To most people in Yavapai County and even the entire Arizona territory, the news produced a shock as great as an earthquake.
On March 1, 1878, Samuel C (“SC”) Miller along with his brother Jacob (“Jake,”) were arrested causing “great excitement here in financial circles,” the Phoenix Weekly Herald reported. “They are charged with endeavoring to put property out of their hands with intent to defraud creditors. Much of their business seems to have been transacted in a loose way.” Those who were owed money from the brothers rushed to court, and the pair were declared insolvent and bankrupt.
The two brothers were a few of the earliest Caucasian residents in the Prescott area, having arrived with the Walker party. They were the teamsters of that troop and continued their freighting business for many years to come.
The year prior to this revelation of financial discord, (1877,) it seemed that things could hardly be better for the two brothers. They were the owners of Miller Valley and hundreds of head of livestock, as well as holding many lucrative government contracts for wood and hay.
In January, 1877, the highly respected and newly elected “Honorable SC” was named head of the agricultural committee in the Territorial Legislature.
In May, they received the government contract for all the freight posts north of the Gila river—an enormous amount of the Territory.
In August, they sold their Iron Springs toll-road to Yavapai County for $10,000 (nearly a third of a million dollars in today’s money.)
In November, they won a huge contract with the Signal Mill Company. It was a 16 month agreement for hauling 60 tons of ore a day at $5 a ton. This would gross $300 a day (or over $9100 a day in today’s money.) The total contract would bring the Millers $145,500 or nearly $4.5 million today. After gaining this work, the Millers built a corral near Fischer Spring, which was in proximity to the Signal mines.
But things would change dramatically in 1878.
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The first public revelation of the Miller Brothers financial difficulties occurred in February, when Levi Bashford and Company filed suit against the Miller brothers for $13,000 in unpaid orders, (almost $400,000 today!)
“Attachments were issued [with other required paperwork,] and it soon became [rumored] that SC Miller had left for parts unknown,” the Weekly Journal-Miner reported. Still, the newspaper couldn’t believe that Miller absconded: “…we have never had the slightest suspicion that [Miller] had gone away with any intention of defrauding us or any of his creditors, and have not now,” it wrote. “[The] Miller Bros. have been here since the country was first settled by white people, [and] have taken a leading and important part in its development, and we cannot nor will not believe that they can now afford to sacrifice reputation, leave all their associations and do anything so dishonorable as these rumors would involve.”
Brother (and business partner) Jake, who was equally responsible for the debts, told the paper that his brother had gone to Signal City to get some paperwork done with their new contractee.
In the March 8, 1878 Weekly Journal-Miner, a legal notice was published announcing the bankruptcy of the Miller brothers. A court date of March 20th was set for creditors to prove the debts incurred. “An order to the United States Marshall for the arrest of Samuel C. Miller and Jacob Miller was issued…and executed [later in the] evening.”
The reason for their arrest stemmed from “Affidavits from Hymen Ellis and CW Beach [which were] filed to the effect that the Miller Bros., being insolvent, sold part of their property, for which they received promissory notes for $16,000 and transferred the remainder to…a nephew…with intent to deceive,” the Journal-Miner revealed. The Miller brothers' “motion to vacate the order of arrest was denied.”
After the revelation of the money owed Bashford, several other creditors came forward to file a bankruptcy petition against the Miller bros. These included CW Beach, TJ Morgan, H Coben and John G Campbell. In all, the Millers’ proven indebtedness was $45,560.02 (or $1.39 million today!)
“An order was issued for the Miller Bros., to appear before the Register in Bankruptcy [and] was obeyed,” but they “refused to be sworn, or to answer any questions,” the Journal-Miner continued. Because of this they were brought before Judge Tweed who threatened them with imprisonment for contempt of court. The bankruptcy court then reconvened at 2PM that same day and the brothers “fully answered” all the questions put before them.
