Chapter III
IN the course of an Eastern trip during January, 1900, I took occasion to call upon C. A. Smith, a millionaire lumberman of Minneapolis, Minnesota, whose acquaintance I had formed previously. At the time of our first meeting, I had given him an option on sixty quarter sections of timbered school lands, aggregating 9,600 acres, situated in Coos and Douglas counties, Oregon. This deal had fallen through for the reason that the tracts were not in a compact body, being merely a portion of the 16th and 36th sections of quite a number of scattered townships.
Although my initial effort to do business with Mr. Smith terminated in failure, it served as an incentive to approach him concerning a proposition of greater magnitude, as I had become more or less familiar with his system of operation, and felt satisfied he was not of the cheap variety, wherever personal interest was involved, and that nothing would balk him in the line of investment, providing there was anything in it for himself.
Upon my second visit, I endeavored to impress him with the idea that I was somewhat of a timber-land plunger myself, and that I was in a position to interest him on a basis that would yield large returns.
Calling the next day, as per appointment, I found him exceedingly eager, as on the day before, to discuss the matter of timber lands and the best method of acquiring title thereto. In fact, we had several conferences upon the subject, all of which were arranged at the suggestion of Mr. Smith.
I felt from the start that he meant business, and was convinced furthermore that he was looking for just such lands as I had in view—those that promised to yield large returns—but was unaware, of course, to what extent he would go in order to secure them, or, in fact, whether there was any limit to his ambitions in that respect. This information, however. Smith divulged to me in his own good time, and in such way as to satisfy me that he would go to any extreme in obtaining vast holdings of timber.
After exhibiting plats showing the lands I had to offer, and explaining all the details incident to prices and the facilities for manufacturing the product into merchantable lumber, he asked me if I was aware of any tracts of good timber that had been surveyed, but which were still vacant and subject to entry, to which I replied that I was familiar with several fine bodies of timber in that condition.
He then inquired if it would not be a more feasible plan, in my opinion, to locate a lot of men under the timber and stone Act of June 3, 1878, furnishing them the money with which to. make final proof, and acquire title in that way.
I informed Mr. Smith that the plan outlined would most assuredly be considerably cheaper in the long run, but that it would necessitate the expenditure of a large sum of money at the outset.
His proposition met my approbation, and I expressed myself accordingly, whereupon he sought information concerning the probable cost involved by the undertaking.
This I could not state definitely, informing him that it would depend largely upon circumstances. As to the land itself, we knew exactly what the Government price was, as well as the land office fees, but when it came to a question of compensation for the entrymen, prices would vary to a certain extent, as some would demand more than others for their rights.
Mr. Smith was positive that in no instance would the expense of this character be exorbitant, basing his ideas upon the theory that comparatively few men had the necessary $400 with which to make final payment, however valuable the claim might be, and he felt that I would be able to get all the locators I could utilize for sums ranging from $100 to $200 each.
I agreed with Mr. Smith that his figures were doubtless correct, and being mutually satisfied, we entered into an agreement whereby I was to secure from 8,000 to 10,000 acres for him, or as much more as I could get, of good yellow fir timber land, practically in one body, as near to market as possible, and to run at least 50,000 feet of merchantable lumber to the acre, and which was not to cost him over $6 an acre, he agreeing to advance all funds necessary in getting title.
He then gave me a letter to Frederick A. Kribs, his financial agent, who was then in San Francisco, at the same time stating that he would abide by whatever trade I made with Kribs; also, that as soon as I had located a tract and closed a deal with the latter, he would proceed to Oregon and have a definite understanding with me upon the subject, in the form of a written agreement.
Upon my arrival in Portland, I consulted my partner, Horace G. McKinley, in regard to the deal discussed with Smith, and asked him if he knew of any desirable tract that we could get hold of. McKinley declared that he was aware of a large body of land that would exactly fill the bill; that Townships 14 South, Ranges 2, 3 and 4 East, Willamette Meridian, in Linn County, Oregon, had only recently been surveyed, and were covered with one of the heaviest and finest bodies of yellow fir timber in the State, but if he wanted to get in on it we would have to act promptly, as the Northern Pacific Railroad Company had its cruisers on the ground at that time, estimating the timber with a view of making forest reserve selections of it under the "Scripper Act" of June 4, 1897, so we decided to go right to work and get in ahead of the Northern Pacific.
