Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1885-10-10

, Convention during the period completed its
labors. The exciting canvass which preceded
Its adoption was conducted and the instrument
adopted May Z. 1879. This was about the time
the estimates were made by Brown. The
negotiations were concluded during the can
Yass for State and county officers, which fol-
lowed the adoption of the new Constitution
in 1879
It will be seen to have been a very remark
able year for political excitement, and that
these negotiations were conducted in the midst
of it. No one can be unmindful of the bust
ness depression which pervaded the whole
country, and, in fact, the commercial world, tor
year or two preceding these events; and it
hardly needs the testimony of the witnesses to
prove to Courts the extraordinary political
revolution then apparently going on i'll this
State. II is now easy to laugh at the fears
then entertained, and to scott the idea that
capitalists were or capital was affected by it.
The panic was real, ana none the less so be-
cause We can now see that many fears then
entertained were idle. 1t is true that conf
dence was soon restored but this cannot restore
fortunes lost.
However groundless the fears which destroy
markets while panics last the result is the same.
The misfortune of the plaintiff is that this i'm
poTtant transaction was consummated during
these gloomy days. Her misfortune, however.
must not induce US to judge too harshly those
who dealt with her under the same shadow.
May 5th two days before the adoption of the
new Constitution, the Supreme Court of the
United states affirmed the validity of the so
called Thurman Act, which, however proper in
ITSELF took from the defendants twenty-five per
cent. of the net earnings of the Central Pacific
to secure the Government The Central then
was really the source OF all income and the
foundation of ali credit to the defendants They
Were heavily in debt. The debt of the C. z
was over enc hundred millions The letters of
both Huntington and Cotton show how they re-
garded the situation. Cotton in particular was
respondent He wishedto sell the construction
plant and build no more until they had money
in bank. He talks of staying with the wreck
and was particularly pronounced upon what
COLL nE Neefs 81
times. Everybody, he said wants to take some
thing up and put nothing down Their Golfers
Were full of bonds and stock, for which there
wSS no market, and their letters indicate that
constantly mourning new debts Nor was this
all. Gloomy as the times were, they could not
go ont of railroad building.
DEPRESSION OF THE RAILROAD SECURITIES IL
1879.
Their main road after the Central. extended
some hundreds of miles into desert, and there
ended To tender the road valuable it must be
connected with the Eastern system of roads
Competition was threatened, and had to be fore
stalled. The danger from competition is tersely
stated by Tevis, in his deposition. The value of
the assets of the w. d. Co. depended very much
upon the completion of these projected roads
Notwithstanding this gloomy condition in 1879
there very soon came what has been called a
boom in railroad business. In fact there
was an unprecedented demand for railroad Sc
curitles, ana all ut once, il were, the defend
There had been, perhaps, during 1879 a marked
Improvement in business in the Atlantic States
but not till 1880 was the effect much felt in Cali
forllla or upon California securities. These are
undoubtedly facts, and must not be forgotten in
estimating the fairness or morality of this trans
action The compromise was made at the darkest
period of this depression when matters in Cali
fornia were most uncertain. These same facts
are also material in determining the condition
of the plaintiff and should be kept constantly
in view in what win be said hereafter as to
1l.al
mise on her part As to the alleged threats
the evidence does not sustain the ALLEGATIONS
There was no threat to attack the reputation Of
Cotton. Wilson says they merely presented
their claims, and, of course, unless settled they
would be presented to the eXecutriX and fled
Then. he believed, they Wdsld be made public
If this were so, it would still be the privilege.
and under the circumstances think the duty,
of the defendants TO present their claim duly
verified. This would have been a lawful act
There was no duress, and could have been
neither duIeSS nor menace, as defined in the
code. A threat to iniure the reputation OF her
late husband would not come within the pur-
view of the code. Counsel has iugeniouslv
shown that the statute does not apply to dead
husbands. But there are no such husbands
The widow is a femme sole. OF course, it could
not have been an attempt to compound felony
or stitie a prosecution. II it constitutes any
ground OF relief, II must be as undue influence.
The plaintiff was no doubt extremely desirous
of preventing the publication of these charges.
and the settlement was made under the eXpec-
IallOn tnat thereby tne matter would be luSneu
up. 1t did not, however, constitute a part of
the agreement, and find no evidence that the
defendants ever attempted to use this desire to
influence the plaintiff. The fears seem to have
been suggested to plaintiff from the fact that
they asserted the claim. have said that they
were justified in making claim to this alleged
Indebtedness.
