The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-01-06
IND|CTS MEN OF
FAMOUS FAMILIES
Federal Government Charges
Hawthorne and Quincy
With Fraud
HEADS OF MINING
CONCERN ARRAIGNE D
Five, Including Son of Author
and Former Mayor OF
Boston, Under Bonds
for Trial

NEW YORK. Jan. 5.--Five men.
two OF whom bear family names that
have been famous throughout the
world tor generations. were held TO-
day to answer to indictments by the
+ ederal government. charging con-
spiracy and use OF the mai!s 10 de-
fraud innocent Investors. by the SAFE
of mining stocks. The defendants
who were arraigned before Cnlteo
States Commissioner Shielca. are:
Julian hawthorne, Journaiist-pro-
moter. son of Nathaniel hawthorne,
the famous American novelist. resi-
dence, Mt. Vernon.
JOSIAH Quincy. former mayor OF
Boston. formerly assistant secretary
OF state under President Cleveland
and at present member OF the
transit commission OF Boston.
Albert freeman, well known stock
promoter. director and member OK
advisory committee of hawthorne
silver and Iron Mines, Limited. re-
siding In Ramsey. n. J.
Jonn McKinnon. secretary ana
treasurer of the hawthorne Mining
Companies, residing in Brooklyn.
Or. William ]. Morton. nerve spe-
ciaits,, with apartments on River
side Drive.
Released Under Bonds.
Pending a hearing next Wednes-
dag, Freeman was held Ia bail OF
$4,000 by Judge Hough. lie re-
leased the remaining auartette under
bonds OF $4,000 each.
Four OF the indictments we're voted
December 20. and the other on De-
csmbcr IS. but they were ali Kept
sealed until to-day.
1he gov eminent charges that nun
6reas of investors gave up about So
100000 and received no tangible
value, They produced a. part OF
the indictments. copies Of many let
tiers sent by Hawthorne to personal
frterldx former classmates and 70
those whom he urged TO buy stock
and expressing personal condolences
that there would b. trnnsense re-
turns In dividends.
For months. since June last. the
Federal authorities have hesss- sHS.-s-
tigating the Hawthorne mining en-
terprlses because OF complaints from
investors. As these enterprises are
located In the province of Ontario.
Canada. sne Federal investigators
found great difficulty In obtaining
es:denees HtfefsHf before tho
grand Jury here. The officers Of the
corporation refused T. surrender the
books or allow them to be examined.
Melted Three Millions.
The indictments charge that by the
sale of stock in the Tamagami-Cooalt
Mines. Limited. the Elk Lake-Cobait
Mines. Limited. the Montreal-James
Mines. Limited, and the Hawthorne
silver and Iron Mines. Ldmtted. the
defendants Melted nearly three and
one-haif million dollars.
1t Is charged that the defendants
represented that the money derived
from stock sales was placed In the
treasury OF the companies and used
This. the indictments assert. Is I'M
true. and that, instead of being
profitable. the mines never yielded
any ore and the money Was pocketed
Icy the promoters. who had elaborate
headquarters at 234 Fifth avenue.
The investigation did not embrace
the Mcintyre Porcupine Mines.
Limited. a 5000, 600 concern, the sale
OF the stock OF which was also pro-
NOTED by Hawthorne and assistants.
Took In Another Million.
From the sale OF other mining
stocks known a. the Brindle. the
Placerita. John Thompson, United
Mining and the United Mining De-
veiopment Companies. the promoters
are said to have taken in about ST.
aoe, v0a Most OF the srock sold Ut
80 and 80 cents per share.
The indictments aver that the free
usa OF the Hawthorne name brought
in large clientele Of high class In
vestcrs, who took blocks Of the low
priced stock.
In the literature sent cut Mr.. Haw-
thorne advised his friends 10 get In
on the ground floor. It Is frm and
cannot cave In" Also. 1t Ii charged.
that he quoted his father as saying.
Julian, whatever else YOU do. don't
Try 10 make living BY authorship =