The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-05-10
NOW GRAND JURY
HAS TAKEN HAND
Seven Men, Members OF Poto-
mac Refining Company, Are
Under Indictthent for Swim
dling-Public Said to Have
Been Robbed Of More
Than $4,000.
tspeclal to Tho Times Dispatch)


OF the most sensational Investigations
OF alleged fraudulent use of the mails
ever conducted by government officials
In this state. came the Indictment in
THIS city to-day OF seven men con
nected with the Potomac refining
Company. corporation capitalized at
3i.50o.UO0. the operations OF which eX-
tended over all the country. bat pr!n-
cipally. IL IS said. in Pennsylvania
New York and Maine. one inoict-
ment, hry-one pages in length. "as
returned By the special grand jury
against. Michael Il. kehpc, president
OF the company. a mem3er of the
Baltimore bar and former member al
the legislature; -. Hsrry Hess,
physician OF coYans. and treasurer
Louis /. PlacE. vice president Charles
Il Sanger. secretary; Edward Il.
Cooper. manager: Robert ". Mowbray,
general counsel, member OF the
Baltimore bar. and justice of the
peace. 4. b. Young, Il stock salesman.
All except Young are held on bail for
trial.
For weeks past the Federal grand
Jury has been WORKING OH the cVi-
dence collected by the district at
torncy'a Office with the assistance OF
United States postal inspectors.
story OF Alleged sNinGic.
The unrayel!ng OF the alleged
rwlndlc is q story which would ill
ok on the strength OF false re-
presentations the company 10 SAID 10
hav. made, Il has taken from the
public already over $4,000. and the
Investigators OF the scheme declare
that =, Is not known how many more
blocks OF stock were contracted toF
when the authorities fell upon the
scheme. Tho grounds upon which the
charges are made are: securing money
under false pretenscs. conspiracy 10
tevise :: scheme TO defraud. and using
tho government malls for fraudulent.
purposes.
chief among tho supposed victims ara
Joseph g. Black and Richard Z. Tatun.
OF Philadelphia. Asa u. whitney. OF
Bristol, Va. and NJ. c Freneld, OF
Oreno. Maine. These men head lons
list. and are named in the proceed
ings instituted by the government
against the alleged swindlers.
Based upon alleged mythical proper
ties containing marvellous stores 81
wealthy minc-als--m1nganes iron
ore and copper-thc stories Of the grea'
mines OF Washington county, MD. were
thrown broadcast over the country by
y. Il. Young. the New Yorker. Who was
made advertising manager OF the COM
on all OF his sales.
From the numerous charges made by
the government officials. II Is learned
that the Potomac Mining COMPANY
s225. 900 corporation, which obtained It's
charter In 1905. was reorganized in lsl"
by the men named in tie Indictment.
The capital stock. it is alleged. was
Increased TO sI.5ooOo0, and the name
Of the company changed 10 the Poto-
mac Refining Company. Five dollars
was the par value placed on the pre-
ferrsd stock, Of which 10000 shares
were issued. and 81 was the par value
OF each of the &c., 900 shares of com
mon stock.
Had Many Inducements.
Fortified with Endorsements from
Governors. Mayors. bankers. judges
business men. clerSymcn and other per-
sons of station. the officials OF the com
pany, II is charged. were able 10 worm
their way into the confidence of pros
pectivc purchasers OF the companys
stock. That this stock. of which 1t Is
said more than 100000 mas been sold,
Is almost worthless and that the ST..
10000 company has never had any
thing like the assets TO support either
Its stock or the astounding Claims o
assets made in its literature, nro
charges which have led TO the indict
nent.
The government officials say that ut
the time OF the first representations the
company had merely entered into ar
agreement 10 buy some property neal
Harper's Ferry. Since that time il is
said to have acquired an old lime plant
worth about $4,000.
Three handsome books. eloauently
describing the wealth that was to be
had almost FOR the asking in Washing
ton county. Nd. were distributed
Claiming to own deposits worth mil
lions OF dollars. that could not be cx-
hausted in centuries. the Potomac Re
filming Company is said TO nave led
many to believe that it was worth
hundreds of millions OF dollars.
sixty Dollars a Minute" is the title
OF one of the books Issued ~ the com
pany. Another explains how 10 do bus
mess in millions. and the third is
equally alluring. Each of the books
contains pictures of the mines" anu
vivid descriptions of the manner in
which the Potomac Refining Company
was said to be almost daily turning out
fortunes Pages are devoted to state
ments" of the companys financial con.
dition. One statement shows that the
company had developed materials on
hand on June /. 1910. worth the sman
sum Of s9.516.5oo. and another modest
statement Is to the effect that the
comrsny ownsd s103,155, 900 worth of
raw saaterial, taken from the fabu.
lousy wealthy mines that the company
claimed Were located in Washington
county
AllurinG Tales Told.
And In the same books that tell the
alluring tales OF the untold million.
hurled in unsuspecting Washington.