The back and forth with the Government
Once the occupiers had established themselves on the island, organization began immediately. An elected council was put into place and everyone on the island had a job; security, sanitation, day-care, school, housing, cooking, laundry, and all decisions were made by unanimous consent of the people.
The federal government initially insisted that the Indian people leave the island, placed an ineffective barricade around the island, and eventually agreed to demands by the Indian council that formal negotiations be held. From the Indians side, the negotiations were fixed. They wanted the deed to the island, they wanted to establish an Indian university, a cultural center, and a museum. The government negotiators insisted that the occupiers could have none of these and insisted that they leave the island.
By early 1970 the Indian organization began to fall into disarray. Two groups rose in opposition to Richard Oakes and as the Indian students began returning to school in January 1970, they were replaced by Indian people from the urban areas and from reservations who have not been involved in the initial occupation. Additionally, many non-Indians now began taking up residency on the island, many from the San Francisco hippie and drug culture. The final blow to the organized leadership occurred on January 5, 1970, when Oakes's 13 year old stepdaughter fell three floors down a stairwell to her death. Following Yvonne's death, Oakes left the island and the two competing groups maneuvered back and forth for leadership on the island.
The federal government responded to the occupation by adopting a position of non-interference. The FBI was directed to remain clear of the island. The Coast Guard was directed not to interfere, and the Government Services Administration (GSA) was instructed not to remove the Indians from the island. While it appeared to those on the island that negotiations were actually taking place, in fact, the federal government was playing a waiting game, hoping that support for the occupation would subside and those on the island would elect to end the occupation. At one point, secret negotiations were held where the occupiers were offered a portion of Fort Miley, in San Francisco, as an alternative site to Alcatraz Island. By this time, mid-1970, however, those on the island had become so entrenched that nothing less than full title to the island, the establishing of a university and cultural center, would suffice.
In the meantime, the government shut off all electrical power, and removed the water barge which had provided fresh water to the occupiers. Three days following the removal of the water barge, a fire broke out on the island. Several historic buildings were destroyed. The government blamed the Indians, the Indians blamed undercover government infiltrators trying to turn non-Indian support against them.
The new population on the island became a problem as time passed. The daily reports from the government caretaker on the island as well as testimony from the remaining original occupiers complain of the open use of drugs, fighting over authority, and general disarray of the leadership. An egalitarian form of government was supposed to prevail, yet no leadership was visible with which the government could negotiate.
The occupation continued on into 1971 with various new problems emerging for the Indian occupiers. In an attempt to raise money to buy food, they allegedly began stripping copper wiring and copper tubing from the buildings and selling it as scrap metal. Three of the occupiers were arrested, tried and found guilt of selling some 600lbs of copper. In early 1971, the press, which had been largely sympathetic to this point turned against them and began publishing stories of alleged beatings and assaults; one case of assault was prosecuted. Soon, little support could be found.