Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-05-29
MRS. CoLToN'3 CASE.
Disclosures Made by Charles crocker's
Deposition.

IS. T. Call, May 2sthl
As Charles Croker designed making q trip
East, and possibly to Europe, al an early day,
his deposition concerning the matters set for b
in the complaint re Gently filed by Mrs. I. N.
Cotton against Leland Stanford, G. p. Hunt
iugtop, Charles Croker and Wells, Fargo &
Co, was o. Saturday taken before notary.
The plaintiff was represented by G.. Frank
Smith Of this city and Judge Dalnas of Sai
jose, and the defendants by Judge Delcs
Lake and Colonel Creed Raymond.
One of the first things done vas to correct
an erroneous impression cleaned from the
published synopsis OF the compliant, VII Oh
appeared to represent that 8lr Crockor had
gone TO Mrs. Gotten Immediately after the
death Of her husband, and while shs was
over whelmed with grief told her that her
husband had embszzled the funds of the com
pAny, and that unless she settled ne would be
disgraced. An examination OF the complaint
shove that no such avernlsrl was III II, ana
the testimony # Nr. Csccker was TO the
fleet that he never il trodCc5d the subject Of
Dir. Colton's business with the r .ilroai Com
pauy in auy conversation he had WITH Alls
Cotton. He explained that 1T the time OF
General Colton's death he was in the city Of
London, and on his return he made several
neighborly visits to Mrs. Cotton, who at times
spoke of the business, say ing that it was re-
ported that hsr husband had died lnsoiVen',
and that her homestead was mortgaged. Mr.
Croker assured her that he did not believe
that General Cotton had mortgaged her home
stead, but that en- examination OF the records
would show. He advised her at the same
time to pay no attention to or worry over
these reports. He stated, further, that
THE LAST CONVERSATION
He ever had with Mrs. Cotton was as friendly
- h. nd hot hat inns a
did not know that General Cotton had en-
bezzled tho fund.-. When notified that Gene
raj Cotton had embszzled the funds of the
various ompanies with which he was cor
nected, in large sums. he was as much sur
prised and grieved Gs any one could be. be
explained that he had informed Mr.. Wilson,
Mrs. Colson's attorney, Of the fact that books
exclusively under the control OF General
Cotton and his clerk, a brother OF Mrs Col
ton, showed that Cotton had embezzled large
SUMS of money. Mr. Wilson said it could
not be possible that Cotton would be guilty Of
such crimes, and asked if there WAS no ex-
PLANTATION. MIR. Crocker then said tina. there
WAS no explanation that he knew OF, but that
if Mr.. Wilson would take the matter in hand
and make a thorough examination of it and
satisfy him that General Cotton was guiltless
Of the charge of enlightenment, he would out
Of his own pocket pay him $4,000. He
HOulu 10 LElB tUuCu 10 VlculCALe tue UOIoI u
his deceased friend but upon full exsmins-
tion Of all the accounts the evidence of Col
toms guilt was conclusive and overwhelming.
This fact he never communicated to any one
except his immediate associates, and TO Mr.
Wilson, Mrs. Colton's attorney, and to Lloyd
Tevis, her agent. From the time that he
discovered Colton's guilt, he had never spoken
TO Mrs. Coltor, but avoided her, because he
would not be the bearer Of such unwslcome
news, and that 80 far from threatening any OF
Mrs. Colton's friends with any exposure, he,
on the contrary, eldesvored by every means
in his power to conceal his culpsbility, and so
far as he knew, it had not been made public
until the complaint in this case was fled. OF
the embezzlement, the following explanation
was made.
THE ALLEGED RNBEzzLEMENT.
The Rocky Mountain Coal Company was
under the exclusive charge of General Cotton.
He handled the money, drew the checks,
drafts, etc. His bookkeeper was named
White, a brother Of Mrs. Cotton, aud up to
the time of General COlton's death nobody
had any suspicion of wrong. General Cotton
handled any amount of money without check.
The first thing that excited anybody's suspi-
ciou was letter from Mrs Cotton. addressed
to Mr. Huntington in New York. urging him
very strongly to appoint certain friend OF
hers, WHOM she had named, Mr.. C0lton's
successor IS President of the Rocky Noun
tain Coal Company. The request, an I'M
usual one from a woman whe had taken no
interest in business affairs, led MIR. Hunting-
ton to suspect that there might be something
wrong in the accounts of the Rocky Mountain
Coal Company; but he never for q moment
suspected that there was any crookedness that
General Cotton had anything to do with.
His suspicious being aroused, MIR. hunting
ton telegraphed to have an examination made
of the books of that company. That exam
ination was made by an accountant, and he
did not go very far when it became very evil
dent that large sums OF money had been EN-
bezzled under such circumstances which rem
dered it impossible that General Cotton could
be innocent, the same voucher being used
twice to cover up false entries made. Whilst
it was apparent that clerk in charge of the
books might have maize false entries, yet It
was clear that be could have had no object
in doing So because he could not have OBJ
tanned the naoney-that being under General
Colton's control alone.
During the taking of the deposition Mr..
Croker referred to the publication in the
newspapers, especially purported interview
between Mr. Smith, attorney for Mrs. Cotton
and Chronicle reporter.
MIR. Smith at oncs disclaimed being the
authority for the report, and declared The
Chronicle reporter came to me, and probably
one-half of what is stated there 1 said. Some
of it is so perfectly absurd that it bears upon
its face the contradiction that would CONS
from any sane man. When the newspapers.
or any man, says you went to Mrs. Colton's
sick-room, OF course they lie. There is no
question about it. My knowledge of the
facts satisfies me that it is untrue"
1t appeared further from Mr.. Crockers
testimony that General Cotton owed Stan
ford, Huntington & Crocker 81, 900, 900, be-
sides the sum embezzled, and besides his lis
bility as q stockholder in the Western
Development Company, and all of Colton's
property would not have satisfied, within
many thousand dollars, this liability. Their
action was with the intent and purpose of
saving the memory of General Cotton, and of
concealing from the world the fact that one
30 much trusted as General Cotton had be-
trayed his trust, for the facts would have
been made public if these claims had been
fled in the Probate Court. Stanford, Hunt
ington and himself, at the solicitation of Mr..
Wilson. attorney, and Mr.. Tevis, the agent
of Mrs. Cotton, gave up the note, assumed
General Colton's indebtedness to the West
ern Development Company, and allowed
Mrs. Cotton to retain property that would
make her independent for the rest of her life