Beginning in 1869, Harrison Kelly and his wife Maria began buying claims along Coyote Creek. During the same period, Kelly went into partnership with Orange Jacobs, a Jacksonville attorney. In 1872 the Jacobs and Kelly partnership surveyed, platted, and patented their claims. In the same year, Harrison Kelly was commissioned to captain a company of volunteers in the Modoc Indian Wars. In 1878, William Ruble and his son Walter purchased a large portion of the Jacobs and Kelly holdings and claims held by other miners along Coyote Creek. In the same year, Kelly challenged the legality of Ruble’s ownership. The disputed area is included in the Golden Historic District as well as extending to other sites along Coyote Creek.
On November 14th, 1881, the Jackson County Circuit Court issued a judgment in favor of Harrison Kelly against the Coyote Creek Gold & Silver Mining Company. William Ruble and family were ordered to vacate the contested mining site by January of 1882.
This ruling is the first indication that the Ruble mining operation had begun, marking the onset of the period of significance of the district. The Kelly and Ruble claims were at the center of a lawsuit that dragged on for several years. The disputed claims were heavily mined which helped offset legal fees when either party was in possession. Period newspaper articles and gold shipment records suggest the mines were profitable for both parties during this period, though not necessarily sufficiently profitable after legal fees.
The dispute appeared to be resolved around the close of 1883 when the Oregon Supreme Court ruled in favor of William Ruble. However, Kelly supporters thought that the Supreme Court should have held over the lower court ruling. The Oregon Sentinel labeled the events that followed a "War in Jackson County." Circuit court Judge Hannah ordered Ruble to vacate his claims. It was reported that J.G. Birdseye headed a posse to serve Ruble orders, but retreated after 18 to 20 men fired shots at Birdseye and his men. Birdseye later returned to Coyote Creek with more men and a warrant. Ultimately, 17 men, including William Ruble, were arrested and assessed bail at $300 each.
In 1884, A.G. Walling commented:
"In Jackson County, is the Coyote Creek Mining Company’s claim, better known as the Kelly-Ruble location, which is now regarded as the richest mining ground in the County, and is the subject of an important lawsuit."(p.463)
The dispute ended with an Oregon Supreme Court writ of restitution, again in favor of Ruble, in March of 1884. The Court’s ruling came at a pivotal point in the history of Coyote Creek and Golden. The railroad that would pass through Wolf Creek and Grants Pass had been under construction throughout the 1880’s. In 1886,
Coyote Creek became part of Josephine County and Grants Pass was established as the county seat. Prior to this, the Golden Historic District was in Jackson County and the western boundary of the District corresponded to the eastern boundary of Josephine County.
Following resolution of the Kelly Ruble conflict, William Ruble purchased the claims Harrison Kelly had liquidated following the 1884 Oregon Supreme Court ruling. William Ruble and his two sons, Schuyler and Bill, invested much time mining the Coyote Creek Valley while their families remained in the Eola Hills, near Salem. Though the claims were rich, the conditions presented formidable challenges.
