[kabar]

The town, Mauch Chunk, was my grandmother’s birthplace. She is buried there. From a Baltimore Sun article:

Thorpe was born in Yale, Okla., and studied and played at the Carlisle (Pa.) Indian School. He never set foot in Mauch Chunk. But the citizens, out of desperation, voted in 1954 to trade in their long-established name so as to adopt him in death with the idea he would bring instant notoriety to the area and rehabilitate its economy.

This is where Jim was eventually buried, after his third wife took his remains from Lomita, Calif., where he died, to Shawnee, Okla., and then to Tulsa. Finally, Mauch Chunk became the “destination in death” because it represented the best financial deal she could arrange. A body for auction? That of Thorpe? Yes, too bad.

[Vigilanteman]

Looks like you are right. But I do believe that the location in the State where Thorpe spent some of his happy younger years and launched his career as one of the best athletes in history played some role in his widow's decision.

Her post mortem travels would seem to reinforce that. Oklahoma had their chance and turned it down.