Editing Wallace, Idaho (section)

===Founding and early years===
In the spring of 1884, Colonel William R. Wallace built a cabin at a site he called "Placer Center." A [[American Civil War|Civil War]] veteran, Wallace was heavily involved in mining ventures after the war.<ref name=WRW_Obit>"Col. W. R. Wallace, Mining Man, Dead." (November 17, 1901). ''Los Angeles Times''.</ref><ref>{{cite news | url=https://news.google.com/newspapers?id=0a9WAAAAIBAJ&pg=7263%2C1242523 | title=Folklore Refuted by Early Settler | work=[[The Spokesman-Review]] | date=October 18, 1965 | access-date=April 23, 2015 | pages=5}}</ref>
The spot's central location in the mining district clearly offered promise as a town site. In fact, a news sheet published at the time extolled the town's favorable prospects because "it is on the [[Mullan Road]], which is the main emigrant road on the Bitter Root divide." Wallace believed in his new venture and invested money to build access roads, put up lot fences and make other improvements. By the spring of 1885, Placer Center had a grocery store and several other small businesses. Within a year or so, there was also a general store, a sawmill, hotel and more.<ref name=North-ID>''An Illustrated History of the State of Idaho.'' (1903). Chicago: The Lewis Publishing Company.</ref>

Wallace and Richard Lockey bought "Sioux half-breed scrip" from a bank in [[Spokane, Washington]] to purchase an {{convert|80|acre|ha|abbr=on|adj=on}} town site that would become the town of Wallace.<ref name=Magnuson>Magnuson, Richard G. (1983). ''Coeur d'Alene Diary: The First Ten Years of Hard Rock Mining in North Idaho'', Second Edition. Hillsboro, Oregon: Binford & Mort Publishing.</ref> Such scrip entitled the holder to "locate" (claim) unoccupied and unsurveyed public lands. Wallace's application for a [[land patent]] to secure title to the townsite was submitted to the [[United States General Land Office]] (GLO) in [[Coeur d'Alene, Idaho|Coeur d'Alene]] on June 5, 1886.<ref name=North-ID/>

The GLO head office in [[Washington, D.C.]] found that his scrip had been reported lost by its original holder. That original scrip had then been replaced and used to claim land, around six years earlier. For this reason, the GLO denied Wallace's application, in a letter dated February 3, 1887. Nevertheless, Col. Wallace and his Wallace Townsite Company continued to sell properties (lots) because the Coeur d'Alene land officer had advised them that they could do so. In fact, the officer said he would act as Wallace's attorney if a dispute arose.<ref name=Magnuson/> Neither the Company nor Col. Wallace informed potential or actual buyers that their patent on the townsite was uncertain.<ref>"Wallace, Idaho." (March 8, 1889). Salem: ''Weekly Oregon Statesman.''</ref><ref name=Vergobbi>Vergobbi, David J.  (October 1994). "Visible Hand: The Journalistic Drive to Incorporate a Frontier." ''Proceedings of the 1994 Conference of the American Journalism Historians Association'', Roanoke, Virginia.</ref>

The settlement flourished, and by the fall of 1887 when its first school was opened, there were many saloons, one brewery, a large apartment building with a public hall, a hotel, and many stores and shops. On September 10, 1887, a narrow gauge rail line reached Wallace, leading to further growth. Within two years the railroad would offer regular scheduled service. On May 2, 1888, a group of citizens petitioned Shoshone County's county commissioners for the town's incorporation, now to be called "Wallace", after the Colonel. Wallace was appointed one of the five trustees of the new town.<ref name=North-ID/>

In November 1888, the townsite company engaged a Washington, D.C., attorney who specialized in contested public lands cases.<ref>Matthews, William B. (1889). ''Matthews Guide for Settlers of the Public Lands ... and All Persons Interested in the Public Lands.'' Washington, D. C.: Office of the Librarian of Congress.</ref> The letter reporting this action does not say what event led to the move. However, it asserted that the original scrip owner had "made oath ... that he had never parted with the original, and never gave anyone power to use his name in any other location."<ref name=North-ID/> That is, the company saw the reported GLO duplication of the scrip as a fraudulent action.<ref name=Magnuson/>

[[File:1904WallaceIdaho.png|thumb|Wallace, 1904]]

But by February 19, 1889, reports had arrived in Wallace of a case involving disputed Sioux half-breed scrip. The Department of Interior (DOI) denied a Montana land claim because the scrip had been used for the benefit of persons other than the mixed-blood it had been issued to initially. This decision more closely followed the apparent intent of the original legislation, but was actually a reversal of long-standing GLO practice. For decades, the GLO had allowed land dealers to buy the scrip from the mixed-bloods for a pittance and then claim large expanses of valuable public land for white use. One group of speculators made substantial profits from at least 15,000 acres (6,070 ha) of land in Minnesota, Nevada and California.<ref>Millikan, William. (Spring 2010). "The Great Treasure of the Fort Snelling Prison Camp." ''Minnesota History.'' St. Paul: Minnesota Historical Society.</ref> Newspaper reports suggested that this DOI decision might affect land claims in several places across the West.<ref name=Magnuson/>

In Wallace, the news of the case led many townspeople—on the night of Tuesday, February 19, 1889—to participate in "lot jumping," that is, peremptorily marking the space as their own. Newspapers across the United States carried news of the small western town's real estate upheaval. ''The New York Times'' wrote: "Many persons heretofore considered rich are no longer so, while poor persons have jumped into comfortable circumstances."<ref>(March 1, 1889). ''New York Times''.</ref> Some existing owners guarded their own lots in order to retain their right of ownership. Local historian Judge Richard Magnuson wrote, "By 2 a.m., everything was located and the rush subsided."<ref name=Magnuson/>

William R. Wallace reacted to the jumping with an angry letter, partially quoted above to describe what the company considered improper action by the GLO. The letter closed, "The higher courts will ere long decide the validity of the claimants."<ref name=North-ID/> With this letter and several others, Wallace took the stance of an aggrieved party in relation to the GLO's handling of the Sioux scrip. It has been documented that the under-staffed and poorly-run GLO was indeed involved in corrupt dealings at that time.<ref>Dunham, Harold H.  (April 1937.) "Some Crucial Years of the General Land office, 1875-1890." ''Agricultural History'', Vol. 11, No. 2, Agricultural History Society. Accessed April 25, 2017.</ref> Continuing their aggressive stance, the Wallace Townsite Company filed 13 legal suits, demanding $1,000 from citizens it claimed had illegally jumped their properties. Several years passed before all the disputes were fully resolved.<ref name=Magnuson/> Fortunately, land holders who had legitimately developed their plots were able to gain clear title. By the time the disputes were concluded, William R. Wallace had opened an office in Spokane to pursue mining ventures in the West.<ref>''Spokane Falls City Directory, 1890'', R. L. Polk & Co., Publishers, Spokane Falls, Washington (1890).</ref><ref>"Money in Mining." (May 15, 1891). ''Tacoma Daily News.''</ref><ref name=WRW_Obit/>

In July 1890, a fire aided by strong winds destroyed thirteen saloons, six hotels, a bank, a theater, eighteen office structures (many doctors and lawyers, and the newspaper), three livery stables, and over thirty other stores and shops. A meeting hall, the telephone exchange, and the post office were also destroyed. Following the fire, the town organized a new, better-equipped fire company, installed an improved water system, and adopted ordinances requiring fireproof construction in certain downtown areas.<ref name=North-ID/>