United States v. State Box Co.

219 F. Supp. 684, 1963 U.S. Dist. LEXIS 10509
CourtDistrict Court, W.D. New York
DecidedMay 28, 1963
DocketCiv. No. 8210
StatusPublished
Cited by3 cases

This text of 219 F. Supp. 684 (United States v. State Box Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. State Box Co., 219 F. Supp. 684, 1963 U.S. Dist. LEXIS 10509 (W.D.N.Y. 1963).

Opinion

HALBERT, District Judge.

This is an action to quiet title to timber on lands owned by the United States and to obtain a declaration that timber previously removed from such land by a purchaser from the United States was lawfully removed. In connection with the Government’s quiet title action, defendant has set forth a counterclaim seeking recovery for the value of the timber removed by said purchaser. The parties [685]*685are in general agreement as to the basic facts involved. They should be summarized before undertaking a discussion of the controlling issues of law raised by this action.

The Facts

The case begins with the historic Pacific Railroad Act of July 1, 1862 (12 Stat. 489). In §§ 3 and 9 of that Act, the Union Pacific Railroad Company and the Central Pacific Railroad Company of California were granted every alternate odd section of public lands “to the amount of five alternate sections per mile on each side of said railroad * * * and within the limits of ten miles on each side of said road, not sold, reserved, or otherwise disposed of by the United States, * * * PROVIDED, That all mineral lands shall be excepted from the operation of this act; but where the same shall contain timber, the timber thereon is hereby granted to said company.”

This Act was amended by the Act of July 2, 1864 (13 Stat. 356) which, while increasing the land grant to ten odd numbered sections within twenty miles on each side of the railroad, provided “That the phrase ‘but where the same shall contain timber, the timber thereon is hereby granted to said company,’ in the proviso to said section three, shall not apply to the timber growing or being on any land farther than ten miles from the centre line of any one of said roads or branches mentioned in said act, or in this act.” The Pacific Railroad Act (Section 2) also authorized the cutting of timber on the adjoining public lands to the extent necessary for use in construction of the road. As far as can be ascertained, none of the subsequent railroad land grant acts permitted removal of timber from the excluded mineral lands.

The lands concerned in this lawsuit are all located in the State of California, in Section 15, T. 18 N., R. 11 E, M. D. B. & M., and comprise some 390.89 acres. The remaining lands in Section 15 were all patented under mineral patents issued to private individuals at various times between 1874 and 1917.

In 1902, the Central Pacific Railroad Company contracted to sell the timber on the lands here involved (and certain other lands not here in issue) to F. A. Birce and E. K Smart, who were engaged in lumbering operations in the area at that time. In 1906, the contract was completed by execution of a bill of sale conveying the timber only. The purchase price was approximately $3.00 an acre, which was the average price asked by the railroad for land at that time.

In 1909, Birce and Smart conveyed to the Nevada County Bank of Grass Valley and, in the following year, the bank conveyed to B. G. Tognazzini and T. C. Tognazzini who, in 1912, conveyed to the Central Mill Company. All of these conveyances covered not only the timber on portions of section 15 but also all of the timber located on the other areas originally conveyed to Birce and Smart.

In 1944, State Box Company purchased all of the outstanding stock of the Central Mill Company, pursuant to Central Mill’s dissolution. In June of that year, State Box also purchased all of the outstanding stock of the Tahoe Sugar Pine Company and four days later resold this stock to various individuals who were also officials of State Box. During the course of the dissolution of Central Mill, its Board of Directors adopted a resolution directing that all of its remaining property be conveyed to the sole surviving stockholder, State Box. Two deeds were then executed, neither of which included the timber on section 15. The timber was sold by the United States to Grizzly Creek Lumber Company in 1955. On July 29, 1958, two individuals, who had been officers of Central Mill when it dissolved in 1944, executed a deed from Central Mill to State Box, which deed purports to cover all property of Central Mill in the State of California.

In connection with the foregoing title history, two external facts are of some import. First, in 1925, Central Pacific filed a selection list seeking the issuance of a patent on, among other lands, section [686]*68615. However, it was determined that this land was mineral and the application was rejected. Second, in 1932, Central Mill entered into a timber-cutting agreement with Tahoe Sugar Pine, covering all of the lands acquired from Birce and Smart by Central Mill except section 15.

The Government has set forth its claim to the lands here concerned by virtue of the following facts. On December 18, 1902, these lands were withdrawn for national forest purposes, and, by proclamation dated September 17, 1906, 34 Stat. 3232, they were placed within the Tahoe Forest reserve. They have never been patented by the United States. They have been administered as a part of the Tahoe National Forest, and given the same fire protection and timber care provided for all other lands and timber of the United States in the Forest.

No claim of title to the timber had ever been filed (prior to 1958) by any private party, and the county tax records have never indicated any claim of private ownership, i. e., defendant and its predecessors have never paid taxes on the timber.

In 1937, the United States Forest Service included the timber on these and other lands in a sale to the Tahoe Sugar Pine Company. This sale was completed after publication of a general notice in a Nevada County newspaper, but the contract was canceled (at the purchaser’s request) before the Tahoe Sugar Pine Company reached section 15 in its lumbering operations.

Section 321 of the Transportation Act of 1940, (54 Stat. 954, 49 U.S.C. § 65 (b)) provides that upon the filing of a waiver of its remaining land grant claims any railroad will be relieved of existing requirements that it grant special rates to the United States. Waivers filed under this Act, however, do not apply to lands previously patented or certified to the railroad or “prevent the issuance of patents confirming the title to such lands as the Secretary of the Interior shall find have been heretofore sold by any such carrier to an innocent purchaser for value.” In regulations relating to this Act (See 43 C.F.R. § 273.65 of 1944 Cum. Supp., and 43 C.F.R. § 273.68) the Secretary of the Interior provided that all railroads filing a release should list all lands previously sold. On October 28, 1940, the Southern Pacific, on behalf of the Central Pacific, filed such a release. That railroad, however, did not at any time list with the United States the 1906 timber sale affecting these lands. Thereafter, when the Southern Pacific Railroad advised the Forest Service with respect to the “innocent purchaser” conveyances that would be excepted from its release it again did not refer to any conveyances affecting this particular land.

In 1949, action was brought under the name of United States v. Waldron, No.

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Bluebook (online)
219 F. Supp. 684, 1963 U.S. Dist. LEXIS 10509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-state-box-co-nywd-1963.