Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1921-03-01
HARRY DUDMAN
IS ARRESTED
MINING MAN WELL KNOWN HERE
is HELD BY WASHINGTON
OFFICIALS
PRESIDENT OF BETHLEHEM MINES
Crooked Work Alleged in the Sale of
Mining Stock

Harry Dudman, mining broker of
Spokane, and well known in Bonners
Ferry as president of the Bethlehem
Gold Mines, Ltd, was arrested We'd
nesday in Seattle on a charge of hav-
ing obtained money under false pre-
lenses. H. j. Leupp, farmer living
near Washtuckna, Wash, swore out
the warrant for his arrest.
For several months the Bethlehem
Gold Mines maintained offices in Bon
ners Ferry and Dudman was a fre.
quent visitor here, often bringing in
prospective purchasers of the COM
panys stock and taking them to the
property near Copeland.
Thomas E. Heddle of the Expert
Secret Service of Spokane, who has
been investigating the case for the
past two months, had the following
to say in regard to Dudmans opera
tions:
Dudman's method of procedure
was to sell on the statement that the
stock was going up. So sure was he
that il he sold the stock at Is cents
he would give his note to the buyer
promising to buy it back within so
or 80 days at 80 cents a share. The
amounts differed, but in each instance
he gave his note agreeing to buy back
the stock at an increase Often when
he returned at the date set he bought
back the stock as agreed upon, but
turned around and sold the stock
holder another much larger block,
giving another agreement to buy back
at an increase Eventually the stock
holder failed to recover.
Finds Many Purchasers.
After a two months investigation
have found purchasers in large num-
bers through northern Idaho and east
ern Washington He confined his
activities largely to farmers. They
said he was a smooth talker All in
stances where the stock. was repur-
chased, as they claim he did at first
naturally gave the farmers confidence
and they bought more.
"Dudman is said to be a spiritualist
So profound is his belief or apparent
belief in spiritualism said to be that
he convinced many stockholders that
in seances he had had with departed
souls he had been assured the mine
was going to produce big dividends
Property In Idaho.
THE property consists of seven un-
patented claims in the Yahk district
near Bonners Ferry A shaft has
been sunk and some money spent in
developing the prospect, but the great
er amount of the money spent has
been for improving the property above
ground
"a superintendent's house, black
smith shop and other buildings have
been erected with the result that to
the inexperienced observer it appears
like a coming property.
Some stockholders in Spokane COM
planned that they turned over their
stock to Dudman to sell. They say
they have received nothing from him
since.
Big Sum Realized
THE company is capitalized for
100000 shares, par value 81 share
The books of the company show that
in the neighborhood of 100000 shares
have been sold Dudman sold the
stock at prices ranging from a few
cents to as high as SIS cents share.
Placing the average at rs cents brings
the total obtained in the neighborhood
of $3.50, 900.
"The largest number of purchasers
live in or around RitZville, there be-
ing rs stockholders of the company
giving Ritzville as their address.
'Mr Leupp, who swore to the war
rant, alleges that Dudman came to
him in 1919 and represented that a
Spokane stock broker was coming to
Ritzville to offer stock OF the COM
pany at Is cents a share. Leupp al
Ieges that Dudman said the stock
was worth 80 cents and If the broker
was allowed to dump the large block
of stock he had on the open market,
il would tend to bring down the price
Dudman is alleged to have persuaded
Leupp. who was already interested IN
the company, to give him his check
for $3.50 to buy all the stock the
broker offered to keep it off the mar
ket. giving Leupp in return for the
check an agreement to purchase IL at
an advance. Leupp now alleges THAT
Dudman never lived up to his written
agreement to re-purchase.
"I sent a man to the property near
Bonners Ferry, and he found that a
road has been built to the mine. This
road from Copeland is five miles long
and must have cost about $4,000.
There are good buildings at the mine
tt seems the investors were taken up
on excursions.
Thinks 100000 Spent on Mine.
"I would say the mine is good
prospect and ii will be possible to tell
in short time whether it is more than
prospect. My report shows that
there are Is tons of hand picked ore
. on the dump. They have 560-foot
tunnel with gold, silver-lead and cop
per. ] would estimate about 100000
has been expended on the mine. There
are also a shaft and crosscut, but a