Billings Land Title History

October 4, 2004

 

Continuously until after 1873, it was the Northern Pacific Railway Company’s intent to cross the Yellowstone River near the junction with the Powder River, and remain on the north side as it traversed west. As time progressed, it became evident that a change to the route would take place. This was not heavily advertised until their decision to cross the river where Coulson was located, and their new town of Billings, Montana was ready for occupancy. The summary listings herein define some of the significant events taken by the Railroad as it traveled west and into the Billings area in 1882. A few of these transactions are noted below, to illustrate the complexity of the operations needed to create the City of Billings. Some of the original homesteaders wer not homesteaders, but merely persons who transferred their land options over to enterprising individuals who wanted to gain financial advantages. Even the land offices withheld the ability of others to gain control of that lane, and waited until the time was “right” for the transactions to occur. Some of these privileges were exercised about 6-8 months later (not explainable). The original Billings City plat was created in the NPR Engineering offices in Miles City. The draftsman having reviewed what he had created selected some lots in what he thought were “prime location.” When he arrived in Billings to claim them, he discovered they were under water. They were exchanged for others.

 

 The NPR received five First Mortgages to get them started. Other mortgages (bankruptcy’s and changes of corporate names came later.) An Act of Congress provided for their Charter (13 US Statute At Large, 365) and approved July 2, 1864. On May 30, 1870 another Act of Congress (16 US Statute at Large 378) authorized NPR to mortgage its property, including lands that were not surveyed, and property of all kinds. These and the loan guarantees were filed with the Office of the Secretary of the Interior, in Washington, DC. Extensive files about the subsequent foreclosures and title transfers are available. Contact YGF Webmaster for details and special searches.

 

• Farmer’s Loan and Trust Company, Trustee (May 1, 1879 Filed Vol 2, Land Grant Records, pg 255)
• Conveyed $2,500,000.00 for the main line of the railroad (Missouri Division) in Dakota and Montana
• Central Trust Company of New York, Trustee (January 1, 1881 Filed Vol 2, Land Grant Records, pg 31)
• Conveyed $43,393,000.00 (Construction costs not to exceed $25,000.00 per mile) for main line and Cascade branch, telegraph line and all lands.
• Farmer’s Loan and Trust Company, Trustee (November 30, 1883 – Second Mortgage)
• Conveyed $20,000,000.00 subject to prior liens, except for lands situated in Minnesota and Dakota east of Missouri River.
• Farmer’s Loan and Trust Company, Trustee (December 1, 1887 – General Second Mortgage)
• Conveyed $12,000,000.00 subject to prior liens, except for lands east of Missouri River in Minnesota and Dakota.
• Farmer’s Loan and Trust Company, Trustee (December 2, 1889 – Consolidated Mortgage)
• Secured $62,442,000.00 or an amount not to exceed $160,000,000.00, except for lands mortgagor granted to it by Congress, and except for lands in Minnesota and Dakota east of Missouri River. The General First Mortgage, General Second and General Third Mortgage are considered prior liens. (General Third Mortgage – not located)

 

The NPR Original Patent #192, provided for by Act of Congress on July 2, 1864 established the preliminary limits for the acquisition of lands. Distinction between a state and a territory was not made: “every alternate section of public land, not mineral, designated by odd numbers, to the amount of twenty alternate sections per mile on each side of said railroad whenever it passes through any State, and whenever on the line thereof, the United States have full title, not reserved, sold, granted, or otherwise appropriated, and free from pre-emption or other claims or rights, at the time the line of said road is definitely fixed, and a plat thereof filed in the office of the Commissioner of the General Land Office;” and other considerations. This created a corridor extending 40 miles on each side of the line; from which NPR could take title. Soon as they did, the State(s) applied taxes. Land value was typically $1.25 per acre, so if each parcel of land were sold at that amount, NPR would have received only $16,000. Much less than the $25,000 per mile construction costs. Most of the lands could not be sold, and revenue had to come from other sources.

