Looters of the Public Domain/Chapter 28
Chapter XXVIII
AFTER the confession of Puter, following his conviction in the 11-7 case, at the request of Francis J. Heney. Special Assistant to the United States Attorney-General, Judge Charles B. Bellinger reconvened the Federal Grand Jury, and in the course of a session lasting from December 17, 1904, to April 8, 1905, and for a few days in August and September of that year, no less than twenty-six indictments were returned by the inquisitorial body, affecting approximately 100 persons, many of whom were prominent. Without doubt, the operations of this Grand Jury were the most important, so far as the public domain is concerned, of any similar body that ever assembled in the United States, and its acts will go down into history as a monument to the overthrow of the looters.
Of the twenty men composing the body, twelve were farmers, two were Portland merchants, two were capitalists, while one fruit grower, one stockraiser, one hotel keeper and a laborer made up the remainder. All were drawn from different sections of the State, twelve counties being represented in the panel.
Too much praise cannot be accorded this famous body for its earnest efforts in probing the corruptive methods employed in acquiring title to the Oregon timber lands. By process of fraud of various kinds, millions of acres of the public domain, comprising practically the cream of an immense area, had passed into the hands of Eastern speculators and large lumber syndicates, whose agents had accomplished their base designs through the bribery of public officials, and by other corruptive tactics of equal degradation.
The Grand Jury was made up entirely of a class of men engaged actively in various industrial pursuits at the time they were chosen to make these investigations. For months they labored incessantly and faithfully at great financial sacrifice, and their unselfishness in this respect should earn for them the everlasting gratitude of all good citizens.
Upon the temporary adjournment of the Federal Grand Jury on February 13, 1905, it passed this set of resolutions:
"Resolved, by the Federal Grand Jury, that we extend our sincere thanks to District Attorney Heney for the uniform kindness and courtesy shown this body, and commend him for his faithful and efficient work on behalf of the Government.
"Resolved that a copy of these resolutions be presented to Mr. Heney with the compliments of this Grand Jury.—W. H. H. Wade, foreman; John W. Jory, secretary; L. A. Vogal, W. P. Button, Joseph Fetzner, George Giustin, Foster Adams, A. Bettinger, A. H. Parsons, George D. Feebler, L. R. Herren, F. G. Buffum, L. N. Edwards, William Shepherd, John Shaw, J. R. Hays, G. Christiensen, Joseph Essner, V. W. Robnett.
Following is a list of indictments returned by the body during 1904 and 1905. Those found in 1906, as herewith indicated, were the acts of a succeeding Grand Jury:
Those involved in this indictment have been referred to with such frequency in these pages that no extended comment is necessary. The "Robert Simpson" mentioned was a fictitious person. While the primary object of the indictment was to bring F. P. Mays within the meshes of the law, as a matter of fact, the latter was tried and convicted under indictment No. 2918, known as the "Blue Mountain Forest Reserve" case, and there is not much likelihood of No. 2887 ever coming to trial.No. 2887—Indictment returned December 23, 1904, charging Franklin Pierce Mays, Horace G. McKinley, S. A. D. Puter, Mario L. Ware, Emma L. Watson, D. W. Tarpley and Robert Simpson with a violation of section 5440, being conspiracy to defraud the Government out of the title to public lands in township 24 south, range 1 east, Willamette meridian.
No. 2890—Indictment returned December 27, 1904, against Salmon B. Ormsby, William H. Davis, Clark E. Loomis, Henry A. Young and George Sorenson, with conspiracy under section 5440 of the Eevised Statutes, to defraud the Government out of lands in township 11 south, range 7 east. Consolidated with case No. 2898, alleging conspiracy on the part of persons named with Binger Hermann, S. A. D. Puter, Horace G. McKinley, Emma L. Watson, Dan W. Tarpley, Elbert K. Brown, Mrs. Nellie Brown and Frank H. Walgamot.
The most interesting figure in this proceeding is Dr. W. H. Davis, the Mayor of Albany, Ore., at the time the indictment was returned, and also chairman of the Republican Central Committee of Linn County. It seems he undertook to do business in the fated township 11-7, upon practically similar lines to the system pursued by Puter, et al., but lacked the nerve to carry the scheme into execution, and abandoned the attempt. It was presumed that Binger Hermann, while Commissioner of the General Land Office, had a "stand-in" on the proposition, by reason of political affiliations.
No. 2891—Indictment returned December 31, 1904, against Binger Hermann, charges him with conspiracy to secure title fraudulently to certain public lands.
This indictment had reference to the part Hermann is alleged to have played in the efforts of Puter to have the patents expedited for the twelve fraudulent homestead entries in township 11-7.
No. 2892—Indictment returned December 31, 1904, against George Sorenson, charging him with a violation of section 5451 of the Revised Statutes, in offering a bribe to John H. Hall, then United States Attorney.
Sorenson was tried upon this charge, but the jury failed to agree, standing ten for conviction and two for acquittal after a long session. Heney accused the two recalcitrant members of the body with having been tampered with in some way, and his vehement remarks to them upon the subject after the jury had been discharged, provoked considerable applause from the other ten.
