Montana labor news., 1937-05-06
Goal Operators Pay
High for Dirty Work

the dirty work for coal operators
of Harlan county is a paying bust
ness. the Senate civil liberties COM
mittee showed here as it examined
the financial operations of Sheriff
T. r. Middleton.
II was brought out that when
Middleton took office in January
1884 he was worth about $4,000.
Today Middleton and his wife have
assets worth $102, 900, most of which
pay a high rate of interest. When
Middleton took office he had an an
nual income of approximately $1,000
while today he makes $4,000 a year
exclusive of income from the sher-
ifs office which in 1886 was S4,460.
During the course of the examina-
ton of Middleton the sheriff grew
nervous as he saw internal revenue
agents making notes and he finally
refused to testify on his financial
dealings further standing on my
constitutional rights" Later he adj
mitted his objection was based on
fear of prosecution under federal
statutes.
1t was learned that despite Mid
dleton's $102, 900 of assets he filed
no income tax return in 1886.
Also brought out during the aft
ernoon's examination of Middleton
was the undisputed fact that he used
tax funds, over which he had juris-
diction as sheriff, to pay off per-
sonal notes and to gamble in the
stock market.
Between January 1, 1884, and
January 1, 1887, Middleton trans
ferred $4,000 from the tax accounts
to his personal accounts, bank state
ments showed. Reports to the Har-
Ian fiscal court show that of the
$4,000 Middleton was entitled to
only $25, 1888 in fees and commissions.
How do you explain that?" the
sheriff was asked. mo explana-
tion," he replied bluntly. Told that
$33,216 was transferred to his per
sonal account from the tax funds
which he was not entitled to, Mid
dleton was asked, do you know
what you did with that money!"
He said he did not.
Bank records were introduced
showing that Middleton used tax
funds for his personal purposes and
for paying his stockbroker. The
transfer of funds, it was further
shown, was accomplished without
objection from the Bank of Harlan
in which they were deposited.
Previously Middleton testified that
he was unable to afford" $500 for
a bond for faithful performance of
his office and therefore had coal
operators u%nderwrite his administra-
ton.
Judge VIM. w. Lewis, president Of
the Bank of Harlan, county treas
urer, president of an insurance COM
pany, secretary-treasurer of the
Cornett-Lewis Coal Co. and presi-
dent of the Harlan Bourbon and
Wine Co. also testified. He said he
had no objection to Sheriff Middle
toms using state and county funds
for his personal debts and gambling.
Records were made public show
ing that since Middleton became
sheriff in 1884 he and his wife ac-
quired rs shares in the Green-Sil-
vers Coal Co., 230 shares in the
Crummies Creek Coal Co., one-half
interest in the Rock Castle Coal Co,
one-fifth interest in the Williams
Coal Co., one-fourth interest in the
Verda Supply Co., 100 shares of
Gold Seal Electric stock, 100 shares
Allegheny Corp. stock, and 100
shares of Cities Service stock.
Middleton also became owner of
a 400 acre dairy farm which sup
plies milk to a number of places in
Harlan county, an unimproved lot,
a business building and one-half in
terest in the Kentucky Wagon mine.
Sen. LaFollette prog, Wis.,,
chairman of the committee, asked
Middleton to explain why the office
of sheriff was SO lucrative. "I'm
just as puzzled about that as you
are Middleton replied. The sheriff
then asked LaFollette whether he
was opposed to people investing
money and getting a return. what
do you want to do?" he asked. "See
everybody go on relief"