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 Hobson attempting to do anything for the time being, as McKinley had the drop on him, and as for the matter righting itself eventually, I told Mays that McKinley had several hundred dollars coming to him on the "11-7" deal and that, when it came time for settlement, I would hold out sufficient to square the matter up. In the meantime, I suggested that Mays write Hobson to that effect. I told Mays that I would write Hobson personally, which I did, informing him that I had talked with McKinley with reference to the Simpson claim which he had purchased, and I guaranteed to refund him the amount paid to McKinley as soon as I could arrange some business settlements with the latter.

Shortly afterwards the "11-7" deal was brought to a close, and I held out the $575 from McKinley's share of the profits, and inclosed this amount to Mays in the form of a draft, which was afterwards transmitted to Hobson.

I concluded that this ended the entire proceedings, and that the "24-1" deal was a closed incident, but it developed that, as in the case of the "11-7" deal, the end was yet far distant, as the three claims that were sold by McKinley to Lloyd proved to be the straw that broke the camel's back, it being through their transfer that the Federal authorities first became cognizant of the fact that a fraud had been committed, as future developments will disclose.

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