MOEL (Civil Action File No. Civ-5287 Phx)

[novice]

My wife and I recently visited the National Archives and Records Administration, Pacific Division in Lugna Nigel, CA. We obtained a copy of the MOEL file and it contains some interesting information that “I” wasn’t aware of previously. I suspect others have this information also but for anyone else researching the stone maps and who have an interest in the modern timeline, they might do well to make arrangements to obtain their own copy of the file.

We spent a couple of hours there and copied the 80 or so pages for less than $20 bucks. You would not have to physically visit the facility to obtain these records. The archive’s personnel will copy and mail the file. This would be a more expensive procedure since there is a charge for their effort but would probably be easier, more complete and result in a higher quality image. Many of the documents are legal size (8 1/2 x 14) and larger. Also I missed a few pages and since I was doing my own copying I would sometimes forget to adjust the darkness from time-to-time.

Below is an overview of the contents of the file: Several of the documents reflect legal steps and may be of limited interest.

1. SUMMONS for Clarence and Grace Mitchell and Elgin Kriewald to answer complaint by the SEC. (September 28, 1964)

2. COMPLAINT FOR INJUNCTION (MOEL) (September 28, 1964)

3. MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF MOTION FOR TEMPORARY RESTRAINING ORDER AND PRELIMINARY INJUNCTION (MOEL) (September 28, 1964)

4. AFFADAVIT (Julius Eberstein, Investigator for SEC) (MOEL) (September 28, 1964)
Exhibit 1 (Schedule prepared by Julius Eberstein from stock certificate books reflecting the original issue of stock and transfers.)
Exhibit 2 (Schedule of items appearing in the cash journals)
Exhibit 3 (Photocopy of story appearing in June 12, 1964 issue of LIFE magazine)
Exhibit 4 (Photocopy of canceled check from Joseph Fragale for $2,000 dollars purchasing MOEL Stock)
Exhibit 5 (Photocopy of Stock Certificate for 20,000 shares of MOEL stock to Joseph and Darlene Fragale)
Exhibit 6a & 6b (Photocopy of letter and envelope dated June 5, 1964 from Grace Mitchell to Melford Brower)

5. ORDER TO SHOW CAUSE AND TEMPORARY RESTRAINING ORDER for Clarence and Grace Mitchell and Elgin Kriewald (September 30,1964)

6. STIPULATION AND CONSENT TO ENTRY OF FINAL JUDGEMENT (Clarence and Grace Mitchell) (September 30, 1964)

7. FINAL DECREE OF PERMANENT INJUNCTION (Clarence and Grace Mitchell) (September 30, 1964)

8. STIPULATION AND CONSENT TO ENTRY OF FINAL JUDGEMENT (Elgin L. Kriewald) (October 5, 1964)

9. ACKNOWLEDGMENT OF SERVICE OF FINAL DECREE OF PERMANENT INJUNCTION (Clarence and Grace Mitchell) (October 7, 1964)

10. FINAL DECREE OF PERMANENT INJUNCTION (Elgin L. Kriewald) (November 3, 1964)

11. ACKNOWLEDGMENT OF SERVICE OF FINAL DECREE OF PERMANENT INJUNCTION (Elgin L. Kriewald) (November 14,1964)

12. Correspondence between Elbert Love and the Court (January 18. 1965)

Julius Eberstein was the investigator for the SEC and he referenced the following MOEL Records that he used in preparing the case.

1. MOEL Minute Books
2. MOEL Stock Certificate Books
3. MOEL Cash Journals
4. MOEL General Ledger and Bank Account Records
5. Personal Communications

I suspect the Minute Books would be the Holy Grail as far as understanding everything? Hopefully they have survived and they may eventually come to light. Until then we can only try, as best we can, to fill in the blanks.

I also obtained the MOEL Incorporation papers along with their yearly report from the Nevada Secretary of State office. They were about 20 pages and they were $2 a page. Greg Davis already had these.

I will copy the MOEL Case file I have and pass it on to Greg.

As I digest the contents I will try to share what may be of interest to the forum.

Garry

[Joe Ribaudo]

Gary,

Someone who seems to have gathered a good deal of "inside information"
on this case, is Matthew Roberts (Aurum).

Here are some of his better posts from another Forum:

The Stone Map question of authenticity is clouded in a lot of mis information and twisted facts. This is not the result of deception but rather retelling of stories that were part fact and part speculation.

For what it's worth, the FBI never did their own investigation into the Stone Maps. When Alleen Tumlinson sold the maps in 1961 to Clarence Mitchell, it was Mitchell who had the Stone Maps analized by three geologists who worked for the University of California at Los Angeles. Martin Stout was the professor of Geology at UCLA and D.L. Dana and Donald Chance were professors of geology and geoscience at Redlands University in Redlands, California. The three geologists, with help fromthe Redlands University Art History Department, concluded the maps were of an age, more than 100 years old but unable to give an exact age beyond that estimate. Professors Chance and Dana provided Clarence Mitchell with a letter of authenticity stating these findings.

Clarence O. Mitchell was MOEL Inc. He was the President and Chief executive officer of the MOEL Corporation incorporated under the laws of the State of Nevada. Arthur Meyers was the attorney for the corporation. When Clarence Mitchell was under investigation by the State of Nevada for securities violations, the FBI became involved because investments and assets were located outside the State of Nevada.

