Cornelius “Lame Johnny” Donahue & a Tale of Lost Treasure
The American West, a land of vast landscapes and untamed frontiers, is etched with tales of daring outlaws, audacious heists, and fortunes lost and sometimes found. Among the myriad figures who roamed this era, Cornelius "Lame Johnny" Donahue occupies a peculiar place, a blend of petty criminal and potential scapegoat, forever linked to the legendary lost treasure of the Black Hills. His story, a tapestry woven with threads of horse thievery, stagecoach robbery, and vigilante justice, offers a glimpse into the chaotic and often brutal realities of life on the 19th-century frontier.
Cornelius Donahue’s journey began far from the rugged terrain of the Dakotas. Born in Philadelphia, Pennsylvania, around 1850, his early life seemed destined for a path quite different from the one he eventually trod. He was admitted to Girard College, a unique institution that provided education and care for impoverished and orphaned boys. Records indicate that Donahue was a diligent student, maintaining good academic and conduct scores throughout his tenure from 1862 to 1872. This foundation, however, would soon be overshadowed by the lure of the West and the circumstances that led him to become "Lame Johnny."
The transition from Philadelphia scholar to Western outlaw is a pivotal point in the tale of Cornelius “Lame Johnny” Donahue. Following his time at Girard College, Donahue ventured to Texas, seeking a life as a cowboy. But fate, or perhaps a pre-existing condition, dealt him a difficult hand. Afflicted with a noticeable limp – some accounts attribute it to a childhood fall, while others suggest it was a consequence of polio – he struggled to adapt to the demanding physical labor of ranch work. This physical limitation proved to be a turning point, pushing him towards the fringes of society and, ultimately, into a life of crime.
Unable to thrive as a cowboy, Cornelius “Lame Johnny” Donahue turned to horse thievery, a common crime in the sparsely populated territories of the West. This initial foray into lawlessness set the stage for his later involvement in more daring exploits. The moniker "Lame Johnny" became his identifying mark, a constant reminder of the physical challenge that had diverted him from a more conventional path.
The lure of gold and opportunity eventually drew Cornelius “Lame Johnny” Donahue northward to Deadwood, South Dakota, in the 1870s. This burgeoning town, nestled in the heart of the Black Hills, was a magnet for prospectors, gamblers, and outlaws alike. Seeking to strike it rich, Donahue, under the alias of John Hurley, tried his luck panning for gold along Castle Creek. When his efforts proved fruitless, he took on more conventional employment, first as a deputy in Custer County and later as a bookkeeper for the Homestake Mining Company, one of the most significant gold mining operations in the region. His attempts at legitimate work, however, were short-lived. His past as a Texas horse thief caught up with him, forcing him to flee once again and return to his life of crime.
The allure of easy money proved too strong, and Cornelius “Lame Johnny” Donahue soon gravitated back to his old ways, stealing horses and eventually joining a motley crew of men who turned to robbing stagecoaches. The Black Hills, with its rugged terrain and isolated settlements, provided ample opportunity for such illicit activities. Stagecoach robbery was a risky but potentially lucrative venture, targeting the flow of gold and valuables between the mining towns and the outside world.
The Homestake Mining Company, a major player in the Black Hills gold rush, recognized the threat posed by stagecoach robbers like Cornelius “Lame Johnny” Donahue and his gang. They implemented elaborate security measures to protect their valuable shipments. The "Monitor" stagecoach, a specially designed vehicle with steel lining and portholes for armed guards, was introduced. This formidable coach also boasted an iron safe that the manufacturer claimed could withstand any attempt at forced entry for at least six days without the combination. These heavily guarded "treasure runs" became a regular feature on the Deadwood-Cheyenne route.
September 26, 1878, marked a fateful day in the saga of Cornelius “Lame Johnny” Donahue and the legend of the lost treasure. The "Monitor" stagecoach, laden with gold, departed from Deadwood, carrying three guards, the driver, and two passengers. Simultaneously, a band of outlaws, believed to include Donahue, rode into Canyon Springs Station, located about 37 miles southwest of Deadwood in northeastern Wyoming. The bandits, intent on ambushing the stagecoach, locked the station attendant, William Miner, in the grain room and concealed themselves in the barn, awaiting their unsuspecting prey.
