The New York herald., 1921-12-15
LOO rockingham Inyes-
tors Never Had Chance, Is
biologists Report.
RECEIyERSHIP REFUSED
Judge Appoints Commissioner
to Hear Charges Of Fraud
in Bankruptcy Case.

Before Thomas II. Frothingham
change, is permitted to go further In
the settlement of his business affairs
the 100 investors in his El Salvador
Silver Mines Company, Inc, are to
have full opportunity to prove in court
their charge that they have been de-
frauded and that the big properties
in Central America do not contain gold
and silver deposits equal in value to
the s3000,000 they have invested in
his enterprise.
Judge Augustus y. Hand, In the
United States District Court, sus-
pended settlement of the rockingham
litigation by issuing yesterday an in
junction restraining the broker from
disposing of his property. Next the
Judge named f. Henry Lacombe a
special commissioner to take testi-
mony regarding the fraud charge
against rockingham and the Sal
vador mines. Judge Hand on Tues
=
trustees of the rockingham property
from disposing of any assets pending
further argument. He refused ia
grant the petition for appointment Of
a receiver.
The outcome will be that IL the claim
ants to a shs-fc in the rockingham mil
lions are able to establish their charge
Of fraud they can participate In the set
dement, of the estate IL they fail bank
ruptcy proceedings will continue.
See Scheme in Bankruptcy.
Those. who have started the contest
by crying fraud allege that the bank
ruptcy action Is designed to benefit mem
bers of Frothingham's family and his
banking associates. Emphatic denial OF
the charge is made by all the defen-
dants.
AS the facts in this case unfold they
indicate operations in high finance and
| big figures with many singular and re-
piarkable phases. The Salvador stock
holders have won the flrst point In what
| promises to be long and hard fought
battle and are assured that all the opera
tions in connection with the silver mine
| Accurate figures regarding the Froth-
ingham estate and the Salvador mines
have not been made public, but from
tie data available It was indicated that
about $4,000. 900 was tied up In the case.
| The total possibly may reach s5.000.000
when final inventory is made of all the
| securities now tied up.
| George A. Ferris of the law firm OF
Ferris & Ansbacher. 2 Rector street
associated with Robert p. Lewis Of AZ
Broadway. bankruptcy authority. ap-
| reared yesterday In further argument
before Judge Hand. Charles Caldwell
woolworth Building. appeared for the
rockingham interests. None Of the
| lawyers would comment on TIA action
stating they were not at liberty to make
| known any information until II was de-
veioped before the referee.
Men and women, many prominent in
New York and many Of whom are said
TO be personal friends Of Mr. Frothing-
ham, were not as reticent. Some own
ers of Salvador stock declare without
reserve that they have been defrauded
| by false representations regarding the
value of the mines into which their
money has gone.
| The allegation OF fraud rests in large
measure on reports prepared by con-
sulting engineers and geologsts who
give as their opinion that the Salvador
/, mines were worked out when the
company now owning the properties was
! formed. IL is throwing money away &c
try TO get gold or silver out of tine
mines. the report states. This document
has not been presented in court, but Is
the basis Of the fraud charges and VII
be offered in evidence when the referet
| begins taking testimony.
After going into the value of the mine
showing what representations were made
| Continued on Page Twelve.