The FBI never did an investigation into the authenticity of the Stone Maps. They simply took Clarence Mitchell's letter of authenticity and questioned professors Stout, Dana and Chance about their findings. All three professors stood by their original conclusion based upon their earlier investigations, and Professor Dana provided the FBI and State of Nevada with a letter that confirmed their earlier conclusion.

Bob Corbin's comments, merely reflected what the FBI themselves knew about the authenticity of the Stone Maps. Bob Corbin is the former Attorney General of the State of Arizona. I have known Bob and his family for many years, have been in the mountains on numerous occasions with him and consider him to be honest and above board in all his dealings.

The FBI never confiscated the Stone Maps from MOEL Inc. They merely siezed them as evidence while the securities investigation was ongoing. The maps were returned to Clarence Mitchell following the investigation and it was Mitchell who donated the maps to the Arizona Mineral Museum which today includes the Flagg Foundation. The maps are today, on loan to the Arizona Mineral Museum / Flagg Foundation from MOEL Inc.

Aurum

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I just first read this exchange yesterday so didn't have the means to post any sooner.

The source for the Stone Maps being returned to Clarence Mitchell was Mason Coggins, former chief geologist and curator of the Arizona State Mineral Museum in Phoenix. Mason told me he received the stone tablets from Mitchell as a loan. The Museum never publically displayed the stones but did loan them out to interested groups or as a novelty during special events at the museum.

There were few investors outside of Mitchell himself, his family and close friends. Coggins stated it was Mitchell himself who approached the Museum. The Flagg Foundation did not become involved with the stones until later.

The stones were found to be of no value other than as a personal curiousity. Mitchell bought the stones, he did not dig them up himself and since it could not be proven other than by heresay where the stones were found, there was no legal claim the State or Federal Government had over them. For all anyone knew they could have came from anywhere. Mrs. Tumlinson was dead at the time of the investigations and could not be called upon to testify. The stones were old, but old is not the legal requirement to confiscate something. There are other legal requirements that must be proven to confiscate private property. Mitchell was never convicted of any crimes, he agreed to disolve MOEL Inc. and not to engage in securities exchange for the next 3 or 5 years. I believe Bob Corbin told me once that the whole matter was settled out of court but I am not certain if those were his exact words.

Confiscation and seizing property are two seperate things under the law. The government can confiscate property that clearly doesn't belong to someone or property that someone clearly got illegally. The government can seize private property but must prove the property is not the legal property of the individual or return it to them.

Other than Clarence Mitchell was also known as Travis Marlowe, a nom de plume, I can't add much to the story.

At one time I didn't believe the Stone Maps were authentic but have in years since changed that opinion. I do not know where the maps lead to, who made them or if they had anything to do with the Peralta's.

Aurum

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I can't say why some are getting threatening phone calls and messages. I know that the Stone Map topic is a very passionate issue with some folks. For all that is known about the stones, it is overshadowed by the mountain of things that aren't known. The MOEL Corporation and the legal problems that followed only served to cloud the issues even more. There are some very knowledgable people, here, and out there who know a whole lot more about the stones than I do and they guard their knowledge and secrets very seriously.

I feel for the investors who lost money in the MOEL investigation and never got it back. One has to take into account that in the early 1960's, the best these investors could hope to regain from the stone maps was the value Clarence Mitchell paid for them, $1,200. And that was only if someone back then would have paid that for them. We tend to fast forward to today and look at what the stones might bring on todays market after all the publicity of the past 43 years. The prospectus of the MOEL Corporation only promised a return on investment if the maps were acurate and the mines/treasure could be located and would still be in place. It was buyer beware in spades. MOEL wasn't in trouble so much for promising things they couldn't produce, rather they got in trouble for the way they went about selling their stock and for selling without a proper liscense.

My personal take on the whole thing is the government, while skeptical, never had evidence, nor could they prove the stone maps were a fake or that the Tumlinsons or Mitchell had any hand in their creation. That is by no means an endorsement of their authenticity, only the statement that while the government could prove MOEL
didn't follow proper proceedures in the sale of stock, they couldn't prove conclusively the stones were fakes.

Aurum

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gollum,

I have to agree with you completely about Alleen Tumlinsons role in the Stone Maps. Without her involvement the stones would have been lost forever. The story of where the stones originated, how and where they were found, as well as the account of the MOEL investigation leave a LOT of unanswered questions. What I have posted is just the little I have learned over the years from Bob Corbin, Martin Stout, Mason Coggins and a man named Robert Miller who now has the personal effects of Clarence O. Mitchell. A letter written in 1962 from Alleen Tumlinson to Clarence Mitchell is a real eye opener. The letter doesn't prove or disprove the authenticity of the Stone Maps or their origin but does point one to some conclusions that few if any Stone Map seekers have contemplated. The Mitchell material is not mine so I cannot comment on what I think. There is ongoing research but where it will lead and what it will uncover is again a big question mark. Nothing that would solve the puzzle of the Stone Maps but there is a possibility it might lead to their origin.

Concerning the other Forum you mentioned. There is no way information such as appears here could ever be posted or considered on that forum, for obvious reasons.

Aurum

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I have no idea what his last statement means, but this is still the best place on the planet to find serious information dealing with the LDM and other legends surrounding the Superstition Mountains, and it follows, of course, that Matthew's informaiton is usually the best of the best.