No. 2895—Indictment returned January 21, 1905, charges George Sorenson with perjury, alleged to have been committed in connection with the first trial of the foregoing case.
No. 2897—Indictment returned January 31, 1905, against Earl Benson, William T. Nicholls, O. M. Lawrence, Hans Wadtli, Fred Wadtli, O. J. Mealey, William Mealey. John Thompson and Richard Watkinds, charging them with a violation of section 5399, Revised Statutes, in having threatened Andy Nicholls, a Government witness.
The defendants in this case were fellow "dummies" of Andy Nicholls, having been involved with him in the Townships 13 and 14 South, Ranges 3 and 4 East deal, wherein the Mealey brothers secured a large tract of choice timber land for C. A. Smith. The "faithful" blamed Andy for exposing them to the Government Secret Service, and threatened him accordingly. Heney promptly had them all indicted and placed under heavy bonds as a measure of precaution, and the photograph of Andy Nicholls, printed elsewhere, does not indicate that he was cast down to any great extent by reason of the threats.
Meldrum was formerly United States Surveyor-General of Oregon; Kinnaird was a Government examiner of surveys; Waggoner was chief clerk of the Surveyor-General's office under Meldrum; Winton and Klaetsch were contractors for Government surveys, while Stipp and Dungan are alleged to have taken fraudulent acknowledgements in connection with the survey of certain townships, both being notaries public. Meldrum was convicted on twenty-one counts of an indictment returned by a previous Grand Jury, and is now doing time at the Government prison on McNeill's Island.No. 2912—Indictment returned February 10, 1905, against Henry Meldrum, George E. Wagoner, David W. Kinnaird, Benjamin F. Winton, Gustavo Klaetsch, George Sorenson, Livy Stipp and Frank H. Dungan, charging them with a violation of section 5440, Revised Statutes, by means of fraudulent surveying contracts.
No. 2915—Indictmont returned February 13, 1905, against John H. Hall, Henry Ford, Harry L. Rees, A. P. Caylor, John Cordano, J. H. Hitchings, John Northrup and Charles F. Lord, charging them with a violation of section 5399, Revised Statutes, in endeavoring to intimidate an officer in a United States court in the discharge of his duty.
Back of this indictment there is an interesting story. It is claimed that the defendants entered into a conspiracy to bring disrepute upon Heney by having him involved in a scandal with Marie Ware. Her friend Alice White was selected to carry on the negotiations with Miss Ware, but the two women lost no time in apprising Heney of the situation, and the indictment was the consequence. Hall was the Ex-United States Attorney whom Heney was instrumental in having dismissed from office; Ford is a private detective of Portland, Ore.; Rees was a crooked clerk in the paymaster's department of the United States army, who had been courtmartialed for some of his delinquencies; Caylor was a professional dead-beat; Cordano a deputy sheriff at the time; Hitchings, a police court lawyer; Northrup a hotel keeper, and one of the two jurymen who had hung the jury at the Sorenson trial, and consequently was supposed to be burning for revenge on account of the tongue-lashing he had received at Heney's hands upon that occasion, while Lord was also a local attorney of more or less reputation. The case has never been brought to trial, and the proceedings against Lord have been dismissed.
No 2909—Indictment returned February 8, 1905, against George C. Brownell, charging him with a violation of section 5393, Revised Statutes, by instigating Fred Sievers and John A. Howland to perjure themselves before the Federal Grand Jury at the time of the investigation of facts bearing upon survey contract No. 732, for townships 34, 35, 37 and 38 south, and ranges 28, 29 and 30 east, W. M.
Brownell for many years was one of the political leaders of Oregon, and a lawyer of no mean ability. At the time of his indictment he represented Clackamas county in the State Senate, and at one time was president of the body, and mentioned prominently as the successor to John H. Hall as United States Attorney at the expiration of Hall's first term of office. It is alleged that Hall "killed him off" by professing to have knowledge of some crooked land transaction in which Brownell is alleged to have figured, hence Senators Mitchell and Fulton, both of whom were under many political obligations to Brownell, advised the latter to keep out of the race. Their letter upon the subject is printed elsewhere. The case was dismissed on Heney's recommendation soon after the Hall trial, the Government prosecutor being satisfied that Brownell was "innocent of the charges."
No. 2911—Indictments returned February 10, 1905, charging Winlock W. Steiwer, Hamilton H. Hendricks. Clarence B. Zachary. Adelbert C. Zachary. Charles A. Watson, Clyde E. Glass. Binger Hermann. John H. Hall. Edwin Mays, Franklin P. Mays, Clark E. Loomis and Edward D. Stratford with a violation of section 5440, Revised Statutes, being conspiracy to commit an offense against the United States by preventing and obstructing free passage over certain public lands in townships 5, 6 and 7 south and range 19 east, and townships 5, 6 and 7 south, range 20 east, through the maintenance of an illegal enclosure formed out of a line of illegal homestead entries.
