This post was originally published on Consortium News.
The Osage Indian Murder Mystery and the FBI
Exclusive: The European arrival in North America led to genocide against Native Americans along with various schemes to steal their land by both government and individual murderers, as James DiEugenio explains.
By James DiEugenio
White America has deployed any number of subterfuges to steal land from the Native Americans, with a favorite tactic being the signing of treaties that were voided whenever it became convenient – and especially when the Native American land was found have something valuable in it. Then, the deal was “renegotiated” or the U.S. Army arrived to slaughter some tribe for going “off the reservation.”
But there were also more local strategies, hatched by greedy operatives and enforced by targeted killings, such as the murders of Osage Indians at the heart of a new book by David Grann, Killers of the Flower Moon.
The Osage Indian nation dated back to well before the formation of the United States, when the Osage roamed through what are now four states (Kansas, Missouri, Arkansas and Oklahoma). After the Louisiana Purchase in 1803 when the new U.S. government “bought” vast tracts of territory west of the Mississippi River from France and after a series of negotiations, the Osage ceded 52 million acres in return for the U.S. government’s protection from other tribes. But the Osage had more to fear from the white men.
In 1870, the Osage were ultimately pushed onto their final destination, the north central portion of Oklahoma, where they lived by subsistence farming and by leasing land to ranchers for grazing. Under the agreement negotiated by Chief James Bigheart, the land was owned by the Osage though administered by the U.S. government. Bigheart also negotiated a deal in which the Osage maintained mineral rights to their land.
That proved important because oil was discovered in Osage County making the tribe relatively wealthy due to a system called headrights. This meant that each tribe member would be allotted royalties from both the sale of the oil leases and also for a percentage of the extracted petroleum. Since some of the bidders on the leases were people like Frank Phillips, George Getty and Frank Sinclair, the auctions on some leases would begin at $500,000 and end at over $1 million. In 1923, in just one day, $14 million in oil leases were sold: over $200 million in today’s dollars.
This wealth helped transform Osage territory; with the main villages — Fairfax, Hominy, and Pawhuska – becoming the equivalent of Western boomtowns. Horses and wagons were replaced by Model T Fords; one-level wooden frame stores gave way to five-story brick office buildings; telegraph offices were replaced by blocks and blocks of telephone poles and wires.
By standards of the time, the Osage Indians became rich; some employing servants, living in large homes, even purchasing grand pianos. In other words, the Osage began behaving like rich white Americans, but – because they were Indians – their displays of wealth provoked a backlash in the U.S. press. For instance, in writing about the auctions, a journalist for Harper’s Monthly asked, “Where will it all end? Every time a new well is drilled the Indians are that much richer. The Osage Indians are becoming so rich that something will have to be done about it.” (Grann, p. 76)
Two things were done. First, the federal government instituted a system of guardianships. This meant that each Osage tribe member could be deemed “incompetent,” and that necessitated a guardian be appointed to the case. As Grann notes, this appointment was nearly always based on the quantity “of Indian blood in the property holder; or what a state supreme court justice referred to as ‘racial weakness.’“ (ibid, p. 78)
Congressmen would study and analyze expenditures made by each individual Osage and criticize the amounts spent on certain items. At times these assessments echoed Rudyard Kipling’s famous dictum about England bearing the white man’s burden for colonized natives, or as Grann quotes a congressman:
“Every white man in Osage County will tell you the Indians are now running wild. The day has come when we must begin our restriction of these moneys or dismiss from our hearts and conscience any hope we have of building the Osage Indian into a true citizen.” (ibid, p. 79)
Therefore, in 1921, not only were the Osage limited by needing approval from their guardians for expenditures, but limits were placed on how much they could annually withdraw from their trust fund. Practical exceptions like having medical bills or wanting to send children to private colleges did not matter. As one can imagine, this guardian system also provided ample opportunities for embezzlement of the Osage “trust” funds.
The second method that the local power structure utilized to control the Osage wealth was exercised through a legal loophole. That loophole specified that the Osage trust funds could be passed on through family inheritance. What this meant was that if an Osage woman married someone outside the tribe, her husband could inherit her wealth.
A Killing Spree
But there was even a more sinister side to these arrangements. Osage women started disappearing and people who dared investigate started turning up dead.
In May 1921, Mollie Burkhart began to worry about Anna Brown, her missing sister. Three years earlier, her sister Minnie had died at age 27 after a brief, mysterious illness. And about a week before Anna’s disappearance, a man named Charles Whitehorn, another Osage, had vanished. Whitehorn’s body was soon found at the base of an oil derrick. He had been shot execution-style with two bullets between the eyes. (ibid, p. 14)
A few days before her disappearance, Anna had gone to see a play with Mollie’s husband, Ernest Burkhart, and his brothers Bryan and Horace. Ernest assured Mollie that Anna would show up soon. But Anna never returned alive. Her body was found by a boy out squirrel hunting at the edge of a creek. She had been killed by a .32 caliber bullet to the rear of the skull. (ibid, p. 19)
Because local authorities seemed reluctant to investigate her sister’s murder, Mollie turned to a man named William Hale, who was a pallbearer at Anna’s funeral. Hale had been a prosperous rancher in Osage county for two decades, a reserve deputy sheriff and a political ally of the county prosecutor. Hale once said, “I will always be the Osages true friend.”