We followed out the plan along the lines originally suggested by Mr. Smith, and were successful in securing a majority of the entrymen required in Portland, the balance being picked up around Brownsville, Albany and Roseburg, Oregon. We had a mutual understanding with each and every person taking up a claim that we would pay all expenses incurred, including that of going to and from the land; going to and from the land office; the land office fees and the cost of the land, and further, that we would allow them $100 each, after they had made final proof and turned over their deeds, which were to be executed in favor of whomsoever we might designate.
The entrymen were taken to the Roseburg land office in bunches of ten or more, as we found it convenient, having arranged previously with the Southern Pacific Company for something like a one and one-fifth fare for the round trip, where groups of ten or upward were transported at one time.
The descriptions of the lands filed on were secured from the Mealey brothers, residents of the Sweet Home country, under a contract to allow them $10 a claim, or quarter section, they guaranteeing each 160 acres so furnished to estimate no less than 10,000,000 feet of good timber. These two brothers, William and "Jud" Mealey, had lived for years within three miles of the tract, and had assisted in its survey, consequently were thoroughly posted relative to the general characteristics of each subdivision thereof. Within a week we had made fifty-seven locations on timber claims, and had recorded the filings at the land office in Roseburg.
Shortly thereafter the Northern Pacific cruisers returned with their reports to headquarters, and C. E. Moulton, agent for the railway corporation, was sent to Roseburg for the purpose of "scripping" the entire tract. When he discovered that the land had been filed on under the timber and stone act, and learned who was behind the scheme, he immediately called on McKinley and myself, and threatened to institute contest proceedings unless we had the timber filings withdrawn forthwith, giving it as his opinion that the claims had not been taken in good faith. We objected, of course, against any such measure, consequently the Northern Pacific filed contests against every entry, and the Register and Receiver of the Roseburg land office set the hearing simultaneous with the date of making final proof on the different claims.
Shortly after this I went to San Francisco to see Mr. Kribs, to whom I explained the entire situation, and he in turn agreed to communicate with Mr. Smith, advising him to come to the Coast immediately, in order that some satisfactory conclusion might be reached regarding the status of affairs. Some weeks later I received a wire from Kribs, announcing Smith's arrival in the Bay City, and requesting me to meet them at Albany, Oregon, at a stated time.
On the date named, McKinley and I went to Albany, where we met both Smith and Kribs, and it was thereupon decided that our first move should be to make an examination of the timber, and if it came up to Mr. Smith's expectations, an agreement was to be perfected between us, with a view of acquiring the titles.
On the morning following we took the train for Lebanon, Oregon, where a team was engaged, driving to the Mealey ranch and remaining there over night. The next day, and for several days thereafter, we cruised the timber under the pilotage of the two Mealey brothers, counting and measuring the trees indiscriminately on different portions of the tract, which was to be a test of the whole. Some of the land ran as high as 300.000 feet to the acre, while scarcely any estimated less than 20.000 feet. It all averaged 80,000 feet to the acre, or 30,000 feet above requirements.
Mr. Smith was highly pleased with the results of his inspection, and upon our return to Albany entered into a contract, whereby he agreed to advance the money for making final proof and all other expenses, together with the $100 bonus to be paid each entryman for his right, and as soon as deeds were obtained, he was to pay us the sum of $5.50 an acre for the 9,120 acres embraced in the fifty-seven claims, less the amount advanced for the perfection of titles.
He suggested that as soon as final proofs were made, the entrymen should mortgage their claims to Frederick A. Kribs for $600 each, simultaneous with the execution of a transfer to John A. Wild, of Minneapolis, this deed to be withheld from record for ten days after the final proof had been made. This precautionary measure was adopted to make it appear that the claims had not been located under any prior contract for sale, in case any question should arise affecting the validity of the titles.
