Bost v. United States

103 F.2d 717, 1939 U.S. App. LEXIS 4790
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 27, 1939
DocketNo. 8768
StatusPublished
Cited by7 cases

This text of 103 F.2d 717 (Bost v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bost v. United States, 103 F.2d 717, 1939 U.S. App. LEXIS 4790 (9th Cir. 1939).

Opinion

GARRECHT, Circuit Judge.

Ben A. Bost, the appellant, in an indictment consisting of five counts, filed March 30, 1937, was charged with viola[718]*718tion of the Act of June 18, 1934,1 tried, found guilty on all five counts, sentenced to five years imprisonment under each count, sentences to run concurrently, and fined the sum of $5,000 under the first count. He appeals from said judgment.

April 6, 1934, the appellant presented one bar of gold bullion at the United States Mint in San Francisco for sale to the United States Government, together with an affidavit on Form TG-19, required by the regulations promulgated by the Treasury Department under the Gold Reserve Act of 1934.2 This affidavit recited the 'affiant, Ben A. Bost, of Nevada City,.Calif., to he the owner of the Lucky Gravel Claim, located in “Cougher Canypn,” Eldorado County, Calif.; that the source of the gold was in said claim, “mostly small nuggets”; that the gold was recovered from “200 cubic yards” of gravel or ore, in the period from October 1, 1933, to March 31, 1934; that the date' upon which the gold was first melted into crude metallic gold suitable for refining was April 5, 1934. The affidavit went on to state:

“The gold referred to herein was recovered by this depositor by mining or panning and no part thereof has been held hy this depositor or to the best of my knowledge, information and belief, by any other person at any time in noncompliance with the [719]*719Act of March 9, 1933, any executive order or orders of the Secretary of the Treasury issued thereunder, or in noncompliance with any regulations prescribed under such order or license issued pursuant thereto, or in noncompliance with the Gold Reserve Act of 1934, or any regulations or license issued thereunder. No part of such gold has ever entered into monetary or industrial use.
“I make this affidavit for the purpose of inducing the purchase by a United States Mint or assay Office of gold described herein under and in accordance with the provisions of the Gold Reserve Act of 1934 .and the regulations issued thereunder.”

The appellant offered gold at the United States Mint in San Francisco for sale to the United States on four other occasions and in each instance accompanied the gold with a similar affidavit. The indictment was drawn in five counts, each offer and accompanying affidavit being treated in a separate count.

Acting under instructions of his superior to make an investigation of persons suspected of handling and dealing in stolen high grade gold ore, R. C. Lynn, a special .agent of the Bureau of Internal Revenue, made a search of the records of the United States Mint at San Francisco for the names of licensed gold buyers or former licensed gold buyers in Nevada County, Calif. Among the names was that of Ben A. Bost, upon whom Lynn called in Nevada City, Calif., August 8, 1936. Bost told Lynn the gold sold by him to the Mint in 1935 was produced from the Lucky Gravel mining claim of which he owned the mineral rights and that the mine was located approximately 40 miles north of Georgetown, Calif., possibly in Eldorado County, Calif.

Lynn next saw Bost on August 24, 1936, at which time he told Bost that he had made a search to find the Lucky Gravel mining claim, without success, and offer•ed to furnish transportation if Bost would show him the mine. Bost informed Lynn that he would be unable to do so for the reason that he had seen the mine on but one occasion, five or six years before, and -did not recall the route he had taken.

On September 18, 1936, Lynn again called upon Bost, this time accompanied "by William Malloy, a deputy collector of Internal Revenue. Lynn told Bost on this occasion that he was unsuccessful in his .-search for the mine, had not been able to find anyone who had ever heard of it, and wanted to question Bost further. He then placed Bost under path, and Bost related a story describing how he became financially interested in the Lucky Gravel, how he journeyed there at night, spent a day there and returned next morning to his home.

Lynn further testified that he had made extensive searches and inquiries throughout the vicinity described by Bost but failed to find the Lucky Gravel Claim or Cougar Canyon, or the asserted lessees of Bost, namely Swissler, Larsen and Hensen, and that he failed to find anyone who had heard of any of them.

Other witnesses were produced by the Government, residents of the neighborhood, who testified that they had never heard of Lucky Gravel claim, Cougar Canyon, or of Swissler, Larsen or Hensen. One witness said that he had heard of a Cougar Canyon when he was a boy, 48 or 50 years before, and again, about 2 years before the trial, when he was asked whether he knew of such a place, but he had never been there and had no more than a vague idea of where such a canyon might be located.

In addition, the County Assessor of Eldorado County was called as a witness and testified that he was familiar with the assessment rolls of the county; that such -records were kept under his supervision; that there had not been any tax assessment on any claim known as the Lucky Gravel claim in Eldorado County nor had there been any tax assessment in said county against any individual named Hans Hensen, G. A. Swissler or Larry Larsen or Ben Bos't. The County Surveyor of Eldorado County testified that in all his 40 years of residence in Eldorado County he had never heard of Cougar Canyon or any claim known as Lucky Gravel, or of miners named Hans Hensen, G. A. Swissler or Larry Larsen. The County Surveyor of Placer County, which adjoins Eldorado County testified in like vein.

There was testimony from other witnesses for the Government also indicating that the canyon, mine and miners were wholly fictitious.

- The defendant produced four character witnesses, each of whom testified that the defendant bore a good reputation in his community.

[720]*720The defendant had lived in Nevada City, Calif., ever since his birth and operated a general assay office there from 1907 to March, 1934. He testified that a man named Swissler, whom he had known in 1886 in the town of Deadwood, Trinity County, Calif., and whom he had not seen since, called at his office in 1928, told him that he (Swissler) was prospecting and wanted Bost to advance him $250 to proceed with his work; that Swissler said he thought he would strike pay gravel; that Bost advanced the $250 and occasionally thereafter Swissler came in with small amounts of gold; that Swissler had not named the mine and Bost called it the “Lucky Gravel”; that Swissler told Bost it was located in Cougar Canyon, in Eldorado County. Bost further gave téstimony that Swissler called upon him late in October, 1930, and wanted more money and when Bost said that he wanted to see the mine, Swissler offered to show him; that they went by automobile to Rattlesnake Bar bridge, about 7 miles below Auburn on the Middle Fork of the American River; that they started from there at 6 :30 p. m. on burros, traveling from 30 to 40 miles over a trail; that they arrived at the mine at 3:30 a. m. and stayed all that day; that there was a 900 foot tunnel and a small stream of water on the claim; that the tunnel ran 800 feet through lava formation before striking gravel; that he examined the • tunnel ' and panned some of the gravel; that he rested all that afternoon and night; that Swissler and he left there at 5:30 'a. m.

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Cite This Page — Counsel Stack

Bluebook (online)
103 F.2d 717, 1939 U.S. App. LEXIS 4790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bost-v-united-states-ca9-1939.