xt70zp3vt865_168 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/mets.xml https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46.dao.xml unknown 14 Cubic Feet 31 boxes archival material 63m46 English University of Kentucky Copyright has not been assigned to the University of Kentucky.  Contact the Special Collections Research Center for information regarding rights and use of this collection. Harkins Family papers Mineral rights -- Kentucky -- Floyd County -- History. Law reports, digests, etc. -- Kentucky. Mining leases -- Kentucky -- Floyd County -- History. Practice of law -- Kentucky. Bankers -- Kentucky. Banks and banking -- Kentucky -- Prestonsburg. Coal trade -- Kentucky -- Floyd County -- History. Lawyers -- Kentucky. Carter, J.H. v. Dwale Coal Company [Part II] text Carter, J.H. v. Dwale Coal Company [Part II] 2016 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46/Box_19/Folder_2/0001.pdf 1917-1919 1919 1917-1919 section false xt70zp3vt865_168 xt70zp3vt865 3' 1 r .
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Tmmw 012‘ COSTS-
notary Fees-
, To taking three deposition! 1 dw- - 5.00 "
I transcribing am. 89 9%" a 30: page- 26.70
' carbon copies thereof 7 panel in 5;!— 13.35 -
1' swearing three witneaua- .75
" noting the attondanoe of thus triﬂ-
noaso: and issuing certificate ‘um'veof
at 25" 0“!!!" vgs
1' tax on coats- . 0
3 46.85
Witneaa fen- J.I.Vangum- 1 rimr- 12.00
‘4 1' S. C. Snead, 1 day and 1550 milcma 4.00
1' a r- m. Tudor, a. dzsy- 1.:)0 ‘
53 6.00

 ,, b D
FLOYD CIRCUIT, COURT:
mm: em. 00. (Consolidation) Plaintiff:
AGAINST DEPOSITION?! FOR MALE GOAL 00.
J. H. CART-‘11. Dafrrndant.

I The dapoaitiona of J. L. Vmwm and othxrn
talcum at tha: offiotc-z of tha; ngxan Construction Co. at
Shamaville. Virginia, on tins: and day of kuguat, 1918.
purauzmt to th-s attaohnd notioia, to ho mad as uﬁdnnm
on babel}? 01‘ than WAD": (DAL co. in 1:116: abow: entitlim
oonaolidation action now pwmuzgg in tha: FLOYD CIRCUIT
comm or We STAT? or mmm.

'Bm witneae basing of a 15mm ago, and. being
by m: first duly sworn. tustiﬂm as follows:
Q. (By Mr. Hi‘zxkins, Attorny for the Dwain 00:13 00.)

Mr. Vmgﬂmn. phase;- state your ag.;, rasamunou
and. busincaaa.
A. A30 forty one, maid now, mawsvnlu, Viz-gm»
buaimzss, Contractor, preasidaent of m: PaxmraImrg I—Iop»m.:s11
and City Point Railway, maaidunt Bank of masvillae,
Prawn-Rum Dwain: 008.1 00. and othur interns“.
Q. Do you know the defendat, J. H. Garter?
A. ’ I :10.
Q. How long have you known Mr. Carter?
L. For samurai y art: but have had no buainaau
relations with him until in than spring of 191?.
Q. Emma did Mr. Oﬁrtcsr 11m in the ﬁguring of
1917. 1: van know?
A. mueficald, lust Yuan“. I understand.
Q. If you hav- any oonmouon with 13110 Flaunt!!! .
1mm: Coal 00., piano stats: that not.
A. I an Prcsamunt of the? Ma 0081 00.