This is what is commonly known as the "Butte Creek Land, Livestock & Lumber Company" case, and invokes several important personages. Steiwer is a man of considerable wealth and prominence in the community where he resides, and was a State Senator at the date of his indictment. He is heavily interested in mercantile pursuits, being the principal owner of a large general merchandise store at Fossil, Ore., as well as president of the Butte Creek Land, Livestock & Lumber Co., the offending corporation, of which Hendricks is secretary and general manager, C. B. Zachary superintendent, and Glass bookkeeper. The Mays brothers, as well as Hall, were supposed to have had guilty knowledge of the fraudulent operations of the company while they were holding official positions in the United States Attorney's office, and are accused of overlooking the alleged transgressions for obvious reasons. Loomis and Stratford were also special agents of the General Land Office, who are supposed to have shut their eyes to what was going on, both having made investigations and reported favorably to the Department at Washington. Hermann was charged with knowledge of the offense, while A. C. Zachary and Watson were supposed "dummies." The issues involved have resulted already in the conviction of H. H. Hendricks, Coe D. Barnard, Charles A. Watson and Clarence B. Zachary, and was the case in which John H. Hall was convicted, February 8, 1908.
No. 2918—Indictment returned February 13, 1905, against Binger Hermann, John N. Williamson, Franklin P. Mays, Willard N. Jones and George Sorenson, charging them with a violation of section 5440, Eevised Statutes, by entering into a conspiracy to defraud the United States out of the possession and use of, and title to, 200,000 acres lying in different states and territories, by means of a fraudulent plan contemplating the obtaining of title, in the first instance to 150,000 acres of State school lands in Crook, Grant, Harney, Malheur, Baker, Union, Umatilla and Wallowa Counties, through the use of illegal affidavits and applications and the subsequent inclusion of such school lands in the Blue Mountain Forest Reserve, thus creating the possibility of their use as base in exchange for valuable timber lands under the lieu land act of June 4, 1897.
This is the famous "Blue Mountain Forest Reserve" case, and was the one in which Mays, Jones and Sorenson were convicted on September 13, 1906, after a trial lasting 25 full days, with evening sessions. By stipulation, it had been arranged that Hermann should first be tried in Washington, D. C, for the alleged destruction of 33 letterpress copybooks belonging to the General Land Office, of which charge he was acquitted in April, 1907. It is significant, however, that Heney did not prosecute him upon this occasion, United States Attorney D. W. Baker, of the District of Columbia, appearing for the Government, and although the evidence was decidedly strong against the accused ex-Commissioner of the General Land Office, a jury turned him loose.
No 2938—Indictment returned April 8, 1905, charging Charles A. Watson with a violation of section 5392, Revised Statutes, consisting of perjury committed in swearing to testimony given in his final homestead proof before United States Commissioner James S. Stewart.
The defendant in this case was convicted on August 8, 1906, but by reason of his becoming a witness for the Government in the Zachary case following, and confessing that he had been induced to commit perjury in making a homestead location for the benefit of the Butte Creek Land, Livestock & Lumber Co., Judge Hunt suspended sentence, and he was permitted to go on his own recognizance. Watson was a herder in the employ of the corporation, and confessed on the stand that he had been used as a "dummy" by some of its officials in taking up a homestead claim within their immense illegal inclosure of Government land in Wheeler county, Oregon.
All the defendants in this case were residents of Roseburg, Oregon, at the time they were indicted, although it is understood that the Downs brothers are now located somewhere in Mexico. They were timber cruisers of the Southern Oregon town, while Alley is a well-known searcher of records and land attorney there, and Turnell is a minister of the gospel.No. 2940—Indictment returned April 8, 1905, against Frank E. Alley, A. R. Downs, Edward R. Downs, Rev. Stephen W. Turnell and John Doe, charging them with a violation of section 5440, Revised Statutes, by participation in a conspiracy to defraud the United States out of public lands situated in township 28 south, range 3 west, Willamette meridian, by means of false affidavits and proofs of homestead entry and settlement and through false affidavits and proofs of timber entries.
No. 2941—Indictment returned April S, 1905, charging Coe D. Barnard with a violation of section 5392, Eevised Statutes, being perjury committed in swearing to testimony given in his final homestead proof before United States Commissioner James S. Stewart, as witness for Charles A. Watson.
Barnard was a prosperous stockraiser of Wheeler county, Oregon, and it was claimed that he was a frequent witness to the final proofs of bogus homestead claims made in the interest of the Butte Creek Land, Livestock & Lumber Co. He was found guilty by a jury on August 11, 1906, and sentenced a week later to two years' imprisonment on McNeill's Island, and to pay a fine of $2,000.
No. 2899—Indictment returned January 31, 1905, against Henry W. Miller, Frank E. Kincart, Martin G. Hoge and Charles Nickell, charging them with conspiracy under section 5440, Revised Statutes, in connection with the filing of applications under the timber and stone law for tracts of land in township 40 south, range 3 west, Willamette meridian.
