# Looters of the Public Domain/Chapter 5

Chapter V
DURING April or May, 1901, McKinley and I discovered that Township 24 South, Range 1 East, Willamette Meridian, had been surveyed and become subject to entry, and as the township was located within the range of the Cascade Forest Reserve, and was practically in the same condition as "11-7" when we located the twelve claims there, and being emboldened because of our success in the latter township, we concluded to try our luck again in locating some more homesteaders, in the same manner pursued in "11-7," with the object of acquiring the basis upon which to make other selections.
Up to this time, be it known, we had experienced no difficulty in the matter of our operations in Township "11-7;" the claims having been acquired, final proofs made, and deeds transferring the lands to Mrs. Emma L. Watson having been executed, without the slightest intimation of impending trouble. It only remained, therefore, from outward appearance, to await the issue of patents, at which time the base in question could be relinquished to the Government and other lands selected in lieu thereof.
As Township 24 South, Range 1 East, was situated on the headwaters of the Middle Fork of the Willamette river, and at an altitude of 4,000 feet and was miles away from any settlement, the conditions made it all the more favorable to our plans, as it was not likely that any one would know whether the homesteaders we located there were bona fide settlers or not.
As the township was located in Lane county, McKinley contended that the homestead filings as well as final proofs could be made before Marie L. Ware, the United States Commissioner at Eugene, the county seat, and he suggested further, because of the fact of Miss Ware being in love with him, that we could work the "dummy" proposition for all it was worth.
Miss Ware was the daughter of Joel Ware, one of the most respected citizens of Lane county. He had been the Clerk of Lane county for a number of years, and had filled various other official positions during his long residence in Oregon, the last being United States Commissioner.
For several years prior to her father's death, Marie had acted in the capacity of clerk in the office, and in that way became quite familiar with official forms. It enabled her to gain an intimate knowledge of land office business coming before her, such as receiving filing papers, and entering them upon the records and township plats; taking final proof of claimants, and testimony of witnesses besides hearing the testimony in contest cases, etc., afterwards transmitting the same to the Roseburg Land Office.
For a year or more before her father's death, Marie conducted all the business that went through his office. Whenever any persons desired to make final proof, she would take down their testimony, afterwards escorting them to her father's bedside, where he would have them acknowledge their signatures, and then attach his official seal to the documents. Mr. Ware continued to fail in health, until finally the United States District Judge, Hon. Chas. B. Bellinger, ​appointed Marie as his successor. She was an exceedingly vivacious girl, brimful of spirit, and very attractive in many ways, with rich auburn hair resembling burnished gold. McKinley, although already married, had been her sweetheart for years, and their infatuation has since culminated in the divorce of the McKinleys and the subsequent marriage of Horace and Marie.
When McKinley and I came to an understanding with reference to filings in Township "24-1," it was agreed between us to dispense with the formality of securing bona fide settlers, as that process would only incur unnecessary expense, and because of the intimacy which existed between Horace and Marie, the "dummy" proposition could be resorted to without fear of detection, and would prove by long odds the most satisfactory from a financial standpoint. This plan, therefore, was decided upon, and McKinley suggested that I go to Eugene and call on Marie, informing me at the same time that he had previously talked the matter over with her and that everything would be all right.
Visiting Eugene, I called upon Miss Ware and advised her of the object, whereupon she expressed a willingness to do the work and wanted to know what there would be in it for her. We eventually reached an agreement whereby I was to allow her $100 on each claim put through, which was to be paid her as soon as final proof was made and the certificate issued by the Receiver of the Land Office, and in addition, I was also to pay the land office fee, advertising expenses, and cost of final proof, which altogether, amounted to practically $50. This township being double-minimum land, i. e., within the indemnity limits of the California & Oregon Railway Company's grant, the expense was doubled.
In return for the consideration named, Marie agreed to fill in on the filing papers the description of the land to be located, attend to the advertising, and at the time of making final proof, to fill in all the questions asked on the blanks, both for the entrymen and their witnesses. This she did on the typewriter, so it only became necessary for me to procure signatures to represent the different entrymen and their witnesses to the various blanks.
