Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-06

thorne, son of Nathaniel Hawthorne, was
indicted yesterday by the federal grand
jury for this district on the charge of
conspiracy and fraudulent use OF the
mails in connection with the sale of the
stock Of Canadian gold and silver min .ng
companies bearing his name. Later he
was arraigned before Judge Hough IN
the United States district court and held
for trial in $1,000 bail. A bond for him
was given by surety company.
With Mr.. Hawthorne four of his asso-
ciates in the mining companies also were
indicted on similar charges. They are:
Josiah Quincy, assistant secretary Of
state in the Cleveland administration,
twice mayor of Boston and a lawyer Of
note.
William J. Norton son of the discoverer
of ether.
Albert Freeman, company promoter
of this city.
John McKinnon, also of this city.
Freeman Bail, $25, 900.
Quincy was general counsel for the
Morton was q director Of
some of them; Freeman was the chief
stock seller and promoter, and Mckin-
non was the treasurer.
For Freeman, Assistant United States
in charge of the prosecution, demanded
~, go bail: for the others he was con.
tent with $1O,UUO each.
1t is alleged that more than S3,OOO,OU
was obtained from the public for stock
which paid it nothing.
Besides the men indicted the names OF
several we'll known persons appear on
the companies books and papers as Of
ficerS and directors. Among these are
James b. Hanna, brother of the late
Mark Hanna: A. H. Sayre, professor OF
mathematics in the University of Ala
of Brown University, and George j.
Seay. a prominent banker of Richmond,
Va.
Hawthorne Wrote the Literature"
The district attorneys office and Postal
Inspectors kincaid, Mayhem and Reddy.
who worked up the evidence, are inclined
to believe Mr.. Hawthorne was more sin
ned against than shining. It is under
stood he invested his own money, and
that when engaged to write literature
he had such faith in the men at the head
OF the ventures he was content to accept
stock in lieu of cash for his services. As
a result he is virtually penniless, his
said all his statements were based upon
reports of we'll known expert mining en-
gineers.
The names of the companies whose
stock was sold and their authorized"
are as follows:
The Hawthorne Silver ard Iron Mines
Company, $4,000 600; the Elk Lake Min
ing Company. $1.000,OOO; the Tama gami
Mining Company of Cobalt, Ss.up.OyD.
and the Continental Syndicate. 81 100000.
These securities were at 30 cents to 80
cents on the dollar.
Five indictments were returned against
the defendants. Three refer to the Con-
tinental Syndicate and two to the Haw-
thorne mines.
Endless Chain for Investors.
The companies formed a sort Of end
less chain. After the investor" had
been induced to come into one concern
he was told he was entitled to the
privilege Of subscribing to another even
better than the first. II he bought. still
another good thing was offered him,
and SO on he was led through the whole
chain.
The number Of investors attracted by
pen pictures was so great
it soon became impossible for him 10
attend to all the correspondence per-
sonally. So about two dozen girls were
taught to initiate Hawthorne's signature.
This they put to letters in order. 1t is
charged. to deceive recipients into be-
Iieving the communications were personal
messages from the writer.
These communications were of a
stereotype form. Here Is sample of
the first in the SERIES, which was sent to
Col 8. +. Tillman, a professor at the
Military Academy at West Point:
Type of Letter Sent Out.
''My Dear Sir-You and many others
would perhaps take my word for 1t that
4 piece Of literature was good or bad.
because 1 might be assumed to know
something about literature.
II am writing you on another subject
this time, concerning which, however, II
believe l know almost as much as l do
about literature. I have reverted to the
profession for which l was educated and
from which I was temporarily seduced
by the allurement OF literature. That
allurement has held me for forty years.
but the time has now arrived when II
want more money than the sort of litera-
ture / have produced can provide.
"F,or the time being I have given up
literature and am devoting my sole at
tention to Tamagami- Cobalt. i
with seven others. for almost year I
have been interested In this project,
which from q comparatively small UNDER
taking has grown into such great proper
lions that we are obliged to make room
FOR others.
For this reason we incorporated tho
company some six weeks ago.
During the past month / have written |
about 1t to people l had reason to feel
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