Bloomberg

Stocks Struggle Amid Subdued Mood as Yields Rise: Markets Wrap

(Bloomberg) — An Asian stock gauge struggled for traction Tuesday and US equity futures made modest gains as tightening monetary policy and Europe’s energy crunch continued to weigh on investor sentiment.

Both S&P 500 and Nasdaq 100 contracts were up less than 0.5%, while European futures retreated. Wall Street trading will resume later after the Labor Day holiday. Asia’s bourses were mixed, rising in China but down in Hong Kong.

Treasuries dipped, led by shorter maturities, taking the two-year yield to 3.46%. An oil rally sparked by an OPEC+ output cut cooled on demand risks from China’s Covid lockdowns.

A dollar gauge was in sight of a record high. The pound rebounded as traders assessed the agenda of incoming UK Prime Minister Liz Truss, who plans to alleviate energy bills in a policy that may cost £130 billion over 18 months.

Australia delivered its fourth 50 basis-point interest-rate hike and reiterated it’s not on a predetermined path in the push to curb inflation. Borrowing costs are rising in a slew of economies, tightening financial conditions globally and weighing on stocks and bonds.

“A lot of clients are asking, have we seen the bottom yet and are we going into a global recession?” Grace Tam, BNP Paribas Wealth Management Hong Kong chief investment adviser, said on Bloomberg Television. “We do think the risk of a global recession, especially next year, is actually quite high” and that the energy crisis “is not fully priced” into markets, she said.

The offshore yuan fluctuated in the wake of China’s announcement of a cut in the amount of foreign-exchange deposits banks must set aside as reserves. Officials in China also plan to speed up stimulus, stepping up support for an economy saddled with Covid lockdowns, a property slump and power shortages.

Elsewhere, Bitcoin again fell below the $20,000 level, while gold made gains.

Are you bullish on energy-related assets? This week’s MLIV Pulse survey focuses on energy and commodities. Please click here to participate anonymously.

What to watch this week:

  • Apple event due to feature new iPhones, watches, Wednesday
  • Bank of England Governor Andrew Bailey at Treasury Committee, Wednesday
  • Fed’s Beige Book of regional economic activity, Wednesday
  • Cleveland Fed President Loretta Mester due to speak, Wednesday
  • European Central Bank rate decision, Thursday
  • Fed Chair Jerome Powell speaks at a Cato Institute conference in Washington, Thursday
  • Reserve Bank of Australia Governor Philip Lowe speaks at event, Thursday
  • China PPI, aggregate financing, money supply, new yuan loans, Friday
  • EU energy ministers extraordinary meeting on emergency intervention in electricity markets, Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures rose 0.4% versus Friday as of 7 a.m. in London. The S&P 500 fell 1.1% on Friday
  • Nasdaq 100 futures rose 0.5% versus Friday The Nasdaq 100 fell 1.4% on Friday
  • Japan’s Topix index was steady
  • Australia’s S&P/ASX 200 index shed 0.4%
  • South Korea’s Kospi index added 0.2%
  • Hong Kong’s Hang Seng Index fell 0.4%
  • China’s Shanghai Composite Index rose 1.1%
  • Euro Stoxx 50 futures fell 0.2%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.1%
  • The euro was at $0.9959, up 0.3%
  • The Japanese yen was at 141.06 per dollar, down 0.3%
  • The offshore yuan was at 6.9504 per dollar, down 0.1%

Bonds

  • The yield on 10-year US Treasuries rose about five basis points to 3.24%
  • Australia’s 10-year bond yield was at 3.66%, up one basis point

Commodities

  • West Texas Intermediate crude was at $88.64 a barrel, up 2% versus Friday
  • Gold was at $1,717.15 an ounce, up 0.4%

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

News Corp. Pays Record $3.1 Billion for AFL Rights Through 2031

(Bloomberg) — News Corp. and Seven West Media Ltd. signed a seven-year contract extension worth A$4.5 billion ($3.1 billion) to retain the television broadcast rights for Australian Rules Football.

A record for a broadcast deal in Australian sports, the contract will run from 2025 until 2031. At more than A$640 million a year, it dwarfs the recent deal for National Rugby League matches. In December, Nine Entertainment Co. in December won those rights for about A$115 million a year over 2023 to 2027.

Australian Rules Football is the most-watched sport in the nation, with its grand final the highest-rated broadcast in each of the past two years. The News Corp.-led bid beat out separate proposals from rival US broadcaster Paramount Global Inc. and local network Nine.

“On balance this is an incredible deal,” AFL Chief Executive Gillon McLachlan said at a press conference in Melbourne. “Blanket coverage for anyone who wants it anywhere in the country. There’s not a better broadcast deal than this in the world.”

News Corp. will hold the subscription television rights via Foxtel, which it owns with Australian telecommunications firm Telstra Corp. Seven will retain the free-to-air broadcast rights. The two companies have been the exclusive broadcasters of AFL since 2011.

In August, Australia announced a review of its laws surrounding the broadcast of major live sporting events to ensure they will be available on free-to-air television formats.

“We are delighted to extend our partnership with the AFL until 2031,” Seven West Media Managing Director James Warburton said in a statement. “This new combination of broadcast and digital means SWM will be ideally positioned to drive and capture a significant share of the growing total television market.”

Seven will pay a 14% increase on the 2024 rights in 2025; with indexation over the term this represents a 3.6% compound annual growth rate in rights fees across the period.

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

Amazon Grapples With More Labor Strife, This Time in Japan

(Bloomberg) — Amazon.com Inc., which is struggling to quell workplace movements from the US to Europe, faces a growing union effort in Asia’s second largest economy.  

A group of 15 subcontracted drivers in the southwestern city of Nagasaki is protesting the long hours and excessive number of deliveries in the absence of overtime pay. They blamed Amazon’s vaunted artificial intelligence algorithms for exacerbating their plight, by setting impossible deadlines and routes. The group formed a union this week and joined drivers in Yokosuka, just outside Tokyo, who organized in June.

Amazon, which prides itself on optimizing the efficiency of its operations, has drawn criticism for how its management techniques affect warehouse workers and logistics personnel. The Seattle-based company is on the defensive as workers unionize worldwide. Amazon warehouse workers in Staten Island voted to join the company’s first US union this year. 

“The AI often doesn’t account for real-world conditions like rivers or train tracks or roads that are too narrow for vehicles. The results are unreasonable demands and long hours,” said Tatsuya Sekiguchi, the vice executive chairman of Tokyo Union, which coordinated the unionization of the two groups. 

Several other groups of drivers who work for third-party companies but deliver for Amazon in Japan are also in the process of unionizing, all demanding an official labor contract with Amazon, he said. “Given that they get orders directly from Amazon Japan through an app, they work for Amazon.” 

Amazon is not responsible for managing or paying the drivers, but works generally with contractors to set “realistic expectations that do not place undue pressure on them,” a company representative said via email. Separately, some full-time Amazon employees unionized in 2015.

In Japan, a labor contract would guarantee the drivers more benefits. Currently, the subcontracted drivers in Japan get no overtime or accident insurance, while they work 11 hours a day or more and foot the full cost of the trucks, including gas, vehicle insurance and maintenance costs, Sekiguchi said. 

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

HappyFresh Board Is Said to Hire Alvarez & Marsal for Review

(Bloomberg) — HappyFresh’s board hired turnaround firm Alvarez & Marsal Holdings LLC and is conducting a review of the online grocer’s financial situation, according to people familiar with the matter.

The move comes after the Jakarta-based startup struggled to raise additional capital to fund its operations, said the people, who asked not to be named as the matter is private. In addition, some senior executives have stopped handling their day-to-day duties. Founded as one of the first Instacart-style grocery delivery services in Southeast Asia, HappyFresh has raised at least $97 million in equity funding in addition to debt financing.

“We have recently come to be aware of new information on the company’s finances. We are currently understanding and unpacking this financial situation of the organization more closely, with the board of directors taking the lead in this exercise,” HappyFresh said in response to questions from Bloomberg News. “This development, and taking a holistic view of the company’s future, has necessitated us reviewing our structures and making certain hard but necessary decisions.”

“Certain members of senior management have stepped aside from active duty pending further clarity,” the company said, without giving further details. A representative for Alvarez & Marsal declined to comment.

HappyFresh suspended grocery deliveries in parts of Jakarta in its key market Indonesia this week, according to a person familiar with the matter. Checks by Bloomberg showed that customers in the capital were unable to book time slots for delivery on the online grocer’s platform or make payments through its app. Customers in Bangkok and Kuala Lumpur were able to use the app as of Tuesday.

Alvarez & Marsal was the restructuring adviser that wound down Lehman Brothers Holdings’ operations about a decade ago. The global firm with more than 6,000 employees has expanded its Asia forensic technology team this year, and appointed Manas Tamotia, a 20-year consulting veteran and former chief strategy officer of HappyFresh, as a managing director to lead private equity for its Southeast Asia and Australia division.

Formally known as ICart Group Pte, HappyFresh operates in Indonesia, Malaysia and Thailand. In February, the startup launched HappyFresh Supermarket to extend fresh and dry grocery accessibility by expanding its footprint of dark stores, or storage facilities where delivery staff pick up products from.

However, the market for grocery delivery services has soured amid slowing economic growth, surging inflation and higher interest rates.

Grab Holdings Ltd., a Southeast Asian ride-hailing and delivery company and a backer of HappyFresh, said last month it decided to shut its dark-store operations in Singapore, Vietnam and the Philippines to cut costs and streamline its deliveries operations, retreating from the earlier strategy. Pandemic darling Instacart Inc., which was valued at $39 billion in a March 2021 funding round, slashed its internal valuation by about 40% a year later.

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

Sony’s PlayStation Architect to Retire After Decades at Company

(Bloomberg) — Sony Group Corp. is set to lose its longtime PlayStation hardware architect Masayasu Ito, who will retire at the end of this month.

The 60-year-old executive vice president of Sony Interactive Entertainment, the arm responsible for PlayStation and Sony’s other gaming initiatives, will depart the company on Oct. 1, Sony told Bloomberg News Tuesday.

Ito is retiring after a career spanning five decades at Sony, having joined the Tokyo-based company in 1986 and worked on in-car audio equipment before moving on to the console division in 2000. During his tenure at the PlayStation group, Ito led engineering for the PlayStation 4, which has sold over 117 million units, and the latest-generation PlayStation 5. In between, he also helped bring to market the upgraded PS4 Pro model, adding improved graphics and compatibility without making the generational leap of an entirely new console platform.

The PS5 has been plagued by supply chain and logistics snarls since its debut in November 2020. Before the launch, Ito wrote on the PlayStation Blog about the challenges of developing the console through the pandemic. Part of the initial difficulty in assembling sufficient units had to do with Sony’s ambitious custom design for the console and its components, which led to production yield challenges for chip supplier Advanced Micro Devices Inc.

“Our team values a well thought out, beautifully designed architecture,” Ito wrote about Sony’s engineering philosophy in the blog post. “Inside the console is an internal structure looking neat and tidy.”

(Updates with confirmation from SIE in second paragraph)

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

Transcript ‘In Trust’ Episode One: The List

(Bloomberg) — This is the transcript for the second episode of Bloomberg and iHeart investigative podcast “In Trust.” Learn more and subscribe to In Trust on iHeart, Apple or Spotify. 

Our transcripts are generated by a combination of software and human editors, and may contain slight differences between the text and audio. Please confirm in audio before quoting in print. 

Episode One: The List

Rachel Adams-Heard This is a story about land, and oil. About family. About wealth. About the stories we pass down, and the stories we don’t. It’s about a Native American reservation. And the people who own the land today.

This story took me to northern Oklahoma. To Osage County, on the border with Kansas. One-and-a-half million acres, covered in bluestem grass, with pools of oil below the ground. And that oil – a century ago, it brought tremendous wealth to some of the people who lived here. At least for a while. 

Tara Damron Hello!Rachel Adams-Heard Hello!Tara Damron Come on in!  

Rachel Adams-Heard This is Tara Damron. She’s a citizen of the Osage Nation. Tara’s in charge of an Osage history center called the White Hair Memorial, outside of a small town called Hominy. 

The building is an old house, surrounded by trees, tucked away from the miles and miles of bluestem grass you see from the highway. And I’m here because I wanted Tara to tell me what she remembers from June of 2009.

Tara Damron It is hot. I just remember having to like get myself prepared for the heat. And June for Osages is a really busy month. That’s when we have our In-Lon-Schka, our ceremonies. And it’s kind of like a reunion, because you get to see a lot of your family members, a lot of people will come home for that and come back to that and make a point to be there.

