In 1873 he moved his family to Nebraska where he founded the city ofCozad. Their time in Nebraska was short-lived. In 1882 Cozad got into an altercation with a rancher named Alfred Pearson. They both claimed ownership over the same plot of land. Over time their disagreement became increasingly strong. In October of that year Cozad shot Pearson in the face. He died from this injury two months later. Fearing he would be hanged he fled with his family to Denver.