After reaching an agreement with Marie, she handed me several sets of papers, including homestead applications, homestead affidavits, final proof blanks for claimants and witnesses, affidavits of publication, non-mineral affidavits, blank deeds, and one or two other forms such as were required in making homestead entries. This was for the purpose of enabling the applicant to sign all the papers at the same time, thus obviating the necessity of appearing before her or anyone else again. Although illegal, it avoided a whole lot of red tape procedure. It will be seen that this method guaranteed an exact duplicate of the signature on each set of papers from the application down to and including the very deed itself, and as Marie had agreed to act as notary in the taking of acknowledgments of the signatures in question, there could be no hitch in the proceedings, nor would it be possible to introduce an outsider at some later date to prove that the signatures were other than genuine throughout.
Returning to Portland, I called on McKinley and informed him of the arrangements I had made with Marie, and stated that it was my intention to call on my old stand by, F. Pierce Mays, and let him in with me on the deal.
My object in so doing, as I explained to McKinley, was to secure the expediting of the patents at the earliest date possible, and this, I believed, could be accomplished through Mays quicker and better than through any other source, and besides Mays felt more or less aggrieved because of being left out on the "11-7" deal, and I thought, by letting him in on the "24-1" deal, to right matters with the old man and place him in line again for further operations. I suggested to McKinley that he. too, take Mays in with him, in whatever claims he might put through personally in the same township.
After examining the map to determine that the township was located as represented and within the limits of the Cascade Forest Reserve, Mays consented to go in with me on the deal, he to pay one-half the expenses and to receive one-half the profits.
When the subject of patents came up, Mays said that he would attend to that feature, as he was in a position to have them expedited without delay. He could not tell, however, off-hand, what it would cost, but that was a matter, he stated, that could be adjusted in final settlement, so I agreed to take him in as a full-fledged partner.
He wanted to know how many claims I expected to put through by the process described, and I replied that I could not say, as it all depended upon circumstances. My idea was to run through a few at a time, so as to avoid arousing suspicion. Mays thought, however, that we should get at least twenty-four or more right away, but I objected to that on the ground that the officials of the Roseburg Land Office would become suspicious if called upon to issue so many final certificates all at once in a single township.
I then went down town and secured applicants who signed up two sets of papers for me, and mailed them, together with a check for $100, to Marie Ware at Eugene, and requested her to make the filings. I also gave a bunch to McKinley and asked him to have them signed and forwarded to Marie.
Several days later I received a letter from Marie, stating that she had filed the two applications sent up, and that Horace had left five sets of papers with her to be filed for me, and requesting that I send her the necessary fees. I thereupon inclosed her a check for $250, and requested her to make the filings, which was done. A week or so after this I sent her another bunch, but she wrote back that McKinley had instructed her not to make any more filings.
I met Horace on the streets of Portland a few days later, while he was en route to La Crosse, Wis., and asked him what objections he had to Marie filing the last bunch of homestead claims. He replied that he did not propose to permit her to file those entries for Mays and myself, unless he could be figured in on the deal. I then told Horace, as I had in the beginning, that he, too, could go in with Mays, the same as I had done, and that whatever they put through independent of me, I should claim no interest in. He urged that it was giving Mays too large a share, and proceeded on his journey without any definite understanding on the subject.
I sent Marie a check to cover the expense of filing the last bunch of papers forwarded her, and again requested her to file the same. Some days later, she returned them, together with my check, and said that, upon receipt of my letter, she had wired Horace at LaCrosse to know whether or not she should file the last bunch of entries, and that he had telegraphed a reply, directing her in positive terms not to do so. I thereupon telephoned her to come to Portland, which she did at once, registering at the Imperial Hotel.
