248 F. 485 | 8th Cir. | 1918
The trial court dismissed the bill as to Routt County Coal Company and the Rugby Fuel Company, upon the ground that they were both bona fide purchasers. The decree was right as to the latter company, but wrong as to the former, for the reasons above stated.
Miller executed his deed for the property to the Empire Company August 4, 1902. It was filed August 18th of the same year. The receiver’s receipt bears date August 13th, nine days subsequent to Miller’s .deed, and was filed August 18th, the same day as the deed.
Counsel for the government argues that, because Miller’s deed
(1) The fact that the receiver’s receipt bears date subsequent to Miller’s deed is as susceptible of an innocent explanation as of a fraudulent one. Delays in issuing receipts in the land office are frequent. The proof may be accepted, and the officers state that it Is entirely satisfactory, and that the receipts will be issued in due course of business. Such delay may also be due to some merely formal matter, which the entryman is required to supply before the receipt will be issued. In either case the execution of the deed prior to the issuance of the receipt would be an innocent transaction.
(2) As is already stated, the registry was not notice of inferences which could only be drawn by mathematical calculation from the dates. Such a circumstance would not be sufficient to put a purchaser upon inquiry within any sound rule of law. United States v. Detroit Timber & Lumber Co., 131 Fed. 668, 67 C. C. A. 1; Shulthis v. McDougal, 170 Fed. 529-540, 95 C. C. A. 615; United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 26 Sup. Ct. 282, 50 L. Ed. 499; Tobey v. Kilburne, 222 Fed. 760-764, 138 C. C. A. 308.
The decree of the trial court is modified, so as to declare null and void the title of the Routt County Coal Company, and otherwise is affirmed.