MRS CoLToN's ATTITUDE TOWARDS THE CASE.
Nor do believe il constituted the chiefor most
powerful motive on her part to execute the as
contract. fqndprlV attached tn
her husband, and naturally greatly distressed
by these accusations. 1t plainly appears, how
ever that she fully appreciated the condition OF
things, and was determined to maintain her
rights, so far as possible. The remarkable let
ter to Mr.. Hunt shows her fully aware of the
difficulties surrounding her, and so far as de-
pended upon herself, confident that she was
equal to the occasion. There was no sign of
weakness or surrender. The same may be said
of all of her letters to Wilson. and her conduct
and bearing, related by the witnesses. She
was anxious, but alert, appreciative and de-
termined.
She feared apparently, almost from the be.
ginning, that they would not settle fairly with
her; she believed they were robbing her; had
trumped up the charges against her husband
for that purpose, and had manipulated the
books to prove the charges. Yet during the
whole period of anxiety and distress she was
vigilant. trying with Wilson to find ont what
she could, not only to refute the charges but to
be able to retire from the business with as
much as possible. This, indeed from all the
testimony save her own, would appear to have
been the prevailing and prominent desire
Hence an expert was not employed to inVeSti-
gate the charges more thoroughly, because in
Wilson'S opinion it would not have much facil-
itated the settlement If they had been ex-
planned.
think Wilson states the case as strongly as
possible when he says the desire to conceal
these charges was an element in the settlement
but not the chief or principal one. 1t was an
element evidently 10 this extent, that if the
matter was to be compromised it were best to be
Ruf
plaintiff nor Wilson was inclined to sacrifice any
material interest to accomplish that result
OF the other alleged threats not much need
be said; they are not proven. Mrs. Cotton was
allo wed to state that Mr.. Wilson told her various
things as coming from the defendants, but there
was not even an attempt TO complete the chain
of proof by evidence that the defendants ever
did make such statements to Wilson. The al
legged representation that it would be necessary
to get at sir Colton's interests by Jumping seems
tome to have been strictly true. The claim that
they ever refused to allow separate settlement
of the account of the Il. NJ c. IL |. Compapy's
claims Is not sustained by any proof, and is
hatly denied by Wilson The subject of the
charge OF undue influence has been already al
luded to. and have said all ! care to say in re-
gard to the charges OF Misrepresentation against
her deceased husband.
THE GIsT OF THE WHOLE CASE.
The only other claim which can be urged in
reference to undue influence oradyersc pressure
propose now to state and discuss, as | think
this constitutes the gist Of the whole case and
presents the real force which induced, or rather
compelled, the plaintiff to make the compco-
mise viii 90 somewhat into details, In con
sldering this branch of the case il is necessary
always TO bear in mind the financial strain
which then operated upon the defendants; also,
That by the death of Mark Hopkins they bad
been deprived of much financial force. The w
u. Co. owed the Hopkins estate over four million
dollars; also, that they believed they had found
proof that Cotton had been unfaithful TO them;
that they were further embarrassed by the divi-
deHd which had been improperly declared of Il
large amount of the assets Of that company
when il was owing more shan sixteen millions
of dollars, and had no available assets; that
Cotton had been allowed to retain his share I'M
der the promise that it would be kept, and re-
turned 10 the company whenever the associates
should deem 1t necessary; that this promise was
now frustrated by Colton's d. ath and these as
sets were part and parcel of the Cotton estate:
that Cotton owed them and the estate OF Mark
Hopkins s10j,G0O on his promissory note which
was about TO become due, and was also secured
by only uninarketable stocks that the defend
ants were also in a crisis in their affairs. being
required at such gloomy time to expend other
millions to maintain their position in the rail
road world and prevent competition. These
facts must also be remembered to enable us to
ness Of Mrs. Cotton. Her means were
similarly affected by this financial cloud
then impending over California railroad
affairs, and in some respects her condi-
ton was more affected by the panic than theirs.
They never lost their confidence in final success
They could hold on and postpone, and to some
extent their obligations could wait on their ne
eessities. Their practical possession and abso-
lutte control of the properties gave them a great