The daily Alaskan., 1904-04-29
THE CHARGE AGAINST
 TORRFNCE FALLS
TContinued from Page I,l

ners, resulting from the tormCr's obiec- tions to the personal representative of the latter, resulted in the employment of William Fizhugh to make an exam ination of the property for the purpose of ascertaining its value and the best way of working it. This was done in 1902, and Fitzhugh's report made that year was that the country was immense ly rich. He worked for weeks up and down the tract of the placer grounds and took out hundreds of samples. He estimated that Nugget bar alone con tained s9, 4O7, ,243 in gold. He estimated that it would cost s3O6, 100 to install a mining plant and S562, ,466 to take out the gold, leaving a net profit of SS,5SS,- GIT. This report was so asttering that it started in circulation rumors that the property had been salted, so Fitzhugh was sent out again in 1903. He wired back early in the year that the ground was fully 30 per cent. richer than his first reports indicated, and he after ward wrote confirming the telegram.
 Readers of the Daily Alaskan will re- member that when Fitzhugh was in Skagway last fall, CD route to London, there to make his final report up the Seventymile placers, he said that he had proofs that the grounds had been expertly salted, before he had exam ined them. He said that he had suS- pected this condition from the begin ming.
 Mir. Terrence says that when the stockholders of the Klondike Estates Corporation met in London, last Feb ruary, the experts, who had preceded Fitzhugh and those who had assisted him, stated to the stockholders in the presence of Fitzhugh that it would be impossible to salt a country 30 miles long and hundreds of feet wide so that it would serve to defeat such an exam ination as had been made. It was shown that Terrence was not permitted on the ground when the examination was in progress and that it would re- quire more gold dust than was pro duced in that section of Alaska to plant it so that it would show up in every test made Ftzhugh was asked, why. if he had suspected the country had been salted, he reported that he was certain of the great values, and why he had confirmed it early last summer. Afidavits were also presented showing that neither Fitzhugh nor Stanley were on the ground last year.
 The proofs which Fitzhugh claimed to have that the country had been salt ed, consisted of atEdsvits of few peo- pie at Eagle that gold dust had been bought by a man named Henderson, who was au employe of Terrence, and it was believed that it was to be shot into the ground. Terrence claims, and has evidence that tends to bear out the claim, that other people had been ot- tered money by Fitzhugh to make sim liar afidavits, but that theN had re- fused. From this fact it is deducted that the afidayits had been purchased.
 The London stockholders were great l surprised when Terrence showed up in London last winter, as they knew what Fitzhugh was going 70 try to show, but the final discomfture of the expert was SO complete that they, without ex- ception, refused to give him eredence and their confidence in Terrence re- mains unshaken.
 Mir. Terrence says that Fitzhugh's action ir attacking him was inspired by two things. Terrence had dis overed Fitzhugh to be a fraud and had so told the men who had ' aid him S5O,O to expert their property. Fitzhugh stalk ed 2lS claims in the Yukon in his own name and by power of attorney. He meant to keep them for himself, but Terrence forced him to turn the claims over to the company. The other cause was that Terrence had condemned the report made by Fitzhugh, saying it was too rich by half He also agreed to put in the plant, to install which Fitz- hugh wanted s3O6, 100, for sl5O,OOO. Other experts agreed with Terrence, and to get even with the latter and to make an excuse for his previous exag-. gerated reports, Fitzbugh put up the claim that the ground had been sslted.
 Mir. Terrence also says that investi- gation disclosed that Fitzhugh had secured the job of exporting the placers of Seventymile under false pretense. He represented himself to be one of the right hand men of John Hays Ham mOnd, of South African fame, while, as a matter of fact Hammond had fired him for incompetence more than two years previously. It is also stated that Fitzhugh was once assistant engineer of San Francisco, and that in surveying and laying a sewer half mile he got the outlet 22 feet higher than the in- take.
 During the progress of the quarrel L.s,-.o-, 1n,vrs.r,,a gv,1 bfs T opaOp v,a rf-