Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-11-15
The Suit of Mrs. Cotton.


SANTA Rosa, November 14th-The trial of the
Cotton case was resumed this morning before Judge
Temple. The reading Of S. W. Sandersons deposl-
ton was finished Frank S. Douty, President OF
the Western Development Company, and Secretary
of several other corporations among them being the
Colorado Steam Navigation Company and Pacific
Improvement Company, was called by plaintiff and
sworn. He testified that he first entered the en-
ploy of the Central Pacific in 1874, and one of
the original incorporators of the Western Develop
ment Company. The other Directors were John
Miller, E. Il. Hopkins, E. C. Wright, H. r. White
and F. c. Ross. Witness never owned any OF
stand in his name The early
operations of the company were conducted by D. d.
Cotton, under whose direction contracts were made
and work performed. Counsel for plaintiff attempt
ed to introduce the by laws Of the Western Develop
ment Company, to show that they have been con-
santy violated since their adoption but the defense
objected, when Mr.. Hayes said the evidence would
enable him to tear the vail off the sham corporation
and show that it was really owned by Sanford &
Co. MIR. McAllister jocuarly asked him If he in
tended TO prove the vail, and thea tear it of Judge
Temple ruled the bylaws out The witness con-
tnued by explaining the operations OF the Western
Development Company in building the Southern
Pacific, the organization Of the Pacific Improvement
Company, the contract by which the latter con-
structed the Southern Pacific Of Arizona, and the
settlement of the affairs of the Colorado Steam Nav
gation Company. Witness testified generally that
the operations OF all these corporations were con-
Quoted as Croker, Stanford, Huntington and Cotton
suggested. Witness owned no stock in them, but
considerable stock in his name. Witness testified
that during his lifetime Cotton was most active in
managing the affairs OF the Western Development
Company. Charles Croker arrived this morning,
and was present in Court.
SECOND DISPATCH.1
SANTA Rosa, November l4th.-I1 the Cotton vs.
Stanford this afternoon, Mr.. Dvuty took the
stand for further examination. He testified regard
ing the changes in the Dictatorship OF the Western
DpVllOpmpnt GOmnanV Directors
withdrew, and were replaced by others, nominated
by David d Cotton; that the stocks standing in
their names were owned by Mr.. Huntington. Wit
ness could not explain why blank pages were left
between the records of the various meetings in the
minute book of the corporation. He thoughtlessly
tore out sheet of that book, because some ink had
been spilled upon it, and in couple of instances
the minutes of a meeting engrossed
in advance OF the minutes Of the
meetings held subsequently. This was an
inadvertence The Western Development Com
pany built and repaired steamers in addition to it's
railroad work, aud erected the Crocker, Stanford
and Hopkins mansions California street. Ii pur-
chased the materials OF which they were constructed
and furnished the residences throughout. Cues
toned as TO the cost Of these buildings and their
furniture, etc, the witness partially replied but
was stopped by an objection Of counsel for defend
ants. The Court sustained the objection on the
grounds of irrelevancy and incompetency, aud be
cause it was an unnecessary interference with the
private aft Is OF the parties Witness next testified
tudJ Ou dppLlCdllou vi SLdLlOIuJ NIOCheIJ
ton and Hopkins, who were largely in
debted to the Central Pacific, the Western
Development Company authorized the Issuance OF
the promissory note for sS7S, s47, payable in two
years, with interest at ten per cent The security
given for this accommodation II ST. shares Of
Central Pacific stock. This was subsequently paid
in February, 1876 The Western Development
Company built the Colorado river bridge and rented
il to the Southern Pacific for monthly rental of
l240 In January, 1879, they sold this property to
the Pacific Improvement Company, who continued
to rent it to the railroad without charge. At this
stage OF the proceedings counsel demanded the pro-
duction Of certain books, vouchers, etc. which not
being forthcoming, brought the session to a sudden
close as the witness could not be examined further
without them. Defendants counsel teegraphed for
the documents this evening, and they will be pro-
duced in Court tomorrow morning, until which
time adjournment was taken.
Trouble with Tramps at Truckee.