The times. [volume] (Richmond, Va.) 1890-1903, 1898-08-02
STORY OF A BIG SWINOLE.
How the Rev L. l.. Jernegan Gulled
Lot of Connding CAPITALISTS.


This is the story OF a swindle, probably
tho most unique ever porpetrated. 4
swindle, the dupes of which were not Sc
cured among the ignorant and the illite-
rate, but from the ranks OF capitalists,
cclrgymen and others of intelligence and
experience, men who would be considered
likely TO be thoroughly and scientifically
investigate any scheme inviting their
support and the investment Of their
money but who bit at the ghtteflng Ddlt
with childlike crcdulity, their cleveriy exc
cited cupldity hushins TO rest all reason
able doubt and causing them 20 trust Inn
plicity I'm that most easily deceived OF an
the senses-sight
IL is not likely that there are many
newspapers readers who have not read Of
the flight OF the Rev. Prescott j.. Jerne-
gan, the oily-tongued clergyman and pro-
moter of the scheme to electrically eN-
tract gold from sea-Water, OF the simul-
tane0us disappearance of the funds oi the
company and the disclosure that the en-
tire project was "a fraud pure ana simple.
But how the scheme was worked ana lue
ingenious manner I'm which 10 was made
TO appear not only plausible but uhidi4-
ing. has but recently been brought 70
light. and that through the statement of
an insidor, one who literally worked inc
ropes" behind the scenes.
This man. who largely contributed 10
the success of the plot while secretly tax
ing notes of its workings, Is DETECTIVE
William Phelan, of New York city, and
no tells how, but Tor the recalolirdnce ut
a critical juncture of one who knew TOO
much" the scientific parsOn would ln
an likelihood be still extracting gold, NOT
from the booming pillows OF Naragan-
SOFT his first base OF operations, lil
from the pockets OF c0nflding capitalists.
Detective Pheian's connection WIN tne
gold bubble began in September lA.''
when he received communication from
Charles T.. Fisher, at Del1nd. FLORIDA.
Fisher was a professional diver, ana Ole
though the contents OF this hrst letter
are not disclosed, be soon followed il by
personal visit 90 New York accom-
panied by Jemegan. who was introduced
20 Phelan as a Baptist clergyman. the
inventor of u scientific process which was
bound TO make the fortune of any one
connected with its operation. Just why
Phelan was taken into the scheme does
not appear but Fisher made arrange
ments 20 take a room al his house, say
ing that they We're anxious 20 secure "a
quiet place. where they could conduct
some important experiments.
They got the room and stayed month.
40 details were given Phelan; only hints
calculated 10 impress upon him the mag
nitude OF the undertaking and its bOnan-
N character The first idea vouchsated
him Of the nature OF the work was when
Fisher asked him 20 accompany him 90
Mantle. 20 DO some detective work In
connection with the scheme. he was told
IIe went and found Jernegan in cottage
just outside of Mantle together with A..
b. Ryan. afterwards the president or the
GOLD company. They seemed to be en-
gagged in erecting some kind OF chemical
machinery.
A day or two later. after returning %
New York, Phclan got another letter
from Fisher, announcing the contemplat-
cd removal OF the plant 90 Rhode Island,
and shortly after a second cpiste, this
time from Providence. In this Phelan
was asked 20 join Fisher In the Rhode
Island town 20 assist him In some dr.
ing experiment A survey had 20 be
made the diver explained. and AS the
exact confguration OF the bottom Of the
bay was important. he would be obliged
20 descend for this purpose, and desired
Phelan. as a man IN whom he could place
implicit confidence 20 hold thes life line
for him.
After experimenting for some time, n
spot was selected on the shore OF lit
tie island IN Nara gansett Bay where the
water was from seven 10 nine feet deep.
There was a small wharf here. and from
the end Of this 90 the island along the
bottom OF the bav an insulated cable or
wire was laid connecting az the wharf
end with some apparatus submerged
there. on the end Of the wharf there had
been constructed a small house Of boards
eight By ten feet which Jernegan said
was for his use in making the surveys.
Not until now was the plans the two
men explained 10 Phelan. They were
about 10 make the sea give mp It's riches.
rr,.o 90 nffalisfe had boan inviteh Ia c0me