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Come March, the Sheriff was compelled to turn over the cattle and horses secured in court by Levi Bashford to Mr. RJ Burnett, and a legal notice was published barring anyone from purchasing any property from the Miller brothers.
Later that month, it was revealed that the Millers sold their teams to some men in Signal City illegally. The Assignee over the Miller’s assets demanded they be delivered to the Miller's creditors.
An auction was announced for April 19 for some of the Miller estate including: “One pair of horses, wagon and harness; One race mare; thirty head of stock cattle; forty cows; twenty mares; and 6000 feet of three-quarter inch iron pipe,” the Journal-Miner published. However, this property was also in dispute, and after working out compromises, this lot never did reach the auction block.
When the Millers tried to have the rest of their debts discharged in December 1878, they were met in court by CW Beach, Sol Lewis, Levi Bashford & Co., and other creditors. The first three “filed specifications charging the [Millers] with having given fraudulent preferences, with having made fraudulent transfers of property, [and] with having failed to keep proper books of account,” the Journal-Miner reported.
Another possible explanation for the Millers’ credit woes was revealed at this time when it was shown that the Millers had “lost property gaming.” Additionally they had “admitted fraudulent claims.” Instead of receiving a discharge, a trial was set and eventually held in February at which point the Miller brothers asked for a change of venue, which was denied. They then made a motion for a rehearing, and that was also denied.
One year later, in December 1879, a jury trial was held to see if the Miller’s last four debts should be discharged. However, the jury discharged only two.
They attempted to have the last two discharged a month later, but were denied, and they would have to pay off these debts.
But by August of 1881, a year and a half later, the Millers were flourishing once again. The Arizona Weekly Citizen of Tucson reported: “Mr. SC Miller owns the largest and most productive ranch near Prescott. It contains 180 acres of well tilled ground, the majority of which is planted in corn. This crop and others will net him, this wet year, probably $20,000. Mr Miller also has a great quantity of thoroughbred stock—milch cows not to be beaten, and horses equal in speed to any others hereabouts. He is very enthusiastic in describing their good qualities.”
A month later the same paper disclosed that the Millers were looking to sell their ranch just outside of Prescott, “and will devote [their] time to a government wood contract awarded [them].” This would eventually lead to houses and businesses crowding the old ranch land.
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SOURCES:
Phoenix Weekly Herald, 3/2/1878; Pg. 3, Col. 1.
Arizona Weekly Citizen (Tucson), 1/27/1877, Pg. 1, Col. 2.
Weekly Arizona Miner, 5/25/1877; Pg. 1, Col. 7.
Weekly Arizona Miner, 8/17/1877; Pg. 3, Col. 1.
Weekly Arizona Miner, 11/2/1877; Pg. 1, Col. 6.
Arizona Weekly Citizen, 1/11/1878; Pg. 4, Col. 2.
Weekly Arizona Miner, 2/22/1878; Pg. 4, Col. 3.
Weekly Arizona Miner, 3/8/1878; Pg. 2, Col. 5.
Phoenix Weekly Herald, 9/21/1878; Pg. 1, Col. 6
Weekly Arizona Miner, 3/22/1878; Pg. 3, Col. 2.
Weekly Arizona Miner, 3/15/1878; Pg. 3, Col. 5.
Weekly Arizona Miner, 3/29/1878; Pg. 3, Col. 2.
IBID; Col. 5.
Weekly Arizona Miner, 4/12/1878; Pg. 3, Col. 2.
Weekly Arizona Miner, 12/6/1878; Pg. 3, Col. 3.
Weekly Arizona Miner, 2/21/1879; Pg. 4, Col. 2.
Weekly Arizona Miner, 12/19/1879; Pg. 3, Col. 1.
Weekly Arizona Miner, 1/16/1880; Pg. 3, Col. 3.
Arizona Weekly Citizen, 8/28/1881; Pg. 4, Col. 3.
Arizona Weekly Citizen, 9/11/1881; Pg. 3, Col. 2.
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