On July 1, 1908, the Montana State Board of Prison Commissioners took over the management of the State Prison. Frank Conley was appointed warden. Conley, in partnership with Thomas McTague as Conley & McTague, had operated the prison as contractor since 1890. The state rented the property belonging to Conley & McTague even after the institution became a state facility. In his message to the 11th Montana Legislative Assembly, Governor Edwin L. Norris called for the state to purchase the "personal property necessary for conducting the prison" including"the water supply, the material used in the supply and distributing system[and] nearly all the personal property used in conducting the prison.." from Conley & McTague.

As a result of the recommendations of a special committee appointed by the 11th Montana Legislative Assembly to examine the possibility of the state's purchasing the assets of the partnership, the Prison Appraisal Committee was created. The members, appointed by the Board of Prison Commissioners, were charged with appraising the property belonging to Conley & McTague. The Prison Appraisal Committee included William Lindsay, Glendive; J.C. McNamara, Helena; Martin Maginnis, Helena; George Stanton, Great Falls; and Thomas Lockman, Missoula. McNamara and Stanton were both unable to serve on the Committee and were replaced by Louis Heitman of White Sulphur Springs, and Herbert Strain of Great Falls. The Committee first met on June 16, 1909, and adjourned on October 1, 1909.