The Providence news. (Providence [R.I.]) 1891-1906, 1898-08-01
Directors Now Believe
They Were Dupsd.
EXPOSURE OF THE SCHEME
Phelan Tells How Dociored Quick
silver Was Put in a Box.
FISHER WORKED UNDER WATER

And still the talk concerning the
Company goes on, but now the air of
confidence displayed by the officers of
the company day or two ago Is be-
ginning to disappear, and, according to
a dispatch from Newburyport, Mass,
they are arriving at the decision that
the Jernegan process Is a fraud. a
meeting OF the directors was held at
the residence of Treasurer Usher yes
terday.
An address to the stockholders was
drawn up, which in substance states
that the story printed by the New York
Herald of July 81 is, In the minds OF the
directors, conclusive evidence OF con-
spiracy on the part of +. r. Jernegan,
general manager. and G.. Il. Fisher. as
sistant manager, to defraud the stock
holders of the company. The address
also states that active measures have
been taken to arrest the criminals and
to protect the stockholders. The story
referred to in the address is a state
ment purporting TO have been made by
one William Phelan, detective, en-
ployed by the company, and which
President Ryan says he believes is cor
rect, and Treasurer Usher entertains
the same opinion.
PHELAN's STORY.
Phelan's statement is In substance
that Jernegan, assisted by L. IL. Fisher,
carried out the scheme OF ''doctoring
the quicksilver In the boxes, and II was
cleverly done. Jernegan, IL Is alleged,
would arrange TO have some capitalists
place the quicksilver in the machine,
which was then lowered to the bottom
of the ocean, To await the action of this
tide waters. Then Fisher, according
to Pheian's story. in divers suit,
would enter the waters at a distance
from the scene OF operations, unseen
by the capitalists; that he would locate
the machine. remove the mercury
placed in 1t by the spectators without
being detected by those above, and
then substitute some quicksilver that
was loaded" The yield from this
quicksilver was actual gold and was in
such quantities as to satisfy the inves-
tigators.
Phelan states that this was done on
one occasion from wharf on Nara
gansett Bay, near Providence, on
bitter cold night in February, when
two capitalists passed their time In as
sisting at one of Jernegan's tests.
But" says Phelan, they little dreamed
that Fisher, the diver, would come
around later, walking on the bottom
OF the sea, and empty their quicksilver
into the water. replacing Ii with some
doctored mercury of his own, well sat-
urated with gold" Phelan says that
not liking the business he decided TO
withdraw from II, and did so. in spite
OF the protests Of Jernegan and Fisher.
WHERE is JERNEGAN!
In spite OF the fact that there are
many persons who state that they saw
Jernegan on the steamer and that a
snap shot picture OF MIN was taken,
Phelan says that Jernegan. VINO was
said to have sailed for Havre. is in
New York or vicinity. and that with
him are Fisher and Marcus Jernegan.
brother of the pastor.
While this would appear to be an un-
propitious time to talk about gold froln
the sea. Mr.. Charles Il. Greene of this
city. claims that he has a process for
securing gold in such way. The pro-
cess used, he claims, Is an electro
chemical one, and for the amount OF
money invested is regarded by MI.
Greene as a paying affair. Mr.. Greene
says that he Is very willing that any
body who lis interested shall subject
the process to the strictest tests In
order to find out whether there is really
any profit in this method OF evtract-
ing gold.
JERNEGAN REACHES HAvRE.
Havre. Aug. 1.-The Rev. Prescott II.
Jernegan, the vlce-presidert and gem
eraI manager of the Electrolytic Ma
rine salts Company, for whose
arrest. on the charge of obtaining
money under false pretenses, warrant
was issued in Boston on July 30 ar
rived here by the French line steamer
LaNavarre at six O'Clock this morning.
He was not taken into custody, how
ever, owing. IL is said to the lack of
the necessary papers. and started for
Paris by train without being inter-
fered with.