Upon Marie's arrival, I called on Mays and told him that she was in town, at the same time explaining the circumstances of her coming, and he said he would have a personal interview with her. Mays then went up to the hotel and pleaded long and eloquently with her to recede from her position, informing Marie that there were but three days left in which to file the homestead claims, as the ninety days were about up in which settlers would have prior right to initiate title, so he insisted upon her putting them through without further delay, but without avail, as Marie positively declined to take a single step without the consent of McKinley.
It might be stated here, that although I succeeded in getting Marie to accept seven filings altogether, there were but six of these that were put through to patent, as the officials of the Roseburg Land Office discovered a discrepancy in the seventh, or what is known as the "Abbott Claim," and as we neglected to make the correction within the time set by law, this entry went by the board.
The names used to secure the six claims which finally went to patent, were as follows: Robert G. Tupman, Robert Simpson, Frank H. Heme, William H. Watkins, Samuel L. Carson and James Warwick.
About the time of making final proofs, T called on Mays and requested that he put up his one-half of the expenses, or $450, informing him that I had succeeded in securing but 6 claims, and that I had put up exactly $900 to date.
I asked him at the same time to whom the lands should be deeded, as we did not care to be known in the transaction.
Mays thought it would be a good plan to leave the name of the grantee blank for the time being, and also the date, but to have the instrument witnessed and acknowledged. Upon my suggestion, however, he consented to have the lands embraced in the transaction transferred to Emma L. Watson, to be held by her in trust, and as for his share of the expenses, he said that he would advance sufficient to cover the expediting of the patents, and that we could have a general settlement of the account later on.
I then called upon Mrs. Watson and informed her that Mays and I had purchased 6 homestead claims in Lane County; that their first cost amounted to $900, and that, if she saw fit to advance the money, I would have the claims deeded to her, to be held in trust, and at the time of making a sale, would allow her a quarter interest in the net profits. Mrs. Watson agreed to accept my proposition, and gave me a check for $900, and as soon as Marie Ware had received the final certificates from the Roseburg Land Office, showing that the proofs of the six entries had been accepted, I paid her the money, after which, she filled out the deeds in the name of Emma L. Watson and I turned them over to the latter, and advised her not to record them until such time as I might suggest at a later date.
About a month after the claims had been deeded to Mrs. Watson, I met Clyde D. Lloyd on the street in Portland, and became engaged with him in conversation concerning timber lands. He was a friend of McKinley's from Wisconsin, and had been associated with him in several timber land deals. In the course of our conversation, Lloyd mentioned the fact that he had purchased three homestead claims of scrip lands in Township 24-1 from McKinley, paying for the same at the rate of $500 per quarter section, and he wanted to know about how long it took for patents to issue after final proof was made.
I realized at once, as soon as he mentioned that the claims were in "24-1," that they were among those that had been taken up by me and in which Mays and I were interested, as the six claims which Marie had put through for me were the only ones in that township that had been proven up on. In reply to my inquiry as to whether or not he had recorded the deeds, Lloyd answered in the negative, saying that McKinley had requested him to withhold them from record for awhile.
I went directly to Mrs. Watson and requested that she send her deeds to Eugene without delay and have them recorded, also intimating to her that I thought there was some sharp practice on foot. Acting upon my advice, she complied immediately with my instructions.
get into him to the extent of $1500, so as to force Lloyd to give him a written contract, in order to secure him on the "Marion County deal," and which transaction was as follows:
Some months prior to the time McKinley sold my three claims in "24-1" to Clyde D. Lloyd, his father, George Lloyd, of Wisconsin, had entered into a verbal agreement with McKinley, whereby he was to furnish money for the purpose of securing timber lands in the State of Oregon, and which lands, when purchased, were to remain in the name of George Lloyd, until such a time as they considered the price sufficiently advanced to justify them in disposing of the same. McKinley, it will be understood, was to select the land, at which time Lloyd Sr. would have his son, Clyde D., examine them, and if his report proved favorable, the amount was to be produced forthwith, and the deal closed. These lands were to be held in the name of George Lloyd until such time as he or McKinley learned of an opportunity to make transfer at a considerable advance, when, if agreeable to both parties, the land would be sold, at which time George Lloyd was to deduct the amount advanced by him, together with the interest thereon at the rate of 8 per cent per annum, and turn over to McKinley one-half of the net profits.
