The Yale expositor., 1909-06-04

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but when case
develops unusual difficulties the Sc
cret-service department is called
upon. This does not often happen,
however, for there is lot of rivalry
between these departments and not
little jealousy. 1t is only as a last
resort that our branch of the ma
chinery of government is brought into
requisition, and not until the post
Office inspectors have failed utterly.
A case of this character occurred
a few years ago in one of the larger
western cities.
1t was a mining-case-a company
backed by $50,000,000 capital stock
and, to all appearances, it was a
legitimate scheme. Among it's direc-
tors were four or five well-known
western mining men. one i remember
being an ex-United States senator 1t
advertised extensively in the newspa-
pers and by circulars. Orders for
stock were pouring into the company
In such large quantities that it re-
Quired two and three mail-wagons,
sometimes, to haul single days
mail.
The advertising matter of the COM
pany, which operated under the name
of the Amalgamated Gold Syndicate,
was cleverly written. 1t stated that
the discoveries of the mine were two
poor prospectors without kith or kin
but with hearts overlooking with gen.
erosity, who, from the two millions of
stock that each owned, derived a rev.
enue greater than either could spend
and, approaching the Affections of the
poor and the scant opportunities for
a man of small means to find a safe
and profitable investment for his saw
ings, they had decided to share their
wealth and prosperity with their fell
low men.
The company placed 100000 of
stock upon the market each year,
100000 in January and $1,000,000 in
July. 1t advertised that no one person
would be allowed to subscribe for
more than 500 of each semi-annual
issue and that the subscription-books
would be closed as soon as the re-
quisite million was subscribed.
The post-office department became
suspicious as soon as the advertise
ments began to appear, and the in.
spectors were Immediately put upon
the case. They worked for six months
and found nothing that supported
this suspicion in the slightest. On
the other hand, they established be-
yond doubt that the mine had been
discovered by two poor miners who
had no relatives living, so far as
could be determined; that they had
induced capitalists TO invest 81 ,000, 900
In cash in the venture, and had then
organized and incorporated the Anal
gamated Gold Syndicate with a paid
up capital of $5,O00,000, selling the
mine to the corporation for $4,000, 900
of stock. The mine was called THE
Katydid," and it had been worked for
a time by the corporation at a big
profit. The two miners, poor no long
er, had, after a time conceived their
charitable scheme, and had put it
through much against the wishes of
the minority stockholders, who were
powerless to prevent it.
Accordingly, the capital stock had
been increased from $5,000,0O0 to
$50, 900 and the charter authorized
100000 of the increased stock to
be sold each year.
The company apparently did every
thing that 1t advertised. 1t regularly
paid its stockholders an annual divi-
dend of 20 per cent.
Hudson, one of the miners, was
president of the company, and in
charge of the Offices it maintained in
the western city, which have already
mentioned, while Mason, the other
OF the dicoverers, was general mana
ger and in control at the mine. Both
Hudson and Mason bore out the char.
acters that the advertising matter of
the syndicate gave to them. They
dressed in rough. cheap clothing.
chewed tobacco, and showed a disre-
gard for money that is characteristic
OF men who have worked hard all
their lives against an adverse fortune
and who have suddenly come into
great wealth. In everything they
acted the parts of uncouth, unedu.
Gated sons of the soil.
At the Katydid mine, visitors were
always welcome. They were shown
over the properties with the greatest
freedom, only one place, the small
building where the metal was separ-
ated from the amalgam, was deniee to
them. Mason explained this by say
ing that the company possessed a
secret process for refining which he
had discovered and which was known
only to himself. to Hudson, and to
Belden, the company's chemist
This, In brief, was the status of the
case when was put on It. IL was
given to me because l had been a
miner and prospector and had studied
geology and assaying.
After working a week on the case |
was satisfied that the company was