Bill Stenger, the general manager of Jay Peak ski resort, had a busy routine. He would wake up early, visit different departments, and interact with the staff. Stenger, who is seventy-five years old, expressed his love for skiing and its transformative power. One day, while having coffee with a colleague, he received a call from his assistant, informing him that the Securities and Exchange Commission (S.E.C.) had arrived at the office. Stenger remained optimistic, thinking they were there for a tour. However, he soon discovered that the S.E.C. was seizing the resort and another ski hill owned by his business partner, Ariel Quiros. Stenger was handed a document accusing him and Quiros of fraud.
Jay Peak, located in northern Vermont, was once a lesser-known ski hill visited by locals and skiing enthusiasts. However, in the early 2000s, a plan was developed to expand the resort and create jobs using the EB-5 visa program. This program allowed foreign investors to contribute a certain amount of money to businesses in exchange for green cards and the creation of jobs. Stenger, along with Quiros, persuaded investors to back their plan to transform Jay Peak into a four-season resort with various amenities. They also had plans to develop Burke Mountain and build a biotech facility in Newport. In total, they raised $350 million and predicted that the projects could create about ten thousand new jobs.
The Securities and Exchange Commission (S.E.C.) has accused Ariel Quiros and Bill Stenger of committing a massive fraud, misusing more than half of the money raised. Quiros allegedly funneled a significant portion of the funds through shell companies and used it for personal expenses, including paying taxes and buying a condominium in Manhattan. Stenger, on the other hand, is not accused of stealing money directly but is accused of presenting fraudulent projections to attract further investment while turning a blind eye to Quiros' actions. Vermont's former governor, Peter Shumlin, expressed his feeling of betrayal during a press conference at the statehouse.
When Stenger read the document from Schneider, federal agents were already at the resort, securing the computer systems, and Jay Peak was placed under the control of a court-appointed receiver to protect the interests of the investors. Despite the ongoing legal proceedings, the staff continued their work as usual, and guests remained unaware of the situation. Stenger's reaction to the complaint was a mix of shock and disbelief, leading him to call his wife for support. Whether his surprise was genuine or an act remains uncertain.
Rural areas across the United States are struggling to create jobs, and population density plays a significant role in this challenge. Major cities like Austin and New York have experienced economic growth due to a cycle where educated workers attract employers, and vice versa. However, in rural areas and smaller cities like Detroit and Buffalo, globalization has caused key employers to leave, leading to the closure of more businesses and a downward spiral. For example, North Carolina's furniture-manufacturing industry lost half of its jobs due to cheap furniture imports from Asia. Consequently, poverty rates in places like Robeson County have skyrocketed. The growing wealth gap between wealthy city dwellers and the rest of the population has also contributed to political polarization. In the last Presidential election, Joe Biden won fewer counties but represented a significant portion of the nation's economic activity, while Donald Trump won more counties but represented a smaller share of economic activity.
Once an area falls into decline, it is challenging to reverse the trajectory. In Hardwick, a town in central Vermont, local leaders hoped to boost the economy through an artisanal-food-based industry. The town is home to a renowned cheese producer, breweries, organic vegetable suppliers, and farm-to-table restaurants. However, a study conducted by Arthur Woolf, a retired economics professor, found that these efforts did not significantly impact local employment over the previous fifteen years. Woolf emphasized that these challenges are long-term structural factors that are difficult to overcome.
The EB-5 program was created in 1990 to attract foreign investors to low-income areas in the United States. Initially, only a small number of visas were used, but over time, changes were made to make the program more appealing. Congress allowed for pooled investments and made the job-creation requirement more flexible. After the 2008 financial crisis, entrepreneurs turned to the EB-5 program for funding. Brokers and legal advisers began recruiting foreign investors and earning large fees. China has been the biggest source of investors, with demand increasing due to fear and President Xi Jinping's policies. The program has supported important projects, such as opioid-addiction treatment centers and the completion of a ski resort.
In 2015, the developers behind Manhattan’s Hudson Yards raised $1.2 billion in EB-5 financing for a luxury real estate project. This included a shopping mall, condos, and an office tower, making it the most expensive real estate development in U.S. history. The project was able to qualify for favorable financing by manipulating census tracts to include areas with high unemployment, such as Central Park and housing projects. Other projects, such as the Waldorf-Astoria in Beverly Hills and a Chinese-themed hotel complex in Las Vegas, also used this strategy. Jared Kushner, the son-in-law of former President Trump, utilized the EB-5 program to build a Trump-branded luxury apartment building in New Jersey. Bill Stenger, a marketer for Jay Peak, grew up in New York and has been involved in the ski industry since 1975.
