Sam Nichols

Nichols served in the Minnesota Infantry Regiment during the American Civil War.[9]

In 1862, the armed conflict known as the Dakota War of 1862, a conflict between several bands of the Native American Dakota tribe (named Sioux by the white people) and white Americans began.[18][19] Many different causes were cited, but the leading one remained a long-term dissatisfaction on the part of the native people about the white Americans' failure to fulfill official agreements in regard to annuity payments (money to improve native settlements).[20] Late payments from the US government resulted in starvation and hardship, pushing the Dakota to plan an attack on the locals and immigrants of southwestern Minnesota in an effort to drive white people to the east of the Mississippi River and eventually out of Minnesota.[21] After several months of the intense battles, Native Americans surrendered. Over 300 were found guilty of massacres and rape and sentenced to death, but due to President Lincoln's pardon, only 38 of them were eventually hanged. All agreements between the US government and native tribes were annulled and the tribes exiled from Minnesota.[22][23]

At the time of the conflict, Governor Ramsey appointed Nichols Captain of a militia company. Nichols took active part in battles aimed at the suppression of the Dakota attacks.[7] According to a Seattle Post-Intelligencer article, during that conflict Nichols served as a volunteer officer.[6]

After his service in the Dakota War, Nichols worked at the office of the provost marshal in Rochester, Minnesota.[7]

From time he was of voting age, Nichols was "a very active Republican."[7] In articles published after his death, Nichols was referred to as "a Republican leader in Minnesota,"[24][25] as during his time in that state he held a number of town and county positions.[9]

Not long after the Salem Township (previously known as Lexington) was established in 1858, Nichols became one of its first settlers and was elected town Clerk. In 1862 and 1863, Nichols served as County Commissioner for Olmstead County.[26] From Salem, Nichols moved to Saint Paul, and in 1869 became Assistant Clerk for the Minnesota House of Representatives.[27][9] Two years later, he was listed as a clerk in the US land office in Alexandria.[28]

Around 1871, Nichols moved to Fergus Falls, becoming one of its pioneers and an active participant in the events that made the town known as "political center." He was present when the town became the county seat (instead of Otter Tail City) in 1872. Nichols' first engagement was a banking business with George Head, Chief Clerk of the Minnesota House of Representatives, from 1872 to1876. They choose the location for their future bank and delivered lumber for the building, but didn't proceed with the construction, and the business was soon defunct. Later, at the site of their failed bank, the Fergus Falls National Bank was built.[29]

In 1872, Nichols was elected Clerk of District Court, serving until 1876.[30] Two years later, he was nominated for the position of Otter Tail County Register of Deeds. At the time, there were two blocs of the local Republican party, and the "Austin faction" wanted Nichols to run against the opposing group's (the "Wright faction") candidate, Charles Norgaard. This split within the Republican party was called "the germ which in late years developed into the Bull Moose party." Since two Republicans couldn't run against each other, Nichols was nominated as an Independent candidate.[31]

During his electoral campaign, Nichols was supported by a farm machine dealer, Springen (for whom Springen Avenue in Fergus Falls was named). Springen was supposed to vote for Nichols and induce other people in the town of Aastad to do so, but eventually it became clear that Springen didn't vote or advocate for Nichols at all. Nevertheless, Nichols won the 1874 election by a close majority and served as County Register of Deeds until 1876. His win was followed by a controversy, as Norgaard's supporters claimed that the election was "fraudulently done."[32]

By 1873, the Northern Pacific Railroad went through Otter Tail County and crossed the Red River about 60 miles (97 km) northeast of Fergus Falls. As the railroad didn't reach the city, the settlers of Fergus Falls decided to create competition for the railroad by establishing a water route—a system of locks and dams—between Northern Pacific Railroad and Fergus Falls, with cheaper rates than the railroad. In June 1873, the Red River Slack Water Navigation Company was established with Nichols as one of its incorporators.[33]

In 1874 and 1875, Nichols served as president of the Fergus Falls Council (officially named the "Village Council of the Village of Fergus Falls").[13] In 1875, he became a Clerk of the Minnesota Supreme Court.[34][35] He served for 11 years,[14][9][6] being re-elected in 1878[36][37] and 1881.[38][39] In 1886, he was nominated for a third re-election, but as Moses E. Clapp was nominated to run for Attorney General also on the Otter Tail County Republican ticket, Nichols was forced to give way for a candidate from another county and his re-election failed.[14][31]

Nichols briefly served as state oil inspector in Minnesota, and was Chief Clerk of the Minnesota House of Representatives for three terms.[7][6][9]

Though Nichols was registered as a Saint Paul citizen, he always called Fergus Falls his home, and ran for his official positions on the Otter Tail County ticket.[31]

