Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-07-05
THE COTTON TRIAL.
An Affidavit of Mr.. Creolser Giving the
important Facts in the Case.


pointment of Receiver of certain bonds
upon which Mrs Cotton makes claim in
her suit, will be found of u,uch interest, as
giving in brief space most of the principal
issues involved in the Cotton case, which
has for long time been on trial before
Judge Temple, at Santa Rosa:
In the Superior Court of the County of So
MONA, State of California Ellen n. Cotton vs..
Leland Stanford ct al. State of California, City
and County of San FranciSco-SS.
Charles Croker being duly sworn, deposes
and Saws: That il is not true, as stated il the
affidavit Of the plaintiff herein. that she deitv-
cred to the defendante IN TINS action wy sqsfs
of the capital stock of the Central Pacific Rail
road Company; nor is it true that she delivered
to said defendants 1890 shares or the capital
stock of the Southern Pacific Railroad Com
pany; that the truth in this behalf Is as follows
That by Il contract dated the 9Th day OF October,
1874, the defendants and one Mark Hopkins sold
10 David D. Cotton 200e0 shares of the capital
stock Of the Central Pacific Railroad Company
and 20 COO shares of the capital stock OF the
Southern Pacific Railroad Company, for the
sum of 81 100000. which said contract Is at
tached 10 the complaint in this action, and
marked Exhibit a.
That ths said stock was not delivered TO the
said Cotton and never was in the possession of
said Cotton, or of the plaintiff, and WAS not by
her delivered to the defendants, Us Is alleged in
her said affidavit.
That for the purchase of the said stock. said
David D. Cotton made and delivered TO these
defendants and Mark Hopkins his promissory
note dated October s, 1874, payable in five years
thereafter for the sum OF Il GOO, coo, with inter
est at the rat. of per cent. per alllum. a copy
OF which said promissory note Is annexed to the
complaint in this action and is marked tx
hibit
That on the 9th day of August, 1872, there
was due TO The defendants and the said Marx
Hopkins upon the principal and interest of said
note about the sum of eleven hundred thousand
dollars.
That ut the time OF the making of said note,
the said 20 900 shares of the capital stock of the
Central Pacific Railroad Company and the said
90 600 shares of the capital stock of the Southern
Pacific Railroad Company were in conformity
with the terms of said contract of October ;,
1874, deposited with the said Mark Hopkins as
collateral security for the payment of said note.
That by the agreement made between the de-
PENDANTS and the said plaintiff on the 9th day
of August, 1879 and which Is referred to In the
affidavit of said plaintiff, the said plaintiff re
leased and transferred to the defendants all her
claims in and to the said 10000 shares of Cen
trail Pacific Railroad stock and the Said 20 coo
shares of Southern Pacific Railroad stock which
were then held as collateral security by the de-
PENDANTS and the representatives of the said
Mark Hopkins for the payment of the balance
then due TO the defendants and the said Mark
Hopkins on said promiSsoTy note.
That at the time of said settlement, 20 wit, on
the 9th day of Aug Ist, 1879 the estate of Mark
Hopkins was the owner Of oue-fOuTth part Of
said promi5sory note, and the amount then due
thereon.
That after said settlement In the year 1872, and
before the commencement OF this action, the
defendants delivered to the administration of
the estate of Mark Hopkins, deceased. one
fourth part OF the said O,GO0 shares Of the capt.
tai stock of c. p. r. r. Co, to wit: five thousand
shares; and the said five thousand shares have
never since been in the possession or control of
said defendants. Or either of them.
That since The execution of the said agree
Via staa lafl
the estate of Mark Hopkins any part of the said
seven hundred thousand dollars, or the interest
thereon. At the time of the execution Of said
agreement plaintiff delivered to the defendants
IS coo shares of the capital stock Of s. 7. Il, K,
Co. and no more. 1t is not true, as stated in the
affidavit of said plaintiff, that she delivered 10
the defendants herein ESQ first mortgage bonds
of the s. p K. Il. Co, of the par value of one
thousand dollars each. And af1iGnt AYERS the
facts 10 be that she did transfer and aSign 10 the
defendants herein $50 first mortgage bonds of
the s. Z. L. Z. Co. Of the par value OF one thou
sand dollars each. and no more.
That il is not true, Is stated III the affidavit Of
said plaintiff, that she delivered TO the defend
ants 100 first mortgage bonds of the s. 2. r. r..
of par value of 500 each, but aiiiant AYERS the
facts in that behalf 10 be, that she did surrender
to the defendants 100 first mortgage bonds Of the
the S. p. Z. r.. Of par yaiue of $50 caeh.