About a fortnight prior to the time for making final proofs on the entries, McKinley was arrested at Albany. I was en route from San Francisco to Portland when this occurred, and had wired him to meet me in Salem. McKinley sent a messenger boy to the Albany depot for the purpose of intercepting me and apprising me of the situation, and as soon as I learned the state of affairs, I left the train and went up town to the hotel, where I found Horace in custody of an officer, he having been charged with subornation of perjury and conspiracy to defraud the Government out of its public lands. The warrant had been sworn to by S. S. Mathers, Special Agent of the General Land Office, whose headquarters were at the Roseburg Land Office. I immediately qualified 
He seemed much surprised to see me. stating that it was reported I was in Chicago, and that had the Northern Pacific people known I was in Oregon, they would not have molested McKinley. He admitted that it was the railway corporation behind the scheme to prosecute McKinley, thinking that by this process, coupled with the fact of his being in jail, it would have a terrorizing effect upon the fifty-seven entrymen, making it an easy matter, in the opinion of the company's agent, to scare them into relinquishing their rights and enable the Northern Pacific to scrip the land without opposition.
According to Mays, the company was proceeding upon the theory that by exercising a little persuasive force of this character with the entrymen. Practically all of whom were ignorant backwoodsmen, they would accede to their wishes, as most of them realized that they had done something contrary to law. and were liable to prosecution by the Government.
So far as McKinley was concerned. Mays assured me he would come out all right, and advised that the best thing to do would be to expedite his preliminary examination, and he would see that his brother. Edward P. Mays—then Assistant United States Attorney—should be sent to Albany to prosecute the case, so we need feel no anxiety over the matter.
After a brief conference. McKinley and I proceeded to interview the entrymen, informing them of the game of bluff being played by the Northern Pacific people, at the same time cautioning them to stand pat and talk to nobody.
We then employed A. M. Crawford, ex-Receiver of the Roseburg Land Office, and at present Attorney General for the State of Oregon, to defend McKinley. The case was set for hearing within five days after his arrest, before the United States Commissioner at Albany.
In the meantime McKinley and I decided to visit Roseburg and if possible, "round up" Special Agent Mathers, who had sworn to the complaint, believing that for a few hundred dollars he could be induced to view things in a different light about McKinley, and assist in having him cleared. We likewise deemed it good policy to have Mathers on our side during the pendency of the contest proceedings, and also to aid us in securing the patents.
As soon as we got to Roseburg we commenced to hunt for tracks, making the rounds of Mathers' various haunts until we finally found him in one of the numerous saloons of the place, surrounded by a coterie of charmed and enthusiastic admirers, to whom he was relating gilt-edged narratives concerning his many deeds of prowess on the battlefields of his country. As each tale had been accentuated by a round of drinks, and as the valiant Captain was wound up for all night, we considered him in prime condition for opening up negotiations.
Several members of the crowd around the bar, including Captain Mathers, recognized us as soon as we entered the establishment, and our appearance was the signal for an invitation from all hands to join in the festivities. To say that we accepted with alacrity would be putting it mildly, as we regarded the situation as a golden opportunity for carrying out our plans.
After imbibing freely, all present entered into social converse, the amount of individual talking being gauged by the quantity of liquor already consumed. McKinley and I took a special interest in the various anecdotes, particularly so whenever the Special Agent's tongue got busy. We applauded his maudlin remarks to the echo, and as a fitting appreciation of his recitals, wherein whole regiments had been put to flight whenever he placed himself on a war footing, McKinley tossed a double eagle over the bar and suggested that the entire house join us in bumpers of champagne to the everlasting glory of the great warrior. The corks popped quite freely after that, Mathers keeping up his end 
Much to our surprise, Mathers informed us that the Northern Pacific people had beaten us to him, having given his wife a free pass over their lines to New York City, besides presenting him with $200 in cash, as an inducement to assist them in the approaching contests.
