Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1879-04-28
A BOGUS BONANZA.
Eastern Capitalists Victlmized by Bra.
lillian S~harpers.

devised plot to extract hundreds Of
thousands of dollars from the public
on the strength of the alleged discov-
cry of diamond fields in Arizona, and
took in a number of New York and
San Francisco parties, has such a
swindle been unearthed as one which
is the talk of the city to-day. In this
case it is Brazilian gold mines. The
victims are shrewd Boston capitalists,
and the amount lost is four hun
bred thousand dollars. 1t appears
that some years ago a gentleman who
had been residing in Brazil returned
to this country and favored a chosen
few with a prospectus Of a gold-min-
ing project, which was not extravagant
in its promises, but apparently based
on facts which appeared reasonable.
1t was not claimed that new gold re-
gions had been discovered, but that
old mines, known to have given a large
yield in years gone by, could not only
be worked with profit by improved
processes, but that the territory in the
immediate vicinity was capable of arich
yield. This property was not owned
exclusively by the agent who came
to this city, but by Brazilian parties.
Fsur years ago Prof. Mills, a chemist
and metallurgist of high reputeand an
associate of the late Prot. Agassiz, was
employed as an engineer by Dom Pc
dro for tho Brazilian government.
While exploring and surveying the in
terror of the empire, in the province
of Minasgeraes, the professor was
wonder-struck and delighted by the
frequent discovery of gold found in
old mounds of great extent in area,
and which had been formerly worked
for the precious metal. His SUPPOSE
ton was that the primitive methods
applied only revealed a small portion
Of what might be obtained by modern
appliances. On his return to this
country his wonderful information
was impaired to some capitalists, of
whom Mr.. Gordon Mckay, Of sewing
machine notoriety, was the ruling
spirit. A stock company was formed,
and it is said the capital invested was
$500 900, of which Mckay owned
more than one-half, and the balance
was held in New Bedford and New
York. Prof. Mills was again sent to
the new FL Dorado to make assurance
doubly sure, and to bond the land and
secure proper title deeds. The pro-
lessor went to work with a corps Of
assistants, and it is supposed that
among them were certain shrewd spec
ulators, native to the country. Be that
as it may, the professors success was
more than satisfactory. A thorough
survey was made of the huge mounds
of debris; lines and cross-lines
were duly made, and at their respec-
tive intersections excavations were
made, and gold was in nearly every
instance found. The land was bonded,
and title deeds passed into the hands
of the American company, The next
move was the importation of the most
approved American hydraulic machin-
cry with which to thoroughly wash
and seOur every particle of the debris.
Orders for the machinery were given
and filled at enormous expense, and
the same shipped to Brazil. Whether
the machinery was the cause of dis
covering that a gigantic swindle had
been perpetrated, or whether the fraud
was discovered before the beginning
of operating, is not known; but there
was a sudden collapse, and as sudden
an effort to keep the matter quiet.
Mckay has two or three warm friends
in Lawrence, who were conversant
with his plans, among whom was one
of the most eminent engineers, and
who was impOrtuned to conduct the
mining engineering of the new COM
pany. AT the urgent request Of his
family and friends he finally consented
to go, when the swindle was exploded.
The %supposition is that Prof. Mills
was accompanied by native sharpers,
who sailed the land first surveyed,
and upon his return assisted him
in his second survey, and, knowing
-
his points for excavation. anticipated
his movements, and relieved him from
disappointment. The survey made
after the formation Of the company
cost some $25, 1000, and the many
thousands expended in buying the
land and introducing machinery car
best be told by those who paid the
bills. 1t is believed by the unfortu
nate capitalists that Professor Mill
was strictly conscientious and homes
in his transactions, but was the unfor
tunate tool in the hands Of sharper4
1t is admitted that while the propert
for gold-mining purposes is a failure
some valuable minerals have bee
found, which may help 10 make i
worth a considerable amount Of wha
has been spent upon it. The Office o
the company, which is a private cor
poration, is in this city, and there ar
, only eight shareholders, the par valu
{ Of shares being placed at 500. Tn
! loss will fall upon these gentlemen
who had agreed not to sell any stoc
, to outsiders. The whole affair has
r curious appearance, and later develoT
: ments will be looked for with %interesr
1t may be added, that all the gentle
men composing the company wer
? able to lose what they put in, and wi
/ not complain ii they have so suffered
Protection OF the Public HeaIfI
. The house committee on epidemi
{ diseases has matured a bill whic
will cover yellow fever, pleuro pnet
monia aud all other epidemics thu
] effect the human or brute kingdom
aud will report it early next week.
soon as the silver bill is out of u
way, when they will press it throue
: the house. TIE bill provides for
national quarantine, 70 be enforce
under direction Of the national boa
! Of health, established by the N
~ | g. IsM -