“That looks like fair warning” mused Mr. McGraw, as he reread this document. “I defy any man to look between the lines and scent my hocus-pocus game.”
Bob next proceeded to draw up the contract. It was a simple contract, framed in language that could not fail of comprehension by the dullest mind. For and in consideration of the sum of one dollar, the receipt whereof was duly acknowledged, Bob McGraw agreed to furnish, his applicants for land with certain valuable information, whereby the applicant would be enabled to file, or tender his application for, certain state lieu lands, “bounded and particularly described as follows:” (Here he left a space sufficient for the insertion, at a later date, of the exact description of the lands he desired; the descriptions he would glean from maps of the valley on sale in the United States Land Office in San Francisco.)
He agreed to tender the application of his client to the State Land Office and to conduct, at his own expense, any litigation that might arise or become necessary to establish the right of his client to purchase the land from the state; stipulating, however, that he (McGraw) should be the sole judge of the necessity for such litigation. He agreed to pay the filing fees and the first payment on the land, required at the time of filing the application, and to represent the applicant before the state land office; also to notify his client, by registered letter, at the address given him, whenever the application should be approved; and it was distinctly stipulated that the applicant should not be required to elect whether or not he would abandon the application until served with this written notice!
In consideration, also, of the services, fees and costs provided for in the contract, Mr. McGraw would make a charge of Three Dollars per acre for all, or any part, of the land which the applicant might be awarded the opportunity to purchase; this fee to be payable to him, his heirs or assigns, if and whenever the application of his client should be duly approved by the Registrar of the State Land Office.
In consideration of these covenants, the applicant was to bind himself to pay Mr. Robert McGraw the stipulated fee of Three Dollars per acre, in addition to the One Dollar and Twenty-five Cents per acre demanded by the state, reserving, however, the right to abandon his filing at any time prior to its approval by the Registrar of the State Land Office, but pledging himself not to abandon without first furnishing his attorney (Robert McGraw) with a proper instrument of abandonment, in order that some other person might be located on the land. In addition the applicant was required to state that he was duly qualified, under the law, to make the application and that he had read both the application form and the contract and was familiar with the section of the code under which he made it.
A critical perusal of the terms of this shrewd contract will readily convince even a layman that it was perfectly legal. Bob hurled mental defiance at every legal light in the country to prove collusion and conspiracy to defraud under that contract. It proved merely that Bob McGraw was acting in his capacity as a duly authorized attorney-at-law, seeking to turn an honest penny.
Now, in the first place, the abandonment clause in the contract, while not holding his client to the contract, nevertheless held the land to Bob McGraw! He anticipated that, in the event of his success in forcing the registrar of the state land office to accept and approve the applications, the land ring would immediately seek out each applicant, charge the applicant with being a party to a gigantic land fraud conspiracy and threaten him with a Federal Grand Jury investigation in case he did not at once abandon his filing! The poor and the ignorant are easily intimidated, and Bob McGraw had figured on this. In the event of “cold feet” on the part of his applicant, the applicant would come to him, to abandon, as per the terms of the contract, but by that time Bob would have a man with nerve to take his place, and his scheme would still be impervious to “leaks!” While the land was “tied up” by a McGraw applicant, Bob knew the enemy could not get it.
When Bob's clients signed that contract, it meant nothing! But the moment the applications were approved for patent, and the State Land Office had so notified him, and he, in turn, had so notified his clients, his clients were no longer his clients. They were his victims! His contract then constituted a promissory note, and Mr. McGraw knew enough law to realize that failure to pay a promissory note or perform a contract is actionable. Should his client repudiate the contract prior to the approval of the application, he was safe; but to repudiate it after approval and after Bob McGraw had advanced him the money to pay for the land—ah, that was a different matter. Bob McGraw knew he could secure a judgment against his unfortunate client in any court of law in the country—and the land was good for the judgment! Having advanced the cash to purchase the land for his clients, Bob McGraw would hold that deadly contract over their heads as security for the advance!
Under the terms of the contract, when fulfilled, each client would owe Bob his three dollars per acre on six hundred and forty acres, or a total of one thousand nine hundred and forty dollars as a legal attorney's fee, and to the clients that Bob McGraw intended to select, a debt of such magnitude would loom up in all the pristine horror of the end of the world at hand and salvation not yet in sight. With, malice aforethought the promoter of Donnaville was trading on the credulity of the very people he planned to benefit! He knew with what ease the poor rush into debt where the creditor requires nothing down; he knew also the avidity with which they grasp the first means of escape from the burden, once it becomes onerous; and at the thought the villain McGraw chuckled pleasurably.
“Once under the McGraw thumb, and I have them! I'll demand cash on the nail for my services. They will be unable to pay me. I'll harass them and threaten to sue them, and then, when I have them thoroughly cowed, I'll send a secret agent around to buy their land from them at ten dollars an acre. After using their constitutional right to purchase lieu lands, they are entitled to a profit on the investment, and besides, I must show a 'valuable consideration' or have a secret service operative trailing me.