New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-07-02

CHARLES CROKER ON THE COTTON SUIT.
THE REPUTATION OF SETTLEMENT MADE WITH
THE COMPANIES OFFICERS BY THE WIDOW OF
AN ALLEGED OBSERVATION-DISCLOSURES CAUSED
BY APPRECIATION IN VALUES.
Considerable interest has been excited in
California by the SUIT recently begun ~ INC mo 10 o
President c. +. Huntington, and Charles CROKER
Conpany The suit for the abrosation Of contract
and Tor the rest TO Mrs Cotton OF certain stocks
and bonds have been surrendered by her under
fraudulent representations ana threats Mr. Co.on q.
one time vice-presldsnt OF the southern racine
Railroad Company financial director Of the Central
Pacific Railroad Company. lie died III October, 1878.
Mr.. Crocker recently was in this city. ID; LETT san
Francisco after beng examined, by order Of court IN the
suit of Mrs Coou her behalf, regarding HE connec-
ton with the Mr.. NrocKcr gave the following et-
course il is well known THAI Governor STANFORD, Mr..
huntington Mark Hopkins anc myself, together WIN
Pacific Isairoad When began we were men in the
prime Of Ire. Our lines in me course OF tune became SO
to assist US At that time we considered
Mr.. Cotton OF some wealth, although aIterWard
we found that not-that nc VAS To Use popular
Language broke. We had mad some business Ieiauons
with iaa he genial and jovlal, anu we liked him,
aud SO we made "a proposition by which he could come
ia aud buy sufficient interest in tho enterprise 80 that
be could devote whole time and attention 10 It, aud
relieve us work We sold him 10000 shares Oh
stocS eaca in tie Central PacInc aud the Southern
Pachc Companies taking In payment his note for
81 100000 al cent At the time neither STOCK mao
were not quoted. The mature IN October,
1879 In the course of business. Mr. Cotton
Tic southern Pacific Railroad Company, as profits
ON the building of that road ny the Western
"cistei were largely interested lie died in October.
1875 giving by Will made shortly before his death,
al his property aud wealth 70 MS vic, ana requesting
her TO employ Samuel NJ Wilson as her counsel.
When MI. Cotton died wasin Europe, but fastened
home as soon heard OF LIS death IOuhd thht some
suspicious had excited that his accounts win the
company not all straigh. An investigation was
immediately made. aud We discovered that MI cotton
had been embezzlng funds OF the COMPANY Inc EN-,
bezzement amounting to about Sl3O,oOO. lie nad pad
nstDing OIL account VI LIS loVO'oo1 note,
wac subject to the credit VI the diyiGends pad On
tue stocK which nset the interes, ON the note rne
facts reported To Mr.. "IlsOh' hIs. Coitons
lawyer. He HAD already informed her that there were
some Things about her husbands accounts tna ne could
explain. lie did not WISH 10 say PLAINLY mat h,r
husband mad been al emOeZZer; uut nc 20 admitted 10
Mr. wilson was pad attorney OF our company lie
Old THAT Ii necessary 10 project Tue willow lnteres
he would relations with replied that
should do his FOR and ms action would not Affect
his relations Win us one lOia nc urgeu US 70 haAe
a settlement with Mrs. Cotton We answered That we
Gid not care to MAKE any settlement; she gave up
tie stocks and bonds WHOA sac held We wold cancel
ColtUs We proposed as an alternative tiiat tnc
note be paid aud that she retain the secure
ties. We also suggested t1at Daniel COOK,
vino marry her uAuslier, ana VINO Was man vi
considerable wealth. should lncertaKe 10 pay the note
ana k ep tine securities. Cook reused do Al
that thurman bill bad just become la ana 1t
was cared ,uat IL would make the payment OF dVidcnds
by Companies linposslDy.
IL nov lot cOse to the end OF the nine months
during when all claims had o be led against the estate
of MI Cotton We weie EaknB up our estimate To HE,
aud our claim for the note would have left ms widow
have brought comparatively little at any Forced sale
mr. Wilson gave the case up Ia despair and finally
calico Ill the serylces OF LLOYD IeVls, president OF
wells Fargo Co., to effect eiilement hlr Ieysis one
of the ucsi aud business OF the CouDtry
California he frequently been appealed 10 for the
OCCASION of delicate or complicated quesOhs DIT IeVls
thoroughly examined Tue case, ana useu every dBue
10 influence Inc Al MS
earnest solicitation agreed upon settlement with
Mrs. Cotton, receiving the stocks ana ponds which she
held from ne Z cancelng his note or II 100000,
and also paying $500 Ia Pacific Railroad
bonds. That 100000 we all considered tantamounJ TO
at1tf IN her Ne
W Inc settlement was put III mo form vi con
tract dated III Angus, 1879.
well" continued Mr.. CrOcker, time went by and
the boom began IN the winter OF 1879 apprecl
atcd value vi all railroad securities carrJ up 10
nigh gures formerly unstable securities. During
the boom 1850, sold large lot OF Central Psclnc
STOCK Newly OrA syndlcate ms gave the STOCK
able value received There tnc secret OF the pres
en- suit leOpic gOL around airs. Cotton VINO were not
her old lreIds Icndb Of Aer husband They per-
the contract Whicn sue ma made with
us wac fraudulent part and advised her take
eteps to nave declared and she consented
TO 90 So and few weeks gave notice TO Us mat she
resclndcd her contract, and began SUIT 10
recover the surrendered, expressing ner Will
ngness TO pay 9 100000 note. Sne declares that
not aware OF the Nae OF these securitles "heh
the made, and that IL was eAtorted from
her by lnisre and thteas. Now the facts
are that the settlement made by her husbands
warm personal frenu-Mr. WlsOn-and by Mr. 1eYis,
man thoroughly deyO,cd To her service. never saw
from that the embczZlciuent OF Mr.. Cotton
discovered, and never threatened her ny word OF
mouth lcllcf, OF through neF lTlchdS
When tue settlement made considered tnat
were presenting her with 100000; Tor claim
against her husbands estate, II IL nad been iniOrced,
for Mrs Colon, nas been filling the Francisco pa
pers with upon am glad OF an opportunity
TO place facts of the besre the public"
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