The record-union., 1898-03-19
ABBOTT MANAGED THE MINE.
AND NOW THE DIRECTORS ARE
AFTER HIM.
1t Is Said He Has Not Accounted
for Funds of the Santa
Rosalia.

Tor many years, comes as a surprise the
announcement that he is flying through
the country to escape the wrath of the
Directors and stockholders of the San
ia Rosalia mine at Hermosillo, Mex,
which was recently reopened and de-
Veloped under his management. The
statement is made that he had failed
to account for several thousand dol
lars that disappeared while he was Su-
perintendent. Here is the story as re-
lated yesterday in the San Francisco
Chronicle
Behind the innocent looking suit for
debt, brought three weeks ago by the
Santa Rosalia Mining Company against
Augustus Abbott one of the stockhoid-
ers and its former Superintendent,
there has been sedulously concealed a
matter much graver and infinitely more
sensational than the complaint would
indicate This suit promises to be only
the prelude to a series of proceedings
in various courts, with Abbott as de-
fendant in them all.
The prominence of Abbott's connec-
tions and possibly the hope that the in
cident might be closed by a private set
sion of the facts. but within the last
few days matters have reached such
stage that publicity could no longer be
avoided.
The mystery that cloaks the move
ments of their former Superintendent
is battling the Directors of the mining
company for a time, but whatever may
be his motive for remaining out of the
reach of processes issuing from Cali
fornia courts, they feel that they have
protected themselves amply against the
chance of financial loss.
Abbott had been the trusted employe
and business associate of the officers of
the management of one of the richest
mining properties owned in San Fran
cisco, and it was not until months after
his retirement from a position of re-
sponsibility that they became convinced
of the existence of irregularities in his
accounts. On account of his absence
suit for $4,000 was at once filed
against Abbott on March 1st, and an
attachment was issued against 1880
shares of stock in the Santa Rosalia
Mining Company, held in escrow by the
Bank of California and on the Secre-
tary's books. No service has been
made in the suit, but it is believed that
Abbott who is said to have been in
Little Rock, Ark about a week ago,
has knowledge that steps have beer
taken to recover the money alleged to
be due from him.
In the meanwhile a further investiga-
ton of the affairs of the company un-
der Abbott's superintendency is in
r &
that other suits will follow in quick
succession. How much further the Di-
rectors may proceed in the courts they
are 10th to say.
AS Superintendent of the rich Santa
Rosalia mine in Mexico, Abbott was
paid a salary of $3.50 a month, but his
frequent and prolonged visits to this
city and the attention which he paid
to other enterprises in which he en-
gagged in Mexico led to his retirement,
and w J. Coleman was appointed as
his successor in November, 1897. Sub
sequently, in settling UP the companys
business. the Directors say, a number
of vouchers, amounting to about So,OoO
were not to be found. A full investi-
cation of the company's affairs at
Arispe. in the State of Sonora, Mex
Daggett and other stockholders de-
voted more, than three weeks in Febru-
ary and March to scrutinizing the
books and business of the concern.
They found that Abbott had transacted
all the business of the Santa Rosalia
Mining Company in his own name and
that the books of the company in re-
ality were written as if private ac-
20 nd discovery
of excessive expense charges were i'm
mediately communicated by Daggett to
the Directors here and legal steps were
taken without delay to protect the COM
pany against loss by attaching Abbotts
stock in this city.
While this investigation was going
on Abbott and his newly welded wife
were spending their honeymoon in the
City of Mexico In some way ne re-
ceived word of the discoveries that
have been made, and instead OF re-
turning to Hermosillo, where it was
said he was about to enter into the
banking business, he continued his
journey to the United Statese. Since
that time his movements have been
followed as closely as possible by the
company's attorneys, but they refuse
to say more than to admit that they
have good reason to believe that he
was in Little Rock few days ago.
Although the amount actually in
volved in the present suit is only abou
$50 900. it is said that the stock now
under attachment which has a market
value of about $4,000, will not more
than repay the company for the losses
which the Directors believe they have
suffered through Abbott's alleged mis-
management.
John Daggett, President of the COM
pany, was reticent when asked yester-
day about the extent and manner OF
Abbott's operations. He stated merely
that the former Superintendent owed
the company money and that the Di-
rectors We're puzzled over his recent
movements. Secretary Hugh Tevis
was scarcely more communicative, but
he made no effort to disguise the fact
that the company intended to proceed
against Abbott with vigor.
Both officers of the company said
that it had been their purpose to keep
the matter from the public, but they
were not inclined to minimize the Sc
riousness of the dilemma in which Abb
bott found himself They would not
commit themselves absolutely to any
expression of opinion as to what deyel-
opments the present investigation
would lead to, but they We're satisfied
that the company had insured itself
against loss by its prompt action.
Ihe same disinclination to talk was