Joe Ribaudo

[novice]

To give a general overview of the Moel, Inc. Case, I am inserting a portion of the document entitled Summary of Facts. This is not the complete document. There is a lot of additional legalize, but this does provide the basic background.

There is a lot of additional detail in the Affidavit of Julius Eberstein but I’m still trying to digest that.

SUMMARY OF FACTS

The defendant Moel, Inc. is a corporation organized under the laws of the State of Nevada on December 6, 1960, for the stated purposes among others, to explore for and discover mineral deposits, oil, and gases, and to deal in all appliances related to chemical electronic metals. The defendant Clarence O. Mitchell is the president, a principal stockholder and a member of the board of directors of the defendant Moel, Inc. The defendant Elgin L. Kriewald served as vice president of the defendant Moel, Inc. from December, 1960, until February 2, 1964, and the defendant Grace G. Mitchell served as the secretary and treasurer of the defendant Moel, Inc. from December, 1960, until about August 25, 1964.

Moel, Inc. has an authorized capitalization of $100,000, consisting of one million shares of capital stock having a par value of 10 cents per share. Shortly after incorporation, the defendants Clarence O. Mitchell and Grace G. Mitchell conveyed to Moel, Inc. a detecting device that purportedly could detect any mineral, liquid or gas. As consideration for the transfer of this detecting device, 410,000 shares of the capital stock of Moel, Inc. were issued to Clarence O. and/or Grace G. Mitchell, and 100,000 shares were issued to Carol Rae Mitchell, their daughter. An additional 102,500 shares were issued to Clarence O. Mitchell in June, 1961, whch were to be sold for “corporate expenses.” In January, 1961, 80,000 shares of Moel, Inc. were issued in the name of Elgin L. Kriewald and/or Shirley M. Kriewald.

The corporate records of Moel, Inc. show that since January, 1961, and continuing to as recently as August, 1964, over 588,000 shares of the capital stock of Moel, Inc. were sold to over 100 residents of at least six states for approximately $60,000. The stock certificate books show that these shares were contributed by the defendant Clarence O. Mitchell, and the defendant Elgin L. Kriewald to the corporation, and thereafter sold to the public. Examination of the books and records of Moel, Inc. indicates that the company’s primary source of income has been from the sale of its stock to the public. It further appears therefrom that Moel, Inc. will soon be bankrupt unless additional funding is obtained.

From the above ,we can see that the Mitchells initially had a controlling interest of 51% of the stock.

588,000 shares, approximately $60,000, six states, soon be bankrupt had a very familiar ring to it. These were the same numbers reported by Paul Dean in his Arizona Republic articles in January, 1970 when the stone maps were donated and first displayed publically? Although much of the Dean articles were written in an outrageous and comical vein, they should not be dismissed out of hand as not containing any facts?

The Moel, Inc. Case File DOES NOT shed any further light on the analysis of the stone maps by Professor Dana or the FBI connection.

More Later,

Garry

[novice]

Moel, Inc. was officially established on December 6, 1960 under the laws of Nevada but it’s roots reached back to an earlier time. The following is still being researched but I feel fairly confident that it provides a general background of Clarence and Grace Mitchell.

Both Clarence and Grace were born in the state of Washington but by 1930 Grace and her mother had moved to California and Clarence and Grace were married shortly thereafter. Their two daughter’s were both born in California in the 1930s and although the Mitchell’s still had ties to Washington, it appears they remained in California until about 1950.

About 1950 the family moved back to Washington State where Clarence and Grace ran an old hotel called the Cougar Inn near Lake Wenatchee north of Leavenworth. Their oldest daughter married there and remained in the area while the youngest daughter, Carol, graduated from Leavenworth High School. It was during this time period that they developed new and reestablished old friendships and contacts with many people who would end up as Moel investors.

About 1956 Clarence and Grace moved to Arizona in the area around Apache Junction. It is not known what Clarence did for a living but the move almost surely had something to do with searching for lost mines or treasures in the Superstitions.

It is tempting to speculate that Clarence was already aware of the existence of the Stone Maps and may have even had photos or sketches. (Moel would not receive the actual Stone Maps until sometime after the death of Travis Tumlinson in October of 1961)

The first hard timeline that we can derive from the Julius Eberstein Affidavit begins in the summer of 1960. Moel already was an “unofficial” organization and monies were being collected and minutes were being kept.

My copying was less than perfect and one bit of information that I may have missed on Eberstein’s recreation of the Cash Journal was on the left hand edge of page 1. I may have cut off the month notation? It is clear that the entries were for 1960 and they included at least 5 months of activity. Over that 5 month period in 1960, $10,500 dollars were collected. Some entries appear to have been deposits to hold shares with the balance due when the certificates were issued. By February, less than two months after incorporation most of the initial selling activity was complete.

On June 26, 1961, Certificate No. 60 was issued to Clarence Mitchell for 102,500 shares to be sold for corporate expenses. At this point in time certificates had been issued for 1,000,000 shares. The books were partially balanced, although it is not clear whether all monies due for certificates had been collected. At this time, 59 certificates had been issued to 59 different investors. Many were from Washington State.

Further evidence of pre incorporation activity comes from Paragraph 6 or Eberstein’s Affidavit.

By agreement dated August 10, 1960, C. O. and Grace G. Mitchell, president and secretary-treasurer, respectively, of Moel, Inc., agreed to convey to the incorporators a detecting device that “can and will detect any mineral, liquid or gasses” in exchange for 510,000 shares of [Moel, Inc.] stock. On December 7, 1960, the detecting device was transferred to Moel, Inc. pursuant to the terms of the agreement dated August 10. 1960.

