H. K. White Statement - Part 1

Q You did not retain any copies?

A No. I did not retain any copies.

Q Turning then to the com-plaint that you have in your hand "Exhibit D", I call your attention to the first entry there, which for convenience of reference we will call question D O. "Interest on balances". In what way, to your knowl-edge did Mr Colton keep those money of the RMC & I Co. [Rocky Mountain Coal & Iron Co.]?

A It was all kept in his private bank account.

Q Where?

A In the London & S. F. bank; by his instructions.

Q If you received any money belonging to the RMC & I Co. [Rocky Mountain Coal & Iron Co.] you would deposit it to the credit of D. D. Colton in his private account with the London & S. F. Bank?

A Yes Sir.

Q Why did you do that?

A On his order.

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Q Why didn't you keep the account of the RMC & I Co. [Rocky Mountain Coal & Iron Co.] with the London & S. F. Bank or some other bank?

A Because he ordered me that it should be kept in his own private bank account.

Q Did you make any sug-gestion to him at any time that the bylaws of the Company or any other reason re-quired that there should be a separate bank account kept for the company, independent of his private account?

A I suggested to him that I thought it would be best to do so. and he said no. That is about all the an-swer that I recollect now that he made.

Q It is stated in that "Exhibit D" that "Interest on balances" from January 1, 1871 up to the time this account is made [1878 written on left margin] out, Sept 30th 1877 amounted to $31.711.32.. Can you state whether or not that would be

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about the balance of money that would remain in his hands belonging to the Coal Co?

A Well. I could not say with regard to that.

Q Would your account book as you kept it show from day to day or month to month what the real bal-ances were?

A Yes sir.

Q The money belonging to the Coal Co when deposited to Colton's private account, with the London & S. F. bank, was that checked out for Coltons private purposes?

A For all purposes, his own and the Coal Co too.

Q If Colton had any bills of his own business to pay it was paid out of the money of the Coal Co if there was any such in the bank?

A Yes Sir.

Q Was there any occasion at any time during the time you were book keeper when Colton

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owed money to the bank[crossed out] Company and bills were brought in against the Coal Co to be paid when there was no money in the bank to pay them?

A Yes sir, there were times when he had no bank ac-count, that is when he had no money in the bank; the money would be exhausted.

Q And yet he owed large sums of money to the Coal Co.

A Yes Sir: the cashbook of the Coal Co would show that there was probably a large amount of money due from[crossed out] the Coal Co as charged to him.

Q And there would be no money in the bank to meet it.

A There would be no money in the bank.

Q In other words he would use the money of the Coal Co in and about his private business?

A The same as though it was his own. There was no

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other bank account kept but his, for all the money, his own private money and the Coal Co money.

Q When there were demands against the Coal Co to be paid, and no money in the bank to pay it, how did Colton provide the money which was then due by him to the Coal Co?

A If he had no money in the bank, he would then give his note, he would put his note in the bank for five or ten thousand dollars or perhaps fifteen thousand and then of course he would have a bank account. And then if there was money needed for the Coal Co, of course I would under his instructions draw checks against what ever he might have in the bank.

Q But there was no money borrowed from the bank on account of the Coal Co, be--

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