That atlantis and the other defendants herein
have fully and fairly stated ID their attorneys
and counsel in this action all the facts ConstitUt
ing their defense therein.
AGiant says that after said statement The &c
PENDANTS are informed by the said attorneys and
counsel in this action, thai they, the said de-
PENDANTS, have a good defense in III action
upon the merits thereof, and that the defend
ants arc entitled TO and will probably recover
Judgment in their favor as prayed for by them,
and that plaintiff will take nothing by her said
action.
Aniaut further gays that of the bonds and
stocks delivered or released 10y the plaintiff TO
the defendants at the time of execution of the
agreement Of August q. 1879 and including the
1j00D shares Of the C. ?. r. K. stock aud the
20G01 shares Of the 5 p r. r. stock, which was
released by said plaintiff TO said defendants, the
defendants, after the execution of said agree
Blcnt and before the commencement of this ac
ton, sold 5000 shares Of the Central Pacific
Railroad stock and 80 first mortgage bonds of
the s. p r. Il. of the par value of 500 each, and
that the proceeds of all said gales have been
used by The defendants In and about their bust
ness and In making advances for the uses and
purposes Of the w. ID. Co, and paying the debts
Of said company, and that such proceeds or any
part thereof are not now in the possession of the
defendants or either OF them. or under their
control
That the remainder Of said bonds and stocks
described in plaintiffs affidavit as delivered by
her 70 defendants are now in the possession of
defendants.
plaintiff " that the property involved In this
action is in danger Of being lost or removed
from this State Of being carried beyond the jul
risdictiOn OF this Court by the defendants" or
it has ever been intended, or that it is now In
tended to remove The saiu property or any part
thereof, OF to remove any property owned by
these defendants, or either of them, beyond the
Jurisdiction Of the Court. Asant denies that
any OF the property claimed by the plaintiff in
this ection Is in any danger of being lost from
any cause whatever.
That it is not true, as stated n plaintiffs aft
davit, that the said defendants, or either
of them. or the C. p. L. K. Co., or the 5.
p. T. Il. Co, are or that either Of them Is in
of fnn al
raSsment, or in any condition OF embarrassment
serious or otherwise. And alfant says that the
said defendants and the said c. p. and the said
g. f. r. T.. Co. are, and that each OF them is
perfectly able to pay, and have the financial
ability to pay all debts, liabilities and engage
ments of any and every kind that they, or either
ofthem, may have formed. or become liable pay
"a the same become due and payable. That IL Is
not true ms stated in the affidavit plaintiff that
the defendants have been and now are borrow
ing money in this State from every source from
which they can obtain the same. or 30 secure
payment thereof that they are pledging US col
lateral aud security MI the bonds or stocks at
their command, which are available, to that
end.
organization Of slid G. P. Z. r. Co, and ever
since the formation and organization of the said
5. +. II. K. Co. both companies and these de-
PENDANTS have been in the habit of borrowing
the amount then in the treasures of tho said
corporations. 10 carry on the business of said
corporations ana meet the OBLIGATIONS OF SAID
coEpOra.lons and meet the engagements or Ia
biities which the defendants, on behalf OF said
corporations or either of them, have incurred
| for the use and benefit Of said corporations
That at this date the floating debt Of the said
| c. = r. X. and of the said 5. p. X 4. are much
| less in amount than they were at the time oftte
death of D. ID. Cotton in the year 1878.
That it IS not true stated in the affidavit OF
! plaintiff that the defendants are in any straits
or extremity, or that their extremity is so des-
| perate, or that they are in any extremity what
| ever or that they have been forced to use the
| property or control which they have over the
| affairs or property OF the Central Pacific Railroad
! Company. or to take from said company three
million five hundred thousand dollars par value
| of the bonds of the Southern Pacific Railroad
Company. which belong to the various sinking
| funds of the Central Pacific Railroad Company.
And aihant AYERS the fact in that behalf to be
that by resolution OF the Board OF Directors
| ofthe Central Pacific Railroad Company, adopted
at meeting of she said Board on Che 20th day of
| June. 1881, it was resolved and agreed that the
Central Pnciic Railroad Company should sell
; 1859 bonds OF the Southern Railroad Company
of California of one thousand dollars each, at
the rate Of par and accrued interest, and should
purchase from the said p [. Co. 1871 bonds of