Bill Stenger, the former CEO of Jay Peak Resort in Vermont, has always had a passion for skiing. He believes that the sport brings joy and happiness to people's lives. Stenger is inspired by a theory proposed by neurologist John Kitchin, who left his medical practice to rollerblade blissfully on the San Diego boardwalk. Kitchin believes that the lateral movement involved in rollerblading and skiing stimulates the otolith, a part of the inner ear that triggers feelings of flow and euphoria. Stenger is a firm believer in the positive aspects of skiing, stating, 'There’s nothing negative about it.'
When Stenger joined Jay Peak Resort in 1984 as the general manager, he was excited to help improve the beloved but outdated ski resort. The lack of proper snowmaking equipment and outdated lifts restricted the number of visitors. Stenger also disliked having to lay off hundreds of employees at the end of each season. Many employees, like maintenance worker Virgil Starr, had deep connections to the resort and enjoyed the outdoor work. Starr said, 'Working here kept me young and spry and occupied.'
In the 1990s, Stenger began envisioning an ambitious redesign that would transform Jay Peak Resort into a year-round destination. He sought potential investors, including Canadian bankers who frequented the mountain. However, every time Stenger thought he had found someone to support his plan, something would happen, such as a recession, that would deter investors. Jay Peak Resort is located in an area of Vermont known as the Northeast Kingdom, which has struggled to attract sustainable job opportunities. Despite the setbacks, Stenger remained determined to bring positive change to the resort and the surrounding community.
Bill Stenger, the former CEO of Jay Peak Resort in Vermont, worked with the administration of Governor Howard Dean to create the first federally authorized regional EB-5 center operated by a state. This center was designed to monitor projects funded through the EB-5 program.
In 2006, Stenger was looking for a buyer for the resort after the sudden death of the owner, and he began talking with Ariel Quiros, a Jay Peak condo owner. Quiros, who grew up in Harlem, had a tough childhood and became an entrepreneur at a young age. After serving in the military and working as a fixer for the Korean government, he settled in Miami and ran an import-export business.
Despite some distrust from Stenger's son and other officials, Stenger was impressed by Quiros's wealth and his generous spending habits. One of Stenger's lawyers described him as being starstruck by Quiros. Quiros's appearance and background made him seem like a character out of a movie, but Stenger vouched for him.
In 2008, Ariel Quiros bought Jay Peak for $25 million with the help of Bill Stenger, who had already raised $17.5 million from foreign investors for the resort's expansion. As part of the deal, Quiros gave Stenger a 15% ownership stake in the resort, which could increase to 20% in five years. Quiros also offered Stenger a developer fee of about 15% of the construction budget, amounting to millions of dollars. The project's finances were consolidated at Raymond James, a bank in Florida where Quiros' former son-in-law worked as a broker. Stenger claims ignorance about the bank's small banking department compared to its investment department.
Over the years, Stenger proved to be a successful fundraiser, working with an EB-5 consultant named Douglas Hulme who helped connect him with foreign investors. Stenger traveled to various countries, including Japan, China, Vietnam, and South Africa, to meet potential investors. Many of these investors were women and their college-aged children. Stenger liked most of the investors he met and invited many of them to visit Jay Peak. However, he refused a cash investment from a Russian 'oligarch knockoff.'
During these trips, state officials from the Agency of Commerce and Community Development accompanied Stenger, emphasizing their oversight of the investment activity. Stenger also made donations to politicians like Patrick Leahy and Peter Welch, who praised the project and even attended investor meetings in Ireland and Vietnam. Leahy wrote a letter praising Stenger's vision and the positive impact on job creation in the region. Neither Leahy nor Welch responded to requests for comment.
Construction began on Jay Peak’s hotel and water park, bringing a lot of jobs to the community. Stenger's reputation grew and he received awards for his work. Quiros, on the other hand, bought expensive apartments in Manhattan and became close with Governor Shumlin. However, insiders started questioning the financial practices of Jay Peak. The chief financial officer noticed irregularities and quit, and his replacement also became concerned about funds being misused.
In 2012, Jay Peak's owner Ariel Quiros surprised his business partner, Bill Stenger, with the news that he had purchased Burke Mountain for $10 million. Quiros said that investors from Korea had provided the funds and renamed it QBurke. Stenger was unhappy with the purchase but this didn't stop their ambitious plans.
Quiros and Stenger then launched an even bigger project - a $600 million plan to develop the town of Newport. The plan included a facility operated by a Korean biomedical firm called AnC Bio, a hotel, conference center, and residential and retail complex. Stenger hoped this project would transform Newport into a mini Silicon Valley.
Despite skepticism from locals, Stenger believed Newport's location would be a draw for highly paid scientists and executives. The project received support from politicians like Senator Bernie Sanders and former Vermont Governor Peter Shumlin. The community saw this as an opportunity for economic growth.