Rachel Adams-Heard Tara’s been going to the June ceremonies—the big meals and traditional dances—since she was a kid, but I wanted to know what she remembered about one specific day from that month: June 18.

Tara Damron  It was a Thursday, it was the start of the Hominy dances, you know, everybody’s sort of keyed up and excited. Everybody was talking about “the list” and whose names are on it. 

Rachel Adams-Heard  The list. This is why I wanted to talk to Tara. I’m a reporter, I had gotten a tip about one of the names on that list she mentioned. The name of a prominent family you might have heard of. We’ll get to that, but first you should know that this list, when it came out, it was a big deal. 

Tara had been hearing about it all day. At lunch. Her parent’s house earlier, while her dad read the paper. The first time she heard, it was from her uncle, Charles Pratt. He called her that morning – excited.  

Tara Damron Baby was his term of affection. He’s like “Baby! The list came out.” You know, like “What!” But he was like a little kid. 

Rachel Adams-Heard Charles was in the middle of a lawsuit. His lawsuit is the reason this list became public. Charles and his co-plaintiffs were suing the United States government over how it was managing something called the Osage Mineral Estate.

The mineral estate dates back more than a hundred years. The US had been breaking up Native reservations, trying to privatize the land, and take it out of the control of tribal nations. But when it came to the Osage Reservation, everything underground–the mineral rights, the oil–the Osage Nation fought to hold onto it. And they succeeded. 

Congress passed a law in 1906, and the mineral rights to the reservation were put into one big pot that was divided into shares like a corporation. The shareholders were 2,229 Osage citizens. Each share would come to be called a headright. And everyone who had a headright was entitled to some of the money from oil and gas drilling in the area. 

Tara Damron It’s money from the mineral estate set aside for the Osage Indians that our leaders set up to help us provide a financial foundation.

Rachel Adams-Heard The government paid out royalties to headright holders each quarter. Over the years, most shares have been divided into smaller and smaller fractions, passed to descendants. 

Headrights are a lot more than just a check in the mail for oil money. For a long time, the federal government didn’t even consider someone a citizen of the Osage Nation unless they had a headright or a fraction of one. They couldn’t vote in Osage elections without them. 

When Charles Pratt and his co-plaintiffs filed that lawsuit, they were arguing the government was doing a bad job of managing all the money that belonged to Osage headright holders. They wanted the US to provide an accounting of where all this money, Osage money, was going and had gone, over the last hundred years. 

For a long time, the way the US government managed this trust has been wrapped in secrecy. Even the people who were meant to benefit from the trust couldn’t see the financial details. The government had long kept the names of headright holders private, too.

But as part of that lawsuit, a court ordered the government to produce a list—the names of people, churches, oil companies and other groups that were not Osage, but had somehow ended up with a share of the mineral estate. Nearly 2,000 names, made public because of a surprise decision by the court that all those non-Osages would need to be sued, too. 

Tara Damron This was the first time in over a hundred years that we, as Osages, were able to see in black and white an official list from the government of all these non-Osages that had headrights.

(sounds of papers rustling) Let’s see, here it is.

Rachel Adams-Heard A local paper had published a list in full that morning. The paper was was the Bigheart Times —its tagline reads, “the only newspaper in the world that really gives a diddly!” 

Tara Damron So this is dated Thursday, June 18, 2009, the Bigheart Times and the headline reads “Suit Names Non-Osage Shareholders.” “The list of defendants is vast: 1,749 people and entities that includes ranchers, lawyers, churches, schools, and even a former librarian of Congress who once joined the Communist party.” Rachel Adams-Heard That’s an amazing detail. Tara Damron So in addition to individuals, there were corporations, there were a number of churches, a lot of trusts, you see that a lot, Jean Harlow, the Hissom Memorial Center, University of Oklahoma, the University of Texas, several oil companies are on there. Of course the Drummonds were on there. They’re a big ranch family, in Osage County.

Rachel Adams-Heard Some of these names, Tara told me, were pretty surprising: the family of Jean Harlow, a famous Hollywood actress from the 1930s; the Hissom Memorial Center, an institution that was forced to shut down decades ago because staff were accused of abusing the intellectually disabled patients who lived there.  

Tara Damron Like, how in the world did they get ahold of Osage headrights, which is the next logical question, anyone looking at that list would ask.

Rachel Adams-Heard  We do know how some non-Osages would have ended up with headrights. For a long time, they could be sold to non-Osages. Sometimes, Osages used their headright share as an investment for a stake in a company. 

If you scan through the list, with all the churches and nonprofits, it seems likely that a lot of them received headrights from Osage citizens who died and left them as a charitable donation. 

But there was another way non-Osages got headrights. For a long time, someone outside the Osage Nation could inherit one if they married an Osage man or woman, and that person died.

And when oil was discovered in Osage County, and headrights became incredibly valuable, Osages who had them became targets. 

Often, you’ll hear that time—the 1920s—referred to as the Reign of Terror, when dozens of Osages were targeted in widespread, violent schemes. These weren’t just one-off crimes. It was an entire criminal conspiracy, led by White people, who would marry Osages for their headrights and then kill them. And what I hope you’ll see as we get into this, is that the Reign of Terror left a profound impact on the Osage Nation. It devastated the community. Ripped families apart. And the effects are still present today. 

Tara says, for a long time, the Reign of Terror just wasn’t discussed. It was too painful, and the risk of becoming a target again seemed too high. 

So when this list came out – 

Tara Damron People started asking questions. They were asking family members. So it started sort of this unearthing of this sort of big, huge, giant secret that Osages or local people that grew up in and around Osage County always knew or suspected. It was huge. It was a significant moment. Think about that: 1906 to 2009. Imagine being defrauded all those years. I think you’re gonna be pissed, right? Yeah.  

Rachel Adams-Heard  Tara laughs sometimes when she talks about this. But I don’t get the sense she thinks it’s funny. There’s this outrageousness to it all. That the Osage Nation’s trustee, the US federal government, is keeping this information from the very people this trust is for. Even after that system created one of the worst tragedies in the Osage Nation’s history. 

Tara says, when the list came out, and people started talking about where those headrights ended up. It gave more momentum to what her Uncle Charles was saying in his lawsuit: that the federal government wasn’t doing a good job managing Osage money.

Tara Damron It absolutely made us start to question and wonder and ask. All these things, that someone like a shareholder in a corporation, those would be normal things, financial reports. And you know, we have a right to know where our money’s going.

Rachel Adams-Heard Just so you know, I’ve asked the government agency that manages the mineral estate, the Bureau of Indian Affairs, about some of the names on that list, like Hissom. Where those checks are going, and who’s getting paid, especially if the organization literally doesn’t exist anymore. A spokesman said they don’t comment on issues involving ongoing litigation.

When it comes to headrights, the federal government tends to say it’s a matter of privacy. That the protections in place for Osage headright holders are the same ones in place for non-Osage ones.

It’s important to remember that when it comes to the Osage Nation and tribal nations across the country, the United States isn’t just a bureaucrat. It’s a trustee, a relationship born from the treaties that were signed, and often forced, more than a century ago. It means the federal government has a fiduciary obligation to tribal nations and tribal citizens whose money, land and mineral rights are held in trust by the US on their behalf. And that fiduciary obligation, it’s a big deal, considered the highest degree of duty that exists in the American legal system. 

Tara Damron What I always tell people is that, that government, that relationship can’t end. We can’t divorce each other. You know, what I mean? It is what it is. We can’t just say, “You know what? We really don’t like you. We want someone else to manage our money.” It doesn’t work like that. So we are stuck with each other, for better or worse. 

Rachel Adams-Heard  Over the last several decades, the US has settled multiple lawsuits for falling short of its trust duty when it comes to managing Native American assets. That includes a case the Osage Nation brought more than 20 years ago that the US settled in 2011 for $380 million. The settlement paid out to all headright holders, Osage or not, meaning someone with one headright received a little over $150,000. 

But Tara says, the fact that non-Osages continue to get headright money shows the US is still falling short of its obligation to the Osage Nation. When Tara’s Uncle Charles died, she took his spot as one of the plaintiffs on the case. They’ve been successful in getting a partial accounting, but the lawsuit is still ongoing. 

Meanwhile, the Osage Nation’s been working to get federal legislation passed, so that some of those headrights can be returned. Today, a little over a quarter of all headrights are owned by people or groups that are not Osage. When you account for inflation, headrights owned by non-Osages have paid out $500 billion over the last few decades. 

Tara Damron It’s not their money. It’s our money. It’s not Jean Harlow’s money. It’s not Hissom Memorial Center’s. It’s our money, those original allottees and their descendants. 

Rachel Adams-Heard This story starts with headrights. But it brought me far beyond that. Because when I started asking about how a bunch of non-Osages ended up on that list, I found another story too – a story about a whole system that worked to move Osage wealth into the hands of White people.  A system that shapes who has land and influence here today. A system set up by the federal government. 

You’re listening to “In Trust.”  I’m Rachel Adams-Heard.  

I want to tell you more about that list of non-Osage headright holders. But to really understand what it meant for that list to go public, you have to know how the Osage Nation got to its reservation, and how the headright system was created.

For a long time, Osage territory stretched across land that would eventually make up Oklahoma, Kansas, Missouri and Arkansas. But the US government pressured the Osage Nation into a series of treaties, until it was left with just a small fraction of that land: a reservation in Kansas.

But after conflict with White settlers on that reservation, the Osage Nation went south, to what would later become Osage County.

Jim Gray The tribe had sold her lands in Kansas and used that money to buy this reservation. 

Rachel Adams-Heard This is Jim Gray, he was chief of the Osage Nation from 2002 to 2010.

Jim Gray  We didn’t just get moved here by treaty, we bought it. We had a property title to it. 

Rachel Adams-Heard  The Osage Nation purchased its new reservation from the Cherokee Nation in the 1870s. Jim told me that property title would prove to be massively important. Because not long after the Osage Nation moved, the US government wanted to change things, again. The government wanted to take the Osage Reservation, which the Nation as a whole held the title to and parcel it out to individual Osage citizens instead. This was called allotment. 

Jim Gray This individual Osage receiving an individual allotment, that was new. We never went down that road of individual landowners, even in Missouri and Arkansas. Everyone benefited from the collective ownership of this land and they, whatever bounty came from it was spread with all the people.

Rachel Adams-Heard  Allotment started on a lot of Native land after Congress passed the Dawes General Allotment Act in 1887. This was part of a broader, deliberate, and violent strategy to try and assimilate Native communities, kill off their traditions and lifestyles and make their land available for White settlement.

According to the book “Uneven Ground,” allotment reduced Native American-controlled land from 2 billion acres to 150 million acres. But the Osage Nation was initially exempt from the Dawes Act and allotment, because of that property title Jim mentioned. 

Jim Gray  So when they tried to allot the Osage lands, they couldn’t do it without our consent, where they could just do whatever they wanted with everyone else’s land that was in Indian Territory. The tribe had some political rights that protected their property interest.Rachel Adams-Heard  Some negotiating power? Jim Gray Mhm. But not enough to stop it all together. Statehood was coming. There’s no way you can stop that.  And the tribal leader at that time, James Bigheart—who was a brilliant man and way ahead of his time—did what he thought thought was the right thing to do, and so we cut a deal. Okay, allot of surface lands, but the subsurface remains as a mineral estate.

Rachel Adams-Heard This was a savvy and unique deal that Osage leaders negotiated. It’s all laid out in a law called the 1906 Osage Allotment Act. And that law is where headrights come from: all those shares of all the oil and gas rights beneath the land. A year after that law, Oklahoma became a state, and it established Osage County directly on top of the Osage Reservation. There were already some White families living there, traders and cattlemen. But after allotment, more and more settlers moved there, and started trying to get land and headrights for themselves. 

Starting in the 19-teens, headrights became incredibly valuable. Oil production took off, and money was pouring in. A lot of Osage families could afford the finest cars, the nicest furniture. There were tales of this wealth across the country, many of them exaggerated. In June of 1921, the Osage Nation made the New York Times. The headline: “Osage are Richest People” in all caps. And then: “Greatest per capita wealth in world results from oil deal.”  

But that wealth, and all that attention, it brought tragedy.

Jim Gray It was the the the dominant society’s view that these savages weren’t entitled to anything. And if they got something, then it was within your right as a White person to take it, and that mentality spilled out into the entire society. 