The inquest found that Bryan Burkhart was the last known person to have seen Anna alive. He said he brought her back to her home and never saw her again. His brother, Ernest Burkhart, said, “I don’t know of enemies she had or anyone that disliked her.” (ibid, p. 31)
After eliminating local outlaws and her former husband as suspects, the local Justice of the Peace closed the case in July 1921. He concluded that both Anna Brown and Charles Whitehorn had died at “the hands of parties unknown.” (ibid, p. 35) That same month, Mollie’s mother Lizzie also passed away. Bill Smith, Mollie’s brother-in-law, became convinced Lizzie had been poisoned.
The mysterious deaths didn’t stop there. In February 1922, a 29-year-old Osage named William Stepson died, also believed to have been poisoned. Five months later, Joe Bates, another Osage tribe member in his 30s also died of suspected poisoning. (ibid, pgs. 67-68)
With the death toll climbing, but the public and private inquiries yielding meager results, the Osage turned to Barney McBride, a wealthy white oil man whom they trusted and who was genuinely sympathetic to Indian affairs. He knew several people in Washington who might help.
The night McBride arrived in Washington, he stopped at the Elks Club to play billiards. As he departed, someone wrapped a burlap bag tightly over his head to silence him. The next morning, McBride’s body was found near a culvert in Maryland. He had been stabbed 20 times, his head was bashed in, and, except for his shoes and socks, his body was stripped naked. The authorities suspected McBride had been followed from Oklahoma. The Washington newspapers called McBride’s killing “the most brutal in crime annals in the District.” (ibid, p. 69)
A few weeks later, the dead body of Henry Roan was found in his car. He had been a friend of William Hale, the rancher who had vowed to help solve the murder of Anna Brown. (ibid, pgs. 81-82)
But the killing spree only got worse. A spectacular explosion tore through the house of Mollie Burkhart’s sister and brother-in-law, Rita and Bill Smith, the man who had voiced his certainty that Mollie’s mother Lizzie had been poisoned. Rita Smith and a maid Nettie Berkshire died in the blast and Bill Smith died four days later.
That incident attracted the attention of a former prosecutor, W.W. Vaughn, who learned that a potential witness was in a hospital in Oklahoma City suffering from suspected poisoning, George Burkhart, a nephew of tribal chief James Bigheart. When Vaughn reached the hospital room, he met alone with the ailing man shortly before he died. Vaughn then called the Osage County sheriff and told him he now had all the information he needed and would take the first train to pass on the evidence to the sheriff. The sheriff asked him if he knew who killed Bigheart. Vaughn replied that he knew a lot more than that. (ibid, p. 94)
But Vaughn never arrived in Pawhuska to meet with the sheriff. He was dragged from his Pullman car and his is body was found 36 hours later with his neck broken. Whatever notes he took concerning his interview with Bigheart had disappeared. With Vaughn’s death, the official number of murders in the Osage case rose to 24. The local and state authorities seemed powerless to stop it. Whoever was running the plot seemed beyond the reach of the law.
In the summer of 1925, the head of Washington’s Bureau of Investigation decided it was time to intervene in a serious way. One of the functions of the Bureau, which had not yet been named the FBI, was to investigate crimes on Indian reservations. The director was 29-year-old J. Edgar Hoover, who knew his position was tenuous. Hoover decided the only way to prevent more bad publicity was to call in a law enforcement acquaintance from the area and give him the power he needed to crack the case.
The man Hoover called upon was Tom White, a Texas Ranger for 12 years before joining the Bureau in 1917. Hoover offered White the stewardship of the Oklahoma City office and the freedom to select his own task force. Hoover made a good choice and was wise to give White the independence he needed.
White decided to pursue the conspiracy on two levels. He would stay in Oklahoma City as the public face of the inquiry. From there, he and his chief assistants – most notably John Burger – would review the files that had accumulated from all law enforcement agencies over the last four years. Secretly, White would employ a team of undercover agents who would slowly flow into the Osage area seeking to make friends and to find leads. One of these agents was John Wren, a Ute Indian.
White was interested in finding out if Bill Smith, the bombing victim, had revealed anything before he died. Through all his suffering and slipping in and out of comas at the hospital, Smith had managed to say that he had only two enemies in the world. They were William Hale, the rancher who had professed his devotion to the Osage people, and his brother-in-law Ernest Burkhart, Mollie’s husband and Hale’s nephew. (ibid, p. 152)
But there was something else White discovered during his inquiry into Smith’s final hours. Before Smith died, David Shoun, a popular doctor in Osage County, got him to sign a document making Shoun’s brother James, who was also a doctor, the administrator of Smith’s dead wife’s estate. (ibid, p. 153)
That document led White to uncover a massive system of graft and embezzlement, involving as much as $8 million stolen from the Osage through the guardian system (or about $112 million in today’s dollars).
