Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-07-14
RAILROAD COMMISSION.
The Sacramento and Plaoerville
Railroad.
LIVELY BOUT BETWEEN LAWYERS
Judge sanderson and George Cad
walader Measure Swords.

walader Measure Swords.
ESPECIAL By TELEGRAPH TO THE REooRD-USIoS.l
SAN Francisco, July 13sh.-The Board of
Railroad Commissioners met this afternoon
and resumed consideration of the petition Of
Ell Dorado county in regard to the non-opera-
ton of the Sacramento and Placerville Rail
road from Folsom to Single Springs.
Mr.. Cadwalader presented communica-
ton from Louis McLane, the Receiver of the
road, in which thu latter set forth that having
been appointed Receiver by Judge Hunt, of
Department 5 of the Superior Court, he was
therefore an officer of the Court, and could
only be guided by such orders as the
Court might make, and the property in
his charge could only be managed, operated,
disposed of or controlled, by orders of the
Court He was however, perfectly willing
to give any and all information to tie Com
missioners that they might desire.
Burch said that in 80 far as Receivers of a
railroad are concerned, the Board has juris-
diction, and under the law is invested with
judicial powers If the Board has no power
to enforce its findings it could appeal to the
State Courts. He then read the petition of
the residents of Ell Dorado county,
setting forth that the failure to oper.
ate that portion of the road re-
ferred to was seriously iniuring the inter
ests of the county, and praying that some.
thing be done by the Board to have the road
in operation.
The answer of the Sacramento and Placer
vile Railroad Company to the interrogatives
addressed by the Board was thea read. It
set forth that the road ceased to operate on
the 2Sth of February last, in consequence of
Judge Hunts order appointing Receiver
for that portion of the road between Folsom
and Shingle Springs. 1t had previously been
operated in connection with other portions of
the road, and could not be run at profit
by the Receiver as an independent road.
The company had offered to run the road
until the Receiver was prepared to operate it.
The incorporation Of the road tends to injure
the rails and other property.
Mr.. Burch suggested that the taking Of
testimony be commenced.
Mr.. Cadwalader said that it was very
simple matter, and that almost anyone could
make statement of it, which would be all
that was necessary for the Board.
Mr.. Burch, who had bsen somewhat nettled
over several little sarcasms by Mr.. Cad
walader, replied that they proposed to submit
testimony to the Board upon which he could
base its conclusions. and they did not propose
to accept any statement made by anyone
J. w. Sanderson was then sworn, and tes-
titled that he is attorney for the Sacramento
and Placerville Railroad. In response to a
letter from Judge Irwin Of Ell Dorado county,
TIE company had agreed to operated the road
until such time as the Receiver was prepared
to do 30, in case that Judge Hunt should
against the road so as to allow them to do so.
He is the attorney for all the railroads in
which Governor Stanford. Charles Crocker
and G. P Huntington are principal owners
and managers. He is not retained by the
other roads, but is by the Central Pacific.
He could not say who the Directors of the
Sacramento and Placerville Railroad are, but
he knew that Leland Stanford is President
of it. In answer TO questions by MIR. Cad
walader, he stated that the company had
never agreed to operate the road and account
to the Receiver. It was willing to operate it
for its own benefit, and to accommodate the
people Of that section, but it would not re-
cognize the Receiver, and if there were any
profits in operating the road, which was ex-
tremely improbable, they proposed to take
them themselves.
MIR. Cadwalader wanted to know why
Judge Sanderson had censured Judge Cope,
who appeared for the railroad in the suit of
Kittle against the company.
Judge Sanderson said that he had not cen.
sured him, but had instructed him that there
would be no compromise whatever with the
Receiver or anybody else.
Mr.. Cadwaladerw wanted to know Why there
could not be q compromise, and Judge San
derson replied that it was because he regarded
the suit as an outrage and a matchmaking af-
fair, and they proposed to fight it to the Bit
ter end. He then questioned Judge Sander
son about the bonds held by Kittle, which
occasicned the first suit and resulted in the
appointment of receiver, and said Sup
pose you folks had succeeded in repudiating
these bonds, and the road had been run,
would you not have secured the profits of the
road made during the time the receiver was
actings"
Answer-We don't repudiate anything
that's honest, and L am not here to give you
legal advice.
Judge Sanderson said that Cadwalader had
been endeavoring to cast cloud upon the
company, and make things appear that were
not matters If fact, he desired to make a
statement in regard to the bonds that SO much
had been said about. The statute authorizes
railroads companies to issue bonds covered by
mortgage, to obtain funds to construct the
road but the statutes also say that such
mortgage must be made by tie unanimous
consent of the Directors of such road Such
referred to.
Mr.. Cadwalader objected to Judge San
derson's making a speech, but his objection
was overruled. He then requested the short
hand reporter of the Board to note the fact
that Judge Sanderson, while on the witness
stand, had. insisted on making speech which
has no connection with the case.
Judge Sanderson continued, and stated
that the first mortgage bonds issued by the
Placerville and Sacramento Railroad Com.
pany were invalid, and the bonds issued
under the second mortgage were all correct.
Messrs. Stanford, Croker and Huntington,
the present owners of the road, had bought
the road in good faith under the second mort.
gage.
Mr. Cadwalader wanted to know if the
bonds were not issued to pay for the iron on
the road.
The witness replied that he supposed it was
the case. They were issued to construct the