Rachel Adams-Heard In 1918, an inspector from the Department of Interior was sent to Osage County to report on the explosion of wealth. Two years later, that inspector, a man named H.S. Traylor, submitted to Congress a racist tirade against Osages and how they spent their money. He called it sinful, and he said if something wasn’t done about Osage wealth, then, quote: “Their everlasting damnation is as sure and certain as the daily sinking of the sun in the west.” He neglected to mention the uptick in crime against Osage headright holders. No acknowledgment that this money belonged to Osage citizens, and they could do whatever they wanted with it. Or that Osage spending was largely in line with that of White Americans in the same income bracket. 

Jim Gray These guys weren’t friends of the Native American community. And the fact that these particular Native Americans ended up incredibly wealthy, “something that something’s wrong with the system,” you know? And if one of them got killed, and someone sought justice in the state courts, they didn’t get it. Do you think these guys lost any sleep over it? 

Rachel Adams-Heard It’s hard to communicate the full breadth and impact of the Reign of Terror. But you can’t understand the importance of the list without knowing that this was a tragedy that many White people in Osage County were complicit in. Groups of White people conspired to manipulate and murder Osage citizens. The FBI confirmed as much nearly a hundred years ago. Osages were shot. They were poisoned. Their cars were run off the road. One couple’s house was blown up. 

Jim Gray And it was just like a cottage industry of finding different ways to off Osages. And in all those cases, there was always some non-Indian benefiting from that. Whether it was a guardian, or spouse, a creditor, whatever.

Rachel Adams-Heard We don’t have exact numbers on how many people were targeted then, because what researchers have found is that a lot of these cases weren’t investigated. A lot of times, they were covered up. Official figures put it somewhere between 24 and 60 Osages who were killed in the early 1920s, but at least one federal investigator thought it could be in the hundreds. Corruption was rampant, and local officials often couldn’t be trusted. But the Reign of Terror wasn’t limited to murder. 

It was shady financial maneuvering on behalf of bankers and lawyers. Intricate schemes involving probates and powers of attorney. Sometimes, it was more blunt: getting someone drunk and tricking them into signing away their land.

Jim Gray It was like every institution that existed in Osage Nation at the time or Osage County, however you want to call, it was not there for any other purpose but to separate the Osages just from their land and their money. That’s how Osages felt. 

Rachel Adams-Heard It’s worth remembering—the US legal system, the English language—this was all almost totally new to a lot of Osages at the time. The government, specifically the Department of Interior’s Office of Indian Affairs, they were supposed to make sure that didn’t lead to exploitation. But they didn’t do a very good job. What the government chose to do was label Osage citizens incompetent—that was the official word they used, incompetent—and put White people in charge of their finances. 

This was an official system. At one point, hundreds of Osages and other Native Americans were, by default, appointed a guardian—an educated White person, usually a lawyer or businessman—who would manage their money for them. A paternalistic policy, steeped in racism, that White politicians justified as a way to protect Native Americans from getting swindled and stolen from. But often, those guardians were in on the very schemes the government said it was trying to prevent. 

Jim Gray We don’t really see them as incompetent fools who lost everything. We see him more as a horrible victim of a greedy society. That, while they were trying to learn to walk in both worlds, this world just came and stomped on them. Some of them survived. Some of them didn’t. But it’s a difficult, difficult chapter in our tribe’s history that unfortunately has created a form of generational trauma. And in not so much in the way that you think, but that it robbed us of generational wealth. 

Rachel Adams-Heard A single headright today, adjusted for inflation, would have paid out about $4 million over the last 100 years. 

Jim Gray Can you imagine if we were able to hang on to that fourth of the headrights that have gone out of the tribe, and those dollars got reinvested in our children’s education, or buying land, or building the land up, or protecting our tribal communities in ways that we can’t even imagine? And have the children raised in that environment, do the same in their lives. And have those headright monies coming in and they’re building wealth? But that was never going to happen to us. Because of all these different interests from the outside that were bent on either exploiting the laws, or bending the law, or ignoring the law to get away with whatever they would needed to do to get their hands on the money.

Rachel Adams-Heard It’s hard to know how many headrights left Osage ownership because of the Reign of Terror. A big part of that is because very few people were investigated back then, much less convicted. 

The most famous conviction from that time was of a rancher named William K. Hale, who was accused of masterminding the murders of several Osages. He only got caught because the Osage Nation hired the FBI to look into the murders: $20,000, out of pocket, to get federal authorities to investigate. 

Jim Gray You know, this took a long time to get this guy behind bars. He had vast resources at his disposal that, you know, manipulated the media, that influenced the judges, influenced juries, influenced the prosecutors. Public sentiment was all in his favor at the time.

Rachel Adams-Heard Eventually, Hale was found guilty of just one of the murders he allegedly ordered. He was convicted for aiding and abetting the killing of an Osage man named Henry Roan. Roan was shot in the head, in his car. He was Jim’s great-grandfather.

Jim Gray Being the last of seven kids, I guess Mom was running out of names to give us—I don’t know. But she named me James Roan Gray. I think it was her way of making me aware of that past. 

Rachel Adams-Heard The mayor of Fairfax said Roan considered Hale a friend. One of his best friends. But there isn’t much surviving knowledge about Henry Roan’s life outside of the FBI files.

Jim Gray Looking back, when I think about how many Osage families just stopped talking about the Reign of Terror, for fear they would bring about some tragic consequences to their lives. People just stopped talking about it. Mom grew up in that environment. And since she didn’t really talk about it that much, you could see this generational trauma that it caused. My education is whatever I read. It wasn’t any oral stories that were passed down. 

Rachel Adams-Heard It wasn’t until the ‘90s, when Jim was a young adult, that he would ask his mom about the Reign of Terror. 

Jim had just read a new book from Washington Post journalist Dennis McAuliffe Jr. It’s called “The Deaths of Sybil Bolton.” 

Jim Gray I talked to her about it. We had one conversation.

Rachel Adams-Heard In the book, McAullife, who’s Osage himself, investigates the murder of his grandmother, a woman named Sybil Bolton. McAuliffe had grown up believing his grandmother died from kidney disease. But what McAuliffe found was that she was murdered: shot in front of her home, likely by her guardian, her White stepfather, while the FBI was focused on getting Hale. Her stepfather was after her headright.

Jim Gray One of the things that startled me about reading Dennis’s book was that he was writing about killings in his own family, but also scenarios that he could tell through his research, that there was a lot of unsolved murders going on. He explained how the the mortuaries would write the death certificates in such a way where they would not draw any attention. 

Rachel Adams-Heard Henry Roan is mentioned in that book. And that got Jim curious about other members of his family. So one day, while he was visiting his mom back home, he decided to ask her about it. 

Jim Gray She was in the living room and I was in the kitchen, and I was just shouting questions at her because I was reading the book. I said, have you read the book, have you read? She goes, “Yeah I read it, you know.” So how to Grandpa Gray die? “He had a heart attack.” How did Grandma Gray die? “She died giving birth to your, your Uncle Clarence.” How did your mom die? “She died in a car wreck.” As did your uncle, when he was an infant? So you read the book, you have this conversation with your mom. And next thing you know, what Dennis was writing was, arguably, could be happening in this family. But we just didn’t talk about it.  Rachel Adams-Heard What did you think after that conversation? Jim Gray She’s way too smart, to be naive. But she was, but she was trying to pretend she was. That’s what I thought.Rachel Adams-Heard Mhm.Jim Gray I’m trying to put myself in my mom’s place right now. She lived through all that as a child, and here she is in her late-60s in the 1990s, trying to explain it to her young son in his 20s. And, how much do you share? Whatever more she knew, it went to her grave. But just that one little conversation we had about how everyone passed away, she acknowledged in that 10-year span, my grandfather, my grandmother, my grandmother—on my other side—and my uncle, on that same side, and my great-grandfather all died.Rachel Adams-Heard And what were those 10 years?Jim Gray  From 1921 to 1930. The reason that this is important is that it has not gone away with our tribe. Our people have not made peace with this yet. We were forced into silence out of fear. And fear is probably not the right word, because fear is something that you imagine in your mind that’s not really happening. No, it was happening. You know, it’s not fear if it’s really happening, right?

Rachel Adams-Heard Jim Gray is not the only Osage citizen who’s had to piece together parts of his family history with books and research. That generation, their elders, they just didn’t talk about it. 

What I took from that conversation with Jim, and the many other phone calls and sit-downs we’ve had over the last several months, is that it’s not just the Bureau of Indian Affairs that’s keeping details about non-Osage headright holders a secret. There’s this big gap in a lot of Osage families’ history when it comes to that time period. And that’s made it difficult for even the Osage Nation to piece together which outsiders have shares of their mineral estate. Jim says people have tried.

Jim Gray We got a list that was handwritten. It was copied, and copied, and copied, and handed out at different meetings. There was just a list of names of organizations and individuals, but no value next to each one of them. Whether they owned one headright, or ten headrights, or a fraction of one. 

Rachel Adams-Heard  When Jim became chief, he says that handwritten list had already been circulating within the Osage Nation’s government.

Jim Gray That list that I had, that old wrinkled up over copied list, it wasn’t actionable. I couldn’t attribute it to anybody at the BIA as an official list. The BIA would never go on the record and say these are the people who got headrights.Rachel Adams-Heard And who wrote the list? Jim Gray We don’t know. No one at the BIA would ever acknowledge who authored that list. 

Tara Damron They’ve been protecting those names for over 100 years, you know, names of non-Osages, who have our money and get our money, you know.Rachel Adams-Heard Today?Tara Damron Today, yeah.

Rachel Adams-Heard When the official list came out – the one Tara Damron saw in the paper, with all the non-Osages who had headrights, it wasn’t just Osage citizens who noticed. 

Tara Damron A lot of people, a lot of, namely, probably those people that were on that list, were not happy. You know and they were very vocal. And I know that from, you know, personal communication with Charles Pratt. And they came up to him, and were just so angry that this list had come out. 

Rachel Adams-Heard This had all been kept under wraps for so long. Now it was out there, in the open. 

Tara Damron You should have seen the amount of attorneys that showed up to represent the White people. 

Rachel Adams-Heard Tara told me about one time, when her Uncle Charles brought her to court with him. 

Tara Damron And I had driven him, and we went to court and I said, “Who were those people?” And he said, “Oh, those are the attorneys for the White people, you know. They’re all here.”

Rachel Adams-Heard One attorney told me, after the list came out, the courtroom was like an Oklahoma Bar Association meeting. A bunch of people on that list got a lawyer. But in the end, they didn’t really need the lawyers anyway. After all that, the court said it wasn’t necessary for all these people to be added as defendants for the case to go forward. 

But the list: they couldn’t undo the list. It was just out there, lingering. No explanations. No amounts. Just names. And for the last 13 years, lots and lots of questions about how on earth they ended up with Osage headrights.

(Broadcast news clip: “Work is underway in Pawhuska where director Martin Scorsese  will make his next movie, ‘Killers of the Flower Moon.’”)

Rachel Adams-Heard People talk more than ever about the Reign of Terror now, maybe partly because of that list, but mostly because of a movie about it, set to come out within the next year or so. A lot of the movie was filmed in Osage County and features Osage citizens. 

(Broadcast news clip: “Construction crews recreating the 1920s, tearing out metal to recreate what the streets of Pawhuska looked like.”)

It’s directed by Martin Scorsese. Leonardo DiCaprio and Robert DeNiro are starring in it. So is Lily Gladstone, who grew up on the Blackfeet Indian Reservation in Montana. As filming started, Osage leaders met with Scorsese. If this story was going to be told, they wanted it told right.

The movie is based on a book, also called “Killers of the Flower Moon.” It’s from a few years ago, by a journalist named David Grann. The book focuses a lot on the murders William Hale was behind, including Henry Roan’s. 

There have been a few books about the Reign of Terror, but none of them took off quite like Grann’s. The book’s success has meant a lot of people across the country are now learning about this history for the first time. 

And as that history becomes more widely known, people have even started traveling to Osage County to see where it all happened. An Osage News article from June of 2019 counted four tours being offered in the county. At the cemetery where many of the victims are buried, the Osage Nation had to put up a fence to keep tourists out.

This history didn’t end a hundred years ago. It still shapes Osage County today, and not just its tourism. It’s left behind questions, about who gained wealth back then, and how. Questions that could have painful answers. I asked Tara—would it be better to leave that past alone? 

Rachel Adams-Heard  I don’t want it to be like, unnecessarily opening old wounds. Tara Damron You know, there’s never been any closure. So, the truth has got to come out, you know, and it’s not always pretty and it’s not always flattering. But I think that’s one thing that as Osages, we as a people have to acknowledge that, and go through that. And then the same thing for everyone else that was involved, that is involved. And it’s probably going to depend on who you talk to because some people will feel differently about it. And they say, “Oh, just they’re just too powerful to stop.” Rachel Adams-Heard  They being?Tara Damron They, they being like the Drummonds or someone that has so much property—Osage property. But how’d you get it? How’d they get it? 

