United States v. Kostelak

207 F. 447, 1913 U.S. Dist. LEXIS 1320
CourtDistrict Court, D. Montana
DecidedAugust 4, 1913
DocketNo. 249
StatusPublished
Cited by2 cases

This text of 207 F. 447 (United States v. Kostelak) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Kostelak, 207 F. 447, 1913 U.S. Dist. LEXIS 1320 (D. Mont. 1913).

Opinion

BOURQUIN, District Judge.

This is a suit to cancel a patent for 160 acres of land issued upon a homestead entry upon the ground of fraud in that, when final proof and entry were made, the land was not valuable for agricultural purposes and was mineral land chiefly valuable for the coal therein, and that to the knowledge of the entryman. The defenses are denials.

The original homestead entry was made by the defendant John Kostelak on April 1, 1901; five-year final proof and final entry were [448]*448made in June, 1906, and patent issued November 2, 1906. The bill was filed herein June 7, 1912, and the testimony taken before the court April 2, 1913. The issue of bona fide purchaser is not involved. The patentee fully performed all the conditions precedent to homestead patent.

The land is four 40-acre legal subdivisions which in form are an inverted “T.” It is a fairly level “bench”; the’ north “forty” being penetrated from the west by a broad coulee 160 feet lower than the bench at the west line and gradually rising to the level of the bench at the east line.

In ’1881 the vicinity was being first settled. An adjoining settler drove a tunnel about 75 feet long on the north 40 of said land; the mouth being about 500 feet southeasterly from the northwest corner thereof and about 40 feet above the floor of said coulee. This tunnel trended northeasterly and disclosed five or six feet of coal vein cropping in blanket form. The government’s inspectors testify the crop-pings are about five feet thick midway of the tunnel, two or three feet thick at the face of the tunnel, with six inches of bone or slate on top, and that because of dirt on the floor of the tunnel they did not see the bottom of the coal seam. When the tunnel was driven, some of the coal was burned by the settler and some others; wood for fuel being distant 20 miles. About two years later the settler sold his claim and abandoned the tunnel and from that day to this the tunnel continued abandoned. No other work of any kind was done upon this land in suit for coal mining purposes until near two years subsequent to the aforesaid final entry of defendant Kostélak. About 1882 two tunnels trending southerly and several hundred feet in length were driven into the same bench and about three-fourths of a mile northeasterly of the land in suit. The coal disclosed therein was very poor, principally slate; some was burned by settlers; and both tunnels were abandoned and have since so continued. In Í886 the Sand Coulee main mine was opened about two miles southwest of the tunnel upon the land in suit and across a coulee, though on a bench of the same elevation, which mine was operated profitably until 1897 when it was practically worked out. In 1887 the Dean mine was opened about one-fourth mile from the said Sand Coulee mine and in the direction of the land in suit, which seems to have been and is being operated more or less continuously.

In 1885 a railway company prospected near the land in suit, sinking drill holes. One was sunk about one-fourth mile east of the northeast corner of the north 40 of the land in suit, another was sunk very close to the south line thereof, neither of which found coal, and another was sunk near the northeast corner of the east 40 and found no workable coal. No development followed. No coal croppings existed on the land in suit save in the tunnel aforesaid prior to Kostelak’s final entry. Blackened earth on the surface inspired said tunnel, and the coal croppings were found therein. They were fairly typical of those found generally throughout the locality and which on development might or might not lead to good and profitable coal. The land in suit is without what mining men take to be the main coal basin, and likelihood of croppings under .such circumstances leading to good and [449]*449profitable coal was and is doubted. At the time of final entry the agricultural value of the land was not great; like land being there procurable at from $2.50 to $8 per acre. The entryman was a cigar maker and followed his trade upon the land. He made the home of himself and family, consisting of his wife and their seven to ten children, on the land for about six years and until about six months after patent issued. His improvements, stock, cultivation, and crops were substantial. In the vicinity other lands were like improved and cultivated, and this land in suit compared favorably therewith in all agricultural respects. To briefly note the history of the land as disclosed by the records of the government land office, it appears that in 1888 the township including this land was withdrawn from agricultural entries for that a departmental special agent had reported large bodies of coal therein. In 1889 this withdrawal was revoked save as to several sections, including section 7, and within which is this land, and in 1891 the revocation was extended to all thereof. Prior to 1888 lands adjoining the land in suit on the south and east had been sold by the government as coal land, and in 1883, 1896, and 1901, lands adjoining the land in suit on the north, west, and south were sold by the government as agricultural lands.

Taking section 7 as the center of a township, about 2,500 acres thereof have been entered and patented as coal land, and about 21,000 acres thereof have been entered and patented as agricultural land. All coal entries are of bench lands, and all agricultural entries are of coulee and bench lands. Prior to defendant’s entry of the land in suit, it had been entered as agricultural land and abandoned. The agricultural possibilities of the locality were in a measure unknown until a few years prior to the final entry involved but have steadily appreciated until values have increased in instances fivefold; the bench lands having proven more valuable for agriculture than the coulee or bottom lands.

At some indefinite time a profitable coal mine (Brown’s new mine) has been opened about onerhalf mile south of this land. Likewise, at the southwest corner of this land, a tunnel has been driven in the direction of the land and practically to its south line, wherein was found some very poor coal, and the tunnel was abandoned.

The locality has had railway facilities since long prior to the final entry involved. Until within “a very few years” it was almost impossible for small coal operators “any distance from the railroad track” and because of rates and the large operators to “make any moneyc”

Defendant Kostelak says he knew before final entry that there was a prospect hole on the land (the tunnel), but it was somewhat caved and he did not enter it and knew nothing of coal therein. (He is taken to know all that might have been known by inspection, however.) In his final proof he testified there were no indications of coal on the land. The officer before whom final proof was submitted testified at this trial that Kostelak told him that there was “an old abandoned prospect hole” on the land, and no more; so it was written in the proof that there were no indications of coal on the land. In April, 1908, 2 years after the final entry and 18 months after patent, Kos[450]*450telak leased the land for coal mining purposes to defendant Lochray for a term of 20 years. Kostelak then conveyed the land to his wife, and she likewise leased it to Lochray for a term of 15 years. Lochray had been a coal operator in the locality from about 1886 and was familiar with the land, having been in the tunnel in 1884 and thereafter. He commenced development on the squth side of the coulee, exhausted his resources, then organized a company and transferred his lease to it.

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Related

United States v. Northern Pac. Ry. Co.
1 F.2d 53 (D. Montana, 1924)
United States v. Dougherty
277 F. 451 (D. Montana, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
207 F. 447, 1913 U.S. Dist. LEXIS 1320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-kostelak-mtd-1913.