Evening journal., 1916-12-06

instructions given him by Miller rela-
tive to the numbering OF letters OF
the Peru Gold Placers. He said that
at that time Miller was a director and
he was assistant secretary.
The witness persisted that the in
structions relative TO using code
names had been given by Miller, who
suggested the code employed
Asked by Mr.. BAH II Miller did not
give as the reason the fact that 10 was
done so in the event that the COM
pany's mail was opened in Peru, the
company's business would not be dis
closed, he said, Miller might have
done so, but he could not recall il.
Roy l.. de Wolf Formerly chief
clerk for Catlin and Powell New
York brokers. testified that McCune
had drawn a map of the Maranon riv-
er showing how deposits were being
washed into the stream which he
predicted would be the greatest plac-
er deposit In the world.
This was done In connection wieh
tho placing Of stock by the company
This was in the latter part Of Decem-
her. 1913, or early In January. 1914.
The witness was shown one OF the
small vials OF coarse placer gold aud
said McCune had shown him several
such walls. lie asked MsCune To let
him have one OF them In connection
with interesting prospective purchas-
ers OF stock OF the Peru Gold Plac'
ers.
tie was asked relative 20 what use h
made of the vial. and be said he use,
1 IL In connection with McCNne's engi
neering report in selling the stock.
de Wolf was asked what amount o.
stock was sold through these agence
and he said over $4,000 worth WAS sol,
at s. a share
/ questioned by Mr.. Wise. Mr.. d
Wolf said he knew that the stool, ha,
been nderwritten and the defendants
said It had been underwritten by SOM
Of the principle directors Of both com
/ panies.
/ Donald G. Cailin. a member Of th'
! firm. told of Miller coming 10 his onic
and saying that ho was interested In TN
Perm Gold Placers. Inc. and wante'
brokerage assistance in marketing tn
stock. Later Miller returned, he said
, and they discussed the project Eventu
ally an agreement was entered into. III
had had no conversation with McCun
prior to the agreement. Later he me
; McCnne, who discussed the proposition
in Peru.
The witness said he had invited
1 McCune TO give incidents of his ex-
pedition for the enlightenment OF the
men who were TO sell the stock He
told Of McCune drawing the map and
OF telling of Indians showing him
gold He said Mr.. McCune exhibited
a leather case f.ed with small bot
ties containing gold which he said
were taken from test pits along the
Maranon.
The broker said McCune told him
he expected the average value to be
greater than that shown by the ox-
animation and that gold taken from
two pits was not included IN the re-
port the value being so great that
he did rot deem Il proper to includ,
lit.
Catiin next told Of the sale OF th'
stock here and elsewhere. All tod
there were about 10000 shares. h
said.
The witness Identified a prospectu
which his company sent out and
which was compiled from the pros
pectus OF the Placers concern, wit
the knowledge Of Miller. he said. Tn
Z prospectus gave the name of the of
! GERS and set forth that 1t was-a Dela
I ware corporation. The prediction tina
i the deposits would average so 81
! cents per cubic yard was set fortf
J also the belief that Il was the riches
deposit Of its kind in the world. Ii
connection with the underwriting, th