Washington Securities Company v. United States

• Decision Date: 25 May 1914
• Docket Number: No. 367,367
• Citation: 58 L.Ed. 1220,34 S.Ct. 725,234 U.S. 76
• Parties: WASHINGTON SECURITIES COMPANY, Appt., v. UNITED STATES
• Court: U.S. Supreme Court

234 U.S. 76

34 S.Ct. 725

58 L.Ed. 1220

WASHINGTON SECURITIES COMPANY, Appt.,

v UNITED STATES.

No. 367.

Argued May 7 and 8, 1914.

Decided May 25, 1914.

Messrs. H. R. Clise, Charles Kennedy Poe, and Charles Poe for appellant.

Assistant Attorney General Knaebel for appellee.

Mr. Justice Van Devanter delivered the opinion of the court:

This was a suit to cancel four patents issued under the commutation provision of the homestead law, and embracing a full section of land in King county, Washington. The bill charged that the patents were fraudulently procured by falsely representing to the land officers that the lands were agricultural in character, and therefore subject to homestead entry, when in truth they were at the time known to be valuable coal lands, and therefore excepted from the operation of the homestead law. After the patents were issued the lands were conveyed to the appellant, and there was a further charge that it took the title with notice and knowledge of the fraud. The circuit court found that these charges were true, and entered a decree for the government; and the circuit court of appeals, taking a like view of the evidence, affirmed the decree. 114 C. C. A. 79, 194 Fed. 59.

The rule is well settled that findings of fact concurred in by two lower courts will not be disturbed by this court unless shown to be clearly erroneous. Stuart v. Haydon, 169 U. S. 1, 14, 42 L. ed. 639, 643, 18 Sup. Ct. Rep. 274; Towson v. Moore, 173 U. S. 17, 24, 43 L. ed. 597, 600, 19 Sup. Ct. Rep. 332; Dun v. Lumbermen's Credit Asso. 209 U. S. 20, 23, 52 L. ed. 663, 665, 28 Sup. Ct. Rep. 335, 14 Ann. Cas. 501; Texas & P. R. Co. v. Railroad Commission, 232 U. S. 338, 58 L. ed. ——, 34 Sup. Ct. Rep. 438. Applying the rule to the evidence in this case, we think the findings below should not be disturbed.

Only two of appellant's contentions merit special notice.

Without any uncertainty the evidence demonstrated that the lands were known to be valuable coal lands when the homestead entries were made and commuted, and that the affidavits and proofs to the contrary, upon which the patents were procured, were false. Not only were the lands in a well-known coal region and generally reputed to be coal lands, but a tunnel, slope, and other openings upon them, costing about $8,000, had disclosed that they contained coal of such quality and quantity as to render them valuable for coal mining. The entrymen so understood, and resorted to severe measures to keep coal prospectors off the lands.

The appellant's chief contention is, that there was no evidence, or, at least, no substantial evidence, that it took the title with notice or knowledge of the fraud perpetrated by the entrymen. But the record shows otherwise. The appellant's vice president, who represented it in the negotiations, had theretofore, as agent of another company, learned that the latter was interested in the coal development work before mentioned, and was, with others, bearing the...