The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-03-02
100000 BUBBLE COMPANY.

Rev Prescott F Jernegan, who has a
device to extract gold from salt. and who
( formed the 'ElectroIytic 41arine Salts
Company" capitalized with 100000
shares of 81 each. of which 100000 was
actually paid in, has been located after
| five years. He teaches a normal school
| in Manila.
Jernegan was the principal in one of
| the most remarka bic swindles known in
America
In 1886, Mr.. Jernegan, who was a Ba p
! fist clergyman, made known TO his friends
that he had, while in Florida, had re-
| Vealed to him through a dream, a process
of extracting gold from sea water.
The niiterate Immediately hailed the an
nouncement as absurd. Up to that time
the ordinary Tun Of people did not know
what had long been a matter of knowl-
edge to chemists, that sea water con-
tanned small quantities of gold and silver
and many other minerals The amount
Of gold in one ton of sea water is about
one grain, not enough under any process
for profitable operation.
Mr.. Jernegan took his vision very seri-
ously He declared that all he wanted
was a fair trial. He set about and per
fected his apparatus for extracting gold,
and in the course of time it was ready for
trial
He had become acquainted with certain
/ capitalists in Connecticut. that is, they
/ were capitalists in a small way. He had
preached in Middletown and he had not
much difficulty in interesting several men
prominent in church circles.
! In the course of time the apparatus was
ready for the decisive test. Mr. Jernegan
submerged his electroIytic marine salt
box
The place had been carefully selected
by Jernegan and his assistants months in
/ advance. Platinum wires had been laid
leading from the shore to the end of the
wharf, through trap door in the flooring
OF which the box was laid down into the
water little shack had been erected
upon the wharf surrounding the trap
door, and in this hut the capitalists wait
( ed one bitter night in December from
sunset till dawn, while the gold was ac-
/ cumulating in the box beneath the water.
/ The gold was accommodating sure enough.
but not in way the deluded capitalists
/ imagined. According to an expose which
/ was made in July. 1898. c Z. Fisher,
Jernegan's accomplish walked out to the
box in a divers suit. guiding himself by
; the platinum wires that had already been
strung for that very purpose. and salt
ed" it. Fisher took out the pure mercury
which the capitalists had seen put into
! the box and substituted mercury which
contained a considerable quantity of gold.
Fisher was a diver by prof ssion. whom
! MIR. Jernegan had picked Up in Florida.
! When engaged in the mining business
/ he dill not find an air pump necessary.
/ but simply took an apparatus having
a quantity Of compressed air in a cop
/ per receptacle. The water was shoal and
/ the job was easy.
When the box was taken UP in the
morning the mercury was removed and
passed over to the capitalists for test
ing. The retorting process showed gold
in paying quantities.
/ The avarice of the capitalists was eX-
/ cited. They saw an unlimited appOTtu-
/ nifty for wealth. They would corner the
gold market. They could produce it in
such quantities. If they chose. as TO rem
der it cheaper than iron. The new in
vention promised the most startling re-
suits of any in the history of the world
SO far as moneymaHins was concerned.
! 1t must not be supposed that only the
one test was made. Trials almost with
our number were conducted al Narragan-
! sett Bay and at other places. Some Of
| the brightest men in New England in
vestigated the clergymans wonderful de-
vice for extracting gold from sea water.
I iv,t, ~ g4b Ir efO in
the company formed for the purpose of
exploiting it.
\ manufacturing chemist in Boston
was even fooled 10y it. So badly fooled
was he. indeed. that he bought Slc0.OJ0 in
stock. and raised a rumpus because the
company refused TO let him have more
When once the thing got to going in
4 vestors fairly fell over each other in their
/ caserness to get rich quick. and the mon
ey flowed into Mr.. Jernegan's pockets
. in a ceaseless stream.
The companys works were at North
Iubec Me. Huge buildings were erected.
and hundreds of machines were installed
for extracting gold from the water. over
/ 7o1 men were at one time in the employ
/ of the company.
Under arrangements with the company
Mr.. Jernesau received 10 per cent Of the
receipts from the sale of stock; - per
cent went into the treasury. and % per
cent was paid to the selling agents. Mir
Jernegau's percentage alone came TO
S33S. 90. but it is thought that he had to
divide this with Fisher and other confed-
crates
The amount Of money with which he es-
! capped TO Europe in lSaS probably did not
exceed Sl25 Oco. The fact that he took only
what was technically his rendered prose
cution quite impossible.
Having demons, rated while in Vienna
/ that he could not be forced 10 refund "A
single dollar Of the Sl35.ol1 with which he
( left the United States Mr.. JerucEan did
a strange thing He actually sent back
/ SS5.0'o 10 the treasurer of the great burst
bubble. lhe Electrolyjic Salts Company.
He was under no legal obligation TO do
So 1t was thought he had he One fright
To his dupes
I Later II was realized shat Jernegan had
I been actuated by no such motive.
The return Of the SS5oao was nine
DAYS wonder NJ the time. Since then
tthe fan OF 1889 the world has heard alb
! solutelv nothing Of Prescott +. Jernesan.
+ For five years he has been IS one dead
Many thought he was dead. Some Of his
( victims had kept sharp lookout Tor HIM in
Europe. but had never laid eyes on him
4 Neanwhile. ny q strange irony of fate
+ he lost much OF his money by investing
in an English company that proposed 10
co. s,is h,- a method much the same as