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Looters of the Public Domain/Chapter 7

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Chapter VII

Petty controversies betzveen McKinley and young Lloyd over money matters furnishes the basis for the first land fraud indictments in Oregon—Colonel Greene has his suspicions aroused by reason of the "24-1" transaction, and lifts the lid from the ugly mess—Incidentally, Special Agent Linnen, of the General Land Office, distinguishes himself in the terpsichorean art while in search of evidence against the conspirators—Francis J. Heney, Special Assistant to the United States Attorney-General, makes his initial appearance at the land fraud trials, and his presence causes a general scurrying to shelter by the two female defendants, as well as considerable anxiety on the part of F. P. Mays.


IT WILL be remembered that in a former chapter reference was made to a certain transaction between George Lloyd, through his son, Clyde D. Lloyd, and Horace G. McKinley, over which a dispute arose, and it might be stated here that this controversy was the basis of all subsequent indictments, together with the trials incident thereto.

Clyde D. Lloyd, after employing persuasive measures with McKinley for fully a year, to the end that the $1,500 he had paid Horace for the three fraudulent claims in Township 24 South Range 1 East, should be returned to him, finally became impatient and proceeded to press McKinley for the money. Thereupon the latter deposited the amount in a bank at Eugene in escrow, and immediately informed Lloyd of the fact, stating that it would be turned over to him upon receipt of a contract exhibiting McKinley's interest in what is commonly known as Puter's Marion county tract.

About this time McKinley learned that Lloyd contemplated disposing of these lands without consulting him, notwithstanding the fact that according to the original agreement they were to participate share and share alike in the profits. This agreement, it will be understood, was of a verbal character, and as McKinley had no writing whereby he might be able to establish his interests, and it appearing to him that further delay could only result in jeopardizing matters still further, he brought suit against Lloyd for an amount sufficient to cover his share of the expected profits. Judge Thomas O'Day, of Portland, appeared for McKinley in this case, as he did also throughout the entire land fraud trials that followed.

When Clyde Lloyd ascertained that an action had been commenced against him, he called upon me for advice, and my recommendation was that he consult with McKinley at once and compromise the case, having in mind that if the litigation was pressed it might lead to exposure of the fraudulent transactions concerning the manner in which public lands were being acquired, and prove disastrous to all involved. However, Lloyd was obstinate and declined to entertain the proposition of compromise, insisting upon employing counsel. Thinking to protect myself, and knowing that F. Pierce Mays was an interested party as well as my attorney, I lost no time in advising Lloyd to call upon him. Later I was pleased to learn that the bait had been properly swallowed.

Shortly afterward George Lloyd appeared upon the scene, and after a conference with his son, he, too, called upon me for advice. Following previous lines, I counseled a compromise as the best solution of the problem, but being in the dark relative to the unenviable position his son was in, by reason of having taken the acknowledgment, as a notary public, of Robert Simpson, a fictitious person, Lloyd senior refused to accede to my suggestions, stating that McKinley had deliberately transferred three fraudulent claims to his son, obtaining $1,500 thereon, and that, from all appearances, McKinley was holding this over his son as a lash to force him to sign the contract.

Observing that Lloyd, senior, was determined to proceed in the matter I once more resorted to my favorite tactics of sending him to Mays. The interview between them did not prove as satisfactory as I had anticipated, however, it appearing to Lloyd senior that the attorney was too "busy" to look after his interests, as he kept putting him off from time to time, and evidently dodging the issue. The action of Mays in the premises was thoroughly understood by me, it being the policy to postpone matters long enough to give Mays an opportunity to "pour oil on the troubled waters."

Dissatisfaction with Mays' tactics impelled George Lloyd to visit Eugene, Oregon, where he called upon Miss Marie L. Ware, the United States Commissioner before whom the final proofs were made upon the six fraudulent claims. Not being able to gain any satisfactory information from her, Mr. Lloyd proceeded to the Roseburg Land Office, where he met Col. A. R. Greene, at that time Special Inspector, Department of the Interior, but since transferred to the superintendency of an Indian Reservation in Oklahoma. Lloyd made Colonel Greene his "Father Confessor" in the matter of the alleged frauds, and acting upon this information, the Special Inspector hastened to Eugene, where he indulged in a heart-to-heart talk with Marie Ware upon the subject.

In all probability he gained enough information from her to warrant the opinion that all was not exactly as it should be, as he immediately detailed Special Agent E. P. Linnen, of the Roseburg Land Office, to make further investigation. The Special Agent obeyed instructions by repairing to Eugene and calling upon Miss Ware, from whom he received such oral admissions that he felt justified in having her incorporate them in an affidavit.

On the day following the arrival of Linnen, the keeper of one of the local bawdy houses called at the United States Commissioner's office and informed Miss Ware that on the preceding evening a gentleman who had passed the night in her resort had become greatly intoxicated, and had frequently dropped a bundle of papers on the floor of her establishment while "tripping the light fantastic" with some of the inmates.

