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

SVntioIins Tue Nenlrat RACINE they had IN
their power to continue to pay interest upon
! these bonds; that everything in the country
was now depressed; that there was no market
for anything, and when market existed they
would not only get better price for the bonds,
1 but they would undoubtedly in the end be able
! To create 2 market for the various stocks Ulpon
my theory, as presented to these gentlemen for
the purposes of the negotiation the assets Of the
Western Development Company were made IN
pay its debts and legitimateiy as ] contended
( lett in the hands OF Mrs Cotton the dividend
that has been declared.
"They, of course, in reply insisted that any
estimates v ere entirely in advance of actual
values. That this was fair valuation of this
property; that they were not bound to 90 on
and ultimately make q market for these secur-
tiles. Tbat other roaes were being built in COM
petition with the Ceniral Pacific and the whole
country was full OF gloomy PROSPECTS, That TN
der existing circumstances they thought they
had , aced a lair valuation upon the property.
and that it showed. according to their state
Inent, that the Western Development Company
was inSoiyeit, and they would do nothing
They sad they preferred that Mrs. Cotton should
respond 10 her uoIgati0-S-thnt she should pay
what should he found 10 be.due from the estate
on the note OF milton Of dollars. That she
should pay Tha; should be found TO he due from
her on the VauOlis accounts, aud that she should
contribute what was necessary 10 carry on the
vaIlou' enterprises in which they were engaged,
and they would be satisfied I insist d
they they knew the fact 10 be that 81 e
was comparatively without means Tor ell these
various purposes that it was fer her interest
TO settle even Tor less sum than she would
make out OF the enterprise if able 10 continue
it. / also insisted that they could not afford
to have this litigation with the estate of one of
their associates, David d. Cotton, deceased.
That 1t would be eminently preiudicial tothen-
selves, as individuals. ana TO all the enterprises
in which they were engaged ard that they
should exercise ii large influence uDon them iii
inducing them 10 MAKE ii liberal settlement
with woman; That otherwise 1t involved a liti-
CATION IN which private affairs would be more
or less exposed, and in which there would he q
very minute investigation isto all their enter
prises of every kind. personally and as COM
panies; and under al the circumstances | con-
iessed great surprise that they were not will
ing to make very liberal concession, even over
and above what they thought WIS right That
IN any litigation they might have undoubtedly
the woman would have the sympathies of the
public. and in any event it would be very pro
tracted and embarrassing. Therefore I con
tended that they should cOncede her the divi-
deud and consent to the proposition which Mr..
Wilson had made. We had great deal of con
VeEsatioD pro and con. They were very earnest
in insisting upon adheriDg to their values. and
were apparently insenslble Co any appeals, in
sisting they would not make any concessions
whatever.
MRS. CoLToN's POWER OVER Defendants.
So he tried them separately, making personal
appeals to each.
This is very graphic and concise showing
before quoted . portion to show what weight
was given 20 the estimates of values. 1t shows
as well how both parties appreciated the help,
lessnesS of Mrs. Cotton ana knew that she had
no alternative but settlement.
1t shows also the cOerciye power in the hands
of Mrs Cotton should she select to take the des-
perate expedient OF litigation. 1t apparently
meant to ruin her, but it might also be produc
tive of disaster to them. Staggering as they
were already under these heavy burdens, they
could not afford this additional weight. Litiga-
ton WOuld injurc their securities perhaps pre-
vent their sale, and would embarrass them in
many ways. These considerations seem to have
been brought home very torcibly to them by
Tevis.
sun, knowing the distress of the plaintiff and
her inability to 90 on with them, they insisted
that she should perform her obligations and 20
on or so out on the terms proposed They in
sisted they were not bound TO discount the
future of these securities for her, thus giving
her the benefit of their contemplated enterprises
and the expenditure Of more millions She
not entitled to the profit when she would
not share the risks
Much more testimony might be quoted show
ing how the parties at sle time understood the
issues between them and how they regarded the
representations made. The defendants finally
consented to improve their offer by adding $780,
GOO in Southern Pacific bonds, and this was ac-
cepted. One more citation fIom the evidence,
giving Mr.. Wilson's reasons for their closing
with the offer viii, | think, complete the state
ment of the case and show conclusively the mo-
tives which actuated the plaintiff, and just how
far any representation or threat or adverse pres
sure affected her.
WILSON'S TESTIMONY AS TO TIE VALUE OF sEcU-
RITES.
