The San Francisco call., 1897-11-04
P0LHEMUS ASKS
FOR Big MONEY
Demands Over 100000
From the Estate of
Charles Mayne.
Incidents That Go Back to the
Very Early Days Of Rail-
road Building.
Huntington, Hopkins, Stanford and
Crooker Had Not Yet Become
Financial Magnates.

| A supplem com plant was hled yes
terday in the i'm portant suit OF Charles b..
Polhemus against Antoine Borel and
| Louise Barroilhet, executor and execu-
trix of the will OF the late Charles Mayne.
This litigation recalls some of the ro-
mantle events that accompanied the early
era of railroad building on the Pacific
Coast, and the incidents 20 back to the
time before Huntington, Hopkins, STAN
ford and Crocker were known as wizards
of finance or constructors of railroads.
| According to the complaint Charles Nc
Laughlin and Alexander Houston were
engaged during the years 1860 and 1868 in
laying the track of the San Francisco and
! Sin Jose Railroad from the Mission Of
! San Francisco 10 Menio Park and finally
! to San Jose. Contractors Mclaughlin &
| Houston became involved and borrowed
| large sums OF money from Mr.. Polhemus,
Peter Donohue and II. NJ. Newhall. the
aggregate finally reaching nearly 81, 250,-
! 600.
! Withdrew from the firm aud sold his share
of the partnership affairs, including all
interest in the San Francisco and San Jose
Railroad, to Mr. Mayne. who he'd on
until the Southern Pacific Railroad got its
line across the continent, whereupon the
local road was sold to Huntington and his
associates for more than 81, O00, ,0OO, giving
Mr.. Mayne good profit.
Mr.. Polhemus charges that Mr.. Mayne
concealed from him the large profits that
were made in the business while acting as
his trustee, and consequently he asks for
an accounting and thinks that he ought
to be paid more than S600,C00 for profits
that Mr.. Mayne unjustlv withheld.
During his lifetime Mr.. Mayne filed an
n IA c,rit in irh hn niod
that Mr.. Polhemus had correctly stated
the circumstances of the transactions.
Mr.. MayDe declared as follows:
The whole agreement between the parties
was thatthe defendant (Mavne} should furnish
all the money necessary for the pay ment of
that the purchase so made snould be for the
joict account and benefit, share and share
alike. and that interest should be allowed TO
the defendant at the rate OF % per cent a
month on the purchase money 5 o advanced by
HIM, ana after the repay yment to the defendant
OF the said purchase moneys, with interest,
the profits should be divided equally between
the plaintiff ana defer dant. and that the
defendant receive from Poihemus proms ssory
notes OF Donohue, Newhall d Polhemus made
to Polhemus and by him iudorsed to the
defendant, bearing interest at the rate OF 112
per cent month; B.; and he continued to receive
Tor his advances such promissory notes until
October. 1865. at which time the interest on the
notes was reduced to IA per cent n month;
that the advances embrsced all the moneys
which had been previously advanced by the
plaintiff for the joint business of nonohue,
NeWhall & Polhemus. And the defendant
denies that any moneys were advanced by him
in the name ot the plaintiff or for the benefit
OF the plaintiff or for the benefit of Donohue,
NewhalI d PVlhemus, except for the terms
and conditions herein bove set forth.
Mr.. Mayne alleged that on the 10th of
February, 1866 the Liabilities of Donahue
Newhall q Polhemus had increased to
$1,375, 547 49, and denies that be was in
trusted with the managem of Mr.. Pol
hemUs' business during the latter's alb
sence from the State, but points out that
on the contrary Mr.. Polhemus appointed
as his attorney in fact his brother J. II.
Polhemus and executed 10 him a general
power of attorney, which document he
caused to be recorded in legal form.
Continuing his answer Mr.. Mavne says
that he never bought for Mr.. Polhemus
any interest in the San Jose Railroad
Company and that even ii he had done
so, there was no profit in the operations
of that concern up to April 10, 1867,
though the books were kept in such
manner as to make IT appear that there
was profit.
Instead of deceiving others, Mr.. Mayne
alleged that he had been induced by Mr..
Polhemus to go into losing business on
the assurance that he would not be re.
quired to put in more than $3.50, 900,
whereas he was finally led to put in nearly
double that amount, and finding that he
was not able to meet his share of the liza.
biIities because of his limited resources,
as readily as his associates, he sought 10
draw out
II e sets forth two assignments and set.
Elements OF all claims held against HIM
by Mr.. Polhemus, in one of which Mr.
Polhemus acknowledged the receipt of
f,,1I