Rachel Adams-Heard I haven’t fully told you yet why I’m telling you this story. Why I first called Tara, more than a year ago, why we’re talking about this list. I’m telling you all this because on that list, alongside the Catholic Church, oil companies, the family of a movie star, is another name. 

Drummond.

(Introduction from “The Pioneer Woman” television show: “I’m Ree Drummond. I live on a ranch in the middle of nowhere, and all my recipes have to be approved by cowboys, hungry kids and me. Here’s what’s happening on the ranch.”)

Rachel Adams-Heard  If you know the name Drummond, it’s probably because of the Pioneer Woman, Ree Drummond. She’s another reason Pawhuska’s getting so much attention now. 

(Broadcast news clip: “We told you last night at 10, Ree Drummond also known as the Pioneer Woman and for her hit show on the Food Network, held a job fair in Tulsa today for the Pioneer Woman Mercantile store opening in Pawhuska.”)

Rachel Adams-Heard Ree’s a Food Network star. She’s become famous for her down-home cooking recipes for chicken fried steak and chocolate peanut butter pies and “Knock-You-Naked Brownies.” Her restaurants in downtown Pawhuska bring a bunch of tourists. You can shop at her store, called The Mercantile, and stay at her hotel, The Pioneer Woman Boarding House. 

Ree started out as a blogger, but over the last 10 years or so, her brand has kind of exploded. She has a lifestyle website published by Hearst, and Wal-Mart carries a line of dishes and throw towels and clothing, all with her trademark floral design. 

Ree fashions herself as a city girl turned ranch wife. She married into the Drummond family. Her brand sells a lifestyle, call it upmarket pioneer. In her books and blog posts, she calls her husband, Ladd Drummond, the Marlboro Man. He runs a massive ranching operation alongside his brother, Tim. 

(Broadcast news clip: “His family’s been herding cattle for four generations here in Pawhuska Oklahoma, near Tulsa.”)

I’ve asked Ree for an interview with her and Ladd, but so far, she hasn’t responded. And I want to be clear, that while she’s built her brand around the Drummond ranching legacy, a lot of what I’m going to tell you about in this series happened long before Ree or any other present-day members of the family were even born.

Today, when you look at a map of Osage County, a place that was once owned entirely by the Osage Nation, a huge chunk of it is now owned by the Drummond family and other large, non-Osage ranching incorporations. A lot of Drummonds are still ranchers. Some are lawyers.

(Audio clip: “Alright the following segment is sponsored by Blue Sky Bank.”)

One of them runs a bank. 

(Audio Clips: “This is a bank that’s been around for a long, long time.” “We are one of the last remaining true community owned banks, began in Pawhuska in 1904.”) 

The Drummond in this interview, the one who owns Blue Sky Bank, is named Gentner Drummond. He’s also the Republican nominee for Oklahoma Attorney General. The election is this November, and it comes at a pretty critical time for the state and tribal nations in Oklahoma. If Gentner wins, he’ll be leading the way Oklahoma responds to a series of Supreme Court decisions that have huge impacts on tribal sovereignty.

(Broadcast news clip: Now no Democratic candidates filed to run for AG in this race. The victory comes as a big relief for Drummond who lost in a close Republican primary runoff in 2018.)

I could go on about the various ways the Drummonds are deeply rooted in Oklahoma. The family’s been here since before it was a state. 

They were some of the first White people on the Osage Reservation. The first Drummond who came here, named Frederick, was a Scottish immigrant. He moved to the Osage Reservation in the late 1800s. 

But the reason I’m telling you all this, is that a 100 years ago, members of the Drummond family were intertwined with the financial affairs of generations of Osage families.

They owned a store that almost the whole town of Hominy shopped at. They ran the town bank, helped oversee the publisher of the local paper, owned part of a funeral home. They were financial guardians, administered estates.

And they bought land. Lots of it. Today, a bunch of members of the extended Drummond family have land and ranching businesses in Osage County.  When you put the dozens of Drummond individuals and entities together, the broader family owns more land there than anyone else, almost 9% of the county. In fact, they’re some of the biggest landowners in the state. 

The name Drummond’s on that list of non-Osage headright holders, too. It’s right there, in black and white. The Alfred Alexander Drummond Trust. Frederick Drummond. Someone named Jean Drummond. Those last two have died since the list was published, meaning those headright shares have passed down to someone else. 

I’ve been reporting on energy—oil and gas, for the most part—for a few years now. And one day, I got a call from a source, an Oklahoma oil guy. He had a tip. 

This source told me there was more to the Drummonds than people outside Osage County knew. He told me the Drummonds had headrights. Maybe even a lot. This was just a rumor. But knowing the history of the place, all the tragedy surrounding headrights, I wanted to know if it was true.

We’ll be right back. 

Rachel Adams Heard The list in the Bigheart Times told me some of the Drummonds had headrights, or at least pieces of them. But I wanted to know if this was the name that stood out to folks.

Male Speaker One There are so many people out there that have access to headright payments that are non-Osage, that have no business whatsoever with them.

Rachel Adams Heard I started asking around about headrights and the non-Osages who had them, and I learned that Drummond is one of the first names people bring up.

Female Speaker One There’s always, you know, the tales that you hear that the Drummonds have headrights.

Female Speaker Two ConocoPhillips has some. The Drummonds have some.

Rachel Adams Heard I asked everyone who would talk to me what they had heard about the Drummonds’ history, and what they might be holding onto today. And the more people I talked to, the more I started to hear a lot of different numbers.

Male Speaker Two It’s anywhere from 23 to 27. It was a number in that range that I heard.

Male Speaker Three I’ve heard 22 and 24, you know because people talk too, so like, all the checks go through this thing called the BIA, the Bureau of Indian Affairs.

Rachel Adams Heard Someone told me you were in a meeting one time, and you said that the Drummonds have 22 headrights.Male Speaker Four “Approximately” was the exact quote. I don’t know the real answer. I haven’t seen the list.

Rachel Adams Heard Sometimes the numbers were lower. Male Speaker Five That’s more than I thought. I thought it was like 19, but that’s a lot!

Male Speaker Six I don’t see any evidence of it.Rachel Adams Heard You think that the number is a lot lower? Male Speaker Six  I think it’s a lot lower, probably two, three.

Rachel Adams Heard  I’ve talked to members of the Drummond family for this story. You’ll hear from some of them later in this series. And I want to note that their family history, Oklahoma history, it’s complicated. One member of the Drummond family told me he’s a citizen of the Choctaw Nation, that his mother’s side has its own history with the fallout of White settlement. We’ll get to that, but for now, just know that when I asked some of the Drummond family about headrights, they also said the number’s a lot lower.  

Jason Aamodt My name’s Jason Aamodt, and I’m an attorney at a law firm called the Indian and Environmental Law Group here in Tulsa, Oklahoma.

Rachel Adams Heard Jason Aamodt has seen the list. The one with numbers. Jason’s spent the past 20 years working on the mismanagement case that made the list public. He represented Charles Pratt, Tara’s uncle. 

At the heart of the lawsuit is this idea that the government has mismanaged the mineral estate and never had to fully account for where all the money’s gone.

Jason Aamodt We said, look, not only is the federal government failing to account for these things, but when they’re failing to account for them, they’re also paying some people too much money, and not paying other people enough money, not paying some people who are entitled any money at all. 

Rachel Adams Heard And when Jason and his co-counsel made that argument to get an accounting, the government turned around and said, “It’s not just us you should be suing.”

Jason Aamodt There’s all these other people who are out here who are non-Indians. And if the plaintiffs are saying that we’re paying those people money, and we shouldn’t, then they should have to name them as defendants. And initially, the court bought that really crappy argument, right? And ordered us to do that.  

Rachel Adams Heard  The court’s order got the government to turn over the list to Jason. That version has numbers, but Jason’s bound by a protective order. The court has limited how much he can talk about this, so he has to be careful what he says.  

Jason Aamodt And while we complied with, very carefully, with the court’s protective order, we were required to name each of those entities and people in the complaint that was filed in the case and so they’re all named in the caption of the case.

Rachel Adams Heard So that’s how the names, without numbers, ended up in the Bigheart Times – all of them were listed as defendants in this case, which was public, and not bound by the protective order. That’s the list that Tara saw. So even though the court changed its mind and said all those non-Osage headright holders didn’t actually need to be involved in the case, the list is out there.

Jason still has the original list, the one with headright amounts alongside the names. I’ve tried to get Jason to give me his list. Over the phone, in his office, at lunch. I’ve asked specifically about the Drummonds, too.

Jason Aamodt If I could tell you, I might try to, but I don’t really know. I just don’t know that number. I’ve got it on a CD-ROM, which is how the federal government gave it to me back in the day. But I don’t know the answer.Rachel Adams Heard  What happens if you share that information?Jason Aamodt  I’d probably lose my bar license.

Rachel Adams Heard I asked if the Drummonds had a lot. He wouldn’t say. I asked if the number was only a few. No answer. And it did seem like Jason wanted to tell me. 

Jason Aamodt  I don’t get it. I don’t understand why the management of these resources is kept a secret from the people who are the beneficiaries. Right? Every other trust situation in the world—your family trust, right if you have a family trust, there’ll be a trustee who provides, on-demand and regularly, an accounting for what it is that they’ve been doing. “Here’s your money. This is your land. These are the other things that we’ve been managing for you as your trustee. Your stocks or whatever it is, this is how they’ve performed.” Right? A beneficiary’s entitled to know that. This is the only trust I know of where that information is a secret, even from the beneficiary.

Rachel Adams Heard Around the time I first started asking about this, I filed a public records request. I asked the Bureau of Indian Affairs for a list of all the non-Osage headright holders, and how many shares each of them had. When I met with Jason, that request had just been denied. The government said it would violate the privacy of non-Osage headright holders to disclose how many they had. 

Jason Aamodt The federal government’s great at this. If they’ve got a situation—and there’s lots of them in Indian Country—where there’s a resource that benefits the individuals but is managed by the tribe, the federal government plays this game of: “Well, you’re not the tribe. We can’t talk to you. Well, you’re not the individuals. We can’t talk to you. We have this Privacy Act concern, therefore, we can’t give you any information about this.” This is what they’re doing to you and your FOIA request or that information is their MO. It’s the way they play.

Rachel Adams Heard I wasn’t surprised when the government denied that FOIA request. Everyone told me this would happen. I’m not the first person to ask. But each time someone presses the BIA, this privacy argument comes up. 

The Bureau of Indian Affairs is the only one able to answer this for sure, but I want to let you know I have found records about the Drummonds’ headrights. 

I’ve had to go by what I’ve seen in old documents deep in the National Archives. And what I’ve found is a much smaller number than those I originally heard: I’ve been able to confirm only three-fourths of one headright owned across a couple branches of the Drummond family. I haven’t found any indication there may be more.

But still, when I started asking around, I realized this feeling, this suspicion, has been lurking for decades in Osage County: a deep sense of distrust over the origins of the Drummond family’s wealth. That a big cache of headrights must be in the hands of the extended Drummond family. A family that owns so much land, land once owned by Osage families. What was the source of that wealth? Was it headrights? Or something else? 

This question, it took me across Oklahoma, across Texas. Into people’s homes, courthouse vaults, warehouses of records, to a sea of grass in the middle of the prairie. Through over a 100 years of history.

I’m going to tell you the story of the Drummonds’ headright share, but I’m also going to tell you about something else. Because once I started looking into headrights and what I heard might be an unknown oil dynasty, I realized this story wasn’t what I thought. 

What I found was another chapter of this country’s history of White settlement. After the forced removals and the land runs. Something more gradual than the murders of the Reign of Terror but still resulted in a massive transfer of wealth and land, from Native Americans to White people. 

It was an entire system that put certain people in positions of power—power that could be used to gain wealth and influence for future generations. A system that some of the earliest Drummonds in Osage County learned to operate and build businesses around.

This story is about that system and the place it shaped—a place that’s reckoning with that history today. 

It’s a story about the Drummonds and the Osage Nation.

But it’s also a story about America. About the land, and the people who ended up with it.

Next time on “In Trust” a clue left behind by one of the first Drummonds in Osage County, and what it reveals about their headright share. 

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

Transcript ‘In Trust’ Episode 2: The Headright

(Bloomberg) — This is the transcript for the second episode of Bloomberg and iHeart investigative podcast “In Trust.” Learn more and subscribe to In Trust on iHeart, Apple or Spotify. 

