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EING satisfied that Mays would attend to the postponement of our trials, I left Portland immediately for San Francisco, where I called upon Mrs. Watson, and without entering into details, endeavored to obtain her consent to leave the city at once, and to remain under cover until such time as I might advise that everything was all right. She, however, declined to be made a catspaw by any such process, contending that she had done nothing wrong, and that the Government had no grounds upon which to base its indictment against her.

Up to this time Mrs. Watson had no knowledge whatever of the fraudulent character of the six claims in 24-1 which had come into her possession, and, believing, as she did, that her title was clear and the transaction perfectly legitimate, she could not understand why an indictment should have been returned against her. Under the circumstances, I was forced to explain the whole matter to her; how the six supposed original entrymen were purely fictitious persons, and that, as the different tracts had been acquired through fraud, it only remained for the Government to produce evidence to that effect in order to secure convictions. I reminded her of our former conversation relative to Mays and myself having entered into an agreement whereby we were to share equally in the profits of the six claims; how I was to put up the money necessary in getting deeds, amounting to $150 per claim, or a total of $900 for the six. Mays agreeing to meet the expenses incident to pulling out the patents, after which we were to have a final settlement. I also reminded Mrs. Watson of my proposition to her—that she advance the sum of $150 per claim, or $900 altogether, explaining to her that, my finances would not justify further expenditure, and I did not wish to borrow the money, which proposition she had accepted upon condition that all six claims should be deeded to her until such time as Mays and myself saw fit to dispose of them, when she was to receive a one-fourth interest in the net profits.

"Now," said I, "you accepted those six deeds from me and paid over the money in the firm belief that everything was straight and regular, and in so doing assented to a proposition that had been arranged between Mays and myself, and which we had planned for you to accept as a measure of protection to us both. With your assistance, the Government would have a clear case against us, but without being able to use you as a witness, I am advised by Mays that the Government will have no case."

I explained further to Mrs. Watson that in the event of our being convicted, we would lose the money already invested, as the claims would be forfeited and title thereto revert back to the Government.

She upbraided me in severe terms for the duplicity I had practiced, and demanded to know by what authority I had invested her money in such a reckless fashion, and why I had imposed upon her confidence.

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