The above agreement, not being in writing, resulted in much confusion, as between George Lloyd and McKinley, and finally terminated in a civil suit brought by McKinley, through which he attempted to recover the sum of $12,000 which he claimed was due him by Lloyd, involving lands sold to the latter by himself, and which, as later developments will disclose, prompted the Government to make investigations which led up to the land fraud trials, and resulted in the conviction of so many of our prominent citizens.
This "Marion County deal" consisted of twenty-four claims, or 3812 acres and was sold by me to George Lloyd, through McKinley, the sale price being $5.60 per acre, or $21,347.20.
Some months after these lands had been purchased by Lloyd from me, and through McKinley, the latter learned that Clyde D. Lloyd was negotiating for the sale of the lands, and that he had, in fact, given an option to a certain party, the price named being $12.50 per acre. This option was given without the consent of McKinley, nor had he been consulted in regard to the matter. McKinley, when he learned what was being done, called on Lloyd, Jr., and asked for an explanation, but could get no satisfaction, Clyde Lloyd refusing to discuss the matter further than to state that if the tract was sold, McKinley would be taken care of to the amount of his interest in the lands.
It is needless to say that Lloyd's demeanor toward McKinley, at this time, was not to his liking, as it was evident to the latter that Lloyd intended to sell the lands and to pocket the entire profits, else he could have no objection to acquainting him with particulars in regard to his action in offering the tract for sale.
McKinley, of course, fully realized that Lloyd had the upper hand, as his agreement with the elder Lloyd was purely verbal, and it would be difficult for him to establish his right to a half interest in the net profits, as was evidenced by the fact of his bringing suit against Lloyd, Sr., through his attorney. Judge Thos. O'Day, asking for $12,000 commissions, which he figured as being his share of the net profits, based on the option price named by Clyde Lloyd in offering the lands for sale at $12.50 per acre.
This suit dragged along for something like a year and a half, and finally terminated in favor of Mr. Lloyd, it being impossible for McKinley to prove his equity in the absence of a written contract.
These lands, instead of being sold for $12.50 per acre, were actually disposed of by Lloyd at the rate of $24 per acre, the purchaser being W. H. Gilbert, of Ashland, Wisconsin. The sale was consummated through M. B. Rankin, of Portland, Oregon, and George P. Brayton, of Chicago, Illinois.
To return to the subject of the six claims in Township "24-1," it was but a short time after final proofs had been made when F. Pierce Mays called me up over the 'phone and asked me to call at his office. Upon doing so, much to my surprise, he informed me that he had just received the patents to the claims in question, and I could not but express wonder that they should be issued in so short a time, as it usually required from one to two years, and frequently longer, to secure them. It indicated to me that Mays had not been talking at random when he informed me that he had facilities for expediting patents.
Mays stated that they had cost $100 each, or $600 in all, and as I had expended a sum total of $900 in securing the deeds, the account showed a balance due me of $150 in order to make an equal division of the expenses between us, and we agreed to settle upon that basis. Mays then suggested, if it made no difference to me, that he would accept three of the claims as his share, as he did not wish to dispose of them at that time. This, also, was satisfactory to me. Whereupon Mays handed me three of the patents, retaining the other three. Those held by Mays were those of Robert G. Tupman, Robert Simpson and Frank H. Herne. Mays then requested that I have Mrs. Watson transfer his three claims to Thaddeus S. Potter, a law clerk in his office, and some kind of a relative by marriage, which request was complied with.
Page 74