This voluntary information on the part of the Special Agent was not exactly what we relished, but in the absence of our ability to corral him for our own use and benefit, it answered the purpose of a leverage, and we lost no time in acquainting Register J. T. Bridges, of the Roseburg Land Office, with the facts in the case. Bridges thereupon called for an explanation from Mathers, who, when confronted with the evidence of bribery, made a complete confession to the Register, who at once wired Commissioner of the General Land Office Binger Hermann, apprising him of the situation. As a result, the Special Agent was relieved from duty at Roseburg and sent out of the State, but was not discharged by Hermann, although he was later dismissed from service by order of Secretary Hitchcock.
In due time McKinley's case came up for preliminary hearing before the United States Commissioner at Albany, and while the evidence was sufficiently strong to hold him under ordinary circumstances, he was discharged. True to his promise, my old friend Pierce Mays had induced his brother Edwin to appear for the Government in the role of prosecutor, and as Assistant United States Attorney, his recommendation carried enough weight to convince the Commissioner that there was slight chance for a conviction before a jury, although, as a matter of fact, two of the bogus entrymen had confessed, and had made affidavits that they had taken up the land for the benefit of McKinley, with whom they had contracted in advance of filing to sell their rights for $100 each.
Soon after this affair, the case of the Northern Pacific against the fifty-seven entrymen was called before the Register and Receiver of the Roseburg Land Office. The contestants were represented by one of the corporation's special counsel from St. Paul, Minn., in addition to an attorney from Tacoma, Wash., and F. Pierce Mays, of Portland, while the lawyers for the entrymen were John H. Shupe and A. M. Crawford, ex-Register and ex-Receiver, respectively, of the Roseburg Land Office.
I was dumbfounded to perceive Mays there in the capacity of attorney for the corporation, and as soon as the chance presented itself, demanded an explanation.
"Don't you know that I am one of the regular attorneys of the Northern Pacific Railway Company?" he responded rather haughtily.
"No," I answered, "you have always been my attorney, and when I asked you the other day to defend my interests in these suits, you declared that you were unable to get away on account of pressing business, and now I find you arrayed upon the opposite side."
Mays undertook to excuse himself with the explanation that he did not think the Northern Pacific people intended to make a call on his services, but at the last moment they had done so, and he was in no position to refuse, as they had all along calculated to do so, but had failed to notify him of their intentions.
"At any rate," continued Mays, "you will be well represented, and I guess you will not have much trouble, as I shall be easy with you."
As I had made personal application for one of these claims, and was therefore one of the contestees, I happened to be the first witness called and was on the stand for two days. T had a satisfactory answer for every question concerning my connection with the fifty-seven entrymen, as well as pertaining to my individual filing, hence, so far as the testimony went, it looked as if the Northern Pacific did not have much of a case. I had made such a good showing, in fact, that Mays called upon me that evening at my room in the 
"However," said he, "you know, Puter, if we carry these cases on, you won't be able to save a single claim, as every one of those entrymen will go to pieces when they get on the stand, and the chances are more than likely that you will all be indicted for conspiracy to defraud the Government, convicted, and sent over the road."
As a matter of fact, Mays was simply taking up a collection on both sides of the aisle when he offered this suggestion. At any rate, I declined to surrender such a large percentage of the lands, but finally agreed to compromise upon the basis of 24 claims for the Northern Pacific and 33 for ourselves, so I selected the quarter sections I wanted, and had the entrymen relinquish their rights to the remainder. As soon as this had been done, the Northern Pacific proceeded to cover each abandoned tract with forest reserve selections, at the same time withdrawing their contests against the other 33 entries, and we then went to work to have the latter proved up.
C. A. Smith wired the necessary money to Frederick A. Kribs, at Roseburg, and as rapidly as proofs were made, he called at the Land Office and paid the Government price for the land, as well as all the office fees, whereupon the entrymen, as arranged previously, mortgaged their claims to Mr. Kribs, and at the same time executed a deed in favor of John A. Wild, of Minneapolis, receiving a cash bonus of $100 each.