He says: " They asserted a series of claims of
these different companies against COltons eS-
tate, making considerable sums of money; also,
these gentlemen held the note of General Cotton
for a large portion of that million of dollars Sc
cured by stock, and of course General Cotton
was interested in the Western Development
Company, and | came to the conclusion, on in
vestigation, that if these gentlemen were to rely
upon their legal rights in the matter they would
involve the estate of General Cotton in insoly
ency; that il they prosecuted that note when it
became due or sold the securities, there
would be no purchaser in the market except
these gentlemen themselves; that in this market
Il large block of Central Pacific Railroad ocll
10000 shares) and Southern Pacific Railroad
stock go coo shares) would have no purchaser at
all except themselves, and they would buy ii in
at just such price as they chose, aud thereby
leavinga large deficiency in the balance due on
the million dollar note: also. that when the
Western Development CO.. affairs came to be
settled up, that as their stocks and assets,
should say, consisted very largely of stocks and
bonds. and there would be no purchasers of
them in the market except those gentlemen
themselves = they would be enabled
to purchase the stock and bonds and assets gen
orally of the ". ID. Co. at their own prices and
without competition from any purchaser who
would appear publicly, and the result of it
would be that the institution would be largely
inSolyent; that the insolvency of the estate Of
the estate arising from the alleged discrepan-
cieS were made good or not; the question was
whether these gentlemen would prosecute as
against Mrs. Cotton these claims, and | consid-
cred great deal whether they would as against
a lady who had lost her husbadd, their former
partner whether they would undertake to rely
upon their legal rights and pursue their legal
rights. be ieve they would, and their
justification would be the views that Mr. Hunt
ington asserted.
''FIaving come to that conclusion believed at
the time, unless Mrs. Cotton made this settle
ment, she would be involved in insolvencr. and
to save her from that and at the same time to
save any public investigation Of these charges
against Mr. Cotton, and the difficulty of proof !
saw in the way, while they could make prima
tacie case and throw the burden ON us of eX-
planning them, l believed it would he much
better for her to accept the settlement"
Afterwards. being asked if the presentations of
the claims to the eNecutriX for allowance
would not haze embarrassed them. and If he
did settle them to avoid this, he says:
PLAINTIFFS ADVICE TO HASTEN SETTLEMENT.
This thing had just as well be settled then
rs afterwards; the time has arrived to say YES
or no. Yes ended it; no was litigation The
time had arrived. ! had negotiated until |
had run myself out. Mr. TeviS was called in.
Mr.. TeVis, Mr. Huntington and these gentlemen
could act quickly or never There was no sense
in the prolongation of it, The time was ripe for
yes or no.
"Ques.-And the non-presentation of these
claims was a contamination that you desired
''Ans.-Why, OF course, if we could make the
settlement why let the case 90 on the public
record? Why let il go abroad, if ] could make
a cttNitIItliIt II was lktNt 10 maxi Il Sttllc-
ment. We made it or did not make 1t. Why
should we delay it,
Ques.-Well, you had been delaying it for
ten months?
'Ans.-And we had all exhausted ourselves
over it had spent more time over it than /
have done IN lawsuits where had gained So
600. had exhausted myself and tired myself
out. sacrificed my private int rests, ana had
worn myself out. l had abused these people
70 the extremity almost Of fighting personally.
The thing had ended. There Is an end to
everything. The time was ripe to consummate
it one way OF another. was prepared to take
their favorable answer or go into a tight. There
was no sense, no object, no purpose in longer
delay"
These statements from there two witnesses.
both OF whom We're acting for The plaintii.
constitute most important testimony. They
show Us. as near as was possible, the parties
face to face, and almost lay bare to our view
their secret thoughts and motives. They show
quite plainly:
That the parties were not acting under the
influence of any relation of trust or confidence.
That the valuations were matter of coutro-
versy all the way through, and were put for
ward a statement favorable to defendants
and as such maintained by them and contro-
verted by the pl 4intiff
That the charges against Cotton affecting his
reputation, while deeply regretted and resented
by Wilson, was always held as subordinate TO
the main question of the interest of plaintiff
That in the judgment of Wilson there has been
sufficient investigation OF the affairs Of the
porations, and that he therefore does not care
for further time.
That he was thoroughly convinced that she
could not discharge Coltons obligations and go
on with the railroad buSippeS tharof,,r,