​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.
The three claims belonging to Mrs. Watson and myself were sold to Geo. B. McLeod, treasurer of the A. B. Hammond Lumber Company, the sale price being $5 per acre.
A few weeks after closing with Mays, he again requested me to call at his office, which I did, and he informed me of having received a letter from Edwin Hobson, a timber speculator of Eugene, which stated in effect that he had purchased the southeast quarter of Section 2, in Township 24 South, Range 1 East, known as the "Robert Simpson" claim, and that he had noticed the same land had been included in a deed given by Simpson to Mrs. Watson, and from her transferred to Thaddeus S. Potter, the presumption being, upon the part of Hobson, that Mays was, in fact, the real owner of the tract. Mays inquired what I knew about the matter, to which I replied that I was entirely in the dark on the subject, although I agreed to ascertain the facts without delay.
Calling upon McKinley for an explanation, he informed me that the claim had been deeded to Edwin Hobson, with the understanding that the document was not to be recorded until later on, but while he was East, Hobson had become alarmed upon learning that a deed to the same quarter section had been recorded, showing the claim to be in the name of Emma L. Watson. He made haste, therefore, to place the deed on record, and immediately communicated with Mays in the hope of learning the true status of the matter.
The latest information, as related by McKinley. put a new phase on the situation, as it was clearly evident to me that affairs were becoming more complicated all the time, as it was also apparent, unless a stop was put to the whole proceeding, and matters straightened out without delay, that I was very likely to become involved in serious trouble. My first thought, therefore, was to force McKinley to tell the whole truth and reveal everything, so that I might be enabled to determine on some action to avoid further complications.
Summoning McKinley to my room at the hotel, I gave him to understand that I must know exactly how everything stood, and that, if he expected me to help him out of the difficulty, it would be necessary for him to give me all the particulars with relation to this Hobson transaction, as well as that connected with his action in disposing of my claims to Clyde D. Lloyd for $1500. This McKinley agreed to do, the story given me at the time being, in substance as follows:
"Lloyd." said McKinley, "agreed to settle with me in the sum of one-half the net profits derived from the sale of the Marion county lands, it being understood betwen us that I was to be consulted in advance of any sale being made. This understanding was being violated, insomuch as Clyde D. Lloyd attempted to negotiate a sale without my knowledge and consent, and which action, upon his part, convinced me that all was not right, more particularly after my asking him for an explanation, which he refused to give. I then planned to get the drop on Lloyd, and in pursuance of this purpose, I took him to Salem, where I secured his appointment as a notary public. My next move was to inform Lloyd of a certain scheme whereby it would be posible for both of us to make a little easy money, and which, I informed him, could be accomplished by filling in a bogus deed to a claim in 24-1, and which deed he could certify to and acknowledge as notary public, after which, we could dispose of the claim to one Edwin Hobson, of Eugene, Oregon.
"My plan looked good to Clyde Lloyd, and he readily assented to go in with me on the deal, so I made out the papers in the presence of Lloyd, using the name of Robert Simpson, after which Lloyd acknowledged the signature and affixed his notarial seal to the document. We then called on Marie Ware, who was not supposed to know anything about the transaction, so far as Clyde Lloyd was informed, and the latter, in handing over the papers, advised Miss Ware that he had just acknowledged the signature of Mr. Simpson to the deed, ​at the same time collecting $575 in full payment of the contract price named therein. Lloyd also instructed Miss Ware that she might retain $50 for her trouble, and that she was to hand the balance, $525, over to McKinley when he called, and who, in turn, was to deliver the money to Mr. Simpson, for whom he was acting as agent.
"This deal," continued McKinley, "was comsummated within a few days from the time it was first planned, and when the money was received by Marie and handed over, I divided up with Lloyd as per original agreement."
