CanÌƒon City record. [volume] (CanÌƒon City, Colo.) 1883-192?, 1907-09-12
GREAT WEST
In REF'EI.
Story of the Hearing As Held Bef
House Last Week.

SeVEy VI Aue IlS@EauB A9 ssSsV OS
House Last Week.
Owing to the great mass of testi-
mony to be submitted, rather slow pro-
gress is being made in the case OF
Frank D. Heath vs.. The Great West
ern Coal company. which is up for
hearing before Referee C. P. Gehman.
of Denver The hearing is a detail Of
proceedings which were instituted
some months ago. when Frank D.
Heath secured q preliminary injunc-
ton to restrain the company from
mortgaging the property to themselves
before a full and complete accounting
IL made. Heath claims that the COM
pany owes him a sum in the neigh
borhood OF $4,000. and. because the
company has large Indebtedness, he
wishes to be secure in the obligation.
Heath Is the largest stockhclder in
the concern, but does not own a major
ity OF the stock. He has also peutioned
Nor a receivership for the company.
The plaintiff rested Thursday p. m.
after spending considerable time in
the examination OF last witness and
the production of documentary evil
dence. On Friday the defense be-
gins. and 1t is understood. will claim
that Mr. Heath is indebted to the
company.
In the presentation OF his side OF
the case Mr.. Heath has claimed that
the 1000 which is due him from the
company is almost all for the cash ad-
vances made at various times.
The Great Western Coal company
was incorporated April 6. 1904. Its
capital stock is 100000. The company
owns 800 acres OF coal land at Heath
ton, about 6k miles from Canon City.
A shaft 300 feet deep. upple. miners
cottages, a store and offices and two
miles OF railroad are among the assets
OF the company. Mr.. Heath managed
the company until the first OF the
present year. when he was succeeded
by A. GraH. who Is now president and
manager E E. Denman Is secretary
and treasurer.
In his petition for the appointment OF
receivers, Mr.. Heath sets forth that
the present management is incompe-
tent and 10 not familiar with mining
and the operation OF the Heathton
property. He claims that with proper
management the concesn would be op-
Grated at q proat- and would be en-
abled to pay on the big outstanding In
debtedness. The company has issued
bonds to the extent of $50 900 and has
past-due notes for more than $4,000.
The Great Western Coal company
IL mining the Chandler" or Third"
vein OF coal The product 10 sold In
the general market for domestic pur-
poses. About forty miners. II Is said.
are employed at the present time. al
though Mr.. Heath claims that double
that number could be worked to good
advantage.
After the present hearing before the
referee. Judge Bailey will decide the
permanency OF the Injunction and the
matter OF receivership.
Good progress was made Friday In
the case OF Frank d. Heath VS.. the
Great Western Coal company. which Is
In hearing before Referee c. P. Geh-
man. The defense called eight Witness
es since It opened. and 1t Is probable
that the matter will come to a close
this evening or early tomorrow. Con-
siderable interest Is being manifested
in the proceedings since their publ
cation In the Daily Record. and num-
ber OF spectators are present at the
oa011ons. - - ., ~ -
The sast OF the defense IL = general
denial Of Mr. Heath's charEssGof In
/: asbeednsass M4ach thsy claim he can;
nod poo,lisot1 prove. and coanssr NJ.
iegation o3 Heash's misapptuprtsting
the funds OF the company.
Testimony to this effect was given
this morning by A. G. Forney. c. f.
Hitchcock. Il. E. Denman and A. Gram.
all directors OF the Great Western
company. These gentlemen testified
that Mr.. Heath misappropriated the
sum OF 334. 900. which resulted from
the sale OF the company bonds. Other
charges involve the sale OF the COM
pany's stock and the use of the com
pany's general funds.
Most OF this testimony 10 based on
the accounts Of the company, which
are in evidence at the hearing.
Through these witnesses the past his
tory-of the concern was Brought out
and the circumstances leading up to
: the change in management from Mr..
Heash to Mr.. Gran outlined. The atock
and S0nd transactions OF, the COM
pany. thS> defense alleges. resulted IN,
Mr.. HeSAh owing the concern 360.0o0.
for which they expect to secure q juds-
ment. Another claim IL that Mr.. Heath
took advantage Of his colleague, the
late J. P Fteishel, to the extent OF
5000 on . Asconmission Transaction.
The CHARGE Of mismanagemnt ON the