 ” D D
a.
Q. How long hams you ham comm-rated with the:
Male 0083. 00.?
A. 81:10:: its inception and organization.
Q. Vera you one of the pastime intranet in th:
organimtion ”of that Company and on: of th: stockholmra
of tho 00:122.:any since its organization?
A. I was and. bxt‘ore.
Q. the were; th 03112.1: atookholdara of £11.: Company
at thv tin: of its organizatton?
A. 1110th Eppea when” intar ::at mm ”signed
to u. A. Finn and J. H. Carts}: 9.1; thu original incorporayion
of :11, company. Law: additimzal stock was sold ta 8.0.
$11 an and others.
Q. what Imminent: was proposed to b» 09:11:. :1 on
by the male Goal 00., and 121m purposs: for which it was
incomoratcdt
A. The male 0053. 00. was incorporatod for
th _1 purpou: of taking mm: a. 11.233123 held by thm szghsn
Construction Go. of mu; Virginia. on oartain prnpartL-aa
armed. by J. 0. Johns, 11938.: 121313 mouth of Emma: 01 1k. in
Floyd. County, Kzzntuoky for tho purposa of mining coal
underlying a. part of aaicl propiartiea.
Q. By whom was this coal 1:33.88 first brought
to the summation of tho Vaughan Construction 00. and who
1nt931‘1‘23t"'1d th11: ngmm Construction 00. in the diNulOpmnt
of ﬁnch coal lease”
A. 1m: szﬁnm Construction 00. of which Company
I am Pmaident, was adviwd by J. H. Outta: 1n tbs: early '
spring of 191? at a. ﬁlm mun than was an urgent demand
for coal to Bupply the dumands of manufactum? am man
or 008.1, that I could secure a. lame em about 63”ij “(3

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3-
(500) 5602-33 or land omtsd by J. G. Johns, fronting on
the 0. d O. Reilwey,pn a royalty basis of 10¢ per green
ton; that th~ coal was big: grade about time feet in
thickness, that a. aiding was already installed. near
this: property and that it could be Operated during
the period when coal was in 5';~...:&t demand and at high
prices as a wagon mine, that in Operating as a wagon -
mine the coal could be produced at large profit with
a very small outlay of whey. Hm reported that a
total outlay of money that Would be required to install
the plant, begin op rations and to conduct 88:21:! until
twmuee were seam-vex from th: sear: or deal would not
be in means of Six Thwaend ($000.00) Dollars.
Q. How was the 81x 'm‘toueend «$00.00) Donate
to be provided?
A. mm 31:. 'moueand (36000.00) boners nee :6
be provided we follow: J. L. Vmghar, 1119th Emma
and J. H. Cert-rm mm to ranch mbem‘ibe emi pey‘in cash
Tm wouﬂand ($3300.00) Dollars each for one. third of the
etoc}; proposed to be tuned of 81:: moneemd (833173.00)
Dollars. J. H. Garter having no We be agreed that
.31": would 83am: this 12mm? and would not 9.9 Hanna!!! $0:
the OOmpany for a. salary of 8160.00 per month, this being
the amount estimated by him that would be required to
pay hie living exp—rennet)", provided further that J. In
17th and Richard imp-:3 would agree to carry a. loan
of 3 M Thousand (88000.00) Dollars for J. B. Carter
with his stock in the Company as collateral for four
months with new to renew for second period of four
months mud a. third {our month-e period for throw fourths
of on loan. The proposal submitted by «I. a. Carter
was accepted. Memorandum of agreement was prepared covering.

