Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1907-08-23
dummy" ACTIONS OF
CONCERN EXPLAINED
Prosecution Finds Valuable Wit
ness and Clears UP Many
Points in Connection With
Action of Officers Who
Didn't Officer"

Denver, Colo. Aug, 2S.-That ne
had held a directors meeting all by
himself at which he voted himself
q salary of 500 month and also
passed a vote of thanks to himself
for a generous donation to the COM
pany of six million shares of stock,
was admitted yesterday by Arthur
Levan, secretary of the Lost Bullion
Spanish Mines company. On cross
examination by United States Dis
trict Attorney Bone, he proved a val
liable witness for the government.
Step by step Mr. Bone extracted
from Levan the details of certain eX-
traordinary transactions of the COM
pany's officers The prosecuting at
torney might have been using
thumb screw, the witness answers
were so damaging and so unwillingly
given. AS each phase Of the COM
pany's history was disclosed and the
significance of the previous ques-
tions made plain, those in the feder-
al court room realized that some
very deft cross-eXamination was go
ing on.
Increased His Own Salary
WAS anybody but yourself pres
ent at the meeting when you were
voted a salary of 800 and a vote of
thanks?" asked Mr.. Bone of Levan.
'I think not well l suppose not"
was the answer.
Did you have much difficulty in
making that vote unanimous ask
ed the prosecuting attorney politely.
Levan at this point was beyond ap-
preciating politeness. He was having
a very uncomfortable time and could
not help showing 1t.
Mr.. Bone brought out the fact that
the Lost Bullion Spanish Mines COM
pany sold stock to the public with
out owning the alleged mine" con-
cerning which it issued that wonder
full prospectus.
How much does the Lost Bullion
Spanish Mines company still owe the
Security Mines & Investment COM
pany on the pudchase price of the
Spanish and Manana group of
claims" he asked Levan.
-Four thousand dollars" replied
the secretary.
Don't Fully Own Mine
Q-Then the Lost Bullion com
pany today doesn't own full title to
the mine which it has been selling to
the publicf A.-Yes.
Q.-And the deeds of conveyance
are still in escrow and will remain
there subject to the payment of that
$4,000? A.-Yes.
The full Significance of this infor-
nation is of the utmost Importance
TO the prosecution. 1t means that the
promoters were selling the public
stock on the strength of owning
mine. and were using the money so
obtained to pay for the property.
AT any rate we've found a man
who knows something of the affairs
of the company" remarked the at
torneys for the United States as they
walked out of court during the re-
cess yesterday afternoon. Levan was
the first of the indicted men who
admitted to any such knowledge. DR..
Hunt, the former president and
Cameron, the vice president, pro-
fessed to have been in complete ig-
norance as to what was going on,
leaving the obvious inference that If
there was anything crooked, they
"eTf This s'i loop hole Vas plugged up
yesterday by the prosecution, hOwev-
er. Levan admitted that dummy
meetings were held and that the di-
rectors signed the minutes OF meet
ings at which they were not present.
But he said, they all agreed as 10
what actions should be taken and
all the proceedings were with their
approval
The Transaction
Mr.. Bone elected the full details
of the transaction by which the Lost
Bullion company paid Dubois money
that was owed him by the Security
Mines & Investment company.
In the first place the latter COM
pany bought the Manana group OF
claims from DUBOIS Tor SlO,OOO ana
some stock. of this they paid him
$4,000 down. Then they sold the
Manana Spanish and Rio groups TO
the Lost Bullion company for $780,
600. on the payment of $4,000 in
cash, the Security company gave the
Lost Bullion com pany credit for
$4,000. Thus at the time when the
Lost Bullion stock was first offered
to the public, the company owed
$115,00O on the purchase price of its
property.
Then the Security company took
900 600 shares Of Lost Bullion stock
i'm payment Of $4,000. Two INSTALL
ments of $1,000 each were paid in
cash, the cash having been furnished
by the people who bought the stock
of the Lost Bullion Spanish Mines
company. Then, when the grand
jury was called in Pueblo, Dubois
became a pressing creditor, refused
TO sign affidavts for use at the fraud
hearing in Washington and offered
to become states witness before the
grand jury,
At this juncture the Lost Bullion
company decided to Dubois 320 acres
of land In Missouri, gave him $3.50
in cash, and notes for $1,000 The
land belonged to Cameron and VII
son, II was turned over to the COM
pany at a valuation Of $6,500.
But Mr Kneables of the Security