Merle arrived to find the "Forest City" obsessed by the pursuit of genial desperado Blinky Morgan, who was being sought for allegedly murdering a police detective while trying to rescue a member of his gang who'd been picked up on a fur-robbery charge.
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"Forest City"
Cleveland's nickname based on an Alex de Tocqueville description in Democracy in America from 1835. Like Blake's America a Prophecy, we have another text written concerning the state of America and democracy, observations of the New World's grand experiment. I read only a little on Tocqueville so my instant judgment of him as "the early 19th Century Ayn Rand" probably doesn't hold a lot of water.
"genial desperado"
The friendly criminal.
"Blinky Morgan"
The leader of a gang of fur thieves, summarized by Pynchon in the rest of the sentence. The dates of the Blinky Morgan fur robbery on January 26th, 1887 to the capture of Blinky on June 28th, 1887, overlap the dates of the Michelson-Morley Experiment (April to July, 1887). The town was obsessed with his pursuit because there was a reward of $16,000 dollars for Blinky and his gang's capture. Also maybe because he killed a detective but people probably hated detectives properly back then.