The two men were accused of operating in a systematic manner in their efforts to acquire title to large tracts of State school lands, but their eagerness to grab everything in sight was the cause of their downfall. So many applications were hied in the names of alleged residents of Salem that the suspicions of Land Agent West were aroused, and upon inquiry it was ascertained that no such persons resided there. A comparison of the signatures also revealed the fact that they had all been written by Turner, wdio had thereupon acknowledged them before himself as a notary public, in addition to taking the acknowledgments of the fictitious applicants on assignments of certificates, thus establishing a complete chain of title to Kelliher, for whom he was acting.
Of the Kelliher certificates, the holders of about 30,000 acres were permitted to repurchase the land at $2.50 an acre. This concession was made in consideration of their being to a certain extent innocent purchasers. Certificates covering about 30,000 acres held by Kelliher personally were cancelled and his money repaid him. as a result of the State Supreme Court having decided in his favor upon the criminal charge, as he had been vindicated to a certain extent, the proof showing that Turner had procured the "dummy" applications, although Kelliher had advanced the money necessary in making the payments. Chamberlain's action in getting rid of Kelliher in this fashion was a clever business stroke, as the lands held by him were considered the cream of those he had acquired fraudulently, and will at some future date be advertised by the State and sold to the highest bidder, which will easily net the State more than $100,000 by the transaction, even at the low price of $4 an acre, as the amount refunded to Kelliher did not exceed $15,000.
Indemnity selections amounting to 100,000 acres have been made during Governor Chamberlain's administration, and have sold for an average price of $7 an acre. The State has about 100,000 acres of forest reserve base on hand and available for selection. Its price is $8.50 an acre at the present time. Governor Chamberlain has undoubtedly accomplished more genuine benefits to the school fund of Oregon than any of his predecessors, so far as the sale of State school lands is concerned, as he has increased the price of sections in newly-surveyed townships from the old rate of $2.50 an acre to $17 an acre by offering them to the highest bidder, which naturally provokes competition.
From 1903 to 1908, the State Land Board of Oregon had cancelled certificates covering 250,000 acres. Many of these were held by persons who had made fraudulent purchases and were afraid to make further payments for fear of prosecution. Much of it then became available as base for indemnity selections.
When it was found that the applications were bogus, and not made in good faith, the selections were cancelled forthwith by the State Land Board, and the amounts paid thereon as the purchase price w-ere declared forfeited to the State and turned into the school fund. Fully 250,000 acres were found in this condition, the applicants therefor having become alarmed on account of investigations by the Government in connection with the Blue Mountain Forest Reserve frauds, and were afraid to disclose their identity. Had they done so it would have enabled the Federal authorities to locate the holders of the bogus certificates, as the records of the State Land Office at Salem did not indicate who these persons were, and the Government was exceedingly anxious to find this out. As nearly all the 250,000 acres alluded to consisted of school sections in the Blue Mountain Forest Reserve, it reverted to the State, and was afterwards disposed of as base by the latter, at a net profit of $5 an acre, making the State gainer by the operation to the extent of fully $1,250,000.
Immediately after the temporary withdrawal of the Blue Mountain Forest Reserve, F. P. Mays covered 10,000 acres of fine yellow pine timber land in the Maury Mountains with "dummy" applications, using as basis of selection the unsurveyed school sections in the proposed Blue Mountain Reserve. Governor Geer signed the list and caused the selections to be forwarded to the United States Land Office at The Dalles, in full knowledge of the fact that the reserve
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