Our transcripts are generated by a combination of software and human editors, and may contain slight differences between the text and audio. Please confirm in audio before quoting in print. 

 

Episode Two: The Headright

Rachel Adams-Heard Just a heads up before we get started, this episode contains descriptions of abuse. It may be hard to listen to. 

Last summer, I bought a book. I had to get it from a rare books distributor. I paid $113.86. I bought it because I thought it might help answer my question about the Drummonds’ headrights, those shares of the Osage Mineral Estate that’s held in trust by the federal government. 

The book came in the mail a week or two later. It’s a couple hundred pages, bound in a hardback linen cover. It smelled like dust. The cover was blue and tattered, with three different photos of one guy. In one, he’s young, 20s maybe, dressed in a military uniform. Another, he’s a kid, riding a horse in a cowboy hat. The biggest photo is a portrait of him, older. He’s staring into the camera, holding a lit cigarette, a big ring on his finger. He’s pale, round and dressed in a three-piece suit. 

The title: “Ranching From the Front Seat of a Buick: The Life of Oklahoma’s A. A. ‘Jack’ Drummond.”  

It’s this telling of the booms and busts of early ranch days in Osage County. A biography, of one of the three Drummond brothers who grew up here in the early 1900s. 

Almost everyone I talked to about headrights brought up the Drummonds. A local newspaper had published a list of non-Osage names who had them, but not how many they had. I thought maybe the book might give me a clue.

I was also curious what a White man like Jack would have remembered about the Reign of Terror. A house blowing up, the FBI in town, murder all around him. But the details of this conspiracy are hardly mentioned at all: just one sentence on page 64.  

The line: “Bill Hale, a local rancher, had to sell his land because he was going to prison for conspiring to murder most of an Osage Indian family so their headrights would devolve to his nephew.”

That was it. That’s all the book had to say about it. A casual mention of another rancher in town, who, by the way, also happened to mastermind the most notorious murders from the time.

There are pages dedicated to Jack Drummond going off to war, fighting a bunch of lawsuits over land. Meeting his first wife. Being scammed out of more than $90,000 on a trip to Chicago. Paying for some local kids to go to college. Loaning money to young ranchers who were about to go under. Driving around Oklahoma in his Buick, checking on cattle. 

But something at the very beginning of the book jumped out to me. In the author’s note–the author, his name was Terry Hammons – he mentions he donated dozens of cassette tapes worth of interviews with Jack, along with a bunch of financial records, to the state historical society in Oklahoma City.  

It sounded like a gold mine. Maybe these tapes, these records would tell me something about the Drummonds’ headrights and how they got them. So I reached out to the historical society. An archivist I spoke to ran a search. Nothing came up.  No luck. 

But a few days later, I got an email. That archivist said after her search came back blank she decided to keep looking. She spent hours, in her words, scrambling to find these tapes. She scoured the historical society’s inventory, called around to other sites. And, to my surprise: 

Terry Hammons OK.Jack Drummond  It work?Terry Hammons Yeah, I got it working again.Jack Drummond Alright.

Rachel Adams-Heard She found the tapes, and Jack’s financial records. Somewhere I would’ve never thought to look, up the road in a suburb called Edmond, at the University of Central Oklahoma.

Jack Drummond I’ll tell you Terry, where money is involved honor seems to fly out the window.Terry Hammons It sure does, it sure does.Jack Drummond And in families and with everyone else.

Rachel Adams-Heard  These recordings, they’re all the raw material that went into making that biography. Hours and hours of two guys sitting in a room, talking about cattle mortgages, land financing, and the Drummond family. 

Jack Drummond The secret of the success in the cattle business is finance. You have to know how to, to always pay those cattle loans. Like when I financed all this land, I kept my land in the clear. 

Rachel Adams-Heard Terry and Jack started recording these in 1978. They talked every few months for the next couple years. You’ll hear dogs bark in the background. A clock ticking. And occasionally, the tape skips or stops—sometimes when things are just getting interesting.

Terry Hammons What you did was the government told you what they would pay you for it and you just took it?Jack Drummond That’s it.Terry Hammons You didn’t bother with court or anything like that?Jack Drummond No.Terry Hammons Johns took his money and then disappeared, right?Jack Drummond Yeah.Terry Hammons You didn’t see him after that?Jack Drummond Uh… cut that off and I’ll tell you.

Rachel Adams-Heard And honestly, at first, I was worried there was nothing here. But then I found this moment when Jack starts talking about a legal fight he got into, with a man named George Smith, and a bank he just calls “the National.” 

Jack Drummond So, I had all this litigation with George Smith in the Osage, I had fought the National and sued them for this million dollars up there, so the National just hated me like hell. 

Rachel Adams-Heard Basically, this was a fight between this rancher George Smith, and Jack Drummond over land in Osage County. The banks got involved because both men had taken out such big loans that whoever lost the lawsuit would go bankrupt. Think of it as a high-stakes, highly leveraged turf war.

Jack Drummond They called Bill Damron on the telephone and told him that I was a crooked son-of-a-bitch and that I would steal his cattle. They told him everything bad about me. 

Rachel Adams-Heard I’m telling you all this because, as he starts getting into the details of this dispute, he mentions: 

Jack Drummond I know Sam Borshing was a lawyer in Tulsa, and he knew how expensive litigation was, and he said to me, “How long can you keep up this litigation?” I said to him, “indefinitely.” He said, “How can you do that indefinitely?” I said, “I live with my mother, so I have free board and room and laundry, and I’ve got an Osage – half an Osage headright, and that pays me enough money so that I can always get new cars and make my car installments. As a last resort I….” (Tape Ends)

Rachel Adams-Heard The tape ends right there. Right after he mentions he has half an Osage headright. 

Half a headright he’s using to make car payments. Half a headright that could float him during all these court battles. I later found out Jack had transferred most of his property into other people’s names during this lawsuit. But this half a headright, he held onto. Elsewhere in the tapes, he kind of brags to Terry Hammons about it. 

Jack Drummond I’ve got a half of the Osage headright. Did you know I had half Osage..?Terry Hammons Yeah.Jack Drummond And that pays me…see I gave that to Jim. That trust pays insurance.

Rachel Adams-Heard Jim Drummond is Jack’s son. He’s in his 70s, still a practicing criminal defense attorney in Texas. I’ve spoken to him. Before I get to that conversation, though, I want to point out another moment in those tapes with Jack when he says, flat out, how he got that headright share.

And the number actually ends up being a little more than a half. 

Jack Drummond I bought a half a headright. I bought a fourth of a right, I got the purchase of it from O.V. Pope.

Rachel Adams-Heard So there it was. And I’ve been able to confirm this: Jack Drummond bought one-half and one-fourth of a headright from someone named O.V. Pope, and that half share Jack later gave to his son. 

If anything, these tapes gave me more questions than answers. Who was O.V. Pope? How did he get headrights? And who has them today? 

This is “In Trust.” I’m Rachel Adams-Heard.

Terry Hammons I would like you to tell me about those three weeks when you and O.V. Pope drove around Oklahoma signing up the 500 cattlemen for the Oklahoma Livestock Marketing Association.Jack Drummond Alright.  

Rachel Adams-Heard I heard Jack mention O.V. Pope’s name again in the middle of a story he tells about trying to round up farmers and ranchers for a financial co-op.

This is 1931, the Great Depression, the beginning of the Dust Bowl. Farmers and ranchers are facing yet another year of crop prices so low they can’t stay afloat. They’re overloaded with debt. Oklahoma families are starting to pack up their trucks and head west to California.

This cooperative was supposed to help ranchers out, and Jack’s job was to get people on board. 

Jack Drummond I would sleep at nights in the car and O.V. Pope would drive me. When I would get to these towns, I would get me one of the leading cowmen and have him go with me to his friends. I had to have the support for each community, and it was hard going. It took me three weeks. I never took my clothes off, for those three weeks. 

Rachel Adams-Heard  Those were a gruesome three weeks, the way Terry describes it in the book. It’s August, hot. For nearly a month, O.V. Pope and Jack Drummond are living out of a car. Bumping along ranch roads, making a last-ditch effort to save the Oklahoma cattle business. 

The thing is, nowhere in these tapes does Jack say how O.V. Pope would have gotten a headright. Or, why he sold part of it to Jack. And when I started looking around for something, anything, about O.V. Pope, I kept running into dead ends. 

Compared to the Drummonds, this was a relatively obscure guy. No line in the local paper when he went out of town on business. No university buildings named after him. 

But even without any specifics on O.V. Pope, I could get transfer records from the National Archives, all the paperwork that got sent to what was then called the Office of Indian Affairs—everything they required before they would sign off on the sale of a headright to someone else. 

If the sale happened before 1965, it’s in the public record, held in a warehouse in Fort Worth.

It was legal to transfer a headright to a non-Osage person or group up until 1978. So there’s a gap in the public records you can access on headrights—thirteen years that are essentially a black box. 

But even though the records before 1965 are technically public, they aren’t easy to access. You have to know the names of the individuals involved in order to ask one of the archives specialists to email the documents. If you want to search through them yourself, you have to get an appointment and a special researcher card, and travel to Fort Worth.

The folders I got back were bigger than I expected. It turns out there was a fair amount of bureaucracy involved in selling a headright. Each one’s about a dozen pages. You had to write a formal application, get it notarized, have an oil and gas inspector weigh in on the purchase price. The whole thing had to be approved by the Assistant Secretary of Interior.

According to those transfer records, Jack Drummond bought the one-half headright from O.V. Pope in 1925, for $20,050. And three years later, in 1928, he buys another one-fourth of a headright for $11,250. 

What’s also in that paperwork is something missing in the tapes with Jack: how O.V. Pope got his headrights. He inherited them from his wife, an Osage woman named Nah-me-tsa-he. She died in 1924.

I found something else on the Pope family too. This time it was in Oklahoma’s court records. 

I found out that after Nah-me-tsa-he died, O.V. Pope’s brother married her daughter, a daughter she had from a previous marriage, to an Osage man. Her name was Rhoda Wheeler Ridge, and she was trying to get a divorce.

I brought all this—the transfer paperwork and the introduction to the divorce case—to Tara Damron at the White Hair Memorial, who told me about that list of non-Osage headright holders. We started with the transfer paperwork.  

Tara Damron So this is dated May 19, 1928, to a Mr. A.B. Ludwick, County Clerk Pawhuska, Oklahoma. It says “Dear Sir, there’s enclosed for recording assignment from O.V. Pope to Alfred A. Drummond which was approved by the Assistant Secretary of the Interior on May 10, 1928, together with cashier’s check…” (continues in background)

Rachel Adams-Heard I wanted to hear Tara’s thoughts on this, because she spends all day immersed in these kinds of records. She would know better what we were looking at.  

Tara Damron So O.V. Pope was a White man who was married to an Osage lady. Nah-me-tsa-he and she had three headrights at the time of her death in 1924, from tuberculosis.Rachel Adams-Heard And he got one and a half.Tara Damron OK.Rachel Adams-Heard Yeah it looks like she was in her 60s and her husband was in his 30s.Tara Damron Really? Rachel Adams-Heard And he inherited half of her estate.Tara Damron Uh huh. Rachel Adams-Heard So O.V. Pope has one-and-a-half headrights. Tara Damron OK. Rachel Adams-Heard Her daughter Rhoda Wheeler Ridge has one-and-a-half headrights. Tara Damron OK. Rachel Adams-Heard O.V. Pope’s brother marries the daughter Tara Damron Hmm…Rachel Adams-Heard And this is her divorce case. If you want to read, starting there’s where it explains it.Tara Damron So this is Pope v. Pope, Oklahoma 1926. The ground alleged in the petition was extreme cruelty. On September 18, 1924, plaintiff filed an amended petition in which she alleged…(continues in background) 

Rachel Adams-Heard Over pages and pages of testimony, Rhoda talks about the months before Nah-me-tsa-he died, when O.V. Pope and his brother Troy packed up her things and moved her to Colorado. They kept her and her children in a house Troy Pope bought, even while her mother—who O.V. Pope was married to—was dying, back in Osage County. 

In January 1924, Nah-me-tsa-he died. And a little over four months later later, as Rhoda was set to inherit half of her mother’s estate, the two Pope brothers took her to the courthouse. Rhoda was forced to marry Troy Pope. 

I want you to hear some parts of Rhoda’s testimony.  And just to be clear, this divorce case is over 700 pages long. So this isn’t all of it. But what it does show is textbook abusive behavior. Rhoda describes a relationship where she was isolated from her family, and her finances, where she was manipulated and coerced, and physically and emotionally abused.  