Nickell, the most prominent of the quartette involved in this indictment, was the publisher of two newspapers in Southern Oregon, one at Medford and the other at Jacksonville. He also held the office of United States Commissioner, and it was through his connection with this official position that he became involved in the alleged conspiracy. Hoge was city attorney of Medford, and was accused of using his influence as a "booster" for the fraudulent scheme of Miller and Kincart, both of whom were timber cruisers of unsavory reputation. The two latter pleaded guilty at the trial, and made complete confessions, implicating Nickell and Hoge, which resulted in their conviction July 27, 1906. Nickell was given 13 months on McNeill's Island, while Hoge was sentenced to four months in the Multnomah County jail and to pay a fine of $500. After serving his sentence, Hoge took the "pauper oath" and was liberated. Nickell's case is on appeal.
Robert A. Booth is vice-president of the Booth-Kelly Lumber Company, and at the time of his indictment, represented Lane County in the State Senate. No. 2900—Indictment returned January 31, 1905, against William H. Davis, Mayor of Albany, Or., charging him with a violation of section 5392, Revised Statutes, in connection with testimony given by him at the time of making final proof on his homestead entry in township 11-7.
No 2907—Indictment returned February 8, 1905, against Henry Meldrum, George E. Waggoner, David W. Kinnaird, Rufus S. Moore, John W. Hamaker and Frank J. Van Winkle, charging them with a violation of section 5440, Revised Statutes, being conspiracy to defraud the United States by means of false and fraudulent surveying contracts covering tracts of land in Ts. 27 S., Es. 26, 27, 28, 29%, 29% and 30 E., and adjacent lands.
No. 2908—Indictment returned February 8, 1905, charging Hamilton H. Hendricks with a violation of section 5393, Revised Statutes, with suborning George W. Hawk to commit perjury in giving testimony before the Federal Grand Jury in connection with Hawk's homestead entry; also accusing Hendricks of a similar offense in the case of Homestead Entryman Clyde Brown.
No. 2942—Indictment returned April 8, 1905, against James Henry Booth, Receiver of the Roseburg Land Office, charging him with a violation of section 1782, Revised Statutes, in receiving $800 as compensation for furnishing advance information illegally relative to the cancellation of certain land entries in the Roseburg Land District.
No. 2943—Indictment returned April 8, 1905, against Eobert A Booth, James Henry Booth, T. E. Singleton, .John Doe, Richard Roe, William Roe and Thomas Roe, charging them with a violation of section 5440, Revised Statutes, conspiracy to defraud the United States out of the title to a tract of public land through the use of false affidavits and proofs of homestead entry and settlement procured to be made by I Thomas Agee, of Mapleton, Or.
No. 2944—Indictment returned April 8, 1905, against James Benson, of Cottage Grove, Or., charging him with a violation of section 5392, Revised Statutes, consisting of perjury committed in giving testimony before the Federal Grand Jury with relation to a timber and stone entry made by him for a tract of land in the Roseburg Land District.
No. 2945—Indictment returned April 8, 1905, against Clarence B. Zachary, charging him with a violation of section 5392, Revised Statutes, being perjury committed in giving testimony before United States Commissioner James S. Stewart as witness at the final homestead proof of Charles A. Watson.
No. 2984—Indictment returned September 2, 1905, under section 5440, Eevised Statutes, charges Claude Thayer, Clark E. Hadley, Maurice Leach, Walter J. Smith, Thomas Coates, John Tuttle, Charles E. Hayes, G. O. Nolan, John Doe and Eichard Eoe with conspiracy to defraud the United States out of several thousand acres of timbered lands in Tillamook County, Oregon.
This case is described fully in Chapter 23.
No. 2988—Indictment returned September 2, 1905, against Herman K. Finch, Thaddeus S. Potter, Bert Blauvelt, John Doe and Richard Roe, charging them with a violation of section 5440, Revised Statutes, being conspiracy to defraud the United States out of two quarter sections of land entered by Finch and Potter, respectively, under the Siletz homestead act.
No. 2991—Indictment returned September 8, 1905, against C. Sam Smith and Dr. Van Gesner, charging them with a violation of section 5440, Revised Statutes, consisting of conspiracy, having for its object the intimidation of certain Government witnesses called to testify at the trial of the case of the United States vs. J. N. Williamson and others.
Smith was sheriff of Crook county, Oregon, during the Williamson trial, and was accused with Dr. Van Gesner with having attempted to intimidate witnesses who had given testimony against the defendants in that case.
No. 3006—Indictment returned September 15, 1905, under section 5440 of the Revised Statutes charges Charles A Graves, Erwin N. Wakefield, Ora L. Parker and Robert B. Foster with conspiracy to defraud the United States out of certain tracts of land in Crook County, Oregon, by means of false and fraudulent sworn statements under the timber and stone act, and by false testimony at final proof in connection with the same land.
