Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-12-19
LAND FRAUDS
Which Are Said to Exceed
Anything Yet Known
Leads to Arrest of J. A. Benson,
Wealthy Real Estate Broker.
Other Arrests to Follow and Bio Sen.
sation Promised.


son, a wealthy San Francisco real es-
tate operator, charged by the interior
department with being the head of al
leSed land frauds extending over a
dozen western states and territories,
70 which Secretary Hitchcock referred
vigorously and at length in his annual
report, was arrested here. today. at the
Willard Hotel by Secret Service Officer
John "A. Burns, just as he was prepar-
ing to leave the city for New York.
The charge on which the arrest was
made was bribery. it being alleged in
the affidavits of Mr.. Burns and in the
warrant that Benson had paid $500 to
to Woodford ID. Harlan. formerly spe-
clal service division of the general land
ONCE and now clerk of the office,
March Is of this year, for the purpose
of extracting from him information re-
Sarding the investigation of his opera
tions at that time being made by the
land office.
The warrant was issued by United,
States Commissioner Taylor, and Ben
son was taken before him. He wished
to have preliminary hearing of his
case postponed and the date for the
hearing was fixed at Dec. 80. He gave
bail for his appearance on that date,
when the government attorneys will
ask to have him held for the grand
jury.
Numerous arrests are expected 70
follow that of Benson in short order
ana some employees who may not be
arrested will be dismissed, it is said
from the service. The government
attorney, Arthur B. Pugh, who has
been the special attorney Tor the inter-
ior department on the land frauds, and
Oliver l.. pagin, assistant attorney OF
the department of justice, who has also
been employed on the cases, stated in
asking for a large bail bond for Ben
son that he had been guilty of bribery
during his present visit to Washington,
since last Monday and in the interior
department itself, notwithstanding
that he was fully aware that his con-
nection with the alleged frauds was
fully known by the department.
The statement was made later that
Secretary Hitchcock was so incenssd
at the fagrancy of this alleged c1fense
that he told the officers to have Ben
son arrested at once, although it had
rot been planned to apprehend him at
present. Another assertion by the gov
eminent officers is that Benson came
to Washington in answer 10 dacoy let
tiers and with the intention of bribing
people i'll the land Office who We're in
reality acting for the secret service.
The information on which the war
rant was issued stated in behalf that
Mr.. Harlan, in his capacity as chief
of the special service division of the
general land office, had charge of the
investigation of the land frauds, send
ing out special agents in suspect ed
cases and receiving the reports of such
agents cases and that Benson had paid
to him the sum OF $50 in return for le-
ing allowed to examine the reports of
the special agents in his own case.
Attorneys Pugh and Pagin were, yes
terday, sworn in as assistant United
states attorneys for the purpose of
prosecuting the case against Benson.
Mr.. Benson is said to have been taken
completely by surprise in his arrest.
although he has known that the gov
eminent has been investigating the al
legged Land frauds. He had no lawyer
Immediately after his arrest before
United States Commissioner Taylor n
delay of an hour or more occurred while
lawyer was sought for him.
Mr.. Benson made formal plea of not
guilty and then his attorney asked that
he be released Oh bail. The accused Of
ferred bail in $1,000 in cash while the
government attorneys demanded bonds
in the sum of $4,000.
Commissioner Taylor finally fixed the
bonds at $4,000 and Mr. Benson was f.
nally released to appear Dec. 80, when
preliminary hearing will take place.
Mr.. Benson is the senior member OF
the real estate firm of Benson & Hyde
of San Francisco, and it is asserted hos
defrauded the government out of at
least 100000 acres of land by various
schemes since the passage of the forest
reserve act i'll 1897. The information
alleges that frauds We're perpetrated as
to lands in Washington Oregon, Cali
fOrnia, Montana, Idaho, Nevada, Utah,
Wyoming, Colorado, North Dakota,
South Dakota, Nebraska, Kansas, Min
nesota, Arizona and New Mexico.