Nichols came to Washington State in 1891, settling in Everett.[7][9][8] He is credited for being one of the first people to shape the city, and was an active developer of its infrastructure, as over time, he filled every city office. He was engaged in real estate dealings.[7][40][6] In 1906, Nichols was an owner of the Snohomish County Coffin & Mallet mines, which were rich in lead, gold, and silver.[41]

In 1892, Nichols helped initiate the city's first Chamber of Commerce, and helped raise its first building.[42] After the incorporation of Everett as a city in 1893, Nichols was elected one of the city's first councilmen.[42][43][7][9][6] In 1892, he was nominated for the Washington State Senate on the Republican ticket, but lost the election to a Democratic candidate.[44]

In 1896, he was chairman of the Republican County Central Committee.[7] At the time of his death, a Seattle Post-Intelligencer article reported that he served as chairman in the Republican State Central Committee for one year.[6]

Nominated for Secretary of State of Washington on the Republican ticket in 1899, Nichols ran a "strong campaign," according to Prosser (co-founder of the Washington State Historical Society),[7][12] and was elected as the fourth Secretary of State. He served under Governor Rogers,[45][46][47][9] and, after his death, Governor McBride.[48] Nichols' official term was from 1901 to 1905.[1] During his term, Nichols' business address was registered as Olympia, Washington, as he moved there with his wife.[8][49]

In 1904, Nichols was re-elected Secretary of Washington State[50][51] for a four-year term from 1905 to 1909.[2][1]

While Secretary of State, Nichols also served as Vice-governor for Governor McBride during the 1901–1904 term. In 1904, as Acting Governor of Washington State, Nichols travelled to Seattle to attend the USS Nebraska ship launch.[52] In fact, during Nichols' political career in Washington, many people predicted his candidacy for future governor.[53]

Beside his duties with the Secretary of State office, Nichols served in a number of other offices as Commissioner. In 1901, the Legislature created an Insurance Division within the Secretary of State office, and Nichols became State Insurance Commissioner; he served until 1908.[54][8][55][56] From 1903 to 1905, Nichols was Commissioner of the Bureau of Statistics, Agriculture and Immigration and in 1905, a member of the State Board of Equalization.[57][58][59] He worked as Commissioner of the Bureau of Statistics through 1907.[60][8]

After serving two full terms,[11][25][9] in 1909 Nichols ran for re-election for Secretary of State. This was one of the first elections using the new direct primary election procedure passed by the Legislature in 1907.[61] Nichols was re-elected, but soon after the election, was charged with malfeasance and corruption, and he resigned.[24][24][11][62][63]

In 1907, the Insurance Department separated from the Secretary of State's office, becoming an independent division, and in 1908, J. H. Schively—previously Nichols' Deputy Insurance Commissioner—became Insurance Commissioner.[54][64][56] Around this time, rumors started to grow about certain "irregularities" in the division's past activity that involved both Nichols and Schively. At the time, John L. Wilson (Republican politician and Seattle Post-Intelligencer publisher) used his newspaper to support the Republican party. Wilson wanted to save Republican party from controversy, so when the rumors reached him during the 1908 electoral campaign, he didn't publish any detail. However, as soon as the 1908 election was over, the Post-Intelligencer started to "stir the air with strong suggestions that the state insurance administration needed a going-over" and by the Legislature session of 1909 rumors had turned into official accusations.[54]

At the time of Nichols' death, The Seattle Republican claimed that Nichols was a "political protégé" of John L. Wilson's faction of the Republican party, and suggested that by the time Nichols was re-elected Secretary of State for the third time in 1908, Wilson's faction was no longer supporting him and decided to uncover some of his corrupt schemes.[65]

Official allegations of corruption were made against the State Insurance Department heads at the Legislature's session of 1909. Charges of corrupt activity were pressed against Nichols, as the head of the Department in 1905–1907, and against J. H. Schively, who was Deputy Insurance Commissioner in 1905–1907 and was elected Insurance Commissioner in 1908.[66][67][55][56][68][69]

Washington State Senator W. H. Paulhamus insisted on the investigation of the Insurance Department and its officials and presented the resolution that contained all the charges against Nichols and Schively. The officials were accused of overcharging multiple insurance companies working or applying to work in Washington State, and putting companies under the impression that the money was collected to cover company examinations. Further, it was stated that the examinations were performed poorly or were never performed at all. The report claimed that the amounts of the money charged were mostly arbitrary and often not documented properly: Nichols and Schively didn't register any such earnings or present any official receipts for collecting the monies, nor did they register their travelling and other expenses. Furthermore, Nichols and Schively were accused of misusing the collected money—several thousand dollars—for their own purposes.[62][70][63]

According to the published details, the majority of transactions, agreements, or extortions were made by Schively in person, while Nichols was accused mainly of being in charge of the corrupt office and schemes, as well as of being one of the beneficiaries of the money.[63][62] The official charge for both of them was "malfeasance in office."[62]