The reference to the detecting device probably is it’s own story but it did provide 51% of the Moel, stock to the Mitchell’s.

Another entry from Paragraph 14 or Eberstein’s Affadivit

The minutes of a meeting, dated November 18, 1960, held by the incorporators, recite that “ …. It was suggested that we look for treasure in the Superstitions [a mountain near Apache Junction, Arizona], work to begin as soon as we can become equipped [sic] to do so.”

Hopefully this helps to paint a little clearer picture of the events surrounding the beginnings of Moel, Inc.

Garry

[Joe Ribaudo]

Garry,

I don't know much about the Moel Corporation except that the Stone Maps had nothing to do with the trouble they got into. It's interesting to consider the possible connection between the maps and the "detecting device". Perhaps they intended (somehow) to play one off the other.

The Bob Corbin/FBI story seems to fade somewhat under the glare of the factual evidence. Not saying he made up the story, but where is the evidence that connects the FBI to the maps. Perhapes it rests with the original copy of the Molina Document or Spain's written instructions for the King's Code.

I fear you are searching dead ends, but of course that's an answer in and of itself, just not one of finality.

Nice work!

Take care,

Joe

[novice]

Joe,

I’m simply trying to follow the physical trail of the stone maps. If it is as some have suggested that the actual stone maps were not passed on to the museum, (I think you even hinted at that possibility much earlier on the forum) it would seem pertinent to find out what really did happen to them. On the other hand if the original maps were donated, that would be important to me also?

As regards the FBI involvement, I haven’t dismissed that possibility at all. You seem to believe that since the FBI wasn’t involved in the SEC investigation it’s a done deal. Corbin thought he talked with the FBI in the “late” 60’s. I will tell you that I believe not everyone went away happy when the SEC decision was rendered in 1964. There were some very unhappy campers and I suspect they would have liked nothing better than to have seen Mitchell brought down and in fact may have tried to do as much.

All,

What was it that convinced individuals to invest money in Clarence Mitchell’s corporation to search for treasure in the Superstitions? The simple answer would be that they believed his “detector” would allow minerals or treasure to be found more easily. A second reason may have been the charisma of Mitchell himself. Even though Clarence spoke with a very pronounced stutter, by the accounts of two different people I have talked with who knew Clarence, he was a very interesting and engaging conversationalist. The third reason that comes to mind derives from the actual words in the; “suggested we look for treasure in the Superstition Mountains.” Did the use of the word “treasure” simply mean mineral mines, or did it indicate they planned to search for a hidden treasure (perhaps using the stone maps)? Maybe all three reasons contributed to the initial success of raising money for the search.

Whatever the case, it seems that Clarence was prepared to hit the ground running after incorporation. Since it was the Mitchell’s living near the area to be searched, it seems apparent that Clarence would be the primary searcher, although he may have been assisted early on by Elgin Kriewald. Elgin’s post office was listed as Apache Junction on the Moel Inc., list of officers document that was filed December 12, 1960.

We really don’t have any documents that reveal the actual expenditures of the corporation but it is reasonable to assume that the corporation would compensate Mitchell for his time spent searching. From some of his own accounts in, Life Magazine, his book “Superstitions Treasures” and the McGee’s Article, “Invitation to a Ghost Walk”, the search was an all consuming obsession.

In addition to Mitchell and possibly Kriewald’s compensation, there would be other expenses and we gain a hint of what some of them might include from the Moel Cash Journal. These items were previously purchased and were now being sold and the money was being deposited in the Moel Account. After about 6 months, Two Tote Gotes (Trail Motorcycles) were sold. That fall a Red Bay Gelding was sold along with a 1957 Dodge car. Later on in 1961 we find the corporation selling a saddle and bridle and a horse named Joe.

The search was not an inexpensive endeavor and the only money being generated was from the sale of stock. Much of the stock held by Mitchell for corporate expenses (102,500 shares) had been sold by the summer of 1961.

Enter Alleen Tumlinson;

I don’t have the actual date that the stone maps were sold to Moel by Alleen but from a letter that has survived , she received $1,200 from Clarence Mitchell in 1962 for the stone maps. This certainly supports the belief that she and Travis knew Clarence some years previously and indicates to me that Mitchell was already basing his search on information that Tumlinson had shared. (My belief). I believe that it was shortly after receiving the stone maps that Professor Dana did his examination at the bequest of Mitchell. .

It has also become clear to “me”, from other entries in the Moel Case File, that the corporation owned the stone maps.

Garry

[novice]

One example of the ongoing Moel activity is taken from the Life Magazine article.

Marlowe discovered a hole in the fall of 1962, a natural chasm in the rock 15 feet wide. Just to the north was a painstakingly stacked chimney of small rocks – the dot. Marlowe was sure for the second time, that he had found the gold.

The hole was filled with gravel and Marlowe hurried out to the town of Apache Junction, got a truck with a winch and a scoop shovel, and drove it back with a helper. But the trail was not meant for anything so effete as a truck. It's transmission fell apart and a new one had to be installed right there in the creek bottom.

Cleaning out the gravel in the hole took two interminable days. "Every minute we thought we were going to hit it," Marlowe remembers. "Any minute we expected to see the flash of yellow," But the shovel struck bottom without turning up so much as a nugget.

