H. K. White Statement - Part 1

cause the Coal Co had no money?

A No Sir.

Q It was because Colton had used the money that the money was borrowed?

A He had used all his bank account and of course had to borrow money for any purpose that he needed. If it was for the Coal Co, he of course had to have money.

Q You do not quite answer my question. In the time I understand that Colton was always indebted to the Coal Co? was he not?

A There was always more or less money due from him to the Coal Co as the books will show.

Q Now when that money which had been deposited to his private account belonging to the Coal Co had been used up. Colton would put in his note into the bank and supply the money in that

[bottom left margin:] 16

way, so that the demands against the Coal Co could be paid.

A Yes Sir, if they came in

Q But there was no reason why, apart from the fact that Colton had used the money that the Coal Co should be a borrower?

A No Sir.

Q Did Colton ever suggest to you that you should allow the Coal Co interest on the money that he was using?

A No Sir, nothing of the Kind ever passed between us.

Q Do you know this fact, during the time, that there were large sums of money on hand due to the Company by Colton, you heard complaints by employees of the mine a-bout being delayed in the payment of their wages?

A Not to my Knowledge.

Q Did you ever see Beerman's letter to Colton complaining that the employees were dis--

[bottom left margin:] 17

satisfied that they were not paid wages [dead bug on the w] then past due?

A No sir. I do not think that "there w"[crossed out] I ever saw any such letter. I might say this, that whenever he was here I was always very particular when I got the mail from the office, laying everything on his table and he always saw it first. I never opened any letters, even letters coming from the mine, even letters that I was satisfied contained Coal reports which were a daily report. I never opened them if he was in San Francisco until he saw them, if he was away, of course, in New York. Then I had instruc-tions from him to open his business letters, but when he was here he always saw his mail first and opened it himself.

Q During the time that you were bookkeeper of this mine did you make any notes for

[bottom left margin:] 18

the use of Colton, signed by yourself?

A No sir. I think not.

Q It appears from reference to his account that at one time he paid the London & SF. bank $1087.17 on a note made by H. K. White.

A No I did, it was under his directions. I have forgotten.

Q And does interest on an-other note $558.40, a note made by yourself.

A Well, if I did sign notes it was by his order.

Q For whose benefit were they?

A Not for me; for him.

Q Cannot you remember whether you ever made a note on which the monthly interest was over a thousand dollars or five hundred dollars?

A No sir I couldn't recollect.

Q If you did do that. You did it for his benefit?

A For him, on, under his order.

[bottom left margin:] 19

Q You kept no memoranda about it?

A No Sir I never borrowed a dollar for myself from any bank in San Francisco.

Q Do you remember when he was East when he sold the Montgomery St property, and was writing you about stopping the payment of interest?

A I think he did write some letters in regard to that. I cannot give the particulars now.

Q You cannot tell then that you remember in 1873 at the time when the RMC & I Co. [Rocky Mountain Coal & Iron Co.] had between $85000 and $ 90,000 balance on hand, that Beerman was complaining of money not being sent to the mine and Colton was instructing him to cut down the construction ac-count, that he was short of money and all that sort of thing?

A No Sir I do not recollect. There might have been that

[bottom left margin:] 20