As the stagecoach approached the station, the driver, Gene Barnett, and the shotgun messenger, Gale Hill, dismounted to investigate the unusual silence. Suddenly, a volley of gunfire erupted. Hugh Campbell, one of the passengers, was killed instantly, and Gale Hill suffered severe wounds. Scott Davis, a shotgun messenger inside the stagecoach, returned fire, killing one of the outlaws, known as "Big Nose" McLaughlin, and mortally wounding another. Despite the resistance, the remaining outlaws managed to overwhelm the stagecoach’s defenses. They swiftly broke open the supposedly impenetrable safe and absconded with a substantial fortune: approximately $3,500 in currency, $500 in diamonds, a significant amount of jewelry, and a staggering 700 pounds of gold dust, nuggets, and bullion. The total value of the stolen loot was estimated at $140,000 at the time, equivalent to over $3.6 million today. The bandits loaded their ill-gotten gains onto a wagon and vanished eastward.
The alarm was raised when the stagecoach failed to arrive at the Jenney Stockade station as scheduled. A relief team, consisting of Boone May, Jesse Brown, and Bill Sample, set out to investigate. Along the way, they encountered Scott Davis, the stagecoach messenger, who had secured a horse from a nearby ranch. Together, they proceeded to Canyon Springs Station, where they discovered the abandoned stagecoach, the empty treasure box, Miner locked in the granary, and other employees bound and gagged in the surrounding woods.
News of the daring stagecoach robbery spread rapidly, prompting the Homestake Mining Company to offer a substantial reward for the capture of the perpetrators and the recovery of the stolen gold. Posses were formed, and every reported sighting of the fugitives was pursued relentlessly. Within a month, the stage line announced that over 60 percent of the stolen cache had been recovered. However, two large gold bars remained missing, fueling speculation and sparking a treasure hunt that continues to this day.
Suspicion quickly fell on Cornelius “Lame Johnny” Donahue, and famed livestock detective Frank "Whispering" Smith was assigned to track him down. Smith apprehended Donahue during one of his horse-thieving expeditions to the Pine Ridge Reservation and transported him to Chadron, Nebraska, where he was incarcerated. In July 1879, Donahue, under the escort of Frank Smith, was placed on the Sidney-Deadwood Stage to face trial in Deadwood. Security was tight, with Donahue shackled, handcuffed, and his leg irons riveted to a metal plate attached to the stagecoach floor.
Adding to the security detail were notorious sharpshooters Boone May and Jesse Brown. However, near Buffalo Gap, South Dakota, May and Brown inexplicably left the stagecoach, leaving "Whispering" Smith solely responsible for the prisoner. Just eight miles north of Buffalo Gap, the stagecoach was intercepted by a group of masked riders, who forcibly removed Donahue from the coach and sent the stage on its way.
Initially, officials believed that Donahue had been rescued by his outlaw associates. However, the following day, Lame Johnny’s lifeless body was discovered hanging from a cottonwood tree nearby, still bound by his shackles. A passing party later buried him in the shade of the tree. The area where he was lynched became known as Lame Johnny Creek.
A wooden headstone once marked his grave, bearing a rather sardonic epitaph:
Pilgrim Pause! You’re standing on
The molding clay of Limping John.
Tread lightly, stranger, on this sod.
For if he moves, you’re robbed by God
Years later, local ranchers exhumed the grave to relocate it. They found Donahue’s body still shackled, but the head was missing, confirming rumors that had circulated since his hanging. The men removed the shackles and boots before re-interring the remains. Donahue’s boots were displayed in a Buffalo Gap store until a fire destroyed both the store and the boots in the late 1880s. One shackle found its way to the State Historical Society Museum in Pierre, while the other is housed in the 1881 Historical Museum in Custer.
The circumstances surrounding Donahue’s death remain shrouded in mystery. The fact that his three highly experienced escorts failed to protect him has fueled speculation and conspiracy theories for years. Jesse Brown later claimed that he attempted to intervene when the masked riders appeared but was warned off by a voice in the bushes.
Over time, doubts emerged regarding Donahue’s involvement in the meticulously planned Homestake robbery. Some believed that the heist was too sophisticated for a small-time horse thief. Instead, suspicion shifted to Jim Carey, a former scout for General George Custer, who was alleged to be the mastermind behind the robbery, along with associates Frank McBride, Doug Goodale, Al Spears, and "Big Nose" McLaughlin. Carey also met a violent end, falling victim to vigilante justice and being hanged at the Jenny Stockade in Wyoming.
Despite the capture and punishment of several suspects, the two large gold bars stolen during the Homestake robbery were never recovered. Many believe that they remain hidden somewhere near the old Canyon Springs Stage Station. The log station itself is long gone, but the legend of Lame Johnny’s lost treasure continues to captivate treasure hunters and history enthusiasts alike. The tale of Cornelius “Lame Johnny” Donahue serves as a reminder of the lawless and unpredictable nature of the Wild West, where fortunes were made and lost, and where justice was often swift and unforgiving.