The auction method of marketing was utilized by the U.S. Government in the dispersal of “Indian Lands” starting with the passage of the Dawes Commission Act in 1893. The act implemented a policy of dividing tribal lands into individual holdings. Although the “Five Civilized Tribes” resisted the new policy, it was enforced by 1906, opening up the lands of the Indian Territory to “Whites.” By 1907 the Indian Territory was united with the “Oklahoma Territory” to form the 46th U. S. State, Oklahoma.
We will take a look at four methods that Government land change hands in the Oklahoma Territory prior to 1907.
The first method of conveyance was by “treaty” between the U. S. Government and the “Five Civilized Tribes;” this created “The Indian Territory.” In that 1832 treaty under the supervision of General John Coffee, five “civilized” tribes sold their land on the east side of the Mississippi in exchange for lands out west. The five tribes were the Cherokee, Choctaw, Chickasaw, Creek and Seminole. It is interesting to note, having read the entire treaty, that their land was to be surveyed, subdivided and sold at “Public Auction” with all expenses deducted prior to payment. Partial payments to the tribes would be made as the land was sold and paid for. The treaty further states that the tribes agreed to invest three-fourths of the proceeds in the U.S. stock market in “valuable stocks” chosen, in part, by the U.S. President and Senate, and “live off the interest only.” The language of this treaty reads as if the U.S. Government was doing the Five Tribes a great favor in “helping them” to find a better home. I find it ironic that in reality, their migration west is known as the “Trail of Tears.”
The second method of land ownership in Oklahoma came from “Runs” which took place between 1889 and 1907 on “Unassigned Lands.” The unassigned lands numbered almost three million acres and were all outside the authority of the Indian Governments. The U.S. Government laid out homesteads in 160-acre tracts. The first run was September 18, 1891, at 12 Noon with about 20,000 settlers participating. Under the supervision of the U.S. Calvary, the rush was on for “free land.” Anyone that “jumped the gun” was known as a “Sooner” and was subject to being shot. Homesteader’s claimed 6,097 parcels that day.
The third method utilized by the U.S. Government was by “Land Lottery.” Often there were many more people looking for land than there were parcels. Thus, each interested party filled out a lottery slip and entered the raffle. As each ticket was drawn the lucky homesteader chose a tract off the map. This process was continued until all parcels were allocated. Three and a half million acres were part of a drawing to settlers on August 6, 1901, consisting of surplus Kiowa and Comanche country land.
Lastly, once the U. S. Government was done giving and gambling away land, it turned to “The Auction Method of Marketing.” The auction method became the proven method and to this day has remained the sales method of choice for the selling of surplus real property by the federal government and many other municipalities.
I have in my collection two catalogs offering “Public Auction Sales by Government of Indian Lands.” One catalog is dated January 6, 1912; the other is dated April – May 1925. Both catalogs pertain to properties in Oklahoma being sold to benefit the Five Civilized Tribes.
The 1912 auction catalog lists 528 parcels under the direction of J. George Wright, Commissioner of the Five Civilized Tribes. The auction took place in Le Flore County, in the Choctaw Nation, in front of the post office at 9 a.m. The terms were 25% down at the time of sale, the balance with 6 percent interest from the date of sale as follows: “25 per cent in one year and 50 per cent in two years from date of sale. Full payment may be made at any time, after which a deed will be promptly issued. All payments shall be in currency or bank draft or certified check payable to the Commissioner to the Five Civilized Tribes.”
Bids were subject to the approval of the Secretary of the Interior, and immediately after such approval “a certificate of purchase will be issued to the purchaser which will entitle him to immediate possession of the land, but no commercial timber shall be cut and removed from said land nor any drilling or mining for oil or minerals be done until full purchase price has been paid.” The right was also reserved to reject any and all bids.
It is interesting to note that J. George Wright (1860-1941) was the Commissioner to the Five Civilized Tribes starting in 1907, having been an Indian Agent and Inspector in charge of the Agency since 1883. He handled many millions of dollars for the Tribes. According to an article published in the “Chronicles of Oklahoma (1946), “He dealt with nearly half a billion dollars belonging to the Osages, touching the life of every member of the tribe, without a single loss to the Indians. In order to secure the greatest possible sums for the oil leases, to bring them out into the open and thus avoid all suspicion of favoritism he advertised these oil leases for sale and from the beginning leases on the lands held in common by the tribes were sold at Public Auction. These Auction sales realized for the Indians 110 million dollars, and deferred payments on the five-year plan brought an additional twenty million dollars. Every cent of these considerations was collected to the last dollar, without a single lawsuit.” Wright retired at age seventy-one in 1931. Chief Lookout provided him with a fine automobile. “Mr. Wright has been fair and honest with us. He has taught us to preserve our money, that we shall not want,” stated Chief Bacon Rind.
The Auctioneer that operated under Wright was Colonel Walters. Walters was hired by the Osage Tribe to sell oil leases under the “million dollar elm” on Agency Hill in Pawhuska. He was paid $10 a day in 1916, which was “much less than his usual $50-100. per auction.” Colonel Walters had auctioned off leases worth $157 million by 1928.
The 1925 catalog of “Indian Lands” at Auction was 39 pages and was created under the direction of S. E. Wallen, Superintendent Five Civilized Tribes. (Superintendent replaced Commissioner in 1914. By 1925 a Superintendent earned $3,000 a year.) All properties were sold subject to existing leases. All properties had minimum starting bids. Ten percent down payments were required. Each successful bidder paid $20 per tract “to pay the expense of handling the sale.” This 1925 catalog featured detailed descriptions including the names of previous owners such as; “Ned Dreadfulwater, James Terrapin, William Beaver, Lillie O’Fields, Polly Runabout, Watt Hogshooter and George Sixkiller.”
It seems that the Federal Government figured out after a few short years that the best method of selling real estate was the “Auction Method of Marketing.” It was the best vehicle for finding fair market value on any given day. The auction was open, above board and allowed for a level playing field for all bidders. Obviously it beats giving property away to the fastest runner or gambling it away with the luck of the draw.
