Stories of Hidden Gold Linger Still at Old Pugh Ranch




My friend John Koenig recently sent me a clipping from the Refugio Timely Remarks of September 4, 1941, which I am including below in its entirety. I am adding additional information [in brackets in red] from an article, “The Mexican and Indian Raid of ‘78,” that appeared in The Quarterly of the Texas State Historical Association in 1902.


Freer, Texas.- The recent court case in McMullen county for possession of 734 acres of land out of the Pugh ranch, 25 miles from Freer, was a dry one in all its legal terms, but to know about the Pugh ranch is to hear stories of Indian and bandit raids, hidden gold and early pioneer life which is anything but dull.

James Thomas Pugh settled on his 3,000-acre ranch in 1900. It was 50 miles from the nearest town of San Diego. Here for a few brief years, he herded wild mustangs into blind traps or up blocked canyons until they were captured and their wild free life over. Before 1900, he had captured mustangs for George Brown of Oakville in Live Oak County. It was not until 1905 that he had stocked his ranch with cattle. “For my father was a trader of mustangs, originally, and not a cattleman,” said Mrs. Gerald Smith, daughter of James Pugh, who resides here.

It was on one of his trips into Florida with a shipment of mustangs that he met the old soldier who told him of the gold hidden on his ranch.

Soon after the Civil War, so the story goes, six soldiers were riding on a stagecoach carrying American gold, when it was attacked by bandits. The six men left the driver to hold them off while they hid the money. It is hidden near a cross of stones. The cross, now almost hidden by the brush, is some distance from the house and is occasionally come upon in riding over the ranch. Pugh himself never believed the story and never hunted for the gold. When questioned, Mrs. Smith, admits that the story is like true for two reasons: The old soldier insisted that not one of the six soldiers who knew about the gold had ever been back to Texas, and the stagecoaches had used the route through the ranch because, as a child, she had played around the old posts which had made up the corrals. In these corrals, fresh horses were kept to replace tired ones used by the stagecoaches In those early days.

The story of the hidden gold has become a legend in the family, but the story of the grave near the river marked by a prominent tombstone is anything but a legend. On the tomb is inscribed: “John Hutton Steele, Edinburg, Scotland, 1858- killed in an Indian raid [at the Palo Alto Ranch in La Salle County], April 1878.”

In 1878 a sheepherder, wishing to leave his sheep for a short time, called to a woman [Mrs. George Taylor] living near to know if her two boys [Richard, eight, and George Taylor, twelve] would watch his sheep. When he had her consent, he left the boys in charge. The Indians came and carried them over the hill, where their bodies, were afterward discovered, badly mutilated, and scalped. When the young mother saw that she could not help her boys, she took her baby daughter [Mattie] and escaped into the brush across the river. Here she crouched all day, not knowing for sure what had happened to her boys and trying to keep her tiny child quiet. When she could stand it no longer, she crept out to find the Indians gone and all peace and quiet. Little did she know that John Hutton Steele, a Scotchman, coming upon the Indians had also been killed when trying to save the lives of her boys.

The tiny child of 1878 is now Mrs. Mattie Bell of Cotulla. Mrs. Bell remembers the story as told her, but does not like to talk of it.

It was in 1935, shortly before Pugh’s death on the ranch, that a marker was placed on Steele’s grave. A sister, living in his native Scotland, sent a nephew who was a petroleum engineer in this section, to erect the tombstone. Later she sent seeds from the bluebells of Scotland to be planted on his grave. His much-loved flowers did not grow in the Texas soil.

“My father would not often tell of his early experiences,” said Mrs. Smith. “If he became blue, he would talk, but we four children learned early to keep quiet and never ask questions for, as sure as we did, he would not tell anymore.”

There were his early remembrances of O. Henry as be herded sheep near Lallerton when Pugh himself was running down mustangs. O. Henry always kept a dictionary in his pocket for quick reference as he read, Pugh told his family and read continuously.

