Lincoln County War
Chisum was a business associate of Alexander McSween, a principal figure in the Lincoln County War with money, advice, and influence behind the scenes, he played a role in the dispute between the opposing factions of cattle farmers and business owners. When Lewis Wallace took office as Governor of New Mexico on October 1, 1878, he proclaimed an amnesty for all those involved in the bitter feud. However, after Billy the Kid surrendered to the authorities, he was told he would be charged with the killing of Sheriff William J. Brady.
Billy the Kid escaped from custody and went to see Chisum. Billy believed he was owed $500, but Chisum refused to pay, claiming that he had given the Kid horses, supplies, and protection over the years in lieu of payment. The Kid responded by promising to steal enough cattle to make up this sum. The Kid's gang also stole from other cattlemen and became a serious problem in Lincoln County. His gang included Dave Rudabaugh, Billy Wilson, Tom O'Folliard and Charlie Bowdre. In 1880, Chisum was involved in getting Pat Garrett elected as sheriff of Lincoln County. In December 1880, Garrett shot dead two of the Kid's gang, Tom O'Folliard and Charles Bowdre. Billy the Kid, Dave Rudabaugh and Billy Wilson were later either captured or killed by Garrett.
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