Evening journal., 1916-12-14
NJ 'CUEE SAYS PITS
YIELDED CRAISE c Id
Denies He Intended TO Con-
spire TO Defraud as Charged
by Government
DEFENDANT SPENDS
MORNING ON STAND


ants ,n the case OF the government
against McIuue and Charles S. Miller,
charged with alleged fraud in the use OF
he United States mails and conspiracy.
in the United States District Court. took
the witness stand when the trial was
resumed this morning and continued his
story beglu yesterday afternoon. II
was q resume OF the results Of his Obser-
vations in Peru and went into matters
connected with his exploration in that
country quite at length. He was still
on the stand when court adjourned for
the noon recess.
McCune told Of sinking pits and
shafts everywhere on the property of
the company. and said that In many of
them craise gold was found. The pits
can be seen to this day, said the witness.
lie also stated that sometimes he had
as many as three or four hundred men
working for him at one time, and that
the natives would often get down in the
pits and do some "pauning" on their
own account, taking out coarse gold and
nuggets.
McCune described a meeting with
some local financiers at the home OF
John J. Raskob. who. the defendant
said, sent for him to come TO him.
He said he was met at the station
by automobile and taken to Mr. Ras-
kob's home where he spent the night
after having met a number OF men
who afterwards became interested in
the Peruvian Exploration Company.
Henry A. Wise, OF counsel for Nc
Cune, inquired about the meeting Of
the board at which McCune's report
was presented. The minutes of the
meeting September 20, 1913, we're Of
fered in evidence and read. McCune
said that the scheme OF organizing the
MaranOn Rivers Placers. Inc. and the
Peru Gold Placers, Inc. did not origi-
nate with him; that he had never
organized q corporation in his life
and that he had never been interested
In financing. He denied any intention
TO conspire 70 commit fraud as charged
in the Indictment at the time specified
In the indictment or at any other
time. He said that he had had moth,
ing to do with planning the compa.
nies.
McCune told Of the enthusiasm
with which Mr. Raskob, David Marvel
and others received his report on the
prospects OF the gold fields. AT one
of the conferences, McCune said, he
told the people that 1t would take a
year and half to get gold production
out Of the gold fields He said that
at a meeting with interested persons
he endeavored 10 arouse the same
enthusiasm in the gold fields that
possessed him,
McCune said that on the occasion OF
his exhibiting his samples of craise
gold, he did not specify certain pits
as being the ones from which the gold
in the particular note had been taken.
Testifying concerning a note contain
ing q sample Of gold gravel, the wit
ness stated that in his opinion the
vial contained gold to the value OF
one dollar and a half or two dollars.
and that il represented the gold de-
posit in 100 pounds Of gravel. A
cubic yard OF the gravel would weigh
two tons the witness said. and the
deduction drawn by the witness was
that a cubic yard of the gravel taken
from the locality where the sample
came from would yield gold to the
value of 500 or $50
Mr. Wise asked the witness about
the circular letter sent out by the
sale Of the stock and the prospectus
was read after being put in evidence.
Mr.. McCune described events con-
nectod with his visit 10 the gold fields
I'm February, 1914 lie said that he
was not acquainted with 4. y. Frost
Springer or Wilson before that time.
McCune said that Frost, I'm answer 10
a question put to him. replied that the
property looked good to him and that
II the company adopted the proper
plan OF working II. the results would
be satisfactory. The plan suggested
by Frost was that the company depart
from the method Of working the gold
fields, which had been decided upon,
and install a hydraulic dredging prop
osition. McCune testified that Frost
drew up a report covering his pro-
posed plan OF working the fields ac-
cOmpanied by a plan, which were sent
to the New York office.
McCune testified that he left tie pold
fields. arriving in New York in Nav
From New York he went to Europe. sail
ing tron an European port direct for
Panama. Mr.. Wise asked AicCune If
during that stay, in the latter part of
l9l4, he played poker or took pictures.
MeCune said he never played a game of
poker on the Maranon river in his life
and that the picture-taking he had in
dulged in was photographing the pits
workings. etc George p p Bonneli. in
his testimony for the prosecution
stated that McCune had spent most of
his time during this stay in the latter
part Of 1914 playing poker and three-cardl
monte, and taking pictures McCine de-
clared he didn't know what was meant
by 'three-card monte
McCune told about the closing davsl
of his soioum on the property early m
1915; Of his pemsal of the reports OF
values one day in company with Bon
nell and of his decision reached TO ad
wise the company to shut down the
works because OF the depth of bedrock
Witness testified that he discharged
every man on the property wholwas not
absolutely needed and ordered the
works closed down. Prior 20 This he
had semi cablegrams to tie company ad
vising them TO order all work STONED
and the recall OF the engineering expeYt
then ON his way TO the gold fields 10.
make an Investigation for the comnanv.
McCune testified that he then re-
turned to New York. reaching that
city in March. and went to bed IN
with malaria. He left sick bed to
attend the meeting of directors at the
Murray Hill Hotel. New York. on
March Is. 1915, cGsled. he said, to
hear what he had 10 say.
Witness testified that the gather