Robert Savage was twenty-one years of age, a citizen of the United States, and had never held nor purchased, as an individual, or as a member of any association, lands under the laws of the United States relating to the sale of coal lands of the United States; that he, the said Savage, was well acquainted with the character of said land, and with every legal subdivision thereof, and had frequently passed over the same; that his knowledge of said land was such as to enable him to testify understandingly in regard thereto; that said land contained large deposits of coal, and was chiefly valuable therefor; that there was not, to his knowledge, within the limits thereof, any vein or lode of quartz or other rock in place bearing gold, silver, or copper; and that there was not, within the limits of said land, to his knowledge, any valuable deposits of gold, silver, or copper.' This affidavit was subscribed and sworn to by Savage on the 4th of June, 1883, before the register of the land-office, at Pueblo. The other affidavit, subscribed and sworn to before the same officer by Leffingwell and Wells, set forth in substance the same facts as being within their knowledge.

The conspirators, or some one or more of them, or some one acting for them, on or about the same date, filed these affidavits in the land-office at Pueblo, and made application, in the name and on behalf of Savage, to enter and purchase, under the Statutes of the United States, this tract of 152 53-100 acres, as vacant coal land; and, at the same time, there was paid to the receiver of public moneys at that office the sum of $3,050.60, as the purchase price of the tract, at $20 per acre. Thereupon, the register issued, in duplicate, a certificate to the effect that Savage had on that day purchased this land from that officer at the price stated; that the payment of the price had been made in full, as required by law; and that, on the presentation of the certificate to the commissioner of the general land-office, he would be entitled to receive a patent for the land. Upon the payment of this money, and the issuing of the certificate, the receiver delivered to Savage, or to the conspirators, or to some one of them, or to some one for them, in duplicate, a receipt which, in effect, acknowledged that he had paid the above sum as and for the price of the land, at $20 per acre. This being done, the register and receiver forwarded the papers, affidavits, applications, and one of the certificates and receipts to the general land-office, at Washington, delivering the other duplicate certificate to the conspirators, or to some one of them, or to some one acting for them, 'such delivery purporting to be for and on behalf of the said Robert Savage.'

Similar applications and affidavits were prepared and filed, at the instance of the same persons, in behalf of Leffingwell, Wells, Craigmyle, Schuman, and Winsheimer, respectively, in reference to the remaining tracts, and they severally procured patents to be issued, as follows: To Savage for 152 53-100 acres; to Leffingwell, Craigmyle, Schuman, and Winsheimer, each, for 160 acres; and to Wells for 161 81-100 acres. The government, relying upon such affidavits and certificates, believing that the lands were legally entered by each individual for his own use and benefit, and in ignorance of the conspiracy and its objects, issued patents for the several tracts, purporting, thereby to convey all its rights, title, interest, and estate therein to the parties, respectively, in whose names the entries were made. The patents were subsequently delivered to the patentees, or to some one representing them and acting in their name.

It, also, appears from the bill that Savage, Leffingwell, Wells, Craigmyle, Schuman, and Winsheimer did not enter the lands for their own use and benefit, nor for the use and benefit of any of them, but for the direct use and benefit of the Trinidad Coal & Coking Company; that its officers procured the entrymen to go in a body to the city of Pueblo to file the above papers, as stated; that the papers and affidavits were drawn and prepared by its officers; that the expenses of the conspirators in going to that city to make the entries were paid by its officers, acting for it and in its behalf; that the entire purchase money for all the tracts and all land-office fees, costs, and expenses were paid by the company; that immediately after the filing of the affidavits in the land-office, and the pretended entries, Savage, Leffingwell, Wells, Craigmyle, Schuman, and Winsheimer, and each of them, executed and delivered to the company warranty deeds conveying to it each of said tracts; that the company immediately entered into possession, and has possessed and claimed the lands until the present time; that no one of the patentees has ever claimed or asserted any right or interest in them, or in any of them, by virtue of the above fraudulent and illegal entries; that the entries were in reality and effect a purchase of the lands by the company; and that the entries and purchases by the persons named were only a device to evade the laws of the United States and to procure for the defendant a greater amount of coal lands than it could legally purchase and hold.

The bill further alleges that these entries of coal lands were illegal for the additional reason that, prior to the 4th of June, 1883, Peter, being an officer and stockholder of the company, had, on the 5th day of August, 1881, entered and purchased under the laws of the United States 160 acres of vacant coal land, and other officers and stockholders of the company, namely, Charles P. Teat, Joseph L. Prentiss, Orlando B. Wheeler, and others, whose names are unknown to the government, had purchased tracts of coal land of the United States, all of which entered and purchased by T. J. Peter and by such other officers and stockholders of the company were, on the 4th day of June, 1883, held and owned by the defendant, and were in the aggregate in excess of 320 acres of coal land; that neither the company nor any member or officer of it, for its own benefit or in its behalf, could then legally enter or purchase additional coal lands from the government; and that when said tracts were conveyed to it by the several patentees it had full notice of the alleged fraudulent scheme, as well as of the fact that the lands were being entered and purchased for its benefit exclusively.

Asst. Atty. Gen. Maury, for the United States.

''A. T. Button, A. B. Browne, Geo. R. Peck, and Chas. E. Gast'', for appellee.

Mr. Justice HARLAN, after stating the facts in the foregoing language, delivered the opinion of the court.