In 2013, the Securities and Exchange Commission warned investors about fraud in the EB-5 program. Anshoo R. Sethi, a developer, raised $156 million for a hotel and conference center in Chicago, but it was revealed that he misrepresented his experience and misused the funds. Sethi was sentenced to three years in prison and ordered to repay investors. Another lawyer named Victoria Chan also pleaded guilty to fraud and money-laundering charges after raising $50 million for a hotel and shopping center in California. The program lacked oversight and allowed for dishonesty, with investors not closely monitoring where their money was going and lawyers and brokers profiting without reporting potential wrongdoing. The lack of regulation in the program was highlighted by experts, making it one of the least regulated federal programs.
In 2011, Gibson questioned whether Vermont's regional EB-5 center was conducting audits as it claimed. It turns out, the state had not reviewed any of the projects' quarterly reports. Shumlin blamed the lack of resources for this oversight. A local resident researched the AnC Bio project and sent a detailed report to the state attorney general's office. The promised artificial organs were not yet approved and Quiros had a history of failed ventures and pending lawsuits. In 2012, Hulme, the visa broker, withdrew from the projects and expressed concerns about mismanagement of funds. Stenger converted early investors' ownership stake to an I.O.U., which sparked complaints. Galloway published a story about the investors' accusations.
Alarm bells started ringing within the state government when several Korean-speaking interns discovered online that AnC Bio, a supposedly successful biotech firm, was actually facing serious financial difficulties in Korea. The government had auctioned off its headquarters, and the address it had been using on U.S. marketing materials turned out to be nonexistent. The state's Department of Financial Regulation, led by Michael Pieciak, was directed to investigate. When Pieciak questioned those involved about the project's finances, they were evasive. The Securities and Exchange Commission (S.E.C.) and the FBI also began their own investigations. The FBI agent assigned to the case, Jennie Emmons, was astonished by the massive scale of the construction happening at Jay Peak, which she had previously visited. It soon became clear that the entire Jay Peak project was fraudulent. Quiros had used EB-5 money illegally to purchase the resort, and he ran the operation like a Ponzi scheme, using money from new investors to cover previous shortfalls. Quiros and his associates created falsified financial projections and used the funds to buy land and homes in Vermont. State investigators created a complex chart to illustrate the flow of money through various entities, calling it the 'spaghetti map.'
Bill Stenger, the former CEO of Jay Peak Resort in Vermont, is facing accusations of fraud and embezzlement in the EB-5 scandal. Stenger claims that he had no knowledge of what his business partner Ariel Quiros was doing with the money, but investigators find this claim implausible. Stenger insists that he was shocked to learn about Quiros's secret payments and was also indignant at the small amount of money they had attributed to him. However, investigators say that Stenger promoted falsified projections, including exaggerated sales estimates for artificial organs that weren't even ready for the market. Stenger argues that he relied on third-party projections and couldn't promote a facility destined for failure in his own hometown.
Stenger claims that he only realized something was going wrong after signing new construction contracts in 2015. Quiros told him that they needed to slow down on expenses because the money was tied up in long-term notes, despite it being supposed to be in a sequestered account. Contractors started walking off the job due to non-payment, and state officials collaborated with the SEC on the investigation. However, officials allowed Stenger to continue the projects as long as investor funds were placed in escrow. Stenger downplayed the SEC's involvement in marketing documents, raising another $40 million from Chinese investors.
Stenger hasn't spoken to Quiros since the SEC raid in 2016. When the SEC receiver arrived to see the property, Stenger showed him all the buildings and facilities that were built with EB-5 money. The receiver asked Stenger to continue working while the case proceeded but warned that if he found any wrongdoing, Stenger would be done.
In a major fraud case, Ariel Quiros and Bill Stenger settled charges with the S.E.C and were later indicted by the U.S. Attorney for Vermont. Quiros was sentenced to five years in prison for wire fraud and money laundering, while Stenger was sentenced to eighteen months for submitting falsified documents. Paul Van de Graaf, a prosecutor on the case, called it one of the most significant in the state's history. Stenger recently gave a tour of Jay Peak after being released from prison, while Quiros remains incarcerated. Over six hundred foreign investors lost money, and many were unable to obtain green cards. The state settled a lawsuit with the investors, agreeing to pay sixteen million dollars. Felipe Accioly, an investor from Brazil, now faces the risk of deportation. Stenger expressed regret and claimed he was too busy to notice the fraud.
