Oregon land fraud scandal
Encyclopedia
The Oregon land fraud scandal of the early 20th century involved U.S. government land grants in the U.S. state
of Oregon
being illegally obtained with the assistance of public officials. Most of Oregon's U.S. congressional delegation received indictments in the case: U.S. Senator John H. Mitchell
and U.S. Representatives John N. Williamson
and Binger Hermann
. (Only Senator Charles William Fulton
was uninvolved.)
three million acres (12,000 km²) of land to build a line from Portland south to California
. The land, which was granted in a checkboard pattern along both sides of the railroad's right of way, was then sold in 160 acre (0.6474976 km²) parcels at the extremely low price of $2.50 an acre to encourage people to settle along the line, thus fostering development.
to round up people from saloons in Portland's
waterfront district, escort them to the land office, and have them register for an O&C parcel as a settler, and then transfer it to Puter's men. The accumulated parcels were then sold in large blocks to the highest bidder for timber harvest.
, Puter turned on his former boss, testifying against him and writing a scathing expose, Looters of the Public Domain, about the scheme.
narrowed down the list to the 35 most egregious offenders, including U.S. Senator John H. Mitchell
and U.S. Representatives John N. Williamson
and Binger Hermann
.
Heney charged that Mitchell had illegally used his position to aid a client in the acquisition of patents to fraudulent land claims. Mitchell's law partner and personal secretary both testified against him, and on July 3, 1905, the jury found him guilty. He was sentenced to six months in prison and a $1,000 fine. Mitchell appealed, but before the appeal could be heard, he died from complications associated with a tooth extraction.
Williamson's trial also resulted in conviction for subornation of perjury
in 1905. The prosecution argued that the three defendants had attempted to illegally obtain land claims under the Timber and Stone Act
. Williamson appealed his case to the U.S. Supreme Court, which overturned the verdict in 1908 because of apparent jury tampering and witness intimidation.
In 1907, Hermann was found not guilty of destroying public documents. His second trial for collusion with the actual land fraud was postponed until 1910, and ended in a hung jury
and Heney declined to refile charges.
Heney also prosecuted John Hicklin Hall
, who was the U.S. Attorney originally charged with investigating the case, but who had been fired in 1905 by President Theodore Roosevelt
for not aggressively pursuing the investigation. Heney charged Hall with failure to prosecute fraudulent land companies and for using knowledge of the fraudulent activities for his own political advantage, and the jury convicted Hall in 1908. Hall was later pardoned by President William Howard Taft
.
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
of Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
being illegally obtained with the assistance of public officials. Most of Oregon's U.S. congressional delegation received indictments in the case: U.S. Senator John H. Mitchell
John H. Mitchell
John Hipple Mitchell, also known as John Mitchell Hipple, John H. Mitchell, or J. H. Mitchell was a controversial American lawyer and politician, who served as a Republican United States Senator from Oregon on three occasions between 1872 and 1905...
and U.S. Representatives John N. Williamson
John N. Williamson
John Newton Williamson was an American rancher and politician in the state of Oregon. A native Oregonian, he served in both chambers of the Oregon Legislative Assembly representing central and eastern Oregon in the late 19th century...
and Binger Hermann
Binger Hermann
Binger Hermann was an American attorney and politician in Oregon. A native of Maryland, he immigrated to the Oregon Territory with his parents as part of the Baltimore Colony. Hermann would serve in both houses of the Oregon Legislative Assembly and as a Republican in the United States Congress...
. (Only Senator Charles William Fulton
Charles William Fulton
Charles William Fulton was an American lawyer and politician in the state of Oregon. A native of Ohio, he grew up in Iowa and Nebraska before settling in Astoria, Oregon...
was uninvolved.)
Background
In 1870, the United States government granted the Oregon and California RailroadOregon and California Railroad
The Oregon and California Railroad was formed from the Oregon Central Railroad when it was the first to operate a stretch south of Portland in 1869. This qualified the Railroad for land grants in California, whereupon the name of the railroad soon changed to Oregon & California Rail Road Company...
three million acres (12,000 km²) of land to build a line from Portland south to California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. The land, which was granted in a checkboard pattern along both sides of the railroad's right of way, was then sold in 160 acre (0.6474976 km²) parcels at the extremely low price of $2.50 an acre to encourage people to settle along the line, thus fostering development.
Fraud
Since much of the land was unfit for development, but very rich in timber, an elaborate scheme soon evolved led by a railroad official named Ned Harriman. He recruited Stephen A. Douglas PuterStephen A. Douglas Puter
Stephen A. Douglas Puter was a criminal and author from the U.S. state of Oregon. He was instrumental in carrying out the Oregon land fraud scandal, which transferred tens of thousands of acres of federal lands given to the Oregon and California Railroad to private hands, ultimately benefiting...
to round up people from saloons in Portland's
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
waterfront district, escort them to the land office, and have them register for an O&C parcel as a settler, and then transfer it to Puter's men. The accumulated parcels were then sold in large blocks to the highest bidder for timber harvest.
Exposure
Harriman eventually had a dispute with Puter and fired him; then when a lumber company bookkeeper exposed the scheme to a reporter for The OregonianThe Oregonian
The Oregonian is the major daily newspaper in Portland, Oregon, owned by Advance Publications. It is the oldest continuously published newspaper on the U.S. west coast, founded as a weekly by Thomas J. Dryer on December 4, 1850...
, Puter turned on his former boss, testifying against him and writing a scathing expose, Looters of the Public Domain, about the scheme.