It’s tough to listen to, but I think it’s important to hear. We’ve asked voice actors to read from the testimony.

There’s one moment when the lawyer asks Rhoda about her first husband, a man named King Ridge. They divorced just months before her mother died. 

[Voice actor] Attorney Did O.V. Pope ever try to get you to get a divorce?[Voice actress]  Rhoda Wheeler Ridge Yes, he helped me lots of times, talked to me lots of times, and tried to get me to do it, and I had to go ahead and do it.Rachel Adams-Heard After that, the Pope brothers moved Rhoda to Colorado. [Voice actor] Attorney  Did you want to go to Colorado?[Voice actress]  Rhoda Wheeler Ridge No.Rachel Adams-Heard He asks Rhoda if she wanted to marry Troy Pope.[Voice actress]  Rhoda Wheeler Ridge No.[Voice actor] Attorney Why did you do that?[Voice actress]  Rhoda Wheeler Ridge Well, I was afraid, he might hurt me.[Voice actor] Attorney Did he threaten to hurt you?Rachel Adams-Heard  Rhoda doesn’t respond.[Voice actor] Attorney What did he do?Rachel Adams-Heard Again, no response.[Voice actor] Attorney What made you afraid of him? [Voice actress]  Rhoda Wheeler Ridge Because, they had a gun.

Rachel Adams-Heard Later, the lawyer tries to show the marriage is a sham. He drills down on the moment Rhoda was forced to say “I do.”

[Voice actor] Attorney What did the preacher ask you?[Voice actress]  Rhoda Wheeler Ridge The preacher asked me to say “I do.” [Voice actor] Attorney The preacher asked you to say “I do.” And how many times did he ask you that? [Voice actress]  Rhoda Wheeler Ridge He asked me three times.[Voice actor] Attorney Did you want to say I do?[Voice actress]  Rhoda Wheeler Ridge No, sir. [Voice actor] Attorney Why did you say it? [Voice actress]  Rhoda Wheeler Ridge Because I was afraid of them two boys.

Rachel Adams-Heard Rhoda tells the lawyer Troy was cruel to her and her children, that he whipped them. [Voice actor] Attorney Did he ever slap you any?[Voice actress]  Rhoda Wheeler Ridge He done it four different times in Colorado.[Voice actor] Attorney What caused that Rhoda? Do you know?[Voice actress]  Rhoda Wheeler Ridge He gets mad because I don’t give him money.[Voice actor] Attorney Because you don’t do what?[Voice actress]  Rhoda Wheeler Ridge Because I don’t give him money.[Voice actor] Attorney Did he ever twist your arm?[Voice actress]  Rhoda Wheeler Ridge He twist my arm two three times like that.[Voice actor] Attorney Did it hurt you?[Voice actress]  Rhoda Wheeler Ridge Yes, sir.[Voice actor] Attorney What name did he call you?[Voice actress]  Rhoda Wheeler Ridge He just call me, call me names, everything.[Voice actor] Attorney What would he say? Do you remember?

Rachel Adams-Heard Rhoda’s silent. 

At another point, Rhoda says Troy wouldn’t let her visit her mother when she was dying. She says she wanted to see her all the time. She never got to say goodbye. She had to find out Nah-met-tsa-he died from a telegram that arrived at 3 o’clock on a Sunday morning. Within months, O.V. Pope was remarried. 

Rhoda says she was also sick during this time, and Troy refused to get her a doctor. Meanwhile, he’s signing the back of her checks, and cashing them for himself.

[Voice actor] Attorney Did he get some money from O.V. Pope, from your mother’s estate?Rachel Adams-Heard Rhoda doesn’t respond. [Voice actor] Attorney Did he get $300 a month from your mother’s money? [Voice actress]  Rhoda Wheeler Ridge Yes.

Rachel Adams-Heard In his testimony, Troy Pope denied that he abused Rhoda, or that he and his brother were taking her money for themselves. O.V. Pope testified that Rhoda wanted to go to Colorado. The lawyers didn’t spend much time on his own marriage to Rhoda’s mom. Or the fact that, by 1928, less than five years after Nah-me-tsa-he died, O.V. Pope had sold the 1.5 headrights he inherited from her for over $65,000, the equivalent of more than $1 million today. In total, three-fourths went to Jack Drummond, one-half went to another White man and one-fourth went to an investment company.

This divorce case goes beyond detailing the alleged abuse by the Pope brothers. It also paints the picture of an Osage woman who went to great lengths to protect her children. Rhoda enlisted the help of her uncle Jimmy to stand guard over her house. She hired lawyers to get restraining orders against Troy Pope. 

And in the end, she was successful, and got away from the Pope brothers. She lived for another 40 years. She’s buried in Hominy, next to her first husband, King Ridge.

I’ve been in touch with Rhoda’s descendants. They didn’t know about this case, about the Pope brothers, or where these headright shares went. 

But over email, they gave me a sense of who Rhoda was outside of this case. Because it didn’t define her. They said she grew old on her allotment with King Ridge. She remarried him after her divorce from Troy Pope. Her five children grew to live long, full lives. They gave her grandchildren, whom she adored. She loved playing cards and board games and hosting everyone over the holidays. 

Rhoda was a humble, private person, they said, but most importantly, she was strong. 

The Pope brothers never got any scrutiny outside of this divorce case. Because, despite all the evidence, the suspicious timing of it – in the middle of the Reign of Terror – what the Pope brothers did wasn’t treated as anything criminal. As far as I can tell, the FBI didn’t investigate, I never found anything published in the local paper about Nah-me-tsa-he’s death or Rhoda’s arranged marriage. No books, no movie. Another lost story of the Reign of Terror. 

Tara Damron Golly. So this is exactly the type of schemes, crime, thefts—there’s so much of this stuff that was just not looked into. Obviously, Rhoda’s mother was in her 60s and O.V. Pope was half her age. And this is just awful, and it’s just disgusting. You hear stories, right? And you hear rumors. And it’s like, well, pretty sure so-and-so’s got it, but then, you see it in black and white just like that list, and then it’s, then it’s real, then it’s, “OK I was right. We were right.” 

Rachel Adams-Heard I had also pulled the death certificate for Rhoda’s mom, Nah-me-tsa-he. It said she died of chronic tuberculosis and heart failure. O.V. Pope was the one who provided all the family information for the death certificate. He apparently didn’t know very much about the woman he married. Next to the space for her mother and father’s names, it just says unknown. 

Rachel Adams-Heard  So yeah, she was married to him. Tara Damron Mhm. Rachel Adams-Heard And then she died in 1924 with a listed cause of death as tuberculosis. Tara Damron Yeah. Mm. Rachel Adams-Heard Why’d you make that sound? Tara Damron Well, so many Osages have a suspicious cause of death, especially during that time period. Especially the ‘20s, the teens. So we don’t really know if that’s true or not. So we can’t really trust the death certificate, just because of the murders. We know that there were coverups, and that causes of death weren’t investigated: either poisoned whiskey, or strychnine, or doping. I mean, just none of that was investigated, you know. She may have died of tuberculosis, I mean because that was a disease prevalent during that time, but I don’t know. 

Rachel Adams-Heard There was something else I brought Tara that day. It was a list, a small one, of non-Osage headright holders. 

Tara, of course, has seen a version of this list before, the one from that lawsuit that ended up in the newspaper. But the list I brought her, it had numbers: how many headrights, or headright fractions, some of these non-Osage groups owned. 

When the Bureau of Indian Affairs rejected my records request for this information, Bloomberg hired a law firm to fight it. We argued that the BIA didn’t give a good reason for denying our request, that the exemptions they claimed didn’t apply. And we were successful – kind of. Eventually, after a bunch of back-and-forth, we got something. Some seventy names of non-Osage headright holders, and how many they owned. Not the full list. The BIA withheld the names of non-Osage people who had headrights. But the organizations, family trusts, churches, oil companies – some of that we got. 

Rachel Adams-Heard So I told you we were filing that FOIA? Tara Damron Yeah.Rachel Adams-Heard I told you when we were filing the request, Tara Damron Yes, yeah.Rachel Adams-Heard and you politely told me I was probably not going to have much luck. And you were right. So the Bureau of Indian Affairs denied it, and then we appealed, and they actually said they were going to send a letter to every non-Osage headright holder and give them the chance to object. You look surprised?Tara Damron Wow. Oh my god. Really! Keep going. Rachel Adams-Heard So they gave us a list of all non-Osage entities that did not object to the release of this information. Tara Damron Really?Rachel Adams-Heard So it’s a start.Tara Damron Oh my gosh…(gasp)Rachel Adams-Heard On that list, is Jack Drummond’s trust. And right there: half a headright.Tara Damron (whispers) Point five.

Rachel Adams-Heard It’s worth noting, the list we got back from this FOIA is not even close to comprehensive. The BIA says about a fourth of all headrights are held by outsiders: something like 560 headrights. What we got back was just a small number of those, a fraction, of non-Osage groups who didn’t object when the BIA reached out because of our appeal. 

Rachel Adams-Heard By my count it’s about 36 headrights represented in this  list so yeah, there’s about 500 that we don’t know about.Tara Damron Oh my gosh. OK, so about roughly 36 headrights, right so I mean, just do the math and like the last 20 years, or this past year.Rachel Adams-Heard A lot of money Tara Damron It’s a lot of money. It’s a lot of money. 

Rachel Adams-Heard Since that initial list, the BIA has added a couple more names, so the latest version represents about 38 headrights. If you add up all the money those 38 headrights have paid out, just since the law was changed to stop more headrights from leaving Osage hands, the total comes out to more than $30 million.

And Jack Drummond’s trust, it may not have held the dozens of headrights that I had heard the Drummonds might have. But that half a headright, the one he bought from O.V. Pope—a white man whose Osage wife was twice his age and died during the Reign of Terror, who was accused of forcing her daughter to marry his own brother, just as she was about to inherit the other half of her mother’s estate—that half a headright was also a lot of money. Since 1925, when Jack bought it from O.V. Pope for the equivalent of $340,000 dollars today, that half a headright has paid out $1.7 million when adjusted for inflation.

Tara Damron It’s just so hypocritical, I think. The Bureau knowingly approved the transaction or sale of Osage had rights to non-Osages and saw nothing wrong with that. And they kept it from us, from us all these years and they’ve just been so protective. They’re protecting people that it doesn’t belong to. I mean, and that’s not their job, because these people aren’t even Indian. They’re not even Indian, you know, but they have Osage money or they have Indian money. It’s not right. It’s not OK. And it doesn’t make sense.

Rachel Adams-Heard This comes up a lot in my conversations with Tara. She’s always emphatic that this money belongs to the Osage Nation and its citizens. That even if there were legal ways for those headrights to be transferred out of Osage hands, that should have never been the case. And that as long as the Osage Mineral Estate is around, it’s meant to be benefitting Osage citizens, not the White people and oil companies and universities that have ended up with so many headrights.  

After the break, the Drummonds who have these shares today. 

Rachel Adams-Heard OK, just a second I’m gonna plug you in. OK, can you hear me? Jim Drummond Mmhmm. Rachel Adams-Heard This is Jim Drummond. He’s a criminal defense attorney, outside of Austin, Texas. His dad is Jack Drummond, the one from the tapes. Jack said he gave his half a headright to Jim, in a trust. I called him after I learned the story behind Jack’s headright shares. He didn’t answer, but a few hours later, he called me back. I told him I was a reporter, that I was doing a podcast series. I asked if I could record our call. 

Rachel Adams-Heard You said that Alfred Alexander Drummond was your father, right?Jim Drummond Yeah. So he was my adoptive father. I was adopted by my grandmother, my biological grandmother and he was her second husband. They adopted me.Rachel Adams-Heard OK. Were y’all close?Jim Drummond Yeah. Yeah. 

Rachel Adams-Heard I talked to Jim for a few minutes, he told me he’s read Jack’s book. It turns out, Jim was the one who asked Terry Hammons to write it. He didn’t know the interview tapes or his father’s financial records were in a public archive, he never looked into it. 

Jim was guarded, said he didn’t understand why Bloomberg News would be interested in this. But there was something he said before we started recording that I wanted to talk about. The first thing out of his mouth when he called me back.