Despite the controversy and legal issues surrounding the Jay Peak Resort, the new and expanded resort is fully operational, which some see as a vindication of the development. However, the financial burden of the project is far from being paid off, as the resort was sold for significantly less than the amount invested. The receiver of the project, Goldberg, admits that building a hotel worth $250 million in this part of Vermont was a bad business plan from the start. Changes have been made to the EB-5 program to prevent future abuse, but concerns about fraud still persist.
Stenger, who now works for Goldberg, is currently trying to find a buyer for the empty lot where the hotel and apartments were supposed to be built. He has managed to secure a local snow-grooming-equipment manufacturer to occupy part of the intended building, but drugs and unreliable employees have posed challenges. The newly elected mayor of Newport, Linda Joy Sullivan, remains optimistic about the town's future and plans to transform the empty lot into a hotel, restaurant, or even a museum. The prosecutor, Van de Graaf, believes that Stenger's motivations were a mix of altruism and ego, while Moulton, Vermont's former commerce secretary, suggests that he was driven by a flawed belief in bringing positive change. The failure of the project has left many with a shattered dream and a sense of disappointment.
Source Link: The Rural Ski Slope Caught Up in an International Scam
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Front page of the Tulsa Tribune during the Tulsa Race Massacre, 6/1/1921.
Series: Central Decimal Files, 1881 - 1982
Collection: Records of the American National Red Cross, 1881 - 2008
Transcription:
THE PEOPLE'S PAPER
The Tulsa Tribune
THE WEATHER SECOND
OKLAHOMA - Tonight and Thurs- EXTRA
day part cloudy.
Tulso temperatures: Maximum
today at noon, 85, yesterday, 91;
minimum, 68, yesterday, 61
FULL LEASED WIRE REPORTS OF ASSOCIATED AND UNITED PRESS; UNRIVALED STATE AND FEATURE SERVICE
VOL. XVII - NUMBER 225. TULSA, OKLAHOMA, WEDNESDAY, JUNE 1, 1921. State Edition * * FOURTEEN PAGES - PRICE [TORN] CENTS
COUNTY PUT UNDER MARTIAL LAW
* * * * * * * * * * * * * * * * * * * * * *
7 whites, 68 Negroes Dead --- Fire Rages
PROCLAMATION
All persons not deputied as special officers are ordered to
disarm in a proclamation issued shortly before noon by Mayor
Evans. Persons carrying guns after that hour will be arrested.
The proclamation:
"Armed troops, well equipped, have now arrived who, with
the assistance of the local authorities, will be able to control
the situation in this city. Everyone is directed to preserve law
an dorder and to avoid under every circumstance, the gather-
ing on the streets of curious and excited masses. This only
tends to make the situation worse for the authorities in restor-
ing order, making it more burdensome and complicated. No
loyal citien of Tulsa will willingly commit any act which en-
dangers the peace and security of the city. All parties, without
direct authority from the chief of police or the sheriff or Tulsa
county, who may be found after 11 a. m. today bearing arms and
engaged in any act liable to promote a breach of the peace will
be arrested and prosecuted under the Riot Act.
"Headquarters of the National Guards is established in
Room 306, City Hall, at Fourth street and Cincinnati avenue,
and except for duly appointed policeman and deputy sheriffs
all permission to bear ar mfsrom, and after, the publication of
this proclamation must be countersigned by Gen. Charles F.
Barrett or Col. B. F. Markham, commanding the National Guards.
"Gen. Charles F. Barrett concurs in this proclamation."
Dated 10:30 a. m., June First 1921.
"T. D. EVANS, Mayor."
Barrett is Put in Full
Charge by Robertson
OKLAHOMA CITY. - Martial law in Tulsa was ordered by
Governor Robertson at 11:15 o'clock and Adjutant General Bar-
rett placed in command of the city. The order was given over
the long distance telephone and a proclamation to this effect is
being prepared and will be issued immediately.
The order of Governor Robertson invoking martial law
over Tulsa has been extended to include all of Tulsa county. The
order will displace civil control and place it in supreme com-
mand of the adjutant general.
The governor's telegram to the adjutant general follows:
"I have declared martial law throughout Tulsa county and
am holding you responsible for maintenance of order, safety of
lives and protection of property. You will do all things neces-
sary to attain these objects.
(Signed) "J. B. A. ROBERTSON, Governor."
The governor acted after being in communication with of-
ficers in Tulsa. Attorney General Freeling will go to Tulsa this
afternoon.
"The situation at Tulsa seems peculiar to me," Governor
Robertson said. "With power vested in all city and county offi-
cials there to deputie and put into the law enforcement every
citien of the city if necessary, I cannot understand how this
trouble was allowed to get such a start."
Conversation with Adjutant General Barrett was to the ef-
fect that it was impossible for the fire department to enter the
negro section and that the flames were raging unabated.