These types of operations wouldn’t have been inexpensive and by the winter of 1962 the corporation was apparently beginning to run low on money to continue the search.

In order to raise more money we find the following entry from Paragraph 15 in Eberstein’s Affidivit.

The corporate minute book reflects minutes of a meeting held on December 14, 1962 (not designated as either a stockholders’ or directors’ meeting but which were signed by Grace G. Mitchell and initialed “COM”, read;

“C. O. Mitchell has sold a portion of his stock, and will sell more to furnish necessary funds. With this agreement, that when the corporation can aford [sic] to do so, will amply reimburse [sic] C. O. Mitchell for the stock sold.

There were no more shares available to sell to raise money and Mitchell was dipping into his own shares (the 410,000). In September of 1963 we find Elgin Kriewald also donating 20,000 shares of his stock.

Since there was no money being earned by the corporation, the raising of capital was an ongoing activity. In the fall of 1963 we see a change in the residence of the investors. Up until this time the majority had come from the state of Washington but now we see most living in California. From a letter in the Case File it appears that Melford Brower was helping sell stock and his residence was in Rialto, California. This would be the likely reason for the change in investor residence.

Brower had been issued a certificate for 20,000 shares in June of 1962 and he added to that investment until he had accumulated 35,000 shares by May of 1963.

According to the Eberstein Affidavit, Brower replaced Kriewald as Vice President of Moel on February 2, 1964. Since Brower was taking a much more active role in the company, it may have been by mutual agreement all around that he replace Kriewald.

It was also about a month earlier that Time Magazine agreed to publish an article on the stone maps. From the Cash Journal we find an entry in which Life paid Moel, Inc. a $1,000 fee which was deposited in the Moel Account. After the stone map article was published Moel received another $1,000 dollar check which was also deposited. This seems to be the only actual income generated by Moel during their existence.

But time was beginning to run out for Mitchell.

Garry

[Joe Ribaudo]

Gary,

That is the first indication of Moel making money directly from the Stone Maps. Nothing wrong there, as Life paid for a story and received one.

The only question that might arise, would be: Did they ever sell stock using the Stone Maps as a.......hook?

Joe

[zentull]

Does anyone have an idea on what the price per share was on the stock ?

I don't believe the term hook is applicable, because the stone maps would be part of what you were investing in. If it was shares per what the maps may lead to, then there could be a problem or a return on hypothetical findings perhaps. I don't think the investment was ever blatantly made towards that singular recovery.

There are so many books that were marketed as giving you the clues or inside scoop on the LDM. Any purchase of one these books could be construed as the same thing.

[Joe Ribaudo]

Wayne,

Actually, "hook" is applicable in every instance where there is a buyer and a seller. Hook means: Bait, come-on, lure, sweetner, causual factor, influence, temptation.....etc.

For someone in sales, it is a positive word and as long as the "hook" is honest (benificial) to the buyer, it is all good. If the hook is dishonest or only implied, it would be....not so good.

The same is true for every book on the market. There has to be some kind of "hook" to intice people to buy it.

Joe

[novice]

I had intended to add another item to the previous post that is taken from the Eberstein Affadivit which provides additional background on the Life Magazine article and the need to sell additional stock. I have added the bold format to the text.

The Moel minute book contains minutes of another meeting held on December 1, 1963:

“Also to contact magazine, including Life mag. (sic] and get a story published to advertise the Peralta stones which we have.”

“Also necessary that we raise money and the only way that we can at this time is to sell stock belonging to Clarence O. and Grace G. Mitchell, who are willing to do so, in order to keep the Corporation in existence. Let it be known that at any time the Corporation is able to purchase stock to replace this stock to C. O. Mitchell and Grace Mitchell they will do so.

The unraveling of Moel

The sale of Moel stock through the spring of 1964 continued but at a slower pace. In a letter from Grace Mitchell (Secretary-Treasurer) to Melford Brower dated June 5, 1964, we can gain some sense of the ongoing activity. I believe it is rather revealing and I am including the complete letter. Again I have added the bold formatting.

Apache Junction, Arizona

June 5, 1964

Dear Mel & Fran;

Just finished with the Meade, Brockley, and Mullins certificates and will have them in the mail in the morning. Be sure these people understand, they are not buying from the corporation, but from an individual stockholder.
There is five thousand dollars or fifty thousand shares yet that can be sold. No doubt we will be needing most of this before we are able to realize anything from our projects. So you can sell it all now while it may be easier to move, then we won’t have to be at it all the time. I know you have a few other things you like to do on your days off.

Yes the name of Threlkeld does ring a bell. Threikeld Research Co. was here at Apache Junction for perhaps six months. They did not pay their rent, lights, water, and were doing everyone around that they could for gas eats etc! Were finally put out of the house they lived in and we didn’t know where they had taken off to. We don’t want to have any dealing with them or any of their associates. The big talk is just nothing but that, so just forget about their whole deal, also don’t worry any about their giving us any competition. I hope you didn’t try selling Dudley any stock, don’t sell him any, and also hope you didn’t mention our story in Life. We sure don’t want their loud mouths to know any thing about us. Sure a little world that you should meet up with any of that bunch, for goodness sakes break the association. Their not what they seem, and say.

