The Washington times., 1904-02-18
Schneider Is in Jail,
Unable to Give Bond
Bench Warrants Issued for Other Men In
diCted With Him for Alleged Land Frauds.
sFiOw the Scheme Was Worked.

Joost II. Schneider. of Tucson. Ariz..
who was arrested yesterday afternoon
at the City Hall. because of his alleged
implication in the Government land
frauds in certain Western States. is
still in Jail. He was indicted jointly with
Frederick A. Hyde, John A Benson,
and Henry p Diamond. for conspiring
to defraud the Government of the use
and ownership Of certain valuable for
est lands III California, oregon, Wash
ington, and Oklahoma.
The frauds in the land deals of which
these people are accused cover a period
from October "A. 1901. TO February 1.
1904. The land in question aggregates
several hundred thousand acres. and IS
valued at more than 100000 Schneid
er. il is said. is an agent Of Benson and
Hyde. who did an extensive business in
public lands for several years past. Ii
was also said that when Schneider was
first charged with being implicated i'm
the fraudulent transactions in Govern
nent lands for which all the defen-
dants are Indicted, it was expected I've
would testify before the grand jury as
a witness for the Government. and di-
vulge all he knew concerning the land
deals in the West. When Schneider
was called before the grand jury. how
ever. ne declined to testify.
Could Not Get Bond.
The Indictment against Schneider and
the others was reported by the grand
jury yesterday afternoon, shortly after
o'clock. Schneider was in the CITY
Hall at the time. and was arrested by
William J. Burns. a special agent Of
the General Land Once. The prisoner
procured the services Of Attorneys Cole
& Donaldson. and applied to Justice
Barnard for his release on hail. The
court fixed the bond at $4,000. which at
the time Schneider was unable 10 fur
nish
Immediately after the return Of the
indictment. District Attorney Beach
caused bench warrants TO be issued for
the arrest Of the other defendants.
The evidence submitted to the grand
jury, which resulted in the Indictment Of
the four persons named. was gathered By |
Arthur 3. Pugh, assistant attorney gen
eral for the Interior Department; Oliver
p Pagin. assistant attorney general for
the Postoftice Department. and william |
j. Burns, a Secret Service agent Of the
General Land Office. all of whom acted |
under the personal direction Of Secre-
tary Hitchcock. The principal part and |
most damaging testimony against those !
indicted was given by William EN Walk. /
John McPhaul. and Woodford L. Har- 1
Ian. clerks. and Benjamin F. Allen and
Grant L. Taggart. agents ot the General
Land Ofice.
Engineering the Scheme.
From the relations which existed be-
tween the persons indicted. their interest |
~ IT, 1.
Government is seen. Diamond. it is said !
is an emplOye of Benson. at his home |
office IN San Francisco. and also main
tanned an Office I'm Washington. 1t is
through him, Il is said. that information
from the General Land Office
at Washington was sent directly TO Ben
son Hyde. who is a San Francisco mil
lionaire land dealer. Is said to be the
chief engineer Of the scheme TO defraud |
the Government Of valuable land
Most Of the transactions I'm connection /
with the affair come under the lien land
law and were originated and consum-
mated as the result OF information OBJ
tanned through the General Land Office /
in Washington. Through spies In the
General Land Office the land-grabbing
ring obtained Information regarding
large tracts Of land. valuable for forest
reservation purposes The land was
then entered upon I'm the name OF per-
sons that were fictitious. but whose
names had been obtained from the d.
vision superintendent Of the Southern
Pacific Company, from land officers. and
from others.
Notaries Were BIibed.
Afidavits Of entry and other proofs
OF occupation Of the land, establishing
an apparent legal claim. were perfected
by nOtaries who were bribed by the
operators. On official Interior Depart
ment stationery. obtained from Allen
and agents In the field. recommended
tons were written I'm the office OF HYDE.
setting forth that the land in question
should be opened TO entry As the re-
suit OF Information furnished by land
officers the land-grabbing ring had a
,hOice OF the pick of the best lands.
and so acquired forest lands worth $50 L
an acre. for lands which were not worth
more than fifteen dollars an acre.
The scheme. In one instance. was to
nave fictitious entries made for State