All available guardsmen will be placed on duty once in
the negro section, which has been entirely destroyed by flames,
General Barrett said when he r[eceived order?] from Governor
Robertson placing the county under martial law.
Orders have been issued to disarm citizens. Later the
military will issu ecrededntials to men chosen as special officers.
A military commission, composed of seven city officials
and business men, to pass upon the guilt of the 6,000 negroes
now held in concentration camp, was formed shortly before
noon by Mayor Evans and Chief of Police Gustafson and ap-
proved by General Barrett. This committee will pass upon the
guilt of those held under guard in the various camps, naming
those who will be held for trial for inciting the black populace
to riot.
The personnel of the committee: C. S. Younkman, water
commissioner; Albert Hunt, district judge; H. F. Newblock,
city commissioner; C. S. Aver, oil man; Grant McCullough,
banker; F. E. White, business man; Alva J. Niles, banker.
The Tulsa Tribbune
RESTORE ORDER
LYNCH law leads not to law but to lawlessness and
lawlessness is a repudiation of government.
Lynch law is a fire brand in the hands of those
who thoughtlessly elect to establish mob rule for law
and order. Lynch law is an impassioned appeal to the
hatreds of prejudice. It brings ignominy and disaster
to any community that falls its victims.
Whatever ground it may have had, a story starts
that a negro in the county jail was to be lynched. Out
of curiosity a crowd collects. A small band of negroes
brings firearms onto the scene. At first they were few
At the outset there was nothing to indicate that the
whites had been moved to a battling protest. But when
the first small band of negroes added to their armed
forces the war began. Tulsa found itself experiencing
a night of terror and the new day dawned with the
[illegible]nd of battle and the sky clouded with the smoke that
rises above the burning buildings and shacks in the
negro end of town.
At such a time as this it is the first duty of every
citizen to restore law and order as quickly as possible.
The National Guard is equal to cope with the rioting
negroes who are already under control. Let every citi-
zen do his duty and lend his fullest influence to the
prompt restoration of law and order. Do this for the
good name of Tulsa. Keep off the streets where there
are evidences of disorder as much as possible. Make
no needlessly threatening display of arms. The state's
soldiers can do that and do it with the authority of the
law.
Now is the time for every citizen to keep a cool
head, to keep out of mob collections. The quickest and
surest way to restore law is to respect the law. Let the
authorized agents of the law handle those who will
not.
BLACK QUARTER BURNS TO GROUND;
FOUR GUARD UNITS TAKE CHARGE
Seven white persons are known to be dead.
One white woman, shot six times, is expected to die.
Thirty-four whites are wounded in three hospitals. Many other wounded persons are
in their own homes.
Sixty-eight negroes, including men, women, and children, are dead, according to reports
from all districts of the black belt where heavy fighting was waged throughout the night
and up to 9 o-clock this morning.
One hundred blacks are believed wounded.
The officials are in control of the situation and no more armed conflicts are expected.
The entire black belt of Tulsa is a charred mass. The business section of
Greenwood avenue is levelled. Scarcely a building escaped the flames set by
torches when an army of whites invaded that district early this morning to an-
ticipate a general attack on the part of the blacks. Officials at noon today were
unable to estimate the total loss which will extend into many thousands of dollars.
It is estimated that more than 500 homes of negroes were burned. A score of
business buildings and a number of factories were razed. Heavy stocks of mer-
chandise were a total loss.
The fire carried by a strong north wind spread into the white residence
section adjoining the black settlement on North Detroit avenue. Ten homes in a
row were burned before firemen could check the flames. One house was burned
in the immediate vicinity of Standpipe hill.
At 12:30 o'clock the fire in this district was rapidly being brought under
control.
Hundres of white women and children fled from their homes as the leap-
ing flames fanned by a strong wind from the north ate their way to the white
belt. About 11 o'clock the wind subdued, giving the firemen a chance to
successfully combat the flames.
A special train bearing 350 National Guardsmen under the command
of Adjutant General Barrett arrived at 9:05 o'clock this morning. General Bar-
rett issued a statement from guard headquarters at the police station that mar-
tial law would not be declared until he had made a hurried investigation.
Only developments will determine if it is to be invoked,
Barrett added. Companies A and B, totaling 150 men, arrived
on the special train from Oklahoma City, with a second troop
train due from the capital about 11 o'clock. Company B and a
sanitary detachment, both located here, are also on duty and
have been since midnight.
The guards after establishing headquarters in Second
street in front of the police station were ordered to various sec-
tions of the black belt. One contingent was sent to Meulty park,
where several hundred negroes are interned.
General Barrett is now acting under orders issued by Mayor
Evans, Chief of Police Gustafson and Sheriff Bill McCullough.