Mel if you haven’t allready given up the P. O. Box 371 keep it, as we will still need a Box for answering letters. I don’t know why I couldn’t have thought of that before, but if you have given that one up. You can rent another one when we get to needing it.

Oh I see that name is Studley, not the way I wrote it above. I wonder what his connection is with that bunch, I don’t remember hearing his name before.

The local paper says that Dick Stolley is the writer of the current story on Mrs. Kennedy, and is also the author of the story to come out in Life in the near future. Telling everyone to watch for the story on the Superstitions. They will sure be in for a big surprise when they do read it and see the pictures. I am sure going to enjoy that article too, remember Mel it was last June at the hospital when you and I sort of decided we should do something with our one and only tangible asset. (sp) It took a whole year to do something too.

Well everything is O.K. at camp. Cat running and their off to the Mercury now, so it shouldn’t be too long now till they get down to the very good ore. We will have it assayed in Tucson, and then see what we have.

I will be here at the ‘office so will handle any mail and take care of things right away as it comes in. So fire away, get the amount sold, then we can stop selling, and do think that will be all. No more stock sold would suit us fine.

Think this is all that I have to say for this time.

Regards to you both and family,

Sincerely,

Grace

Given the context, I interpret Grace’s reference to “our one and only tangible asset” as the stone maps.

The Life Magazine article appeared shortly thereafter. Almost surely they hoped it would lead to additional sales of stock. They were disappointed in the article as reflected in the Moel minutes of June 23, 1964.

(Eberstein Affadivit)

“The story in Life magazine was not as we had expected. It was too much about the prospector, and not enough about the stones being the Peralta maps.”

Letters from Life magazine coming in. Mel Brower will handle from California with Box number.”

The reference to the “good ore” in the June 5 letter, may have been their last chance at success and we have no record of the results of the assay but it was not the rich strike for which they were hoping. We can only speculate that as the results became know to the investors, the hopelessness of the situation was becoming apparent.

On January 5, 1964, Joseph and Darlene Fragale had purchased $2,000 dollars worth of Moel stock. Questions were now surely being raised as to where the investors stood and on August 25, 1964, Joseph Fragale replaced Grace Mitchell as secretary-treasurer of Moel. In this capacity he would have obtained access to all of the Moel books. Again it is not clear whether this was an uncontested replacement or not, but things were fast coming to a head.

Joe,

I believe there is evidence that they were using the stone maps as an advertising vehicle to sell stock but again that in itself would not indicate any wrongdoing in my eyes. Mitchell and many of the investors “believed” they were authentic.

Wayne,

I believe the stock question is addressed earlier in the thread but I understand it is all rather tedious. Moel had an authorized capitalization of $100,000, consisting of 1 million shares of 10 cents par value. They were selling the stock for 10 cents per share.

Garry

[zentull]

When was the first date that we know of the stones were professionally examined by an impartial source?

Did MOEL have anyone look into the stones while they had possession of them?


I got a part 2 question which leads away from this a bit, but I want a handle on the examinations and the earliest findings.

[Joe Ribaudo]

Zen,

Have a post for you in: "Non LDM Lost Treasure, Mines, Old West, etc".

Joe

[novice]

Typically the SEC would become involved with a corporation when they received a complaint. In this case we have no record of exactly who and why but it requires little imagination to believe it coincided with Joseph Fragale assuming the duties of Secretary-Treasurer of Moel.

When Fragale examined the books he must have realized that most of the money raised by the sale of stock had been spent and there was little chance of any future return. His $2,000 dollars was history. (you could probably buy a new car for that in 1964).

Whatever the case the SEC became involved and Julius Eberstein was assigned by the SEC to investigate the dealings of Moel. About three weeks later after assuming the duties of Secretary-Treasurer, Joseph Fragale resigned on September 14, 1964, as an officer in Moel. Melford Brower also resigned as Vice President the same day.

The eventual SEC complaint was that Moel was engaged in selling shares of capital stock and that no registration had been filed with the SEC and this was in violation of the use of jurisdictional facilities, i.e., the mails and means and instrumentalities of interstate commerce.

Based on the facts set forth in the affidavit of Julius Eberstein and the allegations verified in the Complaint for Injunction, on September 28, 1964, Judge Craig of the Federal Court in Phoenix issued a Temporary Restraining Order to enjoin Moel from such practices and for the defendants, Clarence and Grace Mitchell along with Elgin Kriewald to appear on September 30 to answer the complaint.

The specific evidence that showed Moel was selling unregistered stock and using the mails to do so seems to have come from the Fragale Stock Certificate, his deposited check for $2,000 dollars, the letter from Grace Mitchell to Melford Brower and the verbal accounts of both Fragale and Brower.

The Mitchells appeared in court on the 30th and a permanent injunction was issued. Kriewald was in Washington State and it wasn’t until November 3rd , a similar judgment against him was rendered.

The focus of the SEC was very narrow and dealt only with stopping Moel corporation from making further stock sales. There was no reorganization, no revisiting of previous transactions, no addressing of the stone maps, etc. After the trial Moel was still an organization and investors still owned stock certificates.

Fortunately for those of us trying to understand the Moel episode, Eberstein’s investigation touched on several areas that seemed to have eventually ended up on the cutting floor as far as the trial evidence itself was concerned. Although Eberstein touched on the subject of the stone maps, Mitchell’s mineral detector, 51% of the initial stock offering being assigned to the Mitchells, etc., they don’t seem to have figured in the final evidence.