No. 4849—Indictment returned April 9, 1906, against Richard Jones, William H. Smith, Jacob C. Cross, David E. Goodwin, Will D. Gould, Frank A. Stewart, William T. Kerr, John E. Miller, Fred W. Dennis, Richard Hynes, H. M. Riley, Lee K. Myers, George L. Stearns, Jeremiah Huntley, Amos S. Johnston, Warren Gillelen, E. W. Kenny, A. H. Hedderly, John Doe, Richard Roe, Robert Roe, Thomas Roe, Annie Roe, charging them with a violation of section 5440, Revised Statutes, known as the "Los Angeles ease."
Richard D. Jones and William H. Smith, of San Francisco, formerly of Portland; Jeremiah Huntley, formerly United States Commissioner for Curry county; Amos S. Johnston, formerly Deputy County Clerk of Curry county; Frank A. Stewart, merchant of Ophir; William T. Kerr, of Coquille; John R. Miller, of Port Orford; Warren Gillelen, president of the Broadway Bank & Trust Company, of Los Angeles; R. W. Kenny, cashier of the same institution; George L. Stearns, ex-president of the Pacific Furniture & Lumber Company, of Los Angeles; Jacob C. Cross, director of the same company; David M. Goodwin and A. H. Hedderly, physicians of Los Angeles; Richard Hynes, M. M. Riley and Lee R. Myers, Los Angeles stock brokers; Will D. Gould, a Los Angeles attorney, and Fred W. Dennis, a San Francisco broker and real estate dealer.
All of the men named in the indictment are accused, under section 5440 of the revised statutes, of conspiring together to defraud the Government of immense acreage in Southern Oregon. The conspiracy is alleged to have commenced some time during 1901 and to have been effective up to August 26, 1904. The general plan of the scheme, as it is outlined in the indictment, is very similar to those of the other two large land fraud indictments that were returned by the grand jury.
Although the accused men are said to have gained possession of only about 6000 acres, it is alleged that the original conspiracy had a much broader scope and that they hoped to rob the Government of about 30,000 acres of rich timber land. The land which they now have in their possession and which they are charged with obtaining through fraudulent methods lies in a contiguous tract and is located entirely within the confines of Curry county. It extends along the banks of Lobster and Euchre Creeks, and is covered with timber of immense value.
The general scheme of the conspirators as outlined was to contract with individuals to file upon the land under the timber and stone Act, with the understanding that it was to he turned over to the ring of operators as soon as title was secured. Under this plan the filing was done in a fraudulent manner, inasmuch as the entrymen swore that the claims were for them personally, whereas it is alleged that it was agreed at the time that the transfers were to he made to the men who had inspired them to go on the land. For this purpose men were obtained wherever possible and sent to Curry county. It is said that the Pacific Furniture & Lumber Company, which was the active agency of the land shark-, procured entrymen from Nebraska, Kansas and California, as well as the various cities in Oregon. The company operated sawmills at Humboldt, Port Orford, Frankfort and Eureka. These mills, it is said, were used as a blind in bringing entrymen to Oregon. They were induced to come West on the understanding that they were to have jobs in the mills. When they arrived, however, they were informed that there was no work for them. Then, when they were penniless and far from home, it was found to be a propitious time to approach them with suggestions that they could make easy money by illegally filing upon some of the choice timber land in the vicinity.
Cross, Goodwin, Stewart, Miller, Kerr and Jones banded themselves together in Los Angeles as the Pacific Furniture & Lumber Company for the purpose of dealing in and acquiring Government land. Others became connected with the company, and during the duration of the conspiracy Hedderly and Smith were associated in the management of its affairs. Smith, Jones and Dennis cared for the affairs of the company in San Francisco, and are said to have laid the plans skillfully and to have had complete control of all the branches of the fraudulent plot. The Broadway Bank & Trust Company, which is one of the most important financial institutions of Los Angeles, is accused of being directly connected with the plot and to have advanced money to finance the fraudulent proceedings.
Huntley, who occupied the office of United States Commissioner from 1901 to 1904, was brought into the conspiracy by allowing himself to be induced to receive the fraudulent entries, which, it is averred, he knew at the time were illegal. The part of Johnston, the Deputy Clerk of Curry county, was to certify the fraudulent timber and stone applications. None of the minor offenders who filed upon the claims are included in the indictment, the policy of the Federal authorities evidently being to strike at the men who were the principals in the nefarious plot to rob the Government.
The indictment is a lengthy document, setting out in detail the many ramifications of the scheme as they have been unearthed by District Attorney Bristol and Special Inspector Neuhausen, with the assistance of the Government agents. Thirteen separate counts are included in the indictment, any one of which, if it is proved, is sufficient for conviction.
In gathering evidence against the land thieves. District Attorney Bristol and Special Inspector Neuhausen were greatly assisted by the late M. A. Meyendorff, Special Agent of the General Land Office, who did much work on the California end of the affair. Horace T. Jones and J. D. Watts, also special agents of the Government, assisted by carrying on investigations in Curry county, Oregon.
No. 4445—Indictment returned April 3, 1906, against Joseph Black, John C. Black, August Anderson, Sumner A. Parker, Leander Choate, James Doughty, Benjamin Doughty, Thomas Daly, James Bray, James H. Driscoll, John Doc, Richard Roe, Thomas Roe and Andrew Roe, charging them with a violation of section 5440, Revised Statutes. This is known as the "Wisconsin case."
