East Oregonian : E.O. (Pendleton, OR) 1888-current, 1909-10-19

j. Thornburn Ross and John E.
Aitchison formerly well known to the
public through the Title Guarantee &
Trust company collapse, are suspected
of having violated the land laws of
the United States At this time an
agent of the land office is busy maxi
ing an investigation into the transac-
tions of Ross and Aitchison in gov
ernment land at Irrigon. If the in
vestigation bears out the suppositions
the matter will be submitted to the
next federal grand jury.
According to the story, Ross and
Aitchison, through the Oregon Land
and Water company, induced various
people to take up government land
after contracting to turn at least a
portion of each claim over to the Land
company In addition to this the Land
company then sold tracts out of these
claims, giving a bond for a deed in
each instance even before the claim
and had secured patent to the land
from the government.
Land Company Formed.
The story goes back to the forma-
ton of the oregon Land &c Water COM
pany by the direction Of j. Thornburn
Ross and John +. Aitchison, TO handle
the. lands at Irrigon. The company
was formed with ]. Thornburn Ross,
F. 3. Holbrock, c. c. Hutchison and
John w. Cook as the incorporators.
1t purchased outright a large number
of the grant lands of the Norehern
Pacific in the vicinity of Irrigon.
The grant land was in alternate Sec
tions. as are all Of the Oregon grants,
and the land company accordingly set
about to secure other lands still held
by the government. lying between the
grant land sections.
In order to secure these lands a
large number of people were engaged
by Ross and Aitchison to file on the
lands. At the time these
entrymen agreed to file. contracts
were entered into between them and
the Land and Water company, by
which the company was to furnish
water for their claims in return for
a portion Of the land
After the filing had been made, and
long before patent had passed from the
government to the applicants, the land
company, acting on the authority of
its contracts with the claimants, sold !
the contracted portion of the claims
to outside purchasers. giving bonds
90, 1r,Ic in aaph instance.
In due course of time, many of the
claimants came to the conclusion that T.
they could not afford to violate the
federal land laws and relinquished |
their claims, thus leaving the Oregon |
Land & Water company high and dry /
as to those tracts which had been sold !
to outside parties.
F. B. Holbrook was at the time the |
sales agent and general manager of
the land company, and was one of the
original boosters of Irrigon. He had
sold these lands right and left, and
If became necessary to make some ad-
iustment with the purchasers.
Holbrook severed his conr ectlon
with the company and c. c. Hutchi-
son succeeded him. He was left the
ask of strengthening out the tangle'
To add to the difficulty, about this
line the government received an ink
ing of the conditions existing tere,
md began to make inquiries of appli-
ANTS for the various lands.
Had to Buy Land Back.
Hutchinson was obliged to buy out
MANY of these purchasers, and for
his work large amount of the Title
Guarantee & Trust Co.'S funds was
ipent.
The government would not be sat-
sfied. however, with the relinquish-
nent of claims and the purchase back
If government lands sold by the land
company. and has accordingly begun
IN investigation to determine the La
,ility of Ross and Aitchison, the In
itigators af the scheme. Agents of the
,eneral land office have been con-
lucting a quiet investigation for some
ime and it is believed that the next
ederal grand jury will be asked to
PASS upon the reports now being pre-
rxo.. Tho invactipa tionq