"Upon discovering the nature of the papers," continued the woman, "I concluded to bring them to you, as I noticed your signature upon them, and thought perhaps they might have been stolen from your office."

Miss Ware gave assurance that the documents had not been stolen, but properly belonged to the individual who had lost them, and she requested her informant to tell the gentleman, the next time he called, that the papers were in her possession, and that he could have them upon application at her office.

Upon recovering from the effects of his debauch, Linnen again called upon Miss Ware and asked for the restoration of the documents, stating that he had mislaid them, and had learned that they had been returned to her custody. This request was readily complied with.

The Special Agent then reported his findings to Inspector Greene, who in turn submitted them to John H. Hall, at that time United States Attorney for Oregon, who presented the whole matter in detail to the consideration of United States District Judge Charles B. Bellinger (now deceased.)

After an examination of the affidavits in question, and in view of the situation as presented to him. Judge Bellinger summoned Miss Ware to Portland. As a result of the conference between the two, it was decided that she should be removed from office.

McKinley and I were in Chicago during this period, and upon receiving telegraphic advices from Miss Ware that trouble was brewing, we lost no time in returning to Portland, where I immediately held an interview with F. Pierce Mays concerning the conditions. Mays appeared very much perturbed over the
The late Charles B. Bellinger, United States District Judge for Oregon who presided at the 11-7 trial
situation, and suggested that I advise Marie Ware to resign her office forthwith, explaining that any effort upon her part to attempt to hold her position in the face of all the charges that had been preferred against her, would only have a tendency to make matters worse, and that in any event her dismissal was inevitable.

I pleaded with Mays that something might be done to ameliorate conditions, but he was inexorable, insisting that he was on the "inside," and that he had been advised by his brother, Edwin P. Mays, who was then United States Attorney Hall's assistant, that Judge Bellinger's mind had been fully made up, and that, if we had any hope of saving ourselves, we must, of necessity, sacrifice Miss Ware, and if the worse came to the worse, get her out of the country altogether.

Shortly after this interview occurred. Mays informed me that he had conversed with his brother further upon the subject, and had been apprised that Hall was about to subpoena Miss Ware to appear before the Federal Grand Jury, then in session, urging that Miss Ware be smuggled away with as quick dispatch as possible.

Acting upon this suggestion, and being well aware that F. Pierce Mays had a strong "pull" in the United States Attorney's office, not only through his brother, but with Hall, himself, and that on account of his complicity with me in land fraud matters—as well as with others—he was being governed by personal considerations mutually beneficial, I proceeded to carry out his ideas without delay. In answer to my telephonic request. Miss Ware came to Portland on the morning after the conference between Mays and myself took place, prepared to leave the city until after the adjournment of the Grand Jury.

She was met at the East Side depot by Horace G. McKinley and myself, and spirited to the residence of Alice White, 175 Ford Street, Portland, where she remained in seclusion for several days. Upon completion of arrangements for their departure. Miss Ware and Alice White were given railway transportation and funds sufficient to cover their expenses, and sent to Vancouver, B. C., beyond the jurisdiction of Uncle Sam.

Not long afterward we received a letter from Miss Ware, complaining of homesickness, and requesting that she might return to Portland and go to California. We agreed to this, and within a few days both Miss Ware and Miss White were en route to Los Angeles, California. Upon their arrival they went to the Hotel Van Nuys, one of the swell establishments of the southern metropolis, where they remained about a week, when Miss Ware learned that an information had been filed against herself and Horace G. McKinley, upon charges of conspiracy to defraud the Government of its public lands.

Acting upon my advice, she notified Judge Bellinger by wire of a willingness to return to Portland immediately, and soon after her arrival, both herself and McKinley appeared in Court, and through their attorneys. Judge Thomas O'Day and F. Pierce Mays, demanded an immediate examination. This was accorded them, the proceedings taking place before United States Commissioner J. A. Sladen. Clyde D. Lloyd, Special Inspector A. R. Greene, and R. W. Veach testified as witnesses upon behalf of the Government, and the examination resulted in both defendants being held to appear before the United States Grand Jury, bail in each case being fixed at $2000, which was given.

Three or four months later—in October, 1903—I was in Portland, and called upon F. Pierce Mays at his office. My purpose in coming to Portland at that time was to consult with him relative to the advisability of his making suitable arrangements to quash any possible indictments against myself. After reviewing the situation. Mays informed me that sufficient evidence had been produced at the preliminary examination of Marie Ware and Horace G. McKinley to warrant the Grand Jury in finding indictments against them, and furthermore that he had since learned that United States Attorney Hall had secured enough additional evidence to justify the indictment of Mrs. Emma L. Watson and myself, and that it was the intention to do so.