1879, September 1 Mortgage or Deed of Trust Issued to Farmers Loan and Trust

 

To support the construction of the railroad NPR acquired the mortgage, and financed it through the issuance of $2,500,000 in a series of bonds, with the land titles as collateral. Some of these issuances started earlier on May 1, 1879. The records of the transactions are filed with the Department of Interior and in Volume 2 of the Land Grant Railroads. All were repaid on July 2, 1909, and filed on September 20, 1909 with the Clerk of the Court in New York. The Release is located in Vol 21, page 397 of that court. Acting Secretary of Interior, on July 12, 1909 acknowledged the release on July 12, 1909. As the sale of property from NPR to potential buyers occurred, various and numerous records had to be carefully maintained. When the railroad went through several bankruptcies and changes of management, this repayment and confirmations became very messy, to say the least.

 

1881, January 1 Mortgage Issued to Central Trust Company by Northern Pacific Railroad Company

 

The Central Trust Company issued a subsequent mortgage for the property that NPR would acquire, and as sectional patents were formally received, the railroad would pay back the Trust Company. This mortgage was paid in full on November 13, 1899, and thereby released; it included the lands in Yellowstone County[1].

 

1882, March 23 Articles of Incorporation

 

Heman Clark, John B. Westbrook and Thomas C. Kurtz created the Minnesota and Montana Land and Improvement Company [called “the Company”] in Ramsey County, Minnesota. It was designated to become effective as of March 15, 1882, and continue for thirty years. The function was to “buy, own, improve, sell and deal in land, real and mixed, and have personal estate and properties.” This article was withheld until March 26, 1896, when it was filed to the public in Minnesota.[2] The original capital stock raised by these three men was $200,000, with a limit of $100,000 of indebtedness liability allowed against the corporation.

1882, June 1 Plat of the Town of Billings

 

Filed in Custer County it identified portions of Section 33, Township 1 North, Range 26 East, and the adjoining Section 3, Township 1 South, Range 26 East from which the town was platted. Included in the original plat were both the North and South Parks. There is no mention that the North Park was named for Austin North, but merely that it was on the north side of the town, as was the South Park, on the south side of the Prime Meridian. [Austin North arrived in Billings in 1889.] The park was not improved for several years, and was used as the “Fairgrounds.” After its development into a real park, it would appear that many people were led to believe that it was named for Austin North. Since more families lived on the south side of town in the early years, that park was developed first, leaving the vacant and open fields at north park to be used as the fairground area for many years. The surrounding area of Billings was mostly farmland, and the Clanton family, for example, owned 160 acres comprising the northwest quarter of Section 31. Identification of the lots, alleys, railway right-of-way and streets are well defined, but were not put into actual placement until the need arose to do so. The city center was established by two monument markers; one at the center of 25^th Street North and the north edge of Montana Avenue, the other on 25^th Street South and the south edge of First Street South. Theodore F. Branch was the surveyor who attested to the document.[3]

o       A Certified Copy of the Custer filing was made on September 1, 1884 in Yellowstone County.

o       A second filing of a Certified Copy was made on June 3, 1909 in Yellowstone County.

 

1883, March 20 Warranty Deed & Release for Land that Created City of Billings from NPR & Central Trust Company to the Company

 

All of Section 3 1S and all of Section 33 1N [1,102.25 acres] less a 400-foot wide strip of easement for the railway & telegraph was sold to “The Company” for $40,000. This was in accordance with the original intent to construct a town on the premises as identified in a January 1, 1881 filing with the Secretary of the Interior in Washington DC[4].

 

1883, June 15 Warranty Deed (Section 5) to Frederick Billings from “The Company”

 

All of Section 5, Township 1 South Range 26 East (excepting for the NPR 400 foot strip) was sold to Frederick Billings for $25, 600.00[5].

 

1884, December 12 Warranty Deed (Sections 3 & 19) to Frederick Billings from “The Company”

 

All of Sections 3 and 19 in Township 1 South, Range 25 East was sold to Frederick Billings in exchange for a re-conveyance of Section 5 back to the Company, and $1,600 additional payment[6].