The Wisconsin men involved are said to be the chief participants in the fraudulent operations for which the indictment which included their names was issued. Oregon men were also implicated in the alleged fraudulent proceedings, but only, it is alleged, as the tools of the Easterners, who are men of wealth and furnished the funds for the operations and also laid the plans by which, it is charged, they illegally obtained great tracts of Government acreage.
The Oshkosh men indicted, Leander Choate, James Matt Bray, Benjamin Doughty, James Doughty and Thomas Daly, operated in Southern Oregon as the Oshkosh Land & Timber Company. August Anderson and Joseph Black, of Shawano, are also said to be connected with this corporation. Choate is said to be very wealthy, and the others are all men of wealth and prominence in their home state.
Bray is the president of the Bray & Choate Lumber Company, and Choate is the treasurer of that company. The Doughtys are retired lumbermen. Daly is the cashier of the Commercial National Bank, and all the men are large stockholders in that institution.
The charge upon which they were indicted is that of obtaining a large tract of timber land east of Klamath by inducing men to file upon it and then turn it over to them for a small consideration. Most of their work is said to have been carried on through representatives in Oregon, but the principals themselves are said to have been on the ground at various times. Choate, who is reported to have been a leader in the proceedings, is said to have visited the state and to have taken a direct hand in bringing about some of the fraudulent entries.
It is alleged that the original scheme of the coterie of capitalists was to acquire several immense tracts of valuable land, aggregating nearly 40 sections. The plan did not work out in its entirety, but even the partially completed operations are said to have brought them into control of about 160,000 acres of land. Some of the land is located on Jenny Creek, some on Lone Pine Mountain and a portion east of Klamath. All of the land is in Klamath and Lake counties, Oregon. The Eastern men are said to have come into possession of the land by inducing" Oregon people to file upon it and turn it over to them as soon as they obtained it. In many cases it is alleged the transfers were made the day the final proofs were received. All of the land was taken as homestead claims. Most of those who made filings were residents in the vicinity of Ashland and Medford, and these persons were used as witnesses before the grand jury.
Sumner J. Parker, of Ashland, is understood to have been the solicitor for the Wisconsin men. Through his agency it is alleged men and women were induced to take up the land with the understanding that it was to be turned over to the Oshkosh Land & Timber Company as soon as the final papers were received. The papers were filed with James H. Driscoll at Klamath Falls. Driscoll is accused of accepting fraudulent i)roofs of land and being a party to the general scheme to defraud the Government. With all of the wires carefully laid for their operations, it is said that the scheme was carried on smoothly and thousands of acres of Government lands seized before the proceedings against them were commenced.
No. 4857—Indictment returned May 5, 1906, against F. W. Gilchrist, Patrick Culligan, James G. MacPherson, Herman W. Stone, Edmund Dorgan, Francis J. Devine, John Joseph Collins, Charles M. Elkins, John Combs, Benjamin F. Allen, Malcolm McAlpin, Amond C. Palmer, H. Judd Palmer, Donald F. Steffa. M. E. Brink, C. A. M. Schlierholz, J. W. Hopkins, W. W. Brown, Ed. N. White, Thomas H. Watkins, John Doe, Richard Roe, Thomas Roe, Andrew Roe, William Roe and James Roe, charging them with a violation of section 5440, Revised Statutes, known as the "Michigan case."
The Oregon men involved follow: Charles M. Elkins and Jack Combs, of Prineville, and Benjamin F. Allen, of Portland, members of the firm of Elkins & Co.; Judge M. E. Brink. of Prineville; Donald F. Steffa, of Prineville, editor of the Crook County Journal; Almond C. Palmer and H. Judd Palmer, attorneys of Portland; E. Dorgan, Francis J. Devine and John J. Collins, members of the firm of E. Dorgan & Co., of Albany; Malcom McAlpin, merchant, of Albany; J. W. Hopkins, attorney, of Vancouver, Washington; W. V. Brown, attorney, of Seattle; Thomas H. Watkins, member of the former firm of Erickson & Watkins, Prineville, and Edgar N. White, saloonkeeper, of Portland.
The Eastern men whose names appear in the indictment are: F. W. Gilchrist, Ralph Gilchrist, Patrick Culligan and James G. Macpherson, of Alpena, Michigan; Herman W. Stone, of Benson, Minnesota, and C. A. M Schlierholz. of Little Rock. Arkansas. The latter is an ex-special agent of the General Land Office.
The charge upon which these men have been indicted is conspiring together to defraud the Government of great tracts of rich timber land in Lake, Crook and Klamath counties. According to the indictment the conspiracy is one of many ramifications, but in its essential features is a counterpart of that upon which the eight rich Wisconsin men were arrested a short time previously.
The leaders in the alleged plot were the Gilchrists, Culligan, Macpherson and Stone, who endeavored, and to a large extent succeeded, to come into the possession of thousands of acres of the public domain by procuring dupes in Oregon who were willing to take up claims by making false entries with the understanding that they were turned over to their employers for a stipulated consideration as soon as title should be secured.