Following a night of rioting, snip-
ing and open clashes between whites
and blacks hundreds of armed men
invaded the negro district to remove
the menace the blacks there offered.
At 5 o'clock scores of armed men in
automobiles drove to the north side
of the black belt in the vicinity of
Standpipe hill. These white fighters
formed one wing of an encircling
movement entirely surrounding the
negro district. Hundreds of pedes-
trains advanced on the black belt
from the south and west. Hundreds
of shots were fired. Many negroes
were reported to have been wound-
ed while a number of whites were
taken to hospitals with wounds.
The heaviest fighting this morn-
ing was in the extreme northern sec-
tion of the black belt. Hundreds of
negroes were concentrated in a val-
ley at the base of Sunset hill. Fifty
were barricaded in a church.
Machine Guns In Use.
Deadly volleys of steel were poured
[into?] the ranks of the whites as they
[advanced?] in open formation against
the blacks who stood their ground.
Finally the whites were forced to re-
treat. A call was sent to police head-
quarters for reinforcements. A num-
ber of guardsmen with two machine
guns were rushed in automobiles to
the scene of the fighting. The ma-
chine guns were set up and for 20
minutes poured a stream of lead on
the negroes who sought refuge be-
hind buildings, telephone poles and
in ditches.
The heavy firing came to a sud-
den halt when a huge white cloth
was raised aloft by the negroes. The
church where many negroes were
barricaded was riddled with bullets,
it was said.
Hundreds of negroes with hands
held high in the air walked from
the valley under the guard of armed
civilians. They were taken to Con-
vention hall and McNulty park,
where they were interned.
Whites who returned from the
battle-swept valley said that at least
50 negroes, including men, women
and children, were lying dead. At 10
o'clock authorities had been unable
to make a check of the black losses
in this battle.
Most of the blacks who were killed
met death in the early morning
fighting in the negro section near
the Frisco tracks.
___________________________
THE START
The clash had its inception when
several automobiles loaded with
armed negroes and said to have been
led by "Old Man" Stratford, a ne-
gro hotel proprietor, swung up in
front of the courthouse shortly be-
fore 10 o'clock, bent on protecting
Rowland. Not more than 30 blacks
were in the first party but they suc-
ceeded in virtually taking command
of the situation there because few
of the whites were armed and none
displayed guns. The blacks were or-
dered home by Sheriff McCullough,
who it is said, had armed negro
deputies with him on the courthouse
steps. Barney Cleaver, a former negro
police officer, also advised them to
go home. After the first sally, dur-
ing which the blacks dispersed part
of the crowd of whites, the negroes
were still permitted to keep their
guns.
Instead of going home, they cir-
cled around several blocks near the
courthouse and came back with an-
other flourish of shot-guns and
rifles. By this time the crowd of
whites had increased to several
thousand with hundreds of women
and a number of children on the
fringes. Most of the whites wer on-
lookers and there appeared to be
no organized mob. After making
known their intention to protect
Rowland at all costs the blacks were
star[ing?] toward home again. There
was still no move on the part of the
sheriff's forces or the city police to
disarm them although the black
force was not more than 50 at this
time.
Instead of going to the negro sec-
tion to stay the blackss whirled
through the streets of the quarter
and sought recruits. Every negro
they met was solicited to joion their
ranks. At Sixth and Cincinnati two
negroes who refused were threat-
ened, according to residents of the
neighborhood who overheard the
conversation.
Shortly after 10 o'clock the blacks
came back to the courthouse with
their biggest force. Estimates place
the number of armed negroes at be-
tween 100 and 200. By this time
it was estimated that probably 100
of the whites in the crowd had
procured arms. A number of whites
who sought guns at the National
Guard armory were refused. Cour-
iers went through the crowd of
whites and warned women and
children and unarmed men to seek
safety. They said they feared an
assault by the blacks. Only a part
of the crowd complied.
The first clash followed on the
heels of this warning. There are
two versions of how the firing be-
gun. According to some of the spectators
pistols were first fired into the air
in front of the Boulder street en-
trance to the courthouse and this,
spectators say, acted as a signal for
the general firing during which the
blacks fired ten shots to each one
for the whites. The crowd of whites
greatly outnumbered the armed
band of negroes but the whites were
helpless in front of the black on-
slaught because they were in con-
stant danger of firing into other
whites if they attempted to protect
the women and children in the crowd
by answering the blacks fire.
Where First Man Fell
After the first volley one carload
of blacks came north on Boulder
avenue, firing as they raced along.
The first white man dropped be-
fore the crash. He had been stand-
ing against the wall of the garage
on Boulder, just south of Sixth
street.
Across the street men and women
in the crowd sought refuge in the
row of houses on Boulder south of
Sixth. Many of them were unoble
to reach cover before the second
volley so they dropped in their
tracks and clung to the earth.