Rachel Adams-Heard And you mentioned you said you your first question was, is it about the Osage headrights? I’m just curious what what you’re thinking.Jim Drummond  There was a controversy about that a number of years ago, you know, that the the Osage tribe was looking to try to get some of the people who acquired headrights from the tribal members, and that they were hoping that people would voluntarily return them to the tribal ownership in some fashion. I didn’t ever read the the full story about that or the documents, but I was contacted by a trust, which holds an Osage headright that my father acquired. I had no power to agree or disagree with that. The trust owns it, not me. Rachel Adams-Heard  Oh OK, I see.Jim Drummond So that’s what I remember about this. What I remember about that.Rachel Adams-Heard And are you a beneficiary of the trust, you just can’t?Jim Drummond I am, I am the beneficiary, but I have no control over the what we call the res. I’m a lawyer, but we call the res or the body of the trust is, it does not belong to me. Rachel Adams-Heard You said that you had no ability as a beneficiary of the trust to give it back, even if you wanted to?Jim Drummond That is correct.Rachel Adams-Heard Was that something you wanted to do?Jim Drummond I decided not to formulate an opinion on that since I had no power to do anything. I can certainly see an argument that the Osage Nation made. I think they were exploited. There are probably a lot of my family members who would not agree with me on that. I tend to be more of a left wing Democrat and they tend to be of the other persuasion, the redder persuasion. But I’ve never made an issue of it. It’s pointless to take sides in a controversy over which I have no power to have any effect.Rachel Adams-Heard Interesting. Well, I would love to talk to you some more. And I would love to kind of show you some of the documents that I got from the Alfred Drummond collection at the University of Central Oklahoma. We’re in Houston, with my producer. Would would you be up for an in person meeting at some point, if we came up to Austin? I go up a lot.Jim Drummond Oh, boy. Here’s the deal. I don’t I just don’t want to stir any controversy with anybody. And I don’t really know, a lot of my father’s dealings. I was growing up and he was 52 when I was born. I’m very reluctant unless—I know, journalists don’t like to share questions in advance—but unless I knew what questions what you’re going to delve into about those documents, I’m very reluctant to get involved. I belong to the Drummond family. I am a peripheral member. But nonetheless, I don’t want to create any problems or controversies for anyone. But any, any allegations of wrongdoing, I know zero about.Rachel Adams-Heard  I hear you. You mentioned that you think that the Osage Nation was exploited? I’m just curious if you’ve ever had the question.Jim Drummond That’s their, their point of view and I understand that. I understand why they might have that point of view. But in terms of actually knowing any of the real details of who bought what and under what circumstances they bought it, that’s a wholly different issue of which I’m not qualified or informed enough to comment on. And frankly, I don’t have the time to review a lot of those documents that you’re referring to at Central State.Rachel Adams-Heard Right, OK.Jim Drummond Even though I am 73 years old, I am a busy criminal defense attorney. I have a major felony caseload—that’s all I do. Criminal defense. I have not only no interest in stirring up the pot, but I also have no dog in that fight.

Rachel Adams-Heard I’ve talked to Jim several times since that first call. About the headright transfer paperwork, the Pope brothers. I wanted to know whether it changed his perspective, knowing the story of this half a headright and the family it had belonged to.

After that first conversation, Jim said he didn’t want to be recorded, but he still took my calls. He told me that as far as he could tell, his father, Jack Drummond, hadn’t done anything illegal or unethical to get this headright share. That if you average out what it paid over the last 97 years, it’s actually a pretty modest return on what Jack initially bought it for. And Jim said, he couldn’t do anything about it anyway. He said he didn’t have control of the trust, and he doesn’t like forming opinions on things he can’t change.

I asked a trust attorney about this, by the way. Jim’s right. 

He and the other beneficiaries could certainly ask the trustee, the bank or financial firm managing the trust, to give the headright share back to the Osage Nation. But the trustee has the final say. And if there are future beneficiaries, kids or grandkids who aren’t even born yet, that makes it pretty difficult for the trustee to make any decisions like that. 

There is an exception. If someone sues over this half of a headright, an Osage family who says it was stolen from them or taken fraudulently, a court could order the trustee to give the share back to the family. But it’s not only Jim who has those headright shares that Jack Drummond bought from O.V. Pope. There was that other quarter of a headright, and that share, over time, has ended up with a few other Drummonds. One of them is named Frederick Ford Drummond, but he goes by Ford. 

(phone ring)Frederick Ford Drummond Hello. Rachel Adams-Heard Hi, is this Ford? Frederick Ford Drummond Yes.Rachel Adams Heard Hello, my name is Rachel Adams-Heard.

Rachel Adams-Heard Ford wasn’t super interested in talking to me the first time I called him. 

Frederick Ford Drummond Yeah, I’d rather not, I’m gonna decline. Rachel Adams-Heard OK. Frederick Ford Drummond Sounds like an interesting story.Rachel Adams-Heard Is there someone else in your family?

Rachel Adams-Heard I was hoping Ford could give me another name, someone on his side of the family I could talk to about this. He couldn’t think of anyone. He said the Drummond family at this point is really big, and no one person can really speak for everyone. 

He wished me good luck on the story. 

That was the last Ford and I talked, for a while, at least. Until one day, when I was in Osage County, and I heard a rumor that made me call him back.    

Rachel Adams-Heard Listen, I know you said you didn’t want to talk. But I have one quick question for you. Just because it’s come up and I want to make sure that we get your take. And as you know, I’m doing a podcast, so I’m recording all my calls. But I heard a rumor that you might be trying to give your headright share back to the tribe?Frederick Ford Drummond That’s correct. I, my father had a one-twelfth headright, along with his two sisters. So a fourth of the headright, I guess they inherited from their dad, who I guess they got from his dad. I’m not sure. You may know more about it than I do. But my dad passed away in 2020 and he left it to me and I, along with my cousins, who—both of my aunts passed away, as well—so everyone is interested in giving the headright back to the tribe. 

Rachel Adams-Heard Ford Drummond’s dad had one-twelfth of a headright, part of the one-fourth that Ford’s grandfather, Fred Gentner, bought from Jack, who bought it from O.V. Pope. 

Ford was set to inherit his headright share after his dad died in 2020. But, he wanted to give it back to the Osage Nation. As did his cousins, who inherited the other part of that headright share. 

Rachel Adams-Heard And I’m curious, like, why you decided to try to do that?Frederick Ford Drummond Well, the tribe has asked for them back, for one thing. And it’s not, honestly a lot of money involved. And it just seems like the right thing to do at this point. I think there’s a lot more history coming up—about “The Killers of the Flower Moon” movie, and all those kinds of things. I have no idea how we got this headright. I’m not aware of anything nefarious, or any wrongdoing, or anything, but I just think it seems like the right time and the right thing to do to just try to give it back to the tribe.

Rachel Adams-Heard But here’s the thing, Ford said he and his cousins, they can’t actually give their headright shares back to the tribe. They tried. But for some reason, federal law makes it practically impossible. 

Frederick Ford Drummond You’ve probably learned it’s difficult to do it just legally. So they’re trying to get some type of legislative relief to allow that to happen. So, we’re just waiting to see when we can do it. But yeah, that’s, that’s my plan. Rachel Adams-Heard So is it the is the Bureau of Indian Affairs, that doesn’t really have a mechanism?Frederick Ford Drummond  I think if there’s something the way the law is set up, that you’re supposed to try to find the original heirs of that headright—the descendants of that headright—and/or portion of the headright. As you probably have learned, headrights have been split up into very minute fractions across four descendants. So it’s hard to do that. It’s hard to track people down. And there’s not really a good mechanism for just giving it back to the tribe itself.Rachel Adams-Heard So the idea is that you would actually find the Osage allottee, whose headright share that originally was and give it back to the family instead of the tribe?Frederick Ford Drummond I’m not sure. You’d probably be better off asking someone at the BIA. All I know about that is there’s been a couple of news articles on it in local newspapers and there’s a whole kind of list of how you what you have to do to get it done—which just made basically made it impossible to do it.

Rachel Adams-Heard  Ford is the Drummond family member I mentioned in episode one. The one who’s a citizen of the Choctaw Nation. He said his great-grandfather on his mother’s side experienced the removal of the Choctaw Nation from Mississippi to their reservation in present-day Oklahoma. Ford said he’s a product of both sides of Oklahoma’s history: tribal removal and White settlement.

And now he’s set to inherit this fraction of a headright, that was traced back to an Osage woman who died during the Reign of Terror. Whose White husband was later accused of coercing her daughter to marry his brother, a man she said exhibited “extreme cruelty” against her. And Ford wants to give it back. But for some bureaucratic reason, he can’t.

Everett Waller [introduces himself in Osage] My name is Everett Waller. I’m an Osage Indian from Hominy, Oklahoma. I am now the seated chairman of the Osage Minerals Council.  

Rachel Adams-Heard  I went to meet Everett Waller because just a few weeks before, the Osage Minerals Council announced an effort to get the US Congress to pass a bill that would make it easier for non-Osage headright holders like Ford Drummond to give their shares back to the Osage Nation.

Everett Waller That should never have left my people’s hands. Our trustee should not allow a item, whether it’s monetary, whether it’s land, whether it’s our future, to be given out to someone else, because we administrate it, we pay for it.

Rachel Adams-Heard  Everett and his fellow Minerals Council members are elected by Osage headright holders. They make decisions about how to develop all the oil and gas resources in Osage County. Everett’s job is to represent Osage headright holders’ interests, and a big part of that is getting back all the headrights held outside the Nation.

Everett Waller  I looked at the 1906 Act as amended. In ‘84, it was said that you cannot give these headrights or sell them to non-Osages, it would stop the bleeding. But then the damage has already been done. When the first Osage, original allottee died, any of their possessions should have been held in trust for the Nation.

Rachel Adams-Heard  I sat with Everett at a big table, in a huge conference room in the Minerals Council building, on the hill in Pawhuska where all the Osage government buildings are. On the wall is a mural of dozens of Osage citizens, including members of Everett’s family. 

Everett’s pushing for this legislation to get headrights back, because even though the rules were changed in the ‘70s and ‘80s so that headrights could no longer be transferred to non-Osages, they didn’t require any of the headrights that had already left Osage ownership to be returned. 

So right now, if a non Osage person has a headright, and they want to give it back to the Osage Nation can that happen?

Everett Waller I don’t want to say it can’t happen. I just said we have seen a couple of issues before I was chairman that actually showed that there’s not a proper methodology through the federal government to allow that. Now, I think that’s done, as you well know, by some people in Washington, that has has not completed the requirements of taking care of the treaty rights of the Osage.

Rachel Adams-Heard  So both Ford and Everett are saying the current process is so complicated and cumbersome that non-Osage headright holders are practically prohibited from returning their shares. That’s what this new legislation would do – make that process easier. 

And it seems likely that legislation like this isn’t going to be very controversial. We’re talking about adding a legal mechanism for someone to voluntarily give something back to a tribal nation. Even with all the gridlock and polarization in government, it’s hard to see anyone taking any major issues with that. 

And once this is all solved, Ford Drummond and his two cousins will give back their portion of that one-fourth of a headright. And Jim Drummond’s trustee will hang onto his. 

As far as I can tell, the Drummonds had three-fourths of a headright. They bought it from a man named O.V. Pope, who inherited his shares from his wife, Nah-me-tsa-he, who died while the Pope brothers isolated, abused, and coerced her daughter into marrying Troy Pope. 

We only followed three-fourths of a headright, and we ran into the Reign of Terror. How many of the 500-plus other headrights held by non-Osages had a similar story? 

I get why the idea of the Drummonds having dozens of headrights got around. The Drummonds are a big name around Osage County. Some of them are rich and powerful. You can’t walk through downtown Pawhuska without running into one of the Drummonds’ businesses. And across the different branches of the family, they own so much land, land their ancestors were able to buy pretty quickly. How was one family able to get so much, thousands and thousands of acres by the 1930s? Especially since this was all owned by the Osage Nation in 1906.

And sure, there’s still a chance that there’s a Drummond out there who holds more headrights under some other name. 

But after reading pages and pages of headright transfers, and going through probate files and other legal documents from that time, this three-fourths of a headright is all that I could find.

That’s still a lot of money over the years – money that wasn’t meant for them. I doubt when Osage leaders negotiated collective ownership of the Mineral Estate they imagined parts of it would end up with a White family  like the Drummonds. Certainly not like this.

But the money the Drummond family did get from headrights, it’s not enough to build a ranching empire. Not one like theirs, more than 130,000 acres across all the family members. The land the Drummonds own, thousands of acres of bluestem grass, it can graze cattle, serve as collateral for loans, build wealth over generations. 

By the time Jack Drummond bought that fraction of a headright in 1925 he and his two brothers already owned a lot of Osage land. 

