Trial
Suspicion immediately fell on Phelan. Hays was, unlike Phelan, well liked by local soldiers and neighbors. Most of his neighbors were convinced of his guilt. Justice of the Peace, Henry Hastings Sibley, issued a warrant and Phelan was held at Fort Snelling under charges of murder in the first degree. On September 29, 1839, Phelan was arrested for the murder. When the next steam boat arrived, Phelan was sent down to Prairie du Chien, Wisconsin Territory which was the county that the crime was committed in. This was shown in the testimony given against him in his trial. One woman testified at his trial and said that when she asked him how he and Hays got along he said "Very badly" but said "I'll soon get rid of him." Another said he found blood on Phelan and bloody clothes in his house. He went on to state that his dog was able to find the route that Phelan had dragged Hays body down to the river.
While Phelan was away in prison in Fort Crawford, another settler squatted on his claim. In the Spring of 1840 Phelan was tried for Hays murder by a grand jury. Despite two neighbors of Phelan, including his former friend William Evans, the jury was unconvinced of Phelan's guilt and he was let go. It was later found out that a Dakota warrior confessed to killing Hays.
When Phelan returned to Saint Paul he attempted to reclaim his claim by force but was unable to. Phelan subsequently sold his claim for $200 and made a new claim in what is now Swede Hollow near Hamm's Brewery. The claim was sold on September 2, 1844 for $70. The land containing "Faylin's Creek and Falls" later contained a saw and gristmill.
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