A few other Interesting items cited in the Eberstein Affidavit.

Paragraph 6;

“My examination of stock certificate stubs Nos. 1 through 179, contained in three stock certificate books, for the period from January 5, 1961, through August 25, 1964, and cancelled stock certificates therein disclosed that certificates for 2,148,250 shares have been issued and that certificates totaling 1,142,250 shares have been cancelled, reflecting a total of 1,006,000 shares outstanding, which means that 6,000 shares have been issued in excess of the total number of authorized shares……”

It appears to me, trying to flowing the accounting, that an unintended error could have easily been made by Grace?

Paragraph 10;

“My examination of the stock certificate books, as shown in Exhibit 1, disclosed the issuance of 80,000 shares [Certificate No. 28] on January 5, 1961, to Elgin L. (then vice-president of Moel, Inc.) and/or Shirley M. Kriewald. Seven stock certificate stubs, Nos. 135, 170 through 174, and 177, reflect the transfer of 38,000 shares and each bears the notation “Sale of stock donated to corporation by E. L. Kriewald.” Stub No. 176, dated June 24,1964, for 40,000 shares in the name of Elgin L. and Shirley M. Kriewald, represents the total shares outstanding in their joint names as at the date of my examination. No information could be found in the corporate records concerning consideration paid by Elgin L. and Shirley M. Kriewald for the 80,000 shares.”

Paragraph 9;

“…..Sixty-three (63) additional stubs reflect transfers of a total of 321,500 shares and bear the notation “Sale of stock donated to corporation by C. O. Mitchell.” The certificates from which these shares were transferred had been issued in the names of Clarence O. and Grace G. Mitchell. Stub no. 179 dated August 25, 1964, for 135,250 shares in the names of C. O. and Grace G. Mitchell represents the total shares remaining registered in their joint names as at the date of my examination.”

The last Certificate (No. 179), issued on the day that Fragale assumed the duties of Secretary-Treasurer, appears to have been an attempt to balance the outstanding shares. The Mitchell’s daughter still owned her 100,000 shares but the 410,000 shares owned by Clarence and Grace had been sold down to 135,250 shares.

There is undoubtedly additional information that someone else could derive from the case file. Being an accounting wizard would help. Also they might offer some additional or opposed interpretation from what I have offered. I would certainly welcome anyone looking over my shoulder!

Garry

[zentull]

One thing I find is interesting is that the maps were known by a number of Dutch Hunters before 1955. This would negate some of their value I would think, it would also mean the Life story was very much after the fact and perhaps a drive for publicity more than anything else.

It seems each time the maps are tested for authenticity, they become more suspect as time passes.

This thread is interesting to me, because the story seems far moe believable than 90% of what I have read.


Garry,

got the snail mail, thank you very much.

[novice]

Also included in the Moel Case File is the correspondence of Elbert Love with the Court, beginning Jan 18, 1965. There was a Moel stock holder meeting scheduled for February 7, 1965 in Phoenix and Love was trying to gather information and he sent a letter to Judge Craig.

Elbert Love was from Portland, Oregon and was one of the original investors in Moel. He had made a deposit to hold shares for purchase before the incorporation papers were ever filed. His initial purchase was 5,000 shares and he added to that periodically over the next couple of years. When the injunction was filed, Love owned 30,000 shares.

An excerpt from Love’s letter of January 18, 1965;

“As a stockholder in Moel Inc., I would appreciate knowing the details of the complaint brought and in what way the complaint has been satisfied by the officers of Moel Inc.

Did the Corporation sell shares of stock in excess or that authorized by its charter, or was this sale of stock from Mr. Mitchell’s personal holdings?

Are there any legal actions pending against the Corporation or its officers?

Has there been any FBI investigation of this case and to whom should I write for details if so.

A brief answer to these questions would be greatly appreciated.”

Judge Craig’s office indicated that the court case file had been turned over to the Clerk of the Court, William Loveless, and that any inquires should be directed to Loveless. It is presumed Love’s letter was passed along to Loveless.

Love received no answer and wrote again of January 31, 1965, this time to Loveless, stressing the urgency of the information because of the upcoming stock holders meeting.

The response was returned to Love on February 2. It didn’t address any of Loves questions but simply reiterated the final ruling and provided the costs for obtaining certified copies of the complaint and injunction.

Love was obviously already aware of Eberstein’s assertion that additional shares were sold in excess of the authorized shares. The response to his questions must have been disappointing.

It may have been at the meeting of February 7, that Love was chosen as the next president of Moel. He was listed as president in the annual Moel report filed on June 2, 1965.

After the Love correspondence, there was no further activity recorded in the Moel Case File.

An additional item that we tried to check out at the archives was the possibility of a federal bankruptcy trial involving Moel.

One of the terms used by the SEC regarding Moel was bankruptcy and that term has been used by others when speaking of Moel. In that vein, we asked the archive personnel to check their index for Federal Bankruptcy Cases filed in the Federal court for the years after the trial. Those records are actually held in Paris, California at a storage facility. A gentleman checked some kind of index he had and returned and told us there was nothing. We hoped he had been thorough?

Bankruptcy seems like a misnomer to me. Bankruptcy occurs when if a corporation's debts exceeded their assets. From what I could tell the Moel had no debts which is not surprising. An institution or company would be foolish to offer credit to such an enterprise. Moel paid it’s way during the search using the capital generated by the sale of shares. The stockholders were not creditors, therefore it stands to reason that there would be no bankruptcy proceedings.