With this plan for a working basis, it is charged, the Eastern men operated through representatives in Oregon with whom they were closely associated. Besides the Alpena men and Stone, those who are said to have figured as principals in the illegal transactions are the members of Elkins & Co.. of Prineville. and of E. Dorgan & Co., of Albany. The other men whose names are mentioned, although in many cases men of considerable capital and prominence, served in the alleged scheme in subsidiary capacities, such as procuring men and women who were to file on the claims and expediting in one way and another the fraudulent entries. Over 400 claims, taken under the timber and stone Act of Congress, are involved in the alleged plan to steal the wealth-producing forests of Uncle Sam. Of this amount 150 are mentioned specifically in the indictment returned by the grand jury through the efforts of District Attorney Bristol and Special Inspector Thomas B. Neuhausen. The total tract in the alleged theft covers the immense area of approximately 201,600 acres. The land lies entirely within Lake, Klamath and Crook counties, and borders on the headwaters of the Deschutes River. The description of the claims cited in the indictment covers six large typewritten pages. The territory which the big land sharks are accused of trying to gobble up in disregard of the Federal statutes, is one of the richest timber sections of Oregon. Nearly the entire area is covered with the most excellent yellow pine timber. Placing the low estimate of 2,000,000 feet to the quarter section, the land would be worth at least $2000 a claim, or $800,000 for the land involved. The value is probably close to $1,000,000.
F. W. Gilchrist and Ralph Gilchrist are said to be in the millionaire class. Patrick Culligan is worth about $600,000, and James G. Macpherson is also a man of means. Elkins & Co., charged with being closely allied with them in the conspiracy, are men well known throughout the entire state. The firm's business is money lending and general financial business. The company is said to have put up large amounts of money and to have otherwise assisted in the plot.
Almond C. Palmer, who is among the men said to have been brought within the toils, was formerly United States Commissioner at Prineville. He is accused of using his position to assist in the acceptance of fraudulent proofs and illegal filing of claims. He had trouble with the Federal authorities upon a previous occasion, but was acquitted. Judge M. E. Brink, of Prineville, Oregon, is accused of using his power of attorney in the same illegitimate way, as is also J. W. Hopkins, of Vancouver, Washington, and W. W. Brown, of Seattle.
Dorgan & Co., of Albany, who are included in the list of principals to the dealings, is a firm of timber cruisers and locators. John J. Collins, who was subpoenaed as a witness in connection with the case, refused to produce the books of the firm in accordance with the order of the court, and as a consequence was confined in the Multnomah County jail for a period of four months upon order of Judge Wolverton. It is believed by the government representatives that Collins received good pay for his action from the other men who were indicted, as it is supposed that the records of the firm contain incriminating evidence in connection with the present charges.
All of the Eastern men involved have paid repeated visits to Oregon during the past few years, and it is believed that upon each occasion they acquired title to a number of the fraudulent claims. Sometimes, it is said, one would come, sometimes more, but each visit is alleged to. have been in connection with the proceedings for which they now stand indicted. It is said that persons were secured in large numbers to assist in the operations by filing upon the claims. It is alleged that they were taken to the land as many as 20 at a time, and that immediately upon receiving title from the Government, they transferred it to the men who were engineering the deal, in each case taking payment far below the true value of the land. These persons, for the most part, came from Albany, Shaniko, Morrow, Prineville and Mitchell. They figured as witnesses in the grand jury proceedings, between 100 and 200 of whom being called before that body. So deep laid was the alleged plot that the promoters succeeded in misrepresenting the true facts in the case to such an extent to the Oregon Representatives in Congress that they succeeded in getting them to urge the department at Washington to expedite the fraudulent claims. By presenting false proofs, entries, oaths and affidavits in respect to the timber and stone entries "to Senator Fulton and Congressman J. Newton Williamson, the indictment alleges that these men were led to urge that the claims he expedited. These claims were represented as being in every way genuine, whereas it is now charged they were illegal and untrue in every particular, and were being procured solely in the interest of the eleven men at the head of the operations.
The following letter is included as a portion of the indictment:
Washington, D. C, March 11, 1904.Hon. William A. Richards, Commissioner of the General Land Office,
Washington, D. C.
Sir—I enclose you herewith a number of affidavits of entrymen under the timber and stone act. These gentlemen are all residents of Albany, Or., I think. Most of them I am personally acquainted with and I am confident they would not engage in any corrupt practices in order to secure timber claims. Mr. Cusick, the first party mentioned, is a banker of Albany. Or., and the others are prominent business men, as a rule.
I have heretofore written you about this situation. It seems to me that a great injustice is being done these men, for they entered the land, I have no doubt, in perfect good faith. They have paid their money and complied with the law in every respect. I trust, therefore, that your department will be able to dispose of these cases at an early date and direct the patents to issue. Very respectfully,C. W. FULTON.