 O I
4&-
Q. H111 you please new. that mizmormdum 01' agreea-
mwnt to the notary taking dapoaitionsf
A. ‘Kamc. of Agmssmant- Dials Coal Co. to has
organized $6000.00 in cash capital to b; provided as
follmm— J. L. Vaughan, Richard Eppes and J. H. (Matter
to war: subscribe and pay in cash Two Thousand Dollars
for our: third of stock each issueid.J. I.. Vmghém and
Richard F}pp:3l 85¢ch to carry a loan or Two mans-ma
' Dollars for J. H. Garter wits: his stock in the Germany
an collateral four momma with right .to renew for as
second. parted of fun: mantha and a third. four months
prmiocl for three fourths of loan. J. H. Orwtar in
to be appointed umxabm: with salary of 0m: Imam-ad and
Fifty Dollars; p223 month, ::ffectiv; on or before June
191;, 191?. mm to wV-Lr lands: lrv‘taﬂdd this 16th
day of May, 1919 from J. G. Johns by Vaughan; construction
00. Inc. signed J. L. Vamglw-nﬂ.
Q. Pursuant to than; newsman: was the Dwain
0081 00.. Bubaaquuntly organized an if so on what 219.133?
A. Pursuant to that agrenmmt the 10886:- of. the
. propuz-ty was taken ow: by the; Vaughan Oozxatmction Go.
of that Virginia. m; 13mm Gaza Go. was than) orgmimd
or aftaxrwazda organizing anti charter was wanted tho said
Mm Goal GO. under data of Hay 33m, 1917.
Q. mm was the authorized. capital stock of the:
We Coal an. as so organ-sad?
A. rim Thousand (35000.00) mum.
Q. If the capital stock or the: man 008-1 06.
was afterwards Manama from Tim thousand. (35000.00)
_. Dollars [to a. larger amount please ”use that fact and
a ._ the datm of such increase.

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5..
A. The Gamma]. Mock was; 12143223.qu by proper
rraoolution and authority grant::d on tha 80th day of
Angst, 1531? by the Gommnmml‘ah 9f Kcnmoky to
inoruasu its omits; stock from $5000.00 to $6,000.06.
Q. Has the: am authorized capital stock of the:
male: 008.1 00., $0 the axtant of $235,000.00 13mm 18312.net?
A. Yes, m1 capital some}: has basin 18811:;(5. and.
paid for in cash at par axaept for than: stock leaned in
th': names: of J. H. Outﬁt for which not-r: was takan from
J. 1!. Cart-:::: and Which note: has not 33‘-3 yut ham: paid.
Q. What was tn. amount of tha; not-s; of Hr. Carts
. and th; dat. of not» if you new?
A. The amount of 1311:: note: was $3000.00. The
exact data of the original note-3 I do not. xxx-080.1. as
1.1113 nets: was discountad at the Hatianal Bank of P W628-
burg and railnewnd aware; £12329 and mi“: final not-':- hearing
date of August 1231:, 1918 made by J. E. Carter and endowaad
by the Dwale 0060. 00., wise paid by tin-2: Dwale Goal 00. on
Novambar £31.11, 1918.
Q. ‘33 any Sn‘teraat paid on that note at any time
by Mr. Carter or any discount pas-m by him to tha National
Bank of Petersburg?
8. Ir. Carter amused that he: had no funds w1th
which to pay fer Itamzm or diamunt and stamps and dis-
count on the original note and. an of my gunman wars
paid by the Wale Goal 00.
Q.’ “tar the timca mat the DIE-la 0081 00. was
. orgminad two was General Manager or the Oomg'wmy!
A. It was organized with J. H. Carter as General
“wager. .
Q. then Hr. Carter was elected. a: 00mm). Haulage:

 6-

wh-..-re~r did he haw his office and place of business for
such Compare"?

A. M: We, XY-

(1. Did you see: Mr. cart-yr after organization
of the Company before he went to Duels, Ky. as General
manager.

A. I did.

Q. If it. Carter obtained any money from you
at that time please state that fact and the reasons
assigned by him in asking you to advance the same.

A. certain funds, the amount of which I do

not mean were; advanced by me personally to m. carter
for the purpose of predicting trawling and living emponcee
until the Germany could begin operations, in. Garter
being as he advised very limited. in meme at that tim.
I find that no charge was made for this advance and as I
I do not mean the exact mum no charge will be made.
Q. more was it this comes-cation was had with
Mr. carter, when was it and who was present, if any one,
if you recall?

A. w recollection is that it was Aehlmd.1§on—
tacky. There was no one present at the time of the con-
versation as it is probable that in. certs: dict not want
his financial condition known to a third party. in.
Cart-12:: at the time of this edvzmco advised that he had
gotten into financial difficulties in connection with
some bueimlc enterprise in Bin/afield, a laundry and
pressing business I think, and that on account or this
his available tunes Were Very limited.

