Los Angeles herald., 1908-10-09
ACCUSE TWO OF
MINING SWINDLE
STOCKHOLDERS ANGRY; SEEK
REDRESS
WITNESSES SAY VALUE OF ORE
WAS MlsREPREsENTED
Chemist and Secretary of Gold Bull
frog Company Face Crowd of
Alleged Victims incourt
Room

More than fifty of the 242 stockhold-
erS of the Gold Bullfrog Mining ana
Milling company appeared in Justice
Selph's court yesterday to listen to the
proceedings and testify in the prelim-
mary examination of C. j. Callahan
and Fred w. Nash, charged by George
Sheehy with issuing false reports on
the condition of the mine. Among
those present were a large number OF
working people, men and women, VINO
had given all their savings for what
they now believe is worthless stock In
a mine. the ore from which, they claim,
was represented as running in value
from So to nearly $2500 ton.
Callahan, who acted as chemist and
metallurgist for the company. and
Nash, who occupied the position OF
secretary, are said to have issued the
statement on September 4. 1907, con-
tanning glowing prospects for the mine.
Five months later suspicion arose
that all was not right when friction
occurred between Louis Polls. an ex-
pert miner. and H. Morrison, manager
OF the mine. Polls came to Los Ange-
les and told some of the stockholders
that the value of the porperty had
been misrepresented.
Joseph f. Keyser, 1876 West Santa
Barbara street, a street car conductor,
decided to carry on an investigation.
He had spent $500 in the purchase or
stock and wanted to know whether he
would ever see any of the promised
dividends. Keyser became a detective,
went to the mine and was hired as an
engineer. He sent a small sample of
ore to his wife, which she had assayed
Forty-one cents a ton was what the
assayer told her, and keyser came
home.
His report stirred other stockholders
to action In April Alois Krier, mer-
chant; A. p. Mechris and George L.
Mechris, cigar box makers. went to the
mine. They gathered up about zoo
pounds of ore from points in the mine
represented by the September report
to be the most desirable locations, Ia
beled them and sent them in three
trunks to Los Angeles.
Then they had the ore assayed by
three different firms. NJ. l.. Wade OF
the firm of Wade & Wade said he had
examined four samples Of ore. me
first he said, ran 70 cents ton, the
second 50 cents, the third Al cents and
the fourth $1.24.
The stockholders, following these re-
ports, became angry and called upon
Callahan and Nash to explain the re
port of September 4. Callahan. they
said, denied that he had made the re-
port, laying the blame on Nash. The
latter accused Callahan, and the stock
holders gained nothing from the con-
tention.
George L. Mechris, his brother, A. P.
Mechris, Joseph F. Keyser, Alois Krler
and Benjamin Giles, a workingman
with a large family who had placed all
his money in the stock, were the wit,
nesses yesterday. All of them testified
that conditions at the mine had been
pictured in glowing colors to them.
George L. Mechis, who said he was
zone of the suckers" stated the last
meeting of the stockholders was was hell held
in April, when they. were told tnat
money was needed to carry on the
work at the mine. 1t was decided, he
said, to sell 10000 shares at so cents
share. the provision being made that
should the full number not be sold the
money would be returned to those who
had subscribed. 1--WE never got that
money back" he said, although the
10000 shares were not sold"
The examination will, it is expected,
occupy the rest of the week and may
continue longer.