After parleying with Mays for several hours in an effort to convince him that I would not stand to be indicted, and that the proceedings must be stopped, he assured me that I was taking the wrong course; that the best way would be to court such a proceeding, explaining, as he did. that it was bound to come sooner or later, and that, because of his influence with Mr. Hall, matters would terminate to my entire satisfaction at the proper time.

Mays argued that Hall's term of office had already expired, and that someone else might be appointed as his successor at any moment, and if, perchance, the new incumbent should develop into a political or professional enemy, the status of affairs might assume a very serious aspect. On the other hand, if indictments were brought against myself and colleagues at this time, while District Attorney Hall was yet in office, it was reasonable to believe that the latter would be retained by the Government to prosecute the suits, and with Hall in office, Mays could have the cases postponed from term to term and eventually wear the Government out, or arrange to have them dismissed altogether.

While admitting the force of Mr. Mays' argument, as well as his ability to influence the actions of United States Attorney Hall, at the same time I could not bring myself to view the situation in the same light as he did, nor could I acquiesce in his method of procedure as applicable to my case. However, I explained to him that it would be necessary for me to go on to Chicago, where I contemplated closing a big land deal, and requested, before leaving Portland about three weeks later, that he keep me posted regarding any action that might be taken by Hall during my absence.

I had been in Chicago but a short time when I received word from Mays to the effect that indictments had been found against Mrs. Emma L. Watson, Miss Marie L. Ware, Dan W. Tarpley, Horace G. McKinley and myself, and advising that I return to Portland forthwith, as my failure to do so would result in the dispatch of a United States deputy marshal after me. Upon receipt of this intelligence, I wrote Mays, urging him to see Hall with a view of arranging for me to remain East a few weeks longer, at the same time explaining that I expected to consummate a deal of considerable importance, and must have additional time in which to adjust its details.

Mays as a reply notified me that he had talked with Hall about my case, and that everything had been "fixed," but suggested that, in order to show my good faith, and to square Hall, it would be well for me to wire the United States Attorney's office at Portland, and outline my position to him. This I did, and subsequent events indicated that Mays had not misled me relative to Hall being "fixed," and that my attorney knew what he was talking about. Immediately after closing my deal I returned to Portland, and in the meanwhile I was not molested.

Upon arrival in Portland, I called to see Mays, and was informed that I had been indicted in the Tp 24 S., R. 1 E. case, and that I had no cause to worry, as everything would come out all right. I then made a visit to Hall's office, and, acting under the advice of Mays, treated the incident in the nature of a friendly call, and was received accordingly by the Government prosecutor. Nothing was said about giving bonds by Hall, and I did not deem it expedient to broach the subject myself. Before leaving Portland a few weeks later, however, I again called upon Hall, and furnished bail for my appearance when wanted in the sum of $4000.

It might be stated here that Marie L. Ware, Dan W. Tarpley and Horace G. McKinley had already given security before my arrival from Chicago, and that with the exception of Mrs. Emma L. Watson, I was the only one delinquent in that respect.

Just before leaving for California, I called upon Mays again and inquired if it would be advisable to have Mrs. Watson appear and furnish the required bonds, to which he replied that if it were possible, it would be better to keep her under cover, for the time being, at least.

In his capacity as my attorney, Mays filed a demurrer to the indictment, and a hearing thereon was held during the first week in November, 1903. The demurrer was overruled by Judge Bellinger, who set the case for trial December 14 of that year.

About this time Mays informed me that he had learned Hall was to have an assistant in the person of Francis J. Heney, of San Francisco, who had been appointed special prosecutor by the Government. Mays asked me if I knew Heney, and upon my replying in the negative, he suggested that it might be well for me to look up his record when I returned to San Francisco, and secure all possible information concerning his standing and ability from a legal point of view.

The question of Mrs. Watson's whereabouts also seemed to perplex Mr. Mays considerably, and he asked if I knew where she was. I told him she was at her home in San Francisco, and that I would probably see her within a few days. Mays thereupon suggested that I adopt some means of getting her out of the country, as she was the main spoke in the Government's case, being the one to whom the six fictitious claims had been deeded by the supposed original entrymen. Mays contended that if Mrs. Watson was kept under cover, it would be an impossibility for the Government to establish any case against the defendants.

As the time of trial was drawing near, I asked Mays if he could have the cases postponed, as it was very probable the secret service agents of the Government were on the trail of Mrs. Watson, and might, at that very moment, have her under surveillance in San Francisco, rendering it next to an impossibility for me to confer with her without detection, and also making it difficult for me to get her out of the city. Mays agreed with me that additional time would be necessary to accomplish the desired end, and promised to see United States Attorney Hall and arrange with him for a continuance of the trials.

Coal lands of Wyoming, grabbed under the timber law