The morning call., 1893-12-19
A CAPITALIST SURPRISED.
Mills Was Bargaining for Land Be-
longing to His Old Friend,
Joseph A. DOnohoe.

yesterday in the United States Circuit
Court against the executors of the last
will and testament of Edgar u. Mills.
The action is the result of real es tate
deal in Market-street property. between
Eighth and Ninth, which fell through.
Albert Z. Gray is the plaintiff, and S.
Prentiss Smith, Frank Miller and William
2. Harrington, as executors of Edgar d.
Mills, are the defendants. Vincent Neale
is the plaintiffs attorney.
The plaintiff tells his story as follows:
''In 1891 j. Fl. Cavanagh had had for
some time verbal authority from James
a. Donohoe to negotiate a sale of his
property on Market street, having front
age of 81 :6 feet and extending through to
Stevenson street. for S165,O00 net, Mr..
Cavanagh TO have all he could get over
that amount The property adiOins Gen.
Ural Park. Mr.. Cavanagh mentioned this
to Mr. Gray, the plaintiff, in a conversa-
tiOn, and he said he thought he could in-
duce some capitalist to buy it at a good
advance over S165, ZOO. Cavanagh said,
All right. go ahead, and we'll divide
The plaintiff negotiated Wi b Mr. Mills
among others, and finally agreed with Mr..
Mills to get him the land for S235. 0OO. Mr..
Mills agreeing 10 pay in cash $4,000 and
in land $4,000.
The land consisted of the ranch near
Colusa junction, COlusa County, consist
ing of 2400 acres, and known as Eureka
Ranch, valued at SiS, 600; 32S1 acres
Sites. in Colusa County, valued at SIC, 400;
the ranch known as the EhOrn Ranch. in
Iehama County. consisting of 1000 acres,
valued at S3l,S00; 500 acres adjoining
kirkwond, valued at $4,000, and 1880 acres
west OF kirkwood a few miles valued at
$4,000; in all S421 acres at $4,000.
'eE'VprV pODPernnl
satisfied. and three weeks were given both
sides in which to examine titles"
Practically GRAY and Cavanagh were
selling To Mills the option or benefit of
Cavanagh's contract with Donohoe, but
there was no suspicion of fraud or
sharp practice between any of the parties.
notw outstanding the large margin between
the buying and selling price The plaintiff
claims ne was not acting as an agent for
any one, but as principal.
At this time Joseph DOnOhoe, the owner
was ln Europe and was represented nv his
son, who had his power of ATTORNEY. so
Cavanagh waited upon Mr.. D0nohoe .Jr.
and asked rim to confirm the sale. He
said he preferred 10 await his fathers re-
turn, though If necessary he would act for
hlm, but be must lie Satisfied that Caya-
hagn was actlng oona -fide in he matter or
must snow lhat he %as possessed of sufi-
cient means to close the purchase or put
Up It Substantial deposit. CavaGagh then
said he was buying TO sell again, with a
buyer already procured, and be then, to
satisfy young Donohoe, told him that
Edgar ID. Mills was the buyer. Being sat-
lsfed he, as attorney n fact. gave a writ
Zen agreement 20 sell TO Mr.. Mills the
property for $l6J.000 instead of the price,
S240, 0G0, agreed on by Mr. Mills with GRAY
Mr.. Mills seemed satisfied and it was
agreed that he should take the deed direct
from DGnOhOe and the abstract was accord
ingly delivered to Mr. Mills.
The plaintiff says in reference to his
negotiations with MIR. Mills: 81 had some
time previously nego lated with Mr.. Mills
for the purchase of his country lands for
proposed colonization company, and |
opened the present negotiations by asking
If his Colusa ana Tehama lands were still
for sale. he said yes and we proceeded
to make list aud prices. | said Thought
l might do business with him if ne would
buy some Market-street property and allow
his land to 90 as part payment. He was
willing, and asked for particulars. The
next day [ gave him full particulars of the
Donohoe property. A few days afterward
be sent for me, and we continued negot!a-
tiOns with the result that he agreed 10 give
Sl25 0o0 in cash and $4,000 10 property.
Meanwhile Mr.. Mills had learned that his
oiG-time friend, Joe Donohoe, was the
seller TO US and We were selling to him at
very large Increase in price. TO think
should be buying of yOu.' he said. when L
might have gone direct to my old friend
Joe. Why, Joe Donohoe and l are like
brothers,
"Mr. Donohoe Jr. and Mr.. Mills were
members of the same club and it was
there the cat got out Of the bag and Mr.
Mills learned all about the matter. At the
same time he learned the large margin
between the buying and the selling price,
he also learned that the Government had
decided upon the PostOftice site close ad-
joining to this property. When. therefore,
Mr.. Mills met me with half serious. half
eood-natured Pretty sort of fellow
you are to ask me such price for that
property, | said in reply: OF course, YOU
have seen from the morning papers that
the Postoffice is coming up to this prop
cry. If l had known that l should have
asked you another $4,000 at least Mr.
Mills appeared to be very well satisfied
with his bargain until later. when the
papers began making such a fuss it look ed
AS though the site selected would be con-
demned.
Abstracts were furnished by both sides
and much correspondence passed between
us. In the meantime Jarboe g. Jarboe
reported small cloud on the title, and
the attorneys for all parties consulted and
suggested ways in and out. On November
is Mr.. Mills sent Tor me and wanted to
know If | was ready 10 COMPLETE the bar
gain. / told him | was waiting on his
y
notice. He said, We'll. was hoping YOU
would be knocked out of it somehow and
not be able 10 come to time, for | want to
he quit OF the whole thing On the next
Gay the lawyers reported fatal cloud on
the title. and Mr. Mills definitely decided
not to consummate the purchase, and he
gave MIR. Don0hoe notice TO that effect.
About the end of November Mr.. Dono-
hoe rendered deed to Mr. Mills, but he
refused TO accept It. alleging that the title
was defective. Other attorneys reported
the title as good. The mistake, however,
was in the abstract. The property was
subsequently sold and transferred"
The plaintiff alleges in his complaint
that he was damaged S128.00O by the
failure of Edgar ID. Mills to carry out his
agreement; that Mr.. Mills died on Janu-
airy III, 1893, and thereafter he presented
his claim as the law directs, but the
executors rejected it. The interest de-
manQed amounts to S16.698.