In 1848, when gold was discovered at Sutter's Mill, near Coloma, quoting again from Dunbar: "We find that Captain Sutter was the undisputed possessor of almost boundless tracts of land, including the former Russian possessions of Ross and Bodega, and the site of the present city of Sacramento. He had performed all the conditions of his land grants, built his fort, and completed many costly improvements. At an expense of twenty-five thousand dollars he had cut a millrace three miles long, and nearly finished a new flouring mill. He had expended ten thousand dollars in the erection of a saw-mill near Coloma; one thousand acres of virgin soil were laid down to wheat, promising a yield of forty thousand bushels, and extensive preparations had been made for other crops. He owned eight thousand cattle, two thousand horses and mules, two thousand sheep, and one thousand swine. He was the military commander of the district, Indian agent of the territory, and Alcalde by appointment of Commodore Stockton. Respected and honored by all, he was the great man of the country."

Subsequently he was a member of the Constitutional Convention at Monterey, and was appointed Major General of militia. Would that the sketch of his life might end here; but, alas! there is a sad, sad closing to the chapter. This can not be told more briefly and eloquently than in the language of the writer already mentioned:

"As soon as the discovery of gold was known, he was immediately deserted by all his mechanics and laborers, white, Kanaka, and Indian. The mills were abandoned, and became a dead loss. Labor could not be hired to plant, to mature the crops, or reap and gather the grain that ripened."

"At an early period subsequent to the discovery, an immense emigration from overland poured into the Sacramento Valley, making Sutter's domains their camping-ground, without the least regard for the rights of property. They occupied his cultivated fields, and squatted all over his available lands, saying these were the unappropriated domain of the United States, to which they had as good a right as any one. They stole and drove off his horses and mules, and exchanged or sold them in other parts of the country; they butchered his cattle, sheep, and hogs, and sold the meat. One party of five men, during the flood of 1849-50, when the cattle were surrounded by water, near the Sacramento river, killed and sold $60,000 worth of these—as it was estimated and left for the States. By the first of January, 1852, the so-called settlers, under pretense of pre-emption claims, had appropriated all Sutter's lands capable of settlement or appropriation, and had stolen all of his horses, mules, cattle, sheep, and hogs, except a small portion used and sold by himself."

"There was no law to prevent this stupendous robbery; but when law was established, then came lawyers with it to advocate the squatters' pretensions, although there were none from any part of Christendom who had not heard of Sutter's grants, the peaceful and just possession of which he had enjoyed for ten years, and his improvements were visible to all."

"Sutter's efforts to maintain his rights, and save even enough of his property to give him an economical, comfortable living, constitute a sad history, one that would of itself fill a volume of painful interest. In these efforts he became involved in continuous and expensive litigation, which was not terminated till the final decision of the Supreme Court in 1858-59, a period of ten years. When the United States Court of Land Commissioners was organized in California, Sutter's grants came up in due course for confirmation. These were the grant of eleven leagues, known as New Helvetia, and the grant of twenty-two leagues, known as the Sobrante. The land commissioners found these grants perfect. Not a flaw or defect could be discovered in either of them, and they were confirmed by the board, under the provisions of the treaty of Guadalupe Hidalgo."

"The squatter interest then appealed to the United States District Court for the Northern District of California. This court confirmed the decision of the land commissioners. Extraordinary as it may appear, the squatter interest then appealed both cases to the Supreme Court of the United States at Washington, and still more extraordinary to relate, that court, though it confirmed the eleven-league grant, decided that of the Sobrante—twenty-two leagues—in favor of the squatters. The court acknowledged that the grant was a "genuine and meritorious" one, and then decided in favor of the squatter interest on purely technical grounds."

"Sutter's ruin was complete, and its method may be thus stated: He had
been subjected to a very great outlay of money in the maintenance of his
title, the occupancy and the improvement of the grant of New Helvetia.
From a mass of interesting documents which I have been permitted to
examine, I obtained the following statement relative to the expenses
incurred on that grant:
Expenses in money, and services which formed the original
consideration of the grant $50,000
Surveys and taxes on the same 50,000
Cost of litigation extending through ten years, including
fees to eminent counsel, witness fees, traveling
expenses, etc. 125,000
Amount paid out to make good the covenants of deeds upon
the grant, over and above what was received from sales 100,000
========
$325,000

"In addition, General Sutter had given titles to much of the Sobrante grant, under deeds of general warranty, which, after the decision of the supreme court of the United States in favor of the squatter interest, Sutter was obliged to make good, at an immense sacrifice, out of the New Helvetia grant; so that the confirmation of his title to this grant was comparatively of little advantage to him. Thus Sutter lost all his landed estate."

"But amid the wreck and ruin that came upon him in cumulative degree, from year to year, Sutter managed to save, for a period, what is known as Hock farm, a very extensive and valuable estate on the Feather River. This estate he proposed to secure as a resting-place in his old age, and for the separate benefit of his wife and children, whom he had brought from Switzerland in 1852, having been separated from them eighteen years. Sutter's titles being generally discredited, his vast flocks and herds having dwindled to a few head, and his resources being all gone, he was no longer able to hire labor to work the farm; and as a final catastrophe, the farm mansion was totally destroyed by fire in 1865, and with it all General Sutter's valuable records of his pioneer life. As difficulties augmented, Hock farm became incumbered with mortgages, and ultimately it was swallowed up in the general ruin."