The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-01-06
Novelist and Associates
Indicted, Charged With
Misuse Of Mails.
MADE So, 500, 600
BY "PROMOTING''
Authors Pen Pictures of Glori-
Gus Profits in Stocks Brought
Rich Harvest to Promoters,
but Mines Proved Worth
less-One Promoter Is
Nerve Specialist.

New York, January 5.-On sealed In
dictments returned December IS last,
the existence of which was made pub, 4
lie this afternoon for the first time.
pleas OF not guilty were entered In
tho United States District Court this
nalist-promoter: Josiah Quincy. for
mer Assistant Secretary of State eS-
Mayor OF Boston and at present q,
member of the Transit Commission OF
Boston; Albert Freeman, promoter:
John McKinnon. treasurer and Score
tary OF the hawthorne Mining Compa-
MES, and DR.. William j. Morton /, K
nerve specialist of this city. All are
charged with misuse OF the mails in /,
scheme to defraud Investors in stock
Oh mining enterprises.
Freemun's bail was fixed M so5o ma.
we others We're required to give bonds
or $4,000 each. All have until NEXT
Wednesday to withdraw or change
their pleas. - ~
Made Mnny Millions.
ahc fost-Oihcc Department has been
investiGatingh the Hawthorne proper
Ties FOR some time. The indictments,
charge that by tho sale OF stock In th5n
,
Lake Cobalt Mines, ltd, tho Montraai-
James Mines, Ltd, and the HawthornaS
silver and Iron Mines. ltd, the de
,enoants Noted nearly S2,5pQ 900. It
10 aiieseo that Hawthorne and his as-s
aociates represented that the mines
were being worked prohtably. and that
tn ne, 'Yiuends would exceed tho amount
of the total capital of each of tho vn,.i-
GUS enterprises. Tho indictm ents as
sert' on the contrary. that the mines
never yielued ore In paying amounts
four OF the indictments contain six
teen counts and the Nth cieven counts
three counts in each specify fraud in
the case of the Hawthorne silver and
IRON Mines, Ltd. Hnc), capitalized MT
sio,ooo0oo. sales or whose stock aIouo
Melted the promoters. II is charged,
81. 200, 900. - =
BY the free use OF Julian Haw
,horne's name there was but little trou-
ble 1t is alleged. in the promotion OF
the various stocks. Many of the in
vestors are declared to have been In
iueAtlal people and personal friends
Oh The Journalist promoter. In tho
mass OF literature sent out Hawthorne
Is alleged to have asked his friends 10
get IN on the ground floor" saying
IL was firm and could not cave i'm
Hawthorne's Romnnces.
secret OF solomon" pamphlets.
scattered broadcast for pron,ottp.,
purposes, told investors. the indictment
ayers that the only way to get money
Is to dig 1t out OF the ground
Another pithy paragraph purported
to be advice given by Hawthorne's
/ itther Nathaniel Hawthorne, the nov
slst. 1t ran as follows: ELSA
nathaniel said to Julian: Whatever
else you do, don't try to make liyinn.
by authorship"
One letter that Hawthorne wrote,
the Indictment charges, and mailed 10
friends said in part:
II have reverted to tho nrorasstor
| Tor which j was educated and from
winch l was temporarily seduccd hy
the allurement OF literature That nj
iurenent has held me for fortv vears
nut the time has now arrived when T
; want more money than the sort of
literature have produced can provide
= me postal authorities allege that
freaman. in addition TO getting his
snare OF the money from the various
STOCKS received royalty of cents
on every share of stock disposed OF
by the sales companies
scny Resigned.
New York, January 5.-According "a
me IN prospectus, the officers of the Haw.
tmofna silver and Iron Mines. Limitea
are as follows: - .So'
| IiftStOS ana AdStSOry
sl:ommittec---William Reynolds Brown
S SSiY. d York City: Henry {. butcher,
saelphia' Charles e Edgar. Mctuehen,
A. 4. u; Janon Fisher Baltimore, Md.
7, ra i1s G. Foster. Boston. Mass: Jas,
= bor mahn M., Cleveland, O.; Julian Nav.
iItn,o morn New York City; George Hunter.
ELigin. III; DR.. joan c. Jay. New Yori.
Gity; David L, Krebs. Cleardeld. Pa:
A AiIe f. Lauckel, Trenton, n J.: 4 r.
sMioriarity. Putnam. Conn: John Ne.
Minnon. New York City: DR.. Willlam
j. Morton. New York City; j. Nei,s
S Tafs Lake, MINI; Herbert a. sayrc.
ohlVereity. Ala: George j. Seny, Rich
inond. Va; Walter Shepherd, Dorches-
I IgT Gasntsr' p Mass; G. $; sweetland.
itr S,. Canada; Heber S. Thompson.
IottSVliie. Pa; George H. Webstnr
iiiiuvcrhlli. Mass: Henry Bigelow vii.
Harbausi, Chicago
George J. Seay. who is named IN New
i0rK reports as q director Of th,
itiawthorne Mines" said last nirht
tnat ne was not now n director ana bn5
not peon for some months $3.50
flt5is
" 4