And when I tried to find out how they did that, I saw something more subtle than the murders of the Reign of Terror. A system that the Drummond brothers and other White men in Osage County used to insert themselves into the finances of generations of Osage families. A system that helped build an empire.

What started it all – next time on “In Trust.”

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©2022 Bloomberg L.P.

China’s Foreign Investment Data Distorted by Hong Kong Flows

(Bloomberg) — China’s government data show foreign investment into the economy grew by almost a fifth this year, a feat highlighted by officials as evidence global companies are resisting calls from US and European politicians to decouple from the country.

Yet, a look below the headline figure of 17.3% expansion in the first seven months of the year shows a less flattering picture. Much of the investment into China actually comes from Hong Kong, and is likely because mainland companies based there are routing funds through the city in a circular journey that’s called “round-tripping.”

The data also show that three-quarters of the new investment into China has gone into services industries, rather than the crucial manufacturing sector, which the government is promoting to transition the economy toward higher-value production.  

The figures help to explain why inbound investment has continued to set new records each year despite an increasing number of foreign firms considering curtailing their presence in China as the economy struggles and tensions with other nations rise. US companies surveyed by the US-China Business Council recently said they planned to slow new investment next year, largely because of China’s strict virus controls. 

“The era of strong FDI inflows seen in the 1990s and the early 2000s is gone,” Raymond Yeung, chief economist for Greater China, Australia & New Zealand Banking Group, wrote in a recent note. “The increase of FDI over the past few years includes a rising presence of Chinese entities based in offshore funding centers, making the expression ‘foreign’ investment somewhat of a misnomer.”

To be sure, some foreign companies are still putting new money into China, although the size and speed of that expansion is not as big as some of Beijing’s officials suggest. In the first three months of this year South Korean firms invested a net $4 billion, according to data from the Export-Import Bank of Korea, while Japanese companies invested a net $3 billion in the first half of the year, according to Ministry of Finance data.

Round Trip Via Hong Kong

Hong Kong was the source of a record 76% of all “actually utilized” FDI last year, according to a Bloomberg analysis of government data, and if that ratio holds for this year then 607 billion yuan ($88 billion) of the 798 billion yuan of investment so far this year is from Hong Kong. Researchers at the Chinese Academy of Social Sciences and Nankai University estimate that almost 37% of China’s inbound FDI is “round-tripped.”

Flora Zhu, director for corporate ratings at Fitch Ratings in Beijing, said Chinese high-tech service firms have a relatively high share of round-tripped investment since many are listed offshore.  

“Most of their funds raised offshore are repatriated to China and counted as FDI,” with some of that circular movement to take advantage of preferential treatment for foreign funding, she said.

There is no detailed breakdown available yet for the origin of investment flows this year, but in 2021 new investment from everywhere but Hong Kong grew 8% to $42 billion, after dropping in 2019 and 2020. Inflows from Taiwan, Canada, Australia and the Cayman Islands shrank last year. 

A similar pattern can be seen in completed cross-border mergers and acquisitions. So far this year, there have been almost $24 billion in completed deals from Hong Kong, 35% of the total amount of deals into the mainland. 

The vast majority of the deals from Hong Kong were by mainland companies listed in the city. For instance, Alibaba Group Holding Ltd. and Tencent Holdings Ltd. were part of a consortium that invested $5.2 billion in Ruili Integrated Circuit Co., the biggest inbound deal so far this year.

The plateauing of growth in new funds in recent years and the caution expressed by foreign companies about boosting investment into China due to the Covid Zero lockdowns and geopolitical tensions may be raising concern at senior local levels. Vice-Premier Hu Chunhua recently called for the government to work harder to both shore up existing foreign investment and attract new money. 

Services Focus

Where the money is going is also of concern. Services industries have received the vast majority of inflows, rather than the manufacturing and high-tech sectors that are the focus of government efforts to boost investment.

However while new foreign funds for manufacturing were well down from the peak in 2011, that dynamic may have started to shift last year and into this year, according to Fitch’s Zhu. 

FDI into manufacturing has grown faster than total FDI since February 2022, she said. She pointed to a 50% jump in manufacturing investment into the industrial powerhouse Jiangsu province in the first six months of this year and a rise in money going to Sichuan, which is a center for electric vehicles.

However other provinces haven’t been so fortunate this year, with investment into Shanghai only starting to recover in June after the two-month lockdown was lifted, and flows to Guangdong in the first seven months still below the same time last year. The lockdown of Sichuan’s capital of Chengdu may now affect how investors see that city, especially if it is shut for months as Shanghai was. 

“We’re expecting foreign investment into China to soften in 2022-26, particularly when benchmarked against a bright FDI outlook for emerging markets in Southeast Asia,” said Nick Marro of the Economist Intelligence Unit in Hong Kong. “This is partly a Covid story, partly a growth story, and partly a geopolitics story, as China’s fraying diplomatic ties generate anxieties around protectionism, but also around overexposure to things like sanctions, tariffs and compliance with export controls.”

(Updates with details of Japanese and South Korean investment in sixth paragraph.)

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©2022 Bloomberg L.P.

Stocks Mixed; Treasury Yields Rise as Oil Climbs: Markets Wrap

(Bloomberg) — Stocks in Asia turned mixed, while US equity futures rose on Tuesday amid a dip in the dollar, as sentiment continued to be tested by central banks tightening monetary policy and Europe’s energy crisis.

An early advance in MSCI Inc.’s Asia gauge fizzed as gains evaporated in Japan and Hong Kong while China fluctuated. S&P 500 futures pushed higher but off the peak ahead of the resumption of Wall Street trading after a holiday. Treasuries dipped across the curve, taking the 10-year yield to 3.21%. 

Crude has climbed to about $89 a barrel after OPEC+ agreed to cut 100,000 barrels a day in October. Gas prices surged in Europe on Monday, hurting the region’s shares, following Russia’s decision to keep a key pipeline offline.

A dollar gauge retreated, with the British pound and commodity-linked currencies leading gains. The euro also found some relief after earlier hitting a two-decade low on Europe’s energy woes.

The offshore yuan pared gains after strengthening in the wake of China’s announcement of a cut in the amount of foreign-exchange deposits banks must set aside as reserves. China set its reference rate for the yuan weaker than the 6.9 per dollar for the first time in two years, setting the stage for further depreciation in the currency.

Officials in China also plan to speed up stimulus, stepping up support for an economy saddled with Covid lockdowns, a property slump and power shortages.

“The PBOC and the government completely understand that all this stimulus has to come not only on the monetary policy side, but on the fiscal side,” Stefanie Holtze-Jen, Asia Pacific chief investment officer at Deutsche Bank’s private bank, said on Bloomberg Television. “Q3 is the quarter that you really want to get it all in to support the weakening economy,” she said, adding that this raises hope that Chinese stocks may turn for the better in the fourth quarter.

The next leg in a wave of monetary tightening is due in Australia, where economists expect the central bank to lift the policy rate by a further 50 basis points. Tightening financial conditions globally have been weighing on stocks and bonds in recent weeks. Bouts of investor calm have tended to fizzle.

“A lot of clients are asking, have we seen the bottom yet and are we going into a global recession?” Grace Tam, BNP Paribas Wealth Management Hong Kong chief investment adviser, said on Bloomberg Television. “We do think the risk of a global recession, especially next year, is actually quite high” and that the energy crisis “is not fully priced” into markets, she said.

Incoming UK Prime Minister Liz Truss has drafted plans to fix annual electricity and gas bills for a typical UK household at or below the current level of £1,971 ($2,300). The policy could cost as much as £130 billion over the next 18 months.

Elsewhere, Bitcoin retook the $20,000 level and gold made gains.

What to watch this week:

  • Australia rate decision, Tuesday
  • Apple event due to feature new iPhones, watches, Wednesday
  • Bank of England Governor Andrew Bailey at Treasury Committee, Wednesday
  • Fed’s Beige Book of regional economic activity, Wednesday
  • Cleveland Fed President Loretta Mester due to speak, Wednesday
  • European Central Bank rate decision, Thursday
  • Fed Chair Jerome Powell speaks at a Cato Institute conference in Washington, Thursday
  • Reserve Bank of Australia Governor Philip Lowe speaks at event, Thursday
  • China PPI, aggregate financing, money supply, new yuan loans, Friday
  • EU energy ministers extraordinary meeting on emergency intervention in electricity markets, Friday

Some of the main moves in markets:

Stocks

  • S&P 500 futures rose 0.4% versus Friday as of 11:12 a.m. in Tokyo. The S&P 500 fell 1.1% on Friday
  • Nasdaq 100 futures rose 0.4% versus Friday The Nasdaq 100 fell 1.4% on Friday
  • Japan’s Topix index fell 0.1%
  • Australia’s S&P/ASX 200 Index increased 0.1%
  • South Korea’s Kospi index fell 0.1%
  • Hang Seng Index fell 0.4%
  • Shanghai Composite Index rose 0.4%
  • Euro Stoxx 50 futures was little changed

Currencies

  • The Bloomberg Dollar Spot Index fell 0.3%
  • The euro was at $0.9968, up 0.4%
  • The Japanese yen was at 140.31 per dollar, up 0.2%
  • The offshore yuan was steady at 6.9432 per dollar

Bonds

  • The yield on 10-year US Treasuries rose two basis points to 3.21%
  • Australia’s 10-year bond yield was at 3.65%

Commodities

  • West Texas Intermediate crude was at $89.10 a barrel, up 2.6% versus Friday
  • Gold was at $1,720.09 an ounce, up 0.6%

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Typhoon Passes South Korea Leaving Trail of Floods and Outages

(Bloomberg) — Super Typhoon Hinnamnor left a trail of flooding, power outages and disruptions after passing through South Korea early Tuesday, though it delivered less destruction than had been forecast with few early reports of major damage.

Hinnamnor hit near the southern city of Geoje at 4:50 a.m. local time and moved off the coast near Ulsan at 7:10 a.m., the Korea Meteorological Administration said. Projections from the US Joint Typhoon Warning Center show the typhoon moving through Korea’s eastern sea, and potentially making landfall again in eastern Russia. 

About 3,500 people were evacuated and 20,000 homes along South Korea’s southern coast line suffered power outages, Yonhap reported. Separately, Posco said a minor fire broke out at two of its plants in the coastal city of Pohang and the company was checking for damages. 

Earlier, the meteorological agency had warned of potential casualties from what was expected to be the most powerful storm ever to hit the country. At least one person was reported missing.

Storm’s Impact

Hinnamnor is currently packing sustained winds of about 104 miles (167 kilometers) per hour with gusts around 127 mph, according to the US warning center. While the typhoon is moving away from land, the impact of the massive storm is still being felt across South Korea and even parts of Japan. 

Kyushu Electric Power Co., the utility provider for Japan’s southwestern prefectures in Kyushu, said that over 30,000 buildings in the region are without power due to the typhoon, while telecommunications provider KDDI Corp. said service has been disrupted in some parts of the country.

Still, there were signs early Monday that business in South Korea was beginning to return to normal, with buses in Busan and Ulsan scheduled to start operating again during the morning. 

Hyundai Motor Co.’s union said the company would resume work before noon while Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. planned to restart in the afternoon. No casualties or damage were reported at the facilities of the automaker and two shipbuilders.

Resuming Flights

Korean Air Lines Co. said it will restart flights to Jeju Island in the morning, while flights to Busan will resume in the afternoon. Asiana Airlines Inc. will resume flights to Jeju after 11 a.m. 

Six nuclear reactors on the southeast coast had been running at lower rates ahead of the typhoon. They will operate at a reduced rate for now until the situation returns to normal, according to a spokeswoman at Korea Hydro & Nuclear Power Co.

Read more: Hinnamnor Could Cost Billions as South Korea Braces for Landfall

Oil refiners, chemical operations and the nation’s oldest nuclear power plant had earlier taken precautions amid predictions the typhoon would hammer the resort island of Jeju and the key industrial city of Ulsan on the country’s southeast coast, disrupting ports and air traffic across the region. 

The nation suffered the second major storm in a matter of weeks after Seoul was hit by the heaviest rains in a century in early August, killing at least 11 people. President Yoon Suk Yeol faced criticism for his response to the floods and apologized to the nation for “inconveniences” caused by the storm.

Yoon, who earlier promised the government would stay alert to protect the lives and safety of citizens, said Tuesday that while Typhoon Hinnamnor has made its way out to sea, it’s too early to express relief because areas with damage still need to be rescued. 

Hinnamnor has already disrupted port operations, airline services and schools across Asia since developing last month. Shanghai’s major container port of Yangshan briefly halted terminal operations. Some schools in both South Korea and China were closed for safety reasons.  

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