Nestled on the shores of the picturesque Sage Lake in Lupton, Michigan, Kenyon’s Lakeside Resort boasts a history as captivating as its scenic views. For over 130 years, this family-owned establishment has welcomed guests, but its past holds a secret link to one of Detroit’s most notorious criminal organizations: the Purple Gang.

During the Prohibition era of the 1920s and early 1930s, the Purple Gang, a ruthless bootlegging and hijacking syndicate, dominated Detroit’s underworld. Their operations stretched far beyond the city limits, and Kenyon’s Resort, with its secluded location and sprawling five-acre lakefront property, became a strategic hideout.

Rumors and local lore suggest that the Purple Gang utilized hidden tunnels beneath the resort to discreetly move their illicit goods and evade law enforcement. These clandestine passageways allowed them to conduct their “activities” undetected, taking advantage of the remote setting. It’s even said that the infamous Al Capone himself paid visits to Kenyon’s, further cementing its place in the annals of Michigan’s Prohibition history.

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Located beside the North Branch of the AuSable River, halfway between Grayling and Lewiston, lies the small town of Lovells. Just a fishing cast away from the riverbank stands a brown lodge accented with yellow trim, a historic landmark originally known as the Douglas House. Around 1898, Thomas E. Douglas, a key figure in the logging community, established a sawmill and general store in Lovells. Following a fire that destroyed his initial store, he built a new one in 1903. By 1916, he expanded his enterprise with the addition of a hotel, which he fittingly named the Douglas House. This impressive structure boasted twenty guest rooms and elegant common areas, all illuminated by electricity generated from Douglas’s own mill. From its inception, the Douglas House served as the headquarters for the prestigious North Branch Outing Club, a magnet for prominent sportsmen such as Henry and Edsel Ford, John and Horace Dodge, and Charles Nash. Douglas’s daughter, Margaret, capably managed the hotel until 1971 and continued to reside there until 1991.

In 1996, the historic property was revitalized as a bed and breakfast, maintaining its tradition of welcoming those drawn to the area’s hunting and fishing opportunities. The Douglas House achieved significant recognition in 2001 when the state of Michigan designated it a state historic site, followed by its listing on the National Register of Historic Places in 2002. Notably, the North Branch Outing Club remains active, offering the expertise of world-class fly fishing guides to this day.

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