One of the frauds in 1899 grew to such large proportions that Governor N.0. Murphy considered it his duty to issue a formal letter of warning, addressed to outside investors in Arizona mines. This letter brought down a storm of protest, and Murphy was accused of a jealous desire to ruin Arizona mining. Within a few months; however, it was demonstrated that his action had been dictated by a true sense of local patriotism. The particular swindle to which he referred to was the Spenazuma mining project, developed by "Doc" Flowers, who already had made an enormous fortune in the sale of proprietary medicines. The Spenazuma, which was exploited as the greatest mine in the world, was in Graham County and was a very ordinary mine indeed. Ore samples that were sent east and that were piled on the mine dump for the inspection of committees of stockholders were brought from other mines of far greater value in the Black Rock District.

The expose came through a newspaper man, George H. Smalley of Tucson, who furnished Governor Murphy with the information that led to the publicity. However, Flowers still sold stock, at advanced prices, even after his methods had been published in eastern journals. Flowers could not buy Smalley off and soon thereafter had to quit operations in the Southwest.

One amusing feature of Flowers' operations on the Spenazuma was a fake stage hold-up, thoughtfully provided for the benefit of a number of prospective investors. He hired a number of cowboys to hold up the caravan of coaches, but the defenders succeeded in driving off the bandits. However, later, these “cowboy bandits” couldn't keep from joyously telling their tale of “banditry.” Flowers was a man of true Wallingford stripe and found opportunity for making money on every corner. In 1890, while under indictment on a charge of selling fraudulent stock, and while under bond for $50,000, he promoted to Philadelphia investors a company that clamied to have found a method of making gold. He was arrested on several charges of grand larceny, but he succeeded in escaping to Canada. Slow-footed justice at last came to him, as late as December, 1914. After extradition from Canada, he went on trial in the east and at the age of 70, was sentenced to two years in the penitentiary. If he had stolen a pie his sentence would, probably, have been at least five years.

In 1892, Dr. H. H. Warner of Rochester, New York, an individual famed for his observatory, his bitters and his pills, bought of John Lawler and Judge Ed Avells, the Hillside group of mines in southwestern Yavapai County, paying $50.000 cash on the price of $450 000. The company then sold stock under the name of the Seven Stars Gold Mining Company. Ordinary stock was sold at $1 a share, but beyond this, was also issued a block of 100,000 shares at $5, on which Warner, then believed to be worth millions, personally guaranteed annual dividends at 13%. Warner failed soon afterward and the mine, with much added development, went back to the sellers, despite the protests of the stockholders.