New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-24
PROBING MINE CONCERNS
u. S. Grand Jury inquiries Into
Julian Hawthorne Promotions.
MANY INVESTORS COMPLAIN
Postal Inspectors Say Writer s
Glowing Accounts Drew IN
Millions of Cash.

The federal grand jury began an inyes-
tigation Yesterday into the various promo
lions Of mining enterprises started within
recent years under the name Of Julian
Hawthorne. the writer. son OF Nathanlel
Hawthorne. The chain Of enterprises mat
will be Investigated with a view 10 indict-
meuts for using the mails in schemes 20
defraud investors was said TO include the
Julian Hawthorne Company. tho Haw-
thoruc silver and Iron Mines. Limited. and
more than half n dozen similar promotions
Of mines near tho Cobalt district M can
ada
For many months postodicc Inspectors
have been on tho trail ~ the mon who arc
said 70 be tho backbone 81 the enterprises.
IaNtLorne's usmc and his ability as
vivid and descriptive writer helped. it IS
alleged. 20 draw millions from people all
ever tho country. Complaints have been
pouring into the Postofice Department
and recently into the Department OF Jus-
tico and both Attorney General Wicker
sham and Postmaster General Hitchcock
have taken personal interest i'm the inres-
tization.
The men behind the scheme which, II Is
alleged. parted thousands Of persons from
various sums that they expected 10 multi
ply through dividends literally promised
but never paid. wcrc described by men
familiar with the investigation az having
been in the promoting" business for
long time before Julian Hawthorne made
stock selling easy for them by his glow
ing descriptions Of fabulous wealth that
could he picked up by buying shares at the
low price or from 20 cents 10 few dollars
a share for stock IN mines in the Cobalt
district. where iron could he obtained ar
the rate Of from loo 10 500 tons day
and rich veins of silver and gold would
yield uudreamed-of returns.
Albert Freeman. who has produced some
stirring advertising literature himself In
the days before he secured Julian Haw
thornes services. was said 10 be the man
behind the numerous enterprises. one Of his
earliest attempts was the King Solomon
Gold Mining Company. which had among
IT'S directors Josiah Quincy former Score
tary OF state of Massachusetts and at ono
time Mayor OF Boston. Later came the
United Mining Company. tho Tcmagami.
the Cobalt. the Montreal James. the Elk
Lake Cobalt. the McIntyro Porcupiro the
.I'
trorne silver and Iron Mines and tho Con
tinoutal Syndicate, which was organized 20
sell the stock VI the United Mining Com
Vanv
one Of the latest enterprises was the
Hawthorne Silver ana Iron Mines, Linn
tied. incorporated iu Delaware, with a
capital Of 100000, az 81 a share. Freeman
did rot appear this time on the list OF d.
rectore. but Julian Hawthorne was made
president or the company. while John Nc
Ilinnou was its secretary ana treasurer and
Josiah Quincy it's counsel. The list 81 il
rec.crs included James T. Hanna, Of 'lere-
land. nephew Of tho late Mark Hanna;
George Hunter, Of Elgin, ILL.,, and Or. John
C. JAY, Of this city.
From their Offices AZ 40. CO. Fifth ave
uuc. where the promoters had moved from
No 10 Broadway, an advertising cam
paign was started that Melted hundreds or
thousands of dollars. il IS alleged. The
mine was situated near the real Cobalt
camp. tho wealth OF which has been pro-
nounced bv expert mining engineers as
being confined TO q few square miles. al
ready occupied by big companies. But tho
public did not realize that and the fact
near tho Cobalt mines could be announced
proved winner.
"ro begin right. 20 mako the investment
attractive. We shall sell one million shares
al 20 cents each" wrote Mr.. Hawthorne
But tho price will rise "a VIC 20 on. I
have no doubt of selling az many shares
as 7 care TO- Many people who read this
letter will DO ready 20 send nc subscrip-
lions on my bare say so"
And they did. Judging by tho number Of
those who are now asking Tor an investi-
CATION. And 70 seems, If the impression
received bv some investigators be true
that Julian Hawthorne himself was more
the dupc OF othc- business minds that
drove him on than might Dee assumed from
the certainty with which he announced as
facts what il is charged now. We're mere
visions Of mind euwrapped in the posi-
biIlties Of acquiring easy wealth. II was
said that he invested all Of his money In
stock. and that his compensation for writ
t,,, booblets and letters was the mun.h-