Cook had discovered a beef in his possession a few days earlier and, when he could not show the hide, arrested him. Thinking the evidence insufficient to get a conviction, he later released him. Even while suffering the trip to his home, Cook swore to Moore and Lane that he would kill the Indian.

Three weeks later following his recovery, armed with a writ issued by the Catskill justice on affidavits prepared by the district attorney, Cook and Russell rode to arrest Martinez. Arriving at daybreak, they found Julio in his corral and demanded that he surrender. Instead, he whirled and ran to his house for a gun forcing them to kill him, Cook reported.

Both Cook's and Russell's lives were threatened by the Mexicans following the killing, but the company officers felt that in the end, it would serve to quiet them despite their immediate emotion. General manager Pels even suggested that it might be wise to keep the Mexicans in suspense rather than accept their offers to sell out and move away, and try to have a few punished.

On February 17, Russell and Cook were sent to the Pena Flor community on the Vermejo to see about renting out ranches the company had purchased. While talking with Julian M. Beall, Francisco Archuleta and Juan Marcus appeared, both heavily armed, and after watching the house for a while, rode away. It was nearly sundown before they finished the business with Beall and began riding down the stream. They had traveled only a short distance when they spotted five Mexicans riding along a horse-trail across the stream just ahead of them. Suspecting an ambush, the two deputies decided to ride up a side canyon taking a short cut into Catskill.