For some reason or other, the patents to these thirty-three entries were suspended, pending an investigation. A report had been sent to the General Land Office concerning the fraudulent character of the claims, and in my opinion this complaint was instigated by the Northern Pacific. At all events, Special Agent William D. Stratford, who succeeded Mathers at Roseburg, was directed to make an investigation, but it is evident he was picked up by Kribs in short order, as he came to me soon after in Portland with an affidavit for me to sign, bearing upon the question of my connection with the thirty-three entrymen.
This affidavit was a typewritten document of several pages. Stratford informed me that Kribs had given it to him, and he wished me to sign it. He also wanted me to hunt up as many of the entrymen as I could find, and obtain their affidavits in order to facilitate the issuance of patents.
I hesitated somewhat before signing, as it appeared to me the affidavit should have been more explicit in defining my connection with the thirty-three entrymen; but as the Special Agent had come to me direct from one of my associates, and furthermore, because I was assured that it would innure to the mutual benefit of Kribs and myself. I attached my signature.
I then rounded up as many of the entrymen as I could find and secured additional affidavits, requesting McKinley to locate the balance, or those whom I had overlooked. Stratford expressed a desire to get as many affidavits as he possibly could at the earliest moment, that he might embody them in his report to the General Land Office.
Awhile afterward I had business in the East, and stopped off at Minneapolis for the purpose of conferring with C. A. Smith relative to the claims, as it will be remembered they were located in his interest. After describing conditions in Oregon, and Special Agent Stratford's efforts in our behalf. Smith suggested that I proceed to Washington, D. C., at once with a view of using my best endeavors to get the patents through. He then dictated a letter of introduction to S. M. Eddy, United States Senator from Minnesota, whom he declared was his personal friend and one upon whom he could rely for assistance of this character, together with a letter to R. V. Betz, a prominent Washington lawyer. These letters were not presented, for reasons that will appear hereafter.
Receiver George W. Bibee seated in chair
Returning to Minneapolis. I was informed by Mr. Smith that he had received advices from Frederick A. Kribs to the effect that George F. Wilson, another Special Agent, had been sent out from the General Land Office to make further investigations of the claims, and that it would be useless for us to attempt to do anything in Washington until this Agent's report had reached headquarters.
It developed later that Special Agent Wilson was a brother to the Republican "boss" of Providence, R. I., and that he owed his Government position to the political pull enjoyed by his relative with Senator Aldrich, of that State.
It is also interesting to know that Wilson fell an easy prey to Kribs as soon as he reached Oregon, and is no longer in the service of the Land Department on that account.
Upon my return to Portland. I had an interview with Kribs, who gave me full particulars regarding Wilson's visit, and how he had disposed of him. However, Kribs still felt more or less perturbed over the delay in securing patents, and I, too, was ill at ease, so I suggested that he call on F. P. Mays and solicit his aid in adjusting matters.
Later Kribs informed me that he had made an arrangement with Mays, whereby the latter was to receive $50 each for his services in getting the patents on the thirty-three entries.
Sometime afterward I met Kribs again, and found him in a disturbed frame of mind, as he could not understand the delays incident to the issuance of final evidence of title to the lands, expressing the opinion that Mays was procrastinating in the matter. I then informed Kribs that United States Senator John H. Mitchell had just returned to the city, and suggested that he consult with the statesman upon the subject. Kribs did as I advised, and a few days later reported the result of his conference with the Senator.
According to Kribs' statement to me, which has since been confirmed by court proceedings, he succeeded in entering into an agreement with Senator Mitchell, whereby the latter was to receive $25 for each patent issued in connection with the thirty-three claims. Although the arrangement only applied to these entries. Kribs took advantage of the situation and made a further agreement with the Senator, whereby he was to look after his interests in the matter of expediting all land patents he might have in future before the Department, for which the Senator was to receive the stipulated sum of $25 each.
It might be well to note here that the part taken by Senator Mitchell in the matter of expediting the issuance of patents for Frederick A. Kribs was the direct cause of his subsequent conviction, as Kribs settled with the law firm of Mitchell & Tanner through checks drawn on the Merchants' National Bank, of Portland, Ore., of which a full account will be given in another chapter.