Q. no bad charge of the installation of the
dovelonmnt and propurtlca or the Made Doc]. 00.?

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7..
Ac J. H. Garter.
Q. V0321: you in ma aroumi Dwain at any than during
the; inatallation 01;.” the: Gummy promrty them at that point?
A. hiring tin: installation I was not, vrxcspt for
possibly om: trip at which this: I spam; 3 £331 hours beta-wan
trains: at Mala: going over ths. mommy.
Q. Will you stats-.2 in 9. gunman way what an» {level-
Opmsmts and impravants mad-.:3 by 1,113 Dwain Coal 00. con-
stats of?
A. Tm original daviopmscnta cont :mplat-nﬂ, that
mm at 1:113: buglnningr, to use 9. ﬂaw;11n.z, could not be
wand and m»;- Railway 001sz w as Vary slow 1:! install lug
aiding. Thai: final plant 21271-1331 finally install-7.21.1 con-
9131:1131 of siding. nipple, scale-3, mine care, 23111, the
my}. other «rsmipmen‘b usually 2.1.9.243 about a min-1 of a.
similar charzwﬁ-zar. Renews and lots «are purchaaaed.
morn nous-33 pmmxhtmwd, oomaiasary stock install any béu‘na .
for hanging xiv-3 moot ate.
Q; Are you 333131113: with 1:11.33 (‘.‘-.1331 rr-“nt pxnpizr—
ties: that arc: awnnd by the 34793.: Gain 00. at its plan:
of oparatinn‘l‘
A. I on.
C. but if you km”, mm in you the coat of!
such devalopmrtnt and hmrovmanta approximately?
A. About 965. 000.00, ﬁxﬂluﬁi‘Vﬁ‘: of tho value of
my 11:38:: owned by the 001113.811y.
Q0 7 Hm! was the financing m’ the Gamma}? pro-
vidnd {or to must this tnomasad expenditure over the
original unharmed capital stack of $5000.00!
A. ﬁrst the charter was: wand-:36. to 1110:3363

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a.
a.
the: mthorizod capital attack to $35,000.00 and the: addad
$80, 000.00 of stock was sold for cash and the proomads
mad for tha beneﬁt of 1213." company. J. H. Can-tam not
. having paid his original subscriptimn, no: for 1211; Mama
and discount on his not", In: waa unable: to subscrib: {or
any of 1.21»: additional Moo}: so 199mm Aftzr the pro-
amda around from the Bali: of th took Sara command,
1311;: obligntionl incurred against mi: Gummy on 1221:» par!
of J. H. Gen-tn: an Manager, made: 11: moeasm for tn;
Company to authorize a. bond 19mm of $35,000.00 with
which to seam-7 mm to must its than praasing obli-
guumxa, thaw obligations having barn Maul-rad by Oartur
without thu knowledge, 00mm: or wthorlzation of the
, Company and until amtcmbar of 1918 11'. m not known to
ﬁlm Company that 11: was indebteiéd on account of the expert-
_ dimmed made by 0mm: to anything 111m the mm: that
has beam found. 0am: as G-.:m:a.1 manager having madu ‘
purchase: and incurred obligations for which :3qu and
bills had. not been sent to the gamete-=0. artisan of thv
Company and. mass; conditions were not known until the:
creditors began to make damands on the trauma: to:
paymmt. After tha proceeds from 1:th 885, 000.00
bond inns.- were usaad up, 1% dc:v:.210psd that than“: ware
than 912111 M15116»: obligations at that than: mm!!!
to the: company; that had to has provided for and them
obligauonu were provided. 2°: largely throng: advanoau
made to the Company by the Vmghan Oonatmanon 00. of
Virginia.
Q. At this point will you explain to the Ocurt
why 10 van that the general officas and those principally

 0 0

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1nt<2r