Evening journal., 1915-05-22
MINE PROMOTER IS
accused OF FRAUD
Raymond McCune, of PERU
Wan Placers Co., Taken
in New York
WILMINGTONIANS PUT
UP THE MONEY FOR 1T

Raymond McCune, manager of the
Peru Placers Gold Mines Company,
Peruvian Exploration Company and
Maranon River Placers. Inc, was ar
rested this morning in New York City,
at the request of the Federal authori-
ties Of this city, on a charge of mis-
use of the mails. in promoting the
business of the Peruvian companies.
AT least one other arrest is looked
for as a result Of the governments
investigation Of the affairs of the Peru
Placers Company, Delaware corpora
ton, capitalized at S20,0OO,000.
Many Wilmingtonians are stock
holders in the companies The stock
Of the Peru Placers Company was
sold at 50 a share. the middle and
latter part of last yean and many
persons in the DUPONT Building we're
buyers of the shares. II has prop
critics in Peru, but has not paid diyi-
dends
II was reported today that the spe-
cial sitting of the New Castle county
grand jury to have been held on Tues
| day last. but which was cancelled,
was to have considered some affairs in
connection with the business OF the
! Peruvian companies However. the
Federal government had taken up the
case in the meantime on complaint Of
some of the officers and of Thurs
ton NJ. Lowe, Joseph A. Vogel, James
T. Lowe and other stockholders in
the company in this city.
District Attorney John p. Nields
had taken up the investigation and
obtained from David T. Marvel pres
ident of the Peruvian Placers Gold
! Mine Company, certain papers and
correspondence regarding the activi-
ties of Mr.. McCune some time ago.
Postal Inspectors Plummer Of this
city and Barber of New York, have
been working on the case and caused
the arrest in New York today on a
warrant sworn out at the instance of
Mr. Nields.
McCune is a mining engineer and a
son of A. w. McCune, wealthy mine
owner and associate of H. c. Frick
and J. Pierpont Morgan in valuable
copper mining projects.
Mr.. McCune. who was arrested to-
day. recently reported that his home
was robbed of $50. 900 worth of lew
elry. He came originally from Salt
Lake City and for awhile lived in
Lima, Peru.
\ Robert II. Richards, counsel for the
officers and directors Of the company
today said that the companies in
volved through the operations OF
! McCune we're the Peruvian Explora-
tion Company, the Maranon River
!, Placers 0ncorporated) and the Peru
! Gold Placers Company. The first
two named companies are New York
corporations and the last named is
p a Delaware concern. The Peruvian
Exploration Company was formed tC
|, finance an expedition TO Peru to lool
1 for gold.
1 The expedition was in charge of Nc
+ Cine. The Maranon Company was form
I ed to hold title 70 the claims secured o.
the expedition, and the third compam
q was formed cooperate the claims Sc
cured. The capital stock of the frs
I company was 100000 of the secon
z company $4,000. and Of the third com
pany Peru Gold placersl. S2O.O0O.OOi
McCune was the general manager of al
the companies which were so constitute
as TO practically form one concern tn
larger one holding the stock in the othe
two.
Officers of the Peru Placers Com
pany sometime ago received informa
tion which led il to doubt the valu,
OF the claims in Peru. and at once Sc
cured Mr.. Richards to represen
them. Information secured by tn,
officers and directors was at ono,
J turned over to the government an,
: also TO Attorney General Wolcott.
Apong the officers and directors o
the company we're former Judg,
, David T. Marvel. Henry II. Bowman
+ president of one of the largest banks
, in Springfield, Mass; ID. NJ Green, Z
: professional man Of the same place
Otto R. Hartmann. Of New York. Johr
j. Raskob, treasurer Of the duPon
Powder Company; William Coyne
manager of sales for the same com
}. pany; Alexis I. dupont. secretary o
= the powder company, while amouI
70 the underwriters at the time that tn,
o company was formed we're DR.. ]. A
!. Ellegood. John A. MONTGOMERY
f Charles Holiday. John Bancroft anC
d a number of other prominent peopl,
s in Wilmington, New York and Spring
Il field. The greater portion OF tn,
g stock sold was sold 10 the mer
named. who furnished about three
!. fourths OF all the money spent in thu
enterprise thus far.
i AicCune is alleged TO have sold ahou
s2n0O00 worth of, stock in the fninin
company, and to have used the mail
10 send fraudulent statements as TO th
condition and affairs of the mines