The Barre daily times. (Barre, Vt.) 1897-1959, 1912-11-19
TRY QUINCY,
HAWTHORNE
Three Other Defendants Before
Court
FOR MISUSE OF MAILS
An Alleged misrepresentation on Mine
Stock-The Indicted Men Declare
They Are the Victims of
Persecution.
FOR MISUSE OF MAILS

New York. Nov. l9.--1he federal gov
eminent called for trial in the United
States district court here yesterday
what il considers one of its most inn
portant cases growing out of alleged
misuse of the mails. Ii involves the in
teprity of the so-caled Hawthorne
group of mining stocks and brings TO
the bar as defendants men Of national
reputation. They are five in number
Julian Hawthorne, son OF the novelist,
Nathaniel Hawthorne; Josiah Quincy,
former mayor of Boston and assistant
secretary OF state in the Cleveland ad-
ministration; Albert Freeman, a promo
ter; DR.. William J. Norton, nerve
specialist, and John McKinnon, secre-
tarv-treasurer of the Hawthorne com
panies.
These men, who it is alleged, were en-
gagged in the sale OF stock in the Haw-
tborne Silver Mines company and other
concerns, were indicted in New York
last january, for alleged use of the
nisllIs 10 ueiIduts lHNeslOlSs = t Hphtih-
ment contends that at least S3,000,000 |
accrued from the sale of securities; that |
sales were effected through misrepresen- |
tation of the character OF the properties I
and that notwithstanding promises no
dividends have been paid.
The defendants maintain that they
have been the victims of ruthless
crusade on the part OF the postotiiee de-
D. L.. Hal
to-day a statement was issued in their
behalf in part as follows:
THE defendants contend that the pri-
mary cause of the suspension of opera
lions at their mines is the action of the
postoflice department, instituted two and
a half years ago and vigorously prose-
cuted except at intervals, ever since, in
stockholders and destroying
their confidence in the enterprises and
their management, thus compelling the
directors to suspend operations until the
government case could be disposed OF.
''Tt is also contended by the defence !
that the properties Of the Hawthorne COM !
panies, particularly the large number OF
mining claims upon which silver or sill
yer bearing ores have been found, even ,
to day are of great value and that if the ,
directors are enabled to operate them {
the stockholders will be fully satisfied
with results, and that the iron deposits .
Of the Hawthorne Silver and Iron com !
pany constitute an asset, which, If prop |
arly developed and worked, would not /
only insure the stockholders from loss E
out would be source Of dividends. ! {
"Ihe defendants contend that the d
Hawthorne mining enterprises were un- I
in good faith and were based a
lpon geological and mineral conditions, y
which gave sufficient grounds for expect
ng the success Of mining operations and r
hat the stock of the mining companies 7
vas offered to the public with notice OF
t. speculative character and of the
isks of mining prospects.
1T is claimed by the defence that the N,
overnment is trying by this prosecution
o hold the offices of the Hawthorne com
anies responsible for mining failures
here disappointments have been met
18th and to deprive them of the credit
t success where this has resulted" o'
More specifically the action of the ST
overnment is based upon the alleged o.
Misrepresentation and false statements of
ontained in the literature sent through
nc mails concerning mines of the Cont II
entail Syndicate located near the Cobalt P'
strict in Canada ID
These mines were described as the di
Cobalt mines, Ltd. the Elk by
AXE Cobalt mines: the Montreal Co Nj
1T mines; the Hawthorne Silver and Pr
on mines and the Julian Hawthorne tai
mpany. The government alleges that ar
ese mines are outside of the silver lie
oducing belt at Cobalt and that this
ct was suppressed in the circulars and inc
tiers sent out Julian Hawthorne, il is tic
legged, was selected for his ability TO no
rite glowing descriptions and because to
8 name on the prospectus and together A
til that of Josiah Quincy, would in ira
ire confidence among investors. VIII