Thus stood matters until early in the year 1862, when the intelligence reached California that the grant had been rejected by the Supreme Court.  The struggle soon began.  There was at that time employed upon the United States navy-yard at Mare Island, and also upon the Pacific Mail Company’s works at Benicia, a large number of mechanics and laborers.  There was also in the towns of Benicia and Vallejo a large floating population.  Tempted by the great value of these lands in their highly improved state, many of these persons squatted upon the rancho.

The landholders in possession resisted.

The houses of the great majority of the settlers were erected in the night time, as it was necessary to enter the enclosed fields by stealth.  These houses were built of rough redwood boards set up edgewise, with shed roof, and without window, fire place, or floor.

They were about eight feet square, sometimes eight by ten feet, and never over six feet high.

We have no hesitation in saying that they were utterly unfit for the habitation of human beings, and further that they were never designed for permanent residences.  The mode of erecting these shanties was as follows:  The planks were sawed the right length in the town of Vallejo or Benicia, in the afternoon of the day, and at nightfall were loaded upon a cart.  About eleven o’clock at night the team would start for the intended settlement, reaching there about one or two o’clock in the morning.  Between that hour and daylight the house would be erected and finished.  Sometimes the house would be put together with nails, but when too near the residence of the landholder in possession, screws would be used to prevent the sound of the hammer attracting attention.  Very few of this class of settlers remained upon their claims above a few days, but soon returned to their ordinary occupations in the towns.

Generally after they would leave the landholders would remove the shanties from the ground.  In some cases they would pull them down with force immediately upon discovering them, and in the presence of the settlers.

A few of them got settlements near enough to their places of employment to enable them to work in town, or at the navy-yard, and to sleep in their shanties; some regularly, others only occasionally.  These generally remained longer than the others, but none of this class remained up to the time of trial.

None of the settlers, who went on since the grant was rejected, have attempted regular improvements or cultivation.  A few have harvested the grain planted by the landholders, as it grew on their 1/4 [quarter-section]; they would harvest it, and offer this as evidence of good faith and cultivation.

We have no hesitation in pronouncing, from the evidence, that these are not settlers within the spirit of the pre-emption laws, but are mere speculators, desirous of getting the improvements of another to sell and to make money.