W. H. Paulhamus' resolution demanded the establishment of a Joint Committee to investigate Nichols and Schively's activity during their 1905–1907 term. It also lobbied to allow the Joint Committee to investigate any state official and any elected or appointed government office. The resolution's contents, especially the Joint Committee credentials, met heated discussions in the Senate.[62] At first, the Senate failed to pass the resolution, voting 21–21. At the last moment, Paulhamus changed his voted against his own resolution in order to postpone the vote to the next day. He tried to convince Senator Booth to vote in favor of the resolution; however, Booth, like a number of other senators, opposed a specific section of the resolution, that allowed all government departments to be investigated. After many discussions, an agreement was made between Paulhamus and Booth: Paulhamus promised to vote for deleting the unwanted section of the resolution, and in return, Booth would vote in favor of the resolution itself.[67][71]

Eventually, the resolution passed. On March 11, 1909, it was officially adopted by the State Legislature, and the investigating committee was established. The committee convened on April 14, 1909, and notified Insurance Commissioner Schively the investigation has begun.[63][71]

Nichols claimed that his record was "as pure as the day was bright." Schively declined to comment on the charges, but emphasized that all of the accusations against him concerned his service under Nichols' management, adding, "Mr. Nichols is the proper person to answer your questions."[72] Schively kept on pointing out that he was just an employee under Nichols, but was later confirmed as "not merely an employee" by the House of Representatives.[73]

The active phase of the investigation lasted until May 10, 1909, and Schively and Nichols were interrogated several times. While Schively claimed he was innocent and voiced his certainty that he would soon be acquitted, during his interrogations he kept emphasizing that all of the activity he was accused of was directed by Nichols, and that Nichols took half of money collected during the scheme.[63][74]

Nichols didn't comment on Schively's accusations, claiming he would do so only on the trial stand.[74] Nichols was "briefly" interrogated by the investigation committee concerning his activity as Insurance Commissioner.[4] He made statements that could have been seen as perjury, although later it was stated that he had a "failing memory" and didn't personally know things he was interrogated about, so he testified "to the best of his recollection" and "upon second hand information."[75]

Promised immunity from prosecution[76][65] and taking the advice of friends,[77] Nichols announced his resignation on May 3, 1909, and voiced plans to retire in Everett.[68][9][1][78][4][79] Nichols still claimed he was innocent, and that his resignation was a result of old age and an unwillingness to keep fighting for the truth.[49]

Governor Hay appointed Captain Ithomar M. Howell, previously Nichols' leading opponent in the Secretary of State election, as his successor.[3][4] After Nichols' resignation, the committee halted the investigation against him and focused their attention on Schively's activity.[71][63]

Unlike Nichols, Schively claimed he had no intentions of resigning,[68][78][76] although one article stated that he was "willing and anxious to follow the example of Secretary of State Nichols," but couldn't do it due to lack of finances.[49] As the investigation proceeded, Schively still tried to avoid personal responsibility for the charges and continued stating that Nichols orchestrated the whole thing.[76][80]

The investigating committee report was presented to a joint Legislative assembly by Governor Hay in June. It confirmed the charges presented earlier in the resolution and provided all testimonies and evidence that Nichols and Schively acted against the law of Washington State while serving as Insurance Commissioner and Deputy Insurance Commissioner during the 1905-1907 term. It was stated that around $5,000 ($133,000 in 2020 dollars[note 2]) was inappropriately collected from insurance companies, that the sum was not properly registered and was not used on examinations of the companies as promised, but instead, according to Schively's testimony, was divided equally between the two and spent on personal matters. It also confirmed that the officials overcharged their clients and in some cases used extortion to get arbitrary sums from them. As the investigation against Nichols was dropped after his resignation, the committee made the conclusion of the report exclusively about Schively, specifically calling him "a corrupt and unworthy public official."[82]

Governor Hay convened an extraordinary Legislature session to discuss further actions of either Schivley's impeachment or of the disembodiment of the whole Insurance Department. The House of Representatives voted unanimously (96-0) for Schivley's impeachment.[54][71] Schively argued his charges in a 60-page letter to the Board of Managers of the House of Representatives, but the Board stuck to the primary verdict.[73]

On July 1, Schively's impeachment trial started. It included 26 separate charges and, despite the fact that Schively himself admitted some charges were true, he was acquitted of all of them.[78][71][54][83][63] Schively worked as Insurance Commissioner until the end of his term, but he was never nominated for official position again and his political activity quickly diminished.[71][54] Nevertheless, he was still considered one of the best specialists in insurance, and in 1913 he was still engaged in this field.[69]

A year later, Nichols' resignation was called "the only accomplishment of the special committee."[84]