 

 

1884, December 12 Warranty Deed (Sections 3 & 19) to Frederick Billings from “The Company” – Correction of Range Identification

 

All of Sections 3 and 19 in Township 1 South, Range 26 East was sold to Frederick Billings in exchange for a re-conveyance of Section 5 back to the Company, and $1,600 payment[7].

 

1885, November 17 Agreement on Sale of Section 5 to Myers & Transfer to the First National Bank

 

All of Section 5 (less NPR 400 foot strip which amounted to 632.07 acres) was sold to Alfred Myers (2/3) and Benjamin Myers (1/3) for #3,500.00 plus other considerations? On July 26, 1893, Alfred Myers and his wife were paid $14,259.30 for the property by the First National Bank (Preston B. Moss). Benjamin Myers released his claim to section 5 on August 3, 1908 for $1.00 consideration. This cleared the title. On August 8^th, Alfred and his wife also quit claimed their interests.

 

 

1886, May 29 North Elevation Subdivision 1^st & 3^rd Filing; Foster’s Addition

 

The plat map for this addition shows that there were no rail lines on Fifth Ave N at the time of the filing. (File # 9412)

1887, September 4 Warranty Deed of NW1/4 Section 31 to William Clanton (Leading to the Highland s Homes Company Subdivision)

 

“The Company” sold to William H. Clanton the East ¼ of the NW1/4 and Lots 1 and 2 (All of NW1/4 Section 31) consisting of 160.28 acres for $1,282.24. [$8.00 per acre] For this they established a mortgage with “The Company” that required payments over a four-year period. On December 23, 1891 the mortgage was paid, and attested to by Heman. On July 12, 1892 the Clanton’s sold the property to Jennie Atchison for $2,500. As part of the agreement Jennie had a mortgage that was due in one year. The subsequent and complex filings on this same property are shown below. Virtually each parcel of land (Lot, Block, partial section, or complete section) had similar exchanges and fights for title rights. What started out, as simple water rights soon became bargaining chips, “so to speak.” When property values fell, foreclosures started. These actions are about 160 acres of farmland.

 

·        1893, August 11 – Clantons took out mortgage with First National Bank for $2,669.00 due in one year for the property (to pay off promissory note)

·        1893, August 12 – Mortgaged property to Christian Yegen in exchange for $1,213.65 (to pay off promissory note)

·        1893, September 6 – Sold property under Warranty Deed to Preston Moss and Henry Rowley, excepting for mortgages for $1.00 transfer fee

·        1894, September 17 – Moss and Rowley Quit Claimed the property back to Clanton for $1.00

·        1898, July 22 – Satisfaction of Mortgage payment by Christian Yegen

·        1901, September 1 – Marginal Satisfaction of Mortgage by Clantons was agreed to by Bank (Preston Moss)

·        1901, August 26 – Mortgaged property to Charles Spear for $2,200, due in three years.

·        1901, September 3 – Mortgage transferred by Spear to Cora L. Ramsey in exchange for the $2,200 note.

·        1901, October 4 – Mortgage for $9,000 taken out by Clantons from the American National Bank of Helena. Due in one year with an 11% interest.

·        1901, December 18 – Articles of Incorporation for Billings State Bank (Charles Spear, W Hansord, Paul McCormick & CO Gruwell).  500 shares of stock created at $1,000 per share.

·        1902, January 27 – Power of Attorney provided by Alfred Strom to Cora L. Ramsey for all real estate transactions

·        1902, February 21 – Mortgage assigned to Alfred Strom (Swift County, Minnesota) for “Other Considerations”

·        1902, July 15 – Mortgage with the American National Bank was paid in full by Clanton

·        1902, July 22 – Mortgage for $5,000 acquired from the Billings State Bank of Montana by Clanton. Due in one year at 10% interest.

·        1904 – January 20 – Right of Way Deed to Billings Land & Irrigation Company, Washington State, issued by Clantons. This allowed a 100 foot wide canal to be placed across their property, and a bridge was to be erected for crossing the canal.

·        1905, July 12 – Mortgage for $5,000 acquired by Clanton from Middlesex Banking Company in Connecticut at 5% interest, due in one year.

