The San Francisco call., 1898-06-08
Santa Rosalia Mining
 Company's Mistake.
SAID COIN WAS EMBEZZLED
ACCUSED A TRUSTED EMPLoYE
 AND BUSINESS ASSOCIATE
Difference Between Mexican and Uni ted States Money, However, Was Responsible for the Mis-
 understanding.

About three months ago suit, innocent
 enough in the wording of the complaint,
 but formidable in the amount 1t sought to
 recover, was filed in this city by the San
 ta Rosalia Mining Company against Au-
 gustus Abbott one of the stockholders
 and its former superintendent. The suit
 however, it Is now determined. meted out an injustice to the defendant and its in stigation was solely due to the fact that
 the directors of the plaintiff corporation were either in ignorance of or did not stop to consider the fact that Mexico Is
 silver standard country and that two of its dollars equal only one of the coinage of the United States In the commercial world. Since the directors of the mining corporation have been appraised of the fact they have dismissed the suit against MT. Abbott, the dismissal being prompted by the fact that they had no suit to pros ecute, as their books balanced to the cent with those of their former superintendent, who was immediately exonerated when the comparison was made.
 Abbott was the trusted employe and business associate of the officers of the company for about three years in the management of one of the richest mining properties owned In San Francisco-and 1t was not until several months after his retirement from the position of superin- tendent that the management determined that suit for the recovery of large amount of money must be instituted. The directors were of the opinion that they had dug up a deep plot, that irregularities existed in Abbotts accounts and that he had left on tour abroad for the sole purpose of remaining out of the reach Of processes issuing out of California courts. That Abbott was absent there could be no doubt, and owing to this fact suit for the recovery of S30, 900 was filed against him and an attachment was issued against Is 300 shares in the mining corporation, of which he was owner held in escrow by the Bank of California and on the secre- tary's books. No service on Abbott was made. but he became cognizant of the facts of the case while travelling and he informed his attorney, Colonel W. P. nonplussed at the action of the directors, but he continued on his trip, trusting to Colonel Harlow to see that the complain ants were properly apprised of the facts. Colonel Harlow has completed his labors in behalf of Abbott, has appraised the d. rectors of the facts of the case, has re- intendent does not owe one cent to the corporation and Is now on his way home.
 The facts of the transaction and cir cumstances that so startled the directors of the corporation are these" said Colonel Harlow last evening. MT. Abbott was placed In charge of the mining property, development was properly conducted, and it was his desire to obey the laws of Mex leo instead of his wish to disobey the laws of the United States that led to the suit being filed against him. The laws of Mexico make it necessary to keep the books Of all corporations in Spanish. This being the fact when the income from the mine was balanced it was placed in the books in figures representing its value in coin of the realm in which 1t was pro- duced. For instance one of the items on the Mexican books that reused the sus- picions of the directors was one of $44 000 representing a like number of Mexican coins of that denomination, while the books of the directors only credited the output of the mine with S22 .0o0. half the amount placed to it's credit by its super intendent on his accounts. Many similar conditions were found to exist, and the directors, when they received the books from Mexico, immediately concluded that a shortage existed. MT, Abbott trusted to the knowledge of the directors regarding the difference of money values to set them right regarding the accounts. but in in their ii ,o anxiety to protect themselves the condition of affairs.
 Tn the meantime. MT. Abbott had ar rived rom Mexico, and after marrying one of Oakland's belles, started on his wedding tour. He went to Mexico and then started tour of the United States. It vas the tour of his honeymoon that business which led some of the directors to believe that he was travelling solely to escape summons in the acton which has been filed against him. He learned of the suit. however, and instructed me to care for his interests and investigate the al- legations of the directors. This I did l WI IioHtuS aSO l went 10 Mexico and investigated the books of the company still remaining there, and learned of the output of the mine. l soon became ac- quaiinted with the condition that had led to the misunderstanding and returned to this city The matter had in the meantime been placed in the hands of James Nc Nabb by the directors for settlement, and together we went over the books of the company. An expert accountant was em- ployed. and when he had concluded his labors it was found that there was not cent dllp from o1iapt 10 crate this statement. I have in my pos session receipt from the company for all It's demands against MT. Abbott The matter, which created considerable sur prise at the time. has proven to have been based on film of circumstances which. | If the directors had investigated would have disappeared without even the trouble Incurred by the filing of a complaint for money that was not due"