Lawrence Gustave Murphy was born in Wexford, Ireland, in the year 1831. By age seventeen, Murphy was in Buffalo, New York, and joined the Fifth Infantry United States Army. His service began in Texas where he was assigned to The Brazos River where he helped establish Fort Belknap. In May 1856 Murphy was discharged at Fort McIntosh, Texas. Five days later Murphy re-enlisted to the same company where he made sergeant. In 1857 Murphy’s unit was involved in the fight in Utah Territory involving Brigham Young, the Mormons and Captain Marcy.
Murphy was discharged again on April 26th 1861 as quartermaster sergeant.
On July 17th 1861 LG Murphy accepted a commission as First Lieutenant in the First Regiment of the New Mexico Volunteers organized by colonel Christopher Kit Carson.
Murphy began his service at Fort Union on July 27th 1861 and was appointed regimental quartermaster. Here Murphy was on detached service with Colonel John P. Slough  of Colorado’s first volunteers. He may have participated in a few battles including some at Pigeons Ranch and in Apache Canyon near Glorieta pass. Murphy was also in a battle against a democratic confederate army between March 26th and 28th in 1862 which stopped them from reaching Fort Union.
In late April 1862 Murphy was discharged. he was also reenlisted shortly after with the help of his friend Kit Carson. In a letter to General James H Carlton Carson writes:
“During the time that lieutenant Murphy served in my regiment, he performed his duties with zeal and ability.. although in the organization of a new regiment like this, he had many difficulties to contend with. lieutenant Murphy has been during his service with the Regiment of nearly a year prompt and efficient in the performance of his duties and although in the performance thereof, he made some enemies at first, yet all eventually saw that he had acted for the best interest of the service, and in a manner to learn their duties those unacquainted with them. lieutenant Murphy was well liked in the regiment, and I would respectfully ask that he be recommended to the governor for a commission in their regiment as a first lieutenant as I feel confident that he will perform the duty with advantage to the public service”. Within a week Murphy was made lieutenant and by October 12th he was with the regiment when it reoccupied Fort Stanton which had been a previously abandoned in August of 1861″
Murphy’s unit under Carleton spent their time repairing the Army Post and the roads that connected to it. The unit had begun a war upon the Mescalero Apache.Units were being sent down the down to the Pecos River and up and down the Rio Hondo within the first couple weeks the Army had shot and killed over 30 Mescalero men and within a few more weeks around 400 Mescalero men women and children had been sent to the Bosque Redondo as prisoners. They were forced to settle with the Navajo at first. But when this wouldnt work, an agency was set up at Fort Stanton. Next a reservation was established at Fort Stanton.

In 1866, Murphy was mustered out of the military and assumed the role of unofficial post trader at Fort Stanton. On April 28th, 1868, Murphy was officially appointed as post trader. However, the Secretary of Wars Declaration of civilians not working on Military bases resulted in his dismissal in the fall of 1870. Murphy subsequently served as an Indian Agent after Agent Hennissey left the reservation next to Fort Stanton. Along with two others, L.G. Murphy was charged with corruption for under rationing and overpricing, ultimately being expelled from conducting business on the fort’s property. He opened a very large two-story store and fortress in nearby Lincoln, New Mexico, rallying up its citizens to organize The Lincoln Farmers Club. With Murphy reaping the benefits, the club was to grow food and raise beef to continue fulfilling the Indian reservations’ contracts for food and supplies, despite being expelled from the fort. When an outsider threatened Murphy’s profits by opening up a beef outfit and a store in Lincoln to compete with the failing Murphy, this action started the Lincoln County War, claiming the lives of several men due to the merchant monopoly in the area. In 1878, Lawrence G. Murphy became ill with cancer. He left his empire to James Dolan, sold his ranch and moved to Santa Fe, where he passed away on October 20th, 1878, at 7 A.M. in St. Vincent’s Hospital’s charity ward/asylum after drinking himself practically to death to cope with the pain.