Once when Mrs. Pugh and her four children were alone on the ranch while her husband went to San Diego for groceries, bandits rode up to the kitchen door. Fearing trouble, Mrs. Pugh, quick-witted as only a pioneer woman could be, told the bandits to look for her husband at the corrals. She expected to gather her children in from the yard and barricade the doors. “None of us children saw the real danger,” says Mrs. Smith, “but how glad we were to see my father drive up a few  minutes later.” The wagon in which Pugh had started for his two-day trip to San Diego had broken a tongue and he had to return. He quickly took care of the bandits.

James Thomas Pugh’s grandson, James Pugh, 12, hunts arrowheads, of which he has a valuable collection, where Indians once raided. He and his blond sister, Robbie Rae, seven, live with their father, mother, and grandmother on the ranch when not in school in Freer. They love the ranch like their grandfather in his day.


The Indian raid mentioned in this article was the last Indian raid in the area. From LaSalle County, the raiders moved on to southern McMullen County and Duval County. A complete report of this raid will appear in my upcoming book, Soy de Duval, the Nineteenth Century History of Duval County, Texas. Be on the lookout for this book.

18 COMMENTSON "STORIES OF HIDDEN GOLD LINGER STILL AT OLD PUGH RANCH"

  1. As always very interesting article. Quick question years ago there was a story about a man in San Diego who found old coins hidden in his home that were discovered when he made repairs. Have you heard of this story? Wonder if he was able to keep it?

    • cardenas.ae@gmail.com | August 6, 2020 at 2:16 pm | Reply

      Thank you, Gloria. Yes, I remember that event. I was still publishing the Duval County Picture when the coins were found. I sold the paper shortly after that and do not know what the final outcome was.

  2. Rose Harrison | August 3, 2020 at 11:44 am | Reply

    Love this bit of history. Wondering if anyone has tried to look for the lost gold. I purchased Balo’s War years ago. Enjoyed very much!

    – Rose

    • cardenas.ae@gmail.com | August 3, 2020 at 2:00 pm | Reply

      Thank you, Rose – both for likely the article and Balo’s War. Hopefully, you will get my new book when it comes out As for the gold, never have run across anyone looking for lost gold, but then again maybe they will now. Stay safe.

  3. Graciela Trevino Gonzales | August 2, 2020 at 4:09 pm | Reply

    Always turning over yet one more interesting tidbit of our fascinating history.
    Waiting patiently for your book! Take care, Gracie.

  4. Sr. Elsa Garcia | August 1, 2020 at 12:48 pm | Reply

    I always enjoy your posts. I look forward to the book. Blessings

    • cardenas.ae@gmail.com | August 1, 2020 at 1:20 pm | Reply

      Thank you, Sister Elsa.

      • Danny Haigood | August 1, 2020 at 8:13 pm | Reply

        Mr Cardenas:
        I truly enjoy reading area history. Your articles are always detailed and very interesting. Keep up the good work. I would like a list of your books.

        • cardenas.ae@gmail.com | August 1, 2020 at 8:44 pm | Reply

          Thank you, Danny. We have much in common, “I truly enjoy writing area history.” Thus far I have only published one book and am working on another and have a couple of others in the recesses of my head. God grant me the time I will get around to them. Anyway, my one published book is a historical novel entitled Balo’s War and you can purchase it and other books I have published under my independent publishing company, MCM Books, at http://mcmbooks.com/store-2/. My new book is tentatively titled Soy de Duval, the Nineteenth Century History of Duval County, Texas.

  5. Manuel Flores | August 1, 2020 at 8:26 am | Reply

    As always, interesting and precious South Texas history. Enjoyed the article. Hope you’re okay, Cuidate.
    MFlores

  6. Do you know of any original land grants from the King of Spain to settlers in this area? My grandmother would speak of this land stolen by the Texas Rangers for Anglo settlers, either their life or their land was the ultimatum to the original Spanish (Mexican) settlers. After killing a few settlers, most Mexican (Spanish) settlers would give up their land ownership.

  7. Debra DePeña | July 31, 2020 at 12:32 pm | Reply

    I will certainly get your book when it comes out. I so enjoy your postings. I can date my maternal ancestors back to 1850 in Duval County so the history of the area is of great interest to me.

  8. Stella Hernandez | July 31, 2020 at 8:04 am | Reply

    Awesome stories. Thanks for sharing.

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