Others hid behind curbs in the
driveways to the garages of these
homes, running to better cover be-
tween the volleys.
Meanwhile the negroes fled.
Some of them ran through the
crowds of women and children,
brandishing their guns. They had
disappeared from the immediate
area of the courthouse within ten
minutes after the first shot had been fired.
Second Version of Start
The second version of the start
of the firing was to the effect that
a number of unarmed white men,
seeing that the officials were not
willing to disarm the blacks, took
that task to themselves. One man
is reported to have dashed into the ranks of blacks and seized one of the
guns. Spectators who relate this as
the true story of the inception of
the shooting declare that the blacks
immediately opened fire when they
were threatened with disarmament.
Shortly after the negroes fled
from the courthouse battlefield an
automobile load of white youths
sped past and fired into the jail
windows on the fourth floor, spec-
tators declared.
John McQueen, a former county
officer and one of the men who at-
tempted to disperse the crowd at the
courthouse, declared today that
Johnny Cody was the negro whose
shot started the general firing here.
"While I was on the steps Cody
and a band of negroes started up,"
McQueen said. "I went to meet them
and a stranger backed me uo. Cody
pushed a gun against him and fired
just as I pushed the gun away. The
stranger went down. Several bullets
went through my coat."
Immediately after this report came
to the crowd that the blacks were
mobilizing for systematic assault on
the whites. The majority of the
white men were still [illegible]. It
became immediately apparent how-
ever, that the police and sheriff's
force were making no attempt to
prevent the return of the blacks so
the white men themselves took
charge of the situation. Small
groups systematically entered all
downtown hardware stores and
pawnshops and took up all the arms
and ammunition that could be found
Nothing else in any of the stores
were touched.
Black Attack Again.
Soon there were more than 1,000
armed men on the streets. Part of
this crowd defended the Hotel Tulsa
and the section around Second street
and Cincinnati avenue from an attack
of blacks who swarmed back within
three quarters of an hour after the
court house battle.
After this second general battle,
which is described elsewhere, the
whites took rapid command of the
situation. Patrols spread quickly to
cover all the principal streets and
the roads leading into the city.
Special guards were put at all bridges
within a several-mile radius to halt
any incoming blacks. Roving pa-
trols moved up and down Main
street. At Main and Archer streets
desultory firing took place for sev-
eral hours. Blacks from their quar-
ter fired repeatedly from behind the
building at Archer street and Boulder
avenue and Archer and Cincinnati
avenue. They were cleared out with-
in an hour or two, but a second
group took their place and held the
negro block on Cincinnati, at the
Frisco tracks, against assault until
early this morning. Two negroes were
killed here and several others wound-
ed. A number of whites were re-
ported wounded in fighting here.
Could Have Disarmed Blacks.
Fully an hour before the first
shots were fired at the courthouse
citizens stood on the south steps and
pleaded with Police Commissioner
Adkison to call out the National
Guard without delay. The negroes
were just beginning to parade the
streets at that time and they argued
that even a small detachment of or-
ganized and equipped men could dis-
arm them, compel them to return to
their own part of ftown, get the
whites to disperse when this had
been accomplished and so avert im-
pending trouble.
Commissioner Adkison answered:
"We are trying to get them out,"
then turned and told the crowd to
obey E. S. McQueen's advice to go
home while the negroes were patrol-
ling the streets in arms, threatening
death and rapine. The police were
powerless.
An hour after the pitched battle
took place around the courthouse
and northward along Main and Bos-
ton, the Guard got into action.
Guardsmen went immediately to the
police station and began an attempt
to disperse the whites who had
armed themselves and gathered
there in expectation of another at-
tack.
_____________________________
The Dead
Carl D. Lotpeisch, 28, Randall
Kans., shot through breast. Taken to
Oklahoma hospital at 6:30 o'clock
this morning. He died shortly after-
ward.
Unidentified whate man, about
28; light brown hair; light brown
eyes; five feet ten inches; 160
pounds. At the Mowbray undertak-
ing parlors.
F. M. Baker, Havelin, Kan., 27,
short in back with buchshot. Died
this morning at Morningside hospi-
tal. At the Mowbray Undertaking
parlors. An identification card found
in his clothing bore the name of
Norman Gillard, 315 So. Norfolk.
The third white man, unidentified
was killed about 5:45 o'clock this
morning when a squad of white
riflemen engaged a group of ne-
groes on North Cincinnati av. The
body was taken to Mitchell-Fleming
undertaking parlors. He was de-
scribed as about 25 years old, six
feet [ta?]ll, weight 165 punds. He
wore dark green trousers, brown
coat, tan shoes, and a tan belt with
a silver clasp bearing the initial
"W". He was shot in the neck.