It is claimed that the foregoing letter referred to the proofs upon a number of the fraudulent claims. The Mr. Cusick referred to is a prominent Albany banker.
Congressman Williamson also addressed the following letter to the Land Department in behalf of the fraudulent entries:
Washington, D. C., April 2, 1904.Hon. William Richards, Commissioner of the General Laud Office,
Washington, D. C.Sir—I today forward you under separate cover, as many as 50 affidavits concerning the timber and stone claims now held up by the department in Lake, Crook and Klamath Counties in Oregon. I also inclose herewith a letter from Hon. M. E. Brink, of Prineville, Or., bearing upon the same question.
I will again add my earnest desire that these claims shall proceed at once to patent.Very truly yours.
J. N. WILLIAMSON.
The following shows convictions in land fraud cases and present status of the cases:
Henry Meldrum indicted April 2, 1904, for forgery in connection with surveying contracts, on November 17, 1904, sentenced 1,080 days at McNeil's Island and fined $5,250 and costs; serving sentence.
S. A. D. Puter, indicted March 17, 1904, for conspiracy to defraud Government, on December 6, 1904, sentenced to two years in County Jail and fined $7,500; served portion of sentence and pardoned by President, December 31, 1907.
Horace G. McKinley, indicted March 17, 1904, for conspiracy to defraud Government, on December 6, 1904; returned from Manchuria, sentenced on February 28, 1908 to two years in the Multnomah County jail and fine of $7,500.
Dan W. Tarpley, indicted March 17, 1904, for conspiracy to defraud Government, on December 6. 1904; not sentenced.
Emma L. Watson, indicted March 17, 1904, for conspiracy- to defraud Government, on December 6, 1904; not sentenced.
Frank H. Walgamot, indicted March 17, 1904, for conspiracy to defraud Government; pleaded guilty; not sentenced.
John H. Mitchell, indicted February ], 1905, for receiving compensation for service before Department while United States Senator, on July 3, 1905, sentenced to six months in County Jail and fined $1,000; dead.
John N. Williamson, indicted February 11, 1905, for conspiracy to suborn perjury, on September 27, 1905, sentenced to 10 months in County Jail and fined $500; new trial granted. "The Grand Old Man"— Ethan Allen Hitchcock, ex-Secretary of the Interior, who earned the ill-will of the grafters by his firm stand on public land questionsDr. Van Gosner, indicted February 11, 1905, for conspiracy to suborn perjury, on September 27, 1905, sentenced lo five months in County Jail and fined $1,000; served sentence and paid fine.
Marion K. Biggs, indicted February 11, 1905, for conspiracy to suborn perjury, on September 27, 1905, sentenced to 10 months in County Jail and fined $500; served sentence.
Willard N. Jones, indicted September 2, 1905, for conspiracy to defraud Government, on October 14, 1905, sentenced to one year at McNeil's Island and fined $2,000; on appeal.
Thaddeus S. Potter, indicted September 2, 1905, for conspiracy to defraud Government, on October 14, 1905, sentenced to six months in County Jail and fined $500; on appeal.
Henry W. Miller, indicted January 31, 1905, for conspiracy to suborn perjury. pleaded guilty, sentenced to one year at McNeil's Island; served sentence.
Frank K. Kincart, indicted January 31, 1905, for conspiracy to suborn perjury, pleaded guilty, sentenced to one year at McNeil's Island; served sentence.
Charles Nickell, indicted January 31, 1905, for conspiracy to suborn perjury, on July 27, 1900, sentenced to 13 months at McNeil's Island; on appeal.
Martin G. Hoge. indicted for conspiracy to suborn perjury, on July 27, 1906, sentenced to four months in County Jail and fined $500; served sentence.
Hamilton H. Hendricks, indicted February S, 1905, for subornation of perjury. on August 4, 1905; to be sentenced.
Charles A. Watson, indicted on April S, 1905, for perjury, on August 8, 1906; sentence suspended.
Coe D. Barnard, indicted April S. 1905, for perjury, on August 11, 1906, sentenced to two years at McNeil's Island and fined $2,000; on appeal.
C. B. Zachary, indicted April 8, 1905, for perjury, on August 17. 1906; not sentenced.
Franklin Pierce Mays, indicted February 13. 1905. for conspiracy, on September 13. 1906, sentenced to four months in County Jail and fined $10,000; on appeal.
Willard N. Jones, indicted February 13. 1905. for conspiracy, on September 13. 1906, sentenced to eight months in County Jail and fined $2,000; on appeal.
George Sorenson, indicted on February 13, 1905, for conspiracy, on September 13, 1906, not sentenced.
Winlock W. Steiwer, indicted February 10, 1905, for conspiracy, pleaded guilty January 22, 1908; not sentenced.
Hamilton H. Hendricks, indicted February 10, 1905, pleaded guilty January 22, 1908; not sentenced
Clarence B. Zachary, indicted February 10, 1905, pleaded guilty January 22, 1908; not sentenced.
John H. Hall, indicted February 10, 1905, for conspiracy, on February 8, 1908, not sentenced.