·        1905, July 15 – Mortgage paid by Clantons to Alfred Strom (by Power of Attorney via Cora Ramsey)

·        1905, July 15 – Mortgage paid by Clantons to Billings State Bank

·        1909, December 23 & 29 – Complaint by Billings Polytechnic Institute against Clantons

o       The school was in process of construction, and had made some arrangements with the Clantons to permit water pipes from the city system to cross their property.

o       The pipe route was established as being a strip of land 15 feet wide and was considered to not impair the ranching activities of the Clantons.

o       The school sought condemnation of the strip for installing the pipe at their expense, plus easement.

o       A summons was issued to the Clantons on December 3, 1909

o       The judge condemned the strip of land, and the pipe was installed. Final decree issued on January 29, 1910 By Sydney Fox.

·        1910, August 5 – Clantons sold property, including their 40 shares of water rights in the Big Ditch and others, plus their buildings, to W. H. Hopkins for considerations.

·        1910, August 9 – W. H. Clanton died, and his estate was valued at $48,000. His wife to administer the estate on August 22nd initiated a Petition for Letters. On September 12^th she was granted that ability. A lengthy legal battle ensued as various banks wanted control. As a result of his death, Hopkins had to Quit Claim their purchase back to the Clanton Estate[8].

·        1911, February 11 – Mortgage paid to State Bank of Carson City, Michigan (Less $5,343.20 on note.)

·        1911, February 27 – Mortgage paid by Clanton to Middlesex

·        1911, September 26 - – Mortgage fully paid to State Bank of Carson City, Michigan

·        1912, May 20 – Tax Deed to convey title to Yellowstone County. Taxes from 1908 to present were unpaid, and the land confiscated. To support the transfer, the estate had to file a Warranty Deed to Lee Mains on June 9, 1913, establishing the pipeline water rights that belonged to the Polytechnic school.

·        1913, June 14 – County Commissioners transfer title to Highland Homes Company for $1.00 fee. The Highland Homes was incorporated on April 9, 1913 with $75,000 of stock. Subsequent actions on the sale of land are available in the YGF files. On October 13, 1921 the Court ordered the Highland Homes to Vacate their land plat. More action followed.

1888, November 1 Transfer of the Land by “the Company” to Oliver C. Billings, New York Trustee

 

All property of all kinds, and all improvements lying in County of Yellowstone, Montana Territory, is transferred to Oliver Billings as trustee for “the Company”, for a sum of $40,000. In the event of death, inability or failure to perform, another trustee shall be appointed.[9]

 

          1900, August 1 Release of Mortgage

Samuel Kilner, trustee, paid the mortgage of $40,000 taken out by Oliver Billings on behalf of the Company, on November 1, 1888, in full[10].

1894, March 8 Appointment of Samuel E. Kilner, Trustee of “the Company”

 

Oliver Billings died on January 9, 1894, and according to the rules previously established, the original corporate holders for all the Yellowstone County property appointed Kilner trustee[11].

 

1894, December 31 Patent Issued for the Billings Townsite

 

The Government issued to the Northern Pacific Railroad Company, the land patent on the townsite property as previously committed to by the May 31, 1870 Joint Resolution of Congress and the July 2, 1864 Land Act[12]. This consisted of:

 

 

 

 

 

 

 

 

 

 

 

1895, June 18 Warranty Deed for Section Five Issued to First National Bank

 

“The Company” issued their Warranty Deed to the bank for the Section 5 properties, upon receipt of $3,500[13]. This cleared the way for the creation of the Broadwater Subdivision. On April 23, 1907 Articles of Incorporation were filed forming that company. The investors committed $50,000 of capital to the venture. [JB Arnold, Austin North, PB Moss & EA Howell] The corporation was dissolved on April 26, 1927 as prescribed in the original articles.

 

1906, March 20 Foster’s Addition of City Property Plat

 

This specially prepared plat shows that there were no rail lines on Fifth Ave North, although the 1904 City map shows the lines completed and in full operation. Litigations for the Foster’s addition were initiated later in 1913, and the original ownerships of the land were well documented during the title fight. (YGF File 4652 and others)

 

Comment: Why were the rail lines omitted? If anyone knows, please advise