If there was any further legal activity regarding Moel, it would appear we have to look elsewhere.

Garry

[zentull]

Garry,

Nice bit of research. I suppose there is very little to reply or argue about. I am a big fan of the way you present your research in a very straightforward way. This was one of the few discussions involving the Stone Maps that I became very interested in. You simply have covered more ground and been far more thorough than anything I have read on this particular subject. If we are able to bookend this with what preceded and followed, we should have a better idea of the modern history of the maps.

[novice]

At the time it may not have seemed so to the Mitchells, but I believe the Moel trial and injunction provide a merciful separation of Clarence and the corporation. Continuing the search would have only exaggerated the difficulties. Although Clarence still theoretically held a large chunk of shares, from other information I have seen, it appears he severed all ties with Moel at this time and almost immediately launched into the creation of his book “Superstition Treasures”. There is evidence that some of the investors were very upset and they continued to hold out some hope of Mitchell being held accountable.

Physical Possession of the Stone Maps

It seems fairly clear that Mitchell held physical possession of the Stone Maps until at least after the trial and possibly for some short period beyond. Working with the timeline, Mitchell had received the maps sometime in 1962 and they were passed to other members of the corporation by early 1965.

Wayne,

Thanks for the kind words, but there was nothing very original as it was simply a matter of repeating the contents of the Case File.

I guess I am ducking your question as to “the first date that we know of the stones were professionally examined by an impartial source?” I’m sure it has no answer that would satisfy any two Dutch Hunters. The nuances are numerous and all can be debunked if that is your purpose. I would suggest that there were possibly three examinations. The one documented in the January 2005, Arizona Highways, the Clarence Dana examination in 1962 which "probably" occurred and the FBI investigation in the late 1960’s which "possibly" took place. All three or these examinations have been worn out in other threads and I suspect you will not obtain anything that will leave you satisfied.

I will try to share some additional information on the book end timelines but they will certainly not be definitive but may provide some food for thought. I need to spend some time gathering that information together.

Garry

[zentull]

Garry,


It seems pretty straight forward that after aquiring the maps Mitchell decided he had a spot (Tumlinson made claims that he had it interpreted and was close) and needed capital. Same story we have all heard. Everyone got upset with Mitchell after the Life story and eventually everyone realized there was no way to recoup on the losses. It would be interesting to contact someone who had a few shares and what kind of introduction was made for the selling of those shares. The small players may have an interesting tale to tell. If you are able to pick out a few of these people you may get a better idea.

Where is Paris. If I get a chance next time through California I will check again.

I find it odd that it was the Life magazine article that they looked to for renewed interest. I don't believe the locals took it as serious. There must have been a very limited possibilities of investment locally. Clay Worst must have spoken to most of those involved and it would be hoped he will stay off the horse this fall so he can make the rendevous. I believe he spoke most of the map creators/locaters we know of........

[Mike McChesney]

Hey Zentull,

Remember, Tumlinson not only had friends in Apache Junction before "finding" the Stone Maps, he made several trips to the area in the five or six years before his health started failing, and he gave the Stones to his brother Robert.

Best,

Mike

[Mike McChesney]

P.S.

Robert Tumlinson made a couple of trips into the area with his landlord/partner while he had the Stone Maps. He was also not known for having tight lips.

Best,

Mike

[Joe Ribaudo]

Randy,

Just curious......Why do you think the SEC asked the FBI to date the Stone Maps, since the maps were in no way connected with the SEC action?

Seems like a bit of a stretch to keep following that line of thought, as the facts make any FBI involvement (official or unofficial) extreemly unlikely.

My guess is that Mike came to a complete dead end, which is why he no longer posts anymore.

Something seems very wrong with this story.

Joe

[djui5]

It was just a thought, and apparently a mistake on my part

[TJHunter]

This is why Joe:
From 6/42007

Gentlemen: After having read Aurum last several posts I called Bob Corbin this evening to clarify some points about his FBI story pertaining to the Stone Maps. His reply was, "between 1966-69 I was the County Attorney. I was in the U.S. Attorneys office in Phoenix when one of the Deputy U.S. Attorneys told me that an FBI agent from the FBI Laboratory in Washington D.C. was in their office and asked if I wanted to talk with him about the Stone Maps. Apparently the Phoenix office had obtained the Stone Maps to have them analyzed by the FBI Laboratories in Washington DC to see if they were recent fakes. I said yes. (Bob told me that the maps were physical sent back to the Washington DC lab). The agent I spoke with only said that the maps were believed to be at least a hundered years old". Bob did not see the maps at that time. Bob futher said that the maps were sent to the Washington DC lab because the Phoenix FBI lab was not equipted to analyze them. OK, Before we go any futher, I suggest that someone contact the Washingtion D.C. FBI offices or the National Archives through the Freedom of Information Act and see if they can obtain a copy of the case file for the Stone Maps. This should answer the questions put forth in these posts discussions as to the involvement of the FBI with the Stone Maps and Moel. Cordially, Gregory E. Davis

TJ

[Joe Ribaudo]

Randy,

It seems that the whole thing revolves around Bob Corbin's statements.
I don't believe he is making anything up, but there could be some kind of misunderstanding about what took place.

I still don't believe the FBI ever had the Stone Map......and have my doubts about the Redlands story.

Joe