The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-02-24
COLD Mine Sailed
Kansan SwindIed NeighbOrs,
Seward Jury Finds.
w. A. Custer Must Return
Ranch to McCauIey Bros.
TESTS" SHOWED PAYING ORE
Meade People Also Bought
Many Shares of Stock.
Foreman Tells of Pay for PIac-
ing the Gold.

Hutchinson, Kan, Feb. 2.-That
Mexican gold mine was sailed after
| all.
W. A. Custer. Of Liberal. who sold
stock in a Mexican gold mine to a
| large number of people in southwest
ern Kansas, among them some IN
| Hutchinson, was stuck by party IN
| Seward county.
The jury found that Clusters Next
| can mine had been Sailed and that
Custer had misrepresented its Value
and deceived those to whom the prop
erty was sold.
J. F. G. McCauley and his brother
G. D. McCauley, Meade county rancna..
men, were induced to trade their SUI
acre ranch to Custer for stock IN lhe
Mexican mine. After they discovered
what they alleged to be fraud they
brought suit against Custer.
The Jury rendered judgment against
Custer and he must turn back 70 tne
McCauleys their 500 acres or lana on
vey, of Topeka, and Judge Frank Price
represented the McCauleys.
People who bought stock in the Mex
lean mine are scattered all unrougi
southwestern Kansas. Many Meade ana
Seward county folks were caught, IN
Guiding a large number of the business
men of Liberal. where Custer mas llNed
for a quarter of a century
How They Were Worked.
In April 1909, one Sam Fl. Smith
who had worked on a ranch for w. A.
Custer, sold to Custer shares OF STOCK
in the Sonora Development company
an Arizona company, SaId TO own
minig property near Llano, sonora
Mexico. Custer went down to lnVes-
tigate the property. At that time one
Chance S. TreadWel, was foreman
and in charge of the property Iesls
or sampIings were made in the pres
ence Of Custer and Ernest Brown The
results showed values or yields OF golu
in good paying quantity Inc pIoce sS
If sampling is by taking the dirt out
of holes. screening the same ana run
zinc II over a dry washer" then wash
inc the concentrates. Custer after MS
purchase of stock presented the maj
ter of stock selling to j. E. George
and G. G. Brown OF LIBERAL ana aiSo
interested ]. M. Piper.
These gentlemen went to the prop
erty with Custer and tests were mace
in their presence which showed goou
values. and these three gentlemen
,.e-,eh+ o. o0O shares each. Custer at
The same time purchased 2oOOU share5-
These shares were sold by sam II.
Smith.
In April. 1910, Custer Interested 3. r
Cox and DR.. Fee of Meade ana ". Z.
Fsunvan of Fowler. in the mining u
stock proposition and these men "e eu
70 Investigate. Tests were MADE lol
them and the results showed ap oo,1t
the same yield of gold. Custer sent
word to J. F. C. McCauley about phIs
.;et, nine and suggested he also go
down to investigate. He told McCauley
that the Sonora Development com
nanv owned announcements covering
q hon+ 535 acres of ground near Llano,
Mexico. which ground contained
strata of gold bearing graVel or earl IL
covered by an over burden OF ear IL ~ ~
from to feet, the lower Two Zee
Of which gold bearing strata ne guar
anteed to yield gold upon an average %
from So to IS per ton OF olrl anu tie
upper two feet he guaranteed would |
Weld gold upon an average OF from
80 to s. per ton of dirt Custer stated /
that the mine was worth 80 million dol |
~ He UnIoaded the Mine.
Relying on these representations
McCanley bought $4,000 shares or
traded 500 acres of land valued at S4O
per acre for the $4,000 shares of stock.
In June, 1910, McCauley and his broth
ar q. d McCauley, went down to the
nrone4-fv with Custer and tests were
made which showed an average yield
of gold above the amount stated by
Custer The McCauleys being salts
fed with the investigation and results
purchased more shares. They traded
$50 acres of land valued at $40 an
acre for $4,000 shares of stock
In December, 1910, Mr.. McCauley
went down to the mine and then from
he received he had tests
made and discovered that his stock
was valueless- He was told the mine
had been ''salted" every time test
was made for prospective buyers, and
this was done or caused to be done
bv the boss" Several tests have
been made the last being made in the
presence of Louis Boehler, the cashier
IF the Meade State bank. and F. D.
Morrison, cashier of the Fowler State
oank. and the concentrates washed
1ut by these two men and the results
showed a small quantity of gold in
some of the dirt and a mere trace of
yoI1 in MANY of the samples.
He Sailed the Mine
The evidence disclosed that Sam H.