Evening journal., 1915-06-08
Grand
JURY DIGS into
PERU COLD Mine
CONTINUED from First Page.l


gomery, William f. Raskob, Henry
Ridgely and others.
In speaking of the case today an
official of the companies stated that
in 1912 McCune, accompanied by c. S.
Miller, or the Franklin Company, ef-
fciency engineers of New York, came
to Wilmington and conferred with
some local citizens. McCune showed
certain gold nuggets which he claim
ed we're from properties located in
Peru with which he was familiar.
Following his statements McCune
asked the local capitalists to stake
him in an expedition to Peru which
was done. 1000 being raised for
this purpose McCune offered TO take
$4,000 in stock as his share of the
company. OF the money given Nc
Cune, It is claimed, but one-fourth of
it was raised in this city. In 1913
McCune went to Peru and his report
was later verified by Peter Hoaglan
and Robert Miller of New York. Mr..
Miller is a son of c. S. Miller, who
accompanied McCune to Wilmington
on the first trip TO this city. Hoaglan.
1t is said, was so impressed with
what he discovered in Peru that on his
return he prevailed on a New York
man to sell him stock which had cost
$1,000, paying $4,000 for It.
The underwriters then formed the
Peruvian Gold Placers Mines Com
pany, with a capital stock of $2O,0OO,-
900, and Former Judge Marvel was
elected president
In 1914 McCune as general manager,
started for Peru TO begin operations
accompanied with c. ~. McHenry, OF
New York, as superintendent, an engi.
neer named Frost and two assistants
1t is claimed that the reports received
here from McHenry were glowing AM
a plant was erected, which is shown tC
have been paid for by vouchers.
officials here claim that in January
suspicion began 10 be directed al
McCune when a cablegram was re-
ceived from an employe in Peru who
suggested that an examination be
made at once. The directors at once
called in +. B. Short, an expert en-
gineer of San Francisco, who was or
dered to proceed to Peru and investi-
gate. Before Short arrived, Engineer
Frost was recalled. He arrived home
about the time that John ]. Raskob
of this city, received a letter from
Peru, limiting that an investigation
should be made. A meeting of tn,
directors was at once called and tn,
resignation of McCune and c. S. Mil
Ter was demanded which was given
II was also decided to employ counse
TO take legal action. and Robert II
Richards was engaged. The case wal
then laid before the state Court, ant
the grand jury was ordered 70 repor
TO Attorney General Wolcott.
| The directors, however, it was said
, decided that the government shoul
! take hold OF the case and the book
of the company we're turned over L
! District Attorney John p. Nields.
The government officials ordere
, Postal Inspector Barber of Washing
ton, to take charge Of the case an
he worked on It, causing the arres
Of McCune in New York severa
Z weeks ago.
In q report of McCune to the direC
tors on September 20, 1913. It wa
|, stated that the total value OF tn
Z mines owned by the company in Per
was S106.l064 4S2, based on an avel
z age value per cubic yard of so 81
cents. At the meeting of the dire,
tors later, when the reports of FL
gineers Frost and Short we're sui
mitted, II was stated that the met
found in the mines was flower gol
which is worthless.
z Among the exhibits in the case al
z reports of the workings in the min,
by McCune, prospectuses and oths
z data as well as maps. In the repor
Z 1t is stated that the mines are prol
z ably those owned by the Incas, an
= McCune declares them to be Il
z greatest and richest mines in n
z world in one pamphlet containing h
Z name at end of il, issued Decemb,
= 21, 1913.