Los Angeles herald., 1909-12-16

which she claims she was defrauded
by Price, and in a second similar ac-
tion she demands $4,000, alleging thai
Price made slanderous remarks con
cernlng her following the hearing of g
justice court case at San Pedro sew
eral months ago.
DR.. Helm in her testimony yester-
day said she was induced by Price tc
purchase 1000 shares of stock of the
National Gold Dredging company for
$1,000 in October, 1907 Price represent
ing that he and several others were
the owners of eleven miles of the
American river, the bed of which was
filled with gold like wheat in a bin.
Funds for Machinery
"It took him two hours to get my
money" she said. land when 1 de-
manded my dividends. which. he said,
would be paid In about three months,
he put me off. stating the money was
needed to improve the machinery at
the mine"
DIR. Helm states she was introduced
to Price by Mrs. ]. p Taylor, a member
of his psychological class, early in
October 1907, and shortly after she
arrived in Long Beach from st. Louis.
"Dr. Price said he was engaged in
philanthropic work. had built the Psy-
Geological temple at Long Beach and
purchased large tract of land In Mex
leo for his class" said DR.. Helm. "He
added that he had purchased the mid
die fork of the American river, the
richest gold-bearing river in the
world"
DR.. Helm said when she told DR..
Price she could not buy gold dollars
If they were selling for 80 cents, be-
cause she needed the money to support
herself and her mother, the leader of
the new and practical psychology re
piled she could not buy the stock, as 1t
would be sold only to members of the
class. He invited her to attend the so
ciety's meeting that night as his guest,
and during the meeting told her 5000
shares of the National Gold Dredging
company were for sale.
Decides to Break Pledge
A telephone message brought her to
DR.. Prices office the next night.
"He said he had determined to break
his pledge because my cousin, Thomas
Helm, had befriended him years age,
and ne offered me 1000 shares of stock
despite the fact that I did not belong
TO his class" testified DR.. Helm. "He
said the gold in the river was like
wheat, in a bin: that the company had
kegs and kegs of gold, and was paying
large dividends. The property, he said,
panned so cents to $40 a cubic yard,
and he showed me little vial which
he said contained SS4 worth OF gold
panned by himself A banker of Los
Angeles he added wanted to purchase
the stock, but he wanted to give me a
first chance to buy it. He was two
hours getting my money"
DR.. Helm said she called at DR..
IDrir rofc in
manded her dividend, but he said the
money was needed to buy a stacker, u"
and she was put off on another pretext
when she made a second call in Feb
ruary.
Says Claim Was Untrue
G. III. Walker a stakeholder in the
National Gold Dredging company, said
he visited the company's property in
Placer county in 1908 and discovered
the representations made by Price
were untrue. Instead OF owning eleven
miles of the American river, he said,
he found. after an investigation of the
records. that the company had one and
q half miles, which it worked under
contract.
When asked as to the probable value
of the property, the witness said he OBJ
tanned 20 cents or 81 as the result of
about sixty pans
A large number of Long Beach resi-
dents who say they lost money by in
vesting in the company's stock were In
attendance on the proceedings yester
day The examination will be resumed
today.