The Scranton Tribune

SWINDLED OUT OF MILLIONS.

British Capitalists Make Grave Charges Against Americans Who Salted a Gold Mine.

San Francisco, July 24.—A. C. Renshaw, a British capitalist, has commenced suit in the United States district court to recover $245,000. He charges that the sale of the Bear's Nest group of mines in Alaska was accomplished by gigantic frauds. He accuses James Treadwell, John Treadwell, Captain James Carroll, M. W. Murray, N. A. Fuller and George J. Smith with conspiracy to make the sale by placing gold bearing rock from the rich Treadwell mine adjoining, and treating the core from a diamond drill with chloride of gold to make a showing of rich ore.

He asserts he has a confession to the entire fraud. He declares that three British experts were deceived in the salted mine. Each one reported it would yield a profit of $1,000,000 a year. The enormous amount of money involved, the prominence of the parties to the suit and the charges of fraud make this disclosure the sensation of the day in mining circles. The mine was sold to British investors for $2,500,000 in stock and $1,500,000 in bonds drawing 7 per cent. interest. This was in 1887, and no gold has ever been taken from it. The projectors of the sale have, so far, received about $600,000 in money.