McKinley then went on to explain, as he appeared at this time to be anxious to reveal the whole truth, that his sole and only purpose in turning this first deal with Lloyd was to place the young man in a compromising position, as he believed that by having him acknowledge the signature of a fictitious person and attach his seal to a bogus deed, he might eventually force him to make settlement of the commissions due on the Marion county deal, under threat of exposure.
As to the three claims sold to Lloyd for $1500 and which, as hereinbefore stated, belonged to me, McKinley admitted, at the time of making this sale, that he was really hard pressed for money, and that, insomuch as Lloyd was indebted to him, he thought it would only be fair to secure the money through this source.
It will probably seem incredible that Lloyd, after entering into a conspiracy with McKinley to defraud Hobson out of $575 but a short time before, should allow McKinley to turn around and treat him in like kind; nevertheless, that is exactly what happened, and as McKinley said afterward in relating the circumstance to me, Lloyd looked like ready money, and as he was in urgent need of finances at that time, he decided to bump him to the tune of a thousand and a half, and had no difficulty in carrying his plans into execution.
I entered a vigorous protest against this sort of business, but McKinley—who was exceedingly easy going—declared that there was no danger of getting into trouble, as he calculated from the first to repay Hobson and secure a reconveyance from him. In the meantime, McKinley said, he was not afraid of Hobson causing any trouble, as he, too, had been mixed up in some fraudulent transactions in Lane County, McKinley claiming, to his certain knowledge, that Hobson had contracted with a number of people whom he had located on timber claims, agreeing to furnish them the money with which to make proofs, with the understanding that they were to deed the claims over to him as soon as final proofs were made.
As for the other three claims, those taken up under the names of William H. Watkins, Samuel L. Carson and James E. Warwick, and which he had sold to Clyde Lloyd, McKinley contended that I had no reason to complain, as Mrs. Watson had recorded these deeds fully a month before Lloyd had recorded his, and if the latter should discover that he had been bilked and should attempt to kick up a disturbance, he would take occasion to quiet him with the club he had so ingeniously prepared to hold over his head. He assured me further, even in the case of Lloyd, that he had no intention of beating him out of the money, and as soon as he could secure a settlement of the Marion county deal, the amount collected would be repaid him and a reconveyance of these claims would also be secured.
After listening to all McKinley had to say by way of explanation of his actions in the matter of disposing of my lands, I insisted that, insomuch as Mays was the owner of the Simpson claim, I wanted him to make settlement with Hobson forthwith, and to procure a deed from the latter to Mays. McKinley, although hard pressed for money, agreed to do as requested, provided that I would pay Hobson the $575 and charge the amount to his account, as against what might be coming to him in the "11-7" deal, which had not yet been closed up. This I consented to do.
Going to Mays' office, I explained the situation to him, as related by McKinley to me, at the same time advising him of my plan to get the tangle straightened out. I informed him, of course, that there was little danger of ​Hobson attempting to do anything for the time being, as McKinley had the drop on him, and as for the matter righting itself eventually, I told Mays that McKinley had several hundred dollars coming to him on the "11-7" deal and that, when it came time for settlement, I would hold out sufficient to square the matter up. In the meantime, I suggested that Mays write Hobson to that effect. I told Mays that I would write Hobson personally, which I did, informing him that I had talked with McKinley with reference to the Simpson claim which he had purchased, and I guaranteed to refund him the amount paid to McKinley as soon as I could arrange some business settlements with the latter.
Shortly afterwards the "11-7" deal was brought to a close, and I held out the $575 from McKinley's share of the profits, and inclosed this amount to Mays in the form of a draft, which was afterwards transmitted to Hobson.
I concluded that this ended the entire proceedings, and that the "24-1" deal was a closed incident, but it developed that, as in the case of the "11-7" deal, the end was yet far distant, as the three claims that were sold by McKinley to Lloyd proved to be the straw that broke the camel's back, it being through their transfer that the Federal authorities first became cognizant of the fact that a fraud had been committed, as future developments will disclose.