In reviewing the evidence, White thought it was odd that Hale was never considered a suspect in the murder of Henry Roan because Hale was the recipient of a $25,000 insurance policy upon Roan’s death. And employees of the insurance company said Hale had approached them to sell Roan the policy. When an agent suggested $10,000 as the sum, Hale upped it to $25,000. Since Hale was not a relative, he had to prove that Roan owed him money in order to collect on the policy of a man who was not yet 30. Hale produced a document that said Roan owed him the precise amount of the policy. White later found that the document had been doctored. (ibid, p. 159)
White also discovered another curious aspect of the Hale/Roan relationship. Hale had unsuccessfully tried to purchase Roan’s mineral headrights. But the attempt led White to another lead. While studying the record of the murders, and the scam that Dr. Shoun had pulled on Smith before his death, White concluded that, with Mollie Burkhart’s relatives dying off one by one, more and more headrights were ending up with Mollie, who was married to Ernest Burkhart, Hale’s nephew.
Was this the objective of the conspirators? White reasoned that if he was right about Hale, it was time to turn to the criminal underworld for more information. In talking to local criminals who specialized in cracking safes, White came across a source who said he knew the man who had created the “box” – the nitroglycerine fuse and package – for the Smith bombing. It turned out that, while in the process of a jewel heist, this man had been killed by a local merchant. But, as White later learned, the robber was killed because Hale had tipped off the merchant. (ibid, p. 176)
The case was broken when White went back into the files and discovered an informant named Blackie Thompson, who was half Cherokee. He told White that Ernest Burkhart and William Hale had tried to enlist him in the Smith bombing, but he was arrested for theft before the bombing was carried out. White confronted Burkhart with Thompson’s sworn affidavit. When Burkhart still denied it, he had Thompson enter the room to endorse the document. Burkhart then admitted his role, saying that when he expressed reservations about the bombing, Hale said to him, “What do you care. Your wife will get the money.” (ibid, p. 190) Burkhart also revealed the names of the killers who Hale had recruited to murder Henry Roan and Anna Brown.
Hale did everything to escape justice. He attempted to influence the grand jury, he tried to have his case moved out of federal court and into state court. He even hired an assassin to murder a key witness. But White heard about it before it could occur and confronted the accused assassin. Hale and three accomplices were eventually convicted.
In his book about the mystery, author Grann argues that if the victims had been white, Hale would have received the death penalty. But since they were Indians, the conspirators were sentenced to life in prison. Ernest Burkhart and Hale were eventually paroled. Hale later said, “If that damn Ernest had kept his mouth shut, we’d be rich today.” (ibid, p. 248)
Shortly after Hale went to jail, White retired from the Bureau and became a prison warden. Hoover closed the case. But that meant the public never discovered who stabbed Barney McBride in Washington and who threw W. W. Vaughn from that Oklahoma City train.
Grann looked up Vaughn’s surviving descendants and was told that Vaughn’s family was threatened not to pursue the matter any further. (ibid, p. 259) But they did, and information was passed on from one generation to another. Their major suspect was a local banker named H. G. Burt, who tried to embezzle money from Vaughn’s estate and was later sued by his widow.
White had discovered that Burt and Hale were close associates. In fact, White had one informant who labeled Burt a murderer. And Burt had a motive for his involvement in the conspiracy. After George Bigheart died, his valuable headrights were passed on to Bigheart’s daughter whose guardian was Burt. Burt also was on the train with Vaughn when it departed Oklahoma City and he reported Vaughn’s disappearance. And, when Hoover sent Tom White to Oklahoma City to take over the case, Burt moved to Kansas. (ibid, p. 264)
At the end of the book, Grann looked up the records of Indian guardianships that the Bureau of Indian Affairs maintained. Two things struck him as revealing about these records. The first is the recurrence of guardianship rights to powerful people in Osage County like Burt and the owner of the local Trading Company. Some of these local luminaries had as many as 13 wards. The second curious matter was the number of wards who died mysteriously under guardianship. (ibid, p. 281)
After doing an inquiry into other cases in which the Bureau had information that did not lead to the Hale plot, the author concludes that the official number of Osage dead greatly exceeds the 24 named by the FBI. Grann believes that one of the most common forms of murder was through hypodermic needle overloaded with morphine. Then, cooperative doctors, like the Shoun brothers, would conceal the actual cause of death. (p. 290)
The book leaves the reader with the clear implication that the conspiracy to kill and rob the Osage was much wider than the one that Hale organized. As one authority on the case told Grann, “If Hale had told what he knew, a high percentage of the county’s leading citizens would have been in prison.” (ibid, p. 291)
James DiEugenio is a researcher and writer on the assassination of President John F. Kennedy and other mysteries of that era. His most recent book is Reclaiming Parkland.
This post was originally published on Consortium News.