Oil Money Enriched the Osage
As journalist and author David Grann details in his 2017 book, Killers of the Flower Moon: The Osage Murders and the Birth of the FBI, adapted into a 2023 film by director Martin Scorsese, the Osage reservation was soaked in blood because it was awash in oil. Driven from their lands in Kansas, the Osage had bought a swath of northeast Oklahoma in the early 1870s. The rocky, barren reservation promised to yield little—with the exception of their desire to be left alone—until the discovery of one of the largest oil deposits in the United States below the surface.
The Osage had shrewdly retained the rights to any mineral discoveries, and oil barons such as J. Paul Getty, Harry Sinclair and Frank Phillips paid grand sums for leases at outdoor auctions held under the boughs of a vast tree dubbed the “Million Dollar Elm.” Each member of the Osage tribe received quarterly royalty payments for their "head rights," and as the years progressed, so did the number of digits on their checks, growing into the hundreds and then the thousands of dollars. In 1923 alone, the 2,000 tribe members collectively received $30 million—the equivalent to $400 million today, according to Grann.
The Osage became the richest people per capita in the world. “They lived in mansions and had chauffeured cars. They had servants, many of whom were white. These images belie long-standing stereotypes of Native Americans that trace back to the first contact with whites,” Grann tells HISTORY. “It flips our conventional thoughts on their heads.”
Government-Appointed Guardians Targeted Osage Wealth
Even the Osage’s blessings turned out to be cursed, however. The great wealth lured not only desperadoes, bootleggers and criminals—but fantastic jealousy as well. “The Osage Indians are becoming so rich that something will have to be done about it,” reported Harper’s Monthly.
“Prejudice provoked a scapegoating of the Osage for their wealth, and the U.S. Congress literally holds hearings about what the country could do in response,” Grann says. Lawmakers appointed local white guardians to approve every expenditure by the full-blooded Osage “down to the toothpaste they purchased at the corner store,” Grann writes. “It’s a system rooted in racism, done under the pretense of enlightenment that the Osage needed protection,” Grann says. “Even worse, it led to an entire criminal enterprise that had been sanctioned by the U.S. government.”
Swindling the very people they were assigned to protect, guardians forced the Osage to purchase goods from them at inflated prices and received kickbacks by directing them to do business with certain stores and banks. In some cases, guardians dropped any pretenses and simply stole the money—at least $8 million, according to one government study. “They’re scalping our souls out here,” complained one exasperated Osage. The systematic embezzlement—referred to as the “Indian business” by some white settlers on the Osage reservation—wasn’t lucrative enough for some, however.
In order to maintain tribal control, shares of the oil money could not be sold by the Osage to white settlers, but they could be inherited. That loophole proved the genesis of a calculated, cold-blooded plot to gain inheritance rights from tribe members before killing them. In some instances, white settlers even married their marks to legally become the next of kin before murdering their spouses.