Indictments
Initially, more than 1,000 indictments were issued in the case. U.S. District Attorney Francis J. HeneyFrancis J. Heney
Francis Joseph Heney was an American lawyer who served as Attorney General of the Arizona Territory between 1893 and 1895.- Early years :...
narrowed down the list to the 35 most egregious offenders, including U.S. Senator John H. Mitchell
John H. Mitchell
John Hipple Mitchell, also known as John Mitchell Hipple, John H. Mitchell, or J. H. Mitchell was a controversial American lawyer and politician, who served as a Republican United States Senator from Oregon on three occasions between 1872 and 1905...
and U.S. Representatives John N. Williamson
John N. Williamson
John Newton Williamson was an American rancher and politician in the state of Oregon. A native Oregonian, he served in both chambers of the Oregon Legislative Assembly representing central and eastern Oregon in the late 19th century...
and Binger Hermann
Binger Hermann
Binger Hermann was an American attorney and politician in Oregon. A native of Maryland, he immigrated to the Oregon Territory with his parents as part of the Baltimore Colony. Hermann would serve in both houses of the Oregon Legislative Assembly and as a Republican in the United States Congress...
.
Heney charged that Mitchell had illegally used his position to aid a client in the acquisition of patents to fraudulent land claims. Mitchell's law partner and personal secretary both testified against him, and on July 3, 1905, the jury found him guilty. He was sentenced to six months in prison and a $1,000 fine. Mitchell appealed, but before the appeal could be heard, he died from complications associated with a tooth extraction.
Williamson's trial also resulted in conviction for subornation of perjury
Subornation of perjury
The legal term subornation of perjury describes the crime of persuading a person to commit perjury; and also describes the circumstance wherein an attorney causes or allows another party to lie...
in 1905. The prosecution argued that the three defendants had attempted to illegally obtain land claims under the Timber and Stone Act
Timber and Stone Act
The Timber and Stone Act of 1878 in the United States sold Western timberland for $2.50 per acre in 160 acre blocks....
. Williamson appealed his case to the U.S. Supreme Court, which overturned the verdict in 1908 because of apparent jury tampering and witness intimidation.
In 1907, Hermann was found not guilty of destroying public documents. His second trial for collusion with the actual land fraud was postponed until 1910, and ended in a hung jury
Hung jury
A hung jury or deadlocked jury is a jury that cannot, by the required voting threshold, agree upon a verdict after an extended period of deliberation and is unable to change its votes due to severe differences of opinion.- England and Wales :...
and Heney declined to refile charges.
Heney also prosecuted John Hicklin Hall
John Hicklin Hall
John Hicklin Hall was a politician and attorney in the U.S. state of Oregon. A native of the Portland area, he served in the Oregon House of Representatives in the early 1890s before appointment as the United States District Attorney for Oregon...
, who was the U.S. Attorney originally charged with investigating the case, but who had been fired in 1905 by President Theodore Roosevelt
Theodore Roosevelt
Theodore "Teddy" Roosevelt was the 26th President of the United States . He is noted for his exuberant personality, range of interests and achievements, and his leadership of the Progressive Movement, as well as his "cowboy" persona and robust masculinity...
for not aggressively pursuing the investigation. Heney charged Hall with failure to prosecute fraudulent land companies and for using knowledge of the fraudulent activities for his own political advantage, and the jury convicted Hall in 1908. Hall was later pardoned by President William Howard Taft
William Howard Taft
William Howard Taft was the 27th President of the United States and later the tenth Chief Justice of the United States...
.
See also
- Oregon and California RailroadOregon and California RailroadThe Oregon and California Railroad was formed from the Oregon Central Railroad when it was the first to operate a stretch south of Portland in 1869. This qualified the Railroad for land grants in California, whereupon the name of the railroad soon changed to Oregon & California Rail Road Company...
- Chamberlain-Ferris ActChamberlain-Ferris ActThe Chamberlain–Ferris Act of June 9, 1916 was an Act of the United States Congress that ruled that of the original 4 million granted to the Southern Pacific Company in California and Oregon were "revested" to the United States, and put under the control of the General Land Office, which was to...
- Land use in OregonLand use in OregonLand use in Oregon are the evolving laws affecting land ownership and its restrictions in the U.S. state of Oregon.- Timeline :* 1822: Henry Schenck Tanner's map of the U.S...
- Benson SyndicateBenson SyndicateThe Benson Syndicate was an organized crime organization in the western United States which received contracts from the General Land Office to perform land surveys of the public lands, and headed by one John A Benson , a former school teacher, county surveyor and later a reputable deputy land...
- Winlock W. SteiwerWinlock W. SteiwerWinlock W. Steiwer was an American banker, rancher, and politician in the state of Oregon. Born in the Willamette Valley, he made his name in Eastern Oregon as the founder of a bank and as county judge...
- John Hugh McNaryJohn Hugh McNaryJohn Hugh McNary was an American attorney and jurist in the state of Oregon. He served as the federal judge for the United States District Court for the District of Oregon in Portland. A native of Oregon, he also served as a district attorney and as an assistant district attorney in Salem, Oregon...
- Samuel B. HustonSamuel B. HustonSamuel Bruce Huston was an American politician and lawyer in Oregon. Originally a Democrat and later a Republican, he served in both chambers of the Oregon Legislative Assembly and was twice the mayor of Hillsboro, Oregon...
External links
- Puter, Stephen A. DouglasStephen A. Douglas PuterStephen A. Douglas Puter was a criminal and author from the U.S. state of Oregon. He was instrumental in carrying out the Oregon land fraud scandal, which transferred tens of thousands of acres of federal lands given to the Oregon and California Railroad to private hands, ultimately benefiting...
, and Horace Stevens (1908) Looters of the Public Domain, Portland, Oregon: Portland Printing House