Death was instantaneous.
The body of an unidentified white
man about 35, held at the Stanley-
McGee Undertaking parlors still
was unidentified early today. He
was shot in the head.
The body of a white man, about
30, shot in the back of the head, held at
the Mowbray undertaking parlors,
ho[illegible] [ea?]rly last night in the first brush
with the blacks, still was unidentified
this morning.
[1?]0-year-old white boy, though
to [be?] named Olson, home at Sapulpa
died at 8:30 o'clock following a bat-
tle an hour earlier at the Frisco depot
in which two negroes were reported
killed. Olson's body was removed to
the Mitchell-Fleming undertaking
parlors where it awaits positive
identification.
A white girl was reported killed on
North Peoria in the vicinity of the
Texaco plant. the report could not
be verified at 10 o'clock.
____________________________
The Injured
A re-check of the injured revealed
the following at the various hospit-
als:
Oklahoma Hospital.
Earl Hileman, city, shot through
thigh, not serious
G. B. Steck, Sapulpa, shot in back,
serious.
J. E. Wissinger, 150 Admiral or
1202 East Second, shot in knee, not
srious.
G. F. Joiner, 1703 South Main, shot
in leg, not serious.
Ross G. Owens, 1108 South Jack-
son, shot with bird shot, several
wounds but not serious.
E. D. Hartshone, shot in thigh.
Edward Austin, 418 South Detroit,
shot in toe, not serious.
Grocer Slinkhard, West Tulsa, fac-
tured rib.
Robet Elmer, West Tulsa,
A. N. Dow, 401 South Madison,
shot in upper thigh and compound
fracture of arm, serious.
C. C. Thomas, 803 South Main,
shot in leg, not serious.
E. R. Hileam, Fern hotel, com-
pound fracture of thigh, serious.
Garland Crouch, 16 North Quincy,
shot in upper abdomen and right
arm, though serious.
A. T. Sterling, 314 South Zunis,
minor injuries.
Robert Palmore, West Tulsa, shot
in left shoulder, not serious.
E. Belchner, 1437 East Hodge,
shot in hand and leg, not serious.
Lee Fisher, 338 1/2 East First, shot
in left leg and thigh, thought serious.
G. I. Prunkart, Frisco conductor,
shot with bird shot in shoulder, chin
and forehead. He was shot while
sitting in caboose of train just pulling
into city.
There are two wounded patients
unidentified. Fifteen or 20 patients
having only slight wounds called at
hospital and had them dressed, left
hospital without giving name or ad-
dress.
Tulsa Hospital
George Switzgood, 415 N. Detroit;
not serious.
K. G. Logsdon, 308 S. Cincinnatti;
shot in arm; not seriously.
Sergt. W. R. Hastings, 1507 E. Jef-
ferson; not serious. After having his
wounds dressed, Sergeant Hastings
immediately left hospital.
H. L. Curry, Illinois hotel, shot
through neck; serious.
E. F. Vickers, city; arm shot.
M. W. Camble. 220 W. Cam [Iron;?]
thought serious.
Jess Collins, 522 N. Boston; serious.
R. N. Seltzer, 529 S. Utica; leg, not
serious.
Otto Sherry, 112 N. Frisco; face
powder burned.
Thirty-five or forty who were only
slightly wounded were attended at
the hospital. After the wounds were
dressed they walked out, leaving
no name or address.
Physicians & Surgeons Hospital.
R. C. Hankson, Jenks, Okla., tool
dresser; shot through right wrist,
bullet traveling through abdomen
into the left arm; shot at 6:45 a. m.
___________________________
NOTICE TO TELEPHONE
SUBSCRIBERS
______________
Please use your telephones only
in case of emergency. This will
assist us in protecting life and pro-
erty.
SOUTHWESTERN BELL TELE-
PHONE COMPANY
___________________________
CURTIS BROWN CO. sells PHOE-
NIX PURE SILK HOSE. Phone 232.
____________________________
We sincerely trust that the
local disturbance is over. We
do not want to give the im-
pression of trying to drive in
business as the result of a
calamity.
It is our duty, however, to
call t he public's attention to
the fact that the standard fire
policies do NOT cover loss re-
sulting from Riot, Insurrection
or Civil Commotion.
We write Riot, Insurrection
and Civil Commotion Insur-
ance and the cost of same is
very slight. Call us for rates.
Policies are written here in
our office. Phone Cedar 2100.
Pearce, Porter & Martin
500 Palace Building
_______________________
NOTICE
______
Because of the race war
the announcement of the re-
maining entrants in The
Tribune beauty contest will
be carried in all editions to-
morrow and none today.
186 notes
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