The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-06-30
HARVEY PEAK FRAUD
ENGLIsHMEN PUT IN MILLIONS AND
AMERICANS GOBBLED THEM.
Receiver for the Big Dakota Tin
Mines That Were to Astonish the
World with Their Output.

NEW YORK. June 2s.-Dr. Albert r.
Ledoux. a metallurgist and mining expert
OF this city, has been appointed receiver
for the Harvey Peak Trimming Company,
of South Dakota. Judge Lacombe, of the
United States Circuit Court, made the APP
pointment on application of stockholders
who allege fraud in the management Of the
company.
In the complaint accompanying the appli-
cation for a receiver, charges Of fraud are
made against the trustees of the defendant
company, Lewis May, James Flanagan,
William NJ. Dean, William Remsen, George
Ehret Charles d. Deshler, Herman Klubel,
Louis ID. Weber, W. l.. Flanagan, the es-
tate Of Frederick w. Foote, the estate Of
Henry ClauSen, jr., the estate OF Daniel
Sappleton, Samuel Untermeier and the
Farmers Loan and Trust Company. Com
plainants in the suit are Charles Fletcher,
Henry Landon Maud, Charles Edward Den
ny, Edward Maynard Denny and John
The history OF the case as told by the
documents is briefly as follows: The Harvey
Peak Tin Mining, Milling and Manufactur-
ing Company was Incorporated under the
laws of this State, on April 16, 1884, to do
business in the Black Hills region of Da-
kota. The principal organizer OF the COM
pany was James Wilson and the trustees
were William NJ. Dean, Charles ID. Deshler.
Herman klubel, Oliver +. Berry, w. j.
Russell, James Wilson and Charles NJ.
Field. An issue of 100000 was made al
once to purchase, as il is claimed, property
worth only $1,000 On Jan. 81, a second
issue of sSOOo,OOO was made to
oliver T. Berry as trustee, and the follow
ing year third issue of like amount
10 Henry Clausen, Jr. The English com
plainants afterwards took part or the stock
which they now say was issued TO the
trustees as a blind and that the bonds
were so juggled as to make il difficult 10
discover the fraudulent conspiracy and
18th. oil sIzI
among a syndicate of stockholders. In 1890
an agreement was entered into between
Samuel Untermeyer and Edward Sabine,
Baring-Gould, the Rt. Hon. Lord Thurlow
and John Taylor, of England and the
Harvey Peak Tin Mining, Milling and Man
ufacturing Company by which the English
men obtained $4,000 shares of stock at 500
par value in addition to $1,535, 900. Only a
small sum of the money was paid. but two
subsequent agreements were made by
which the Englishmen were to issue 1000 900
pounds in bonds of an English company
giving security for the rest, which they
failed to do, but 100000 pounds was put
on the Black Hills property in a mortgage
which issued TO the English company
in part payment and partly as security.
Another 100000 pounds mortgage was sub
sequently placed.
About four HUNDRED mining claims were
purchased, but attempt was made to
work not more than twenty Of them, and
the only thing mined, according to an affi-
davit of George n. Hamilton, was one thou
sand tons of ore, which has never yet been
treated. The Englishmen who had invested
between 100000 and s., 600 600 becoming
suspicious, sent over agents to investigate,
who, it is alleged. found that the American
members had put up only S2S0.00O in cash
for all the property. Samuel Untermeyer,
ii is charged, while on a salary of $1,000 a
year, actually represents 100000 in cash and
stock and others have received sums more
or less exorbitant Not more than 100000.
Ii is said has been expended in working
the mines and building the mills. and the
Englishmen want to know where their mil
lions went to The books of the company
were seized at 33 Wall street this afternoon,
and subpeDas served upon the defendants.