The San Francisco call., 1904-07-12
Senator Wants Back Money
Advanced to Lumbermen
by Construction Company
SUES IN FEDERAL COURT
Defendants Say E. HI. Harri-
man Is Really the Insti-
gator of the Civil Action

First National Bank of San Francisco
and others to recover So, ,571 so and the
deeds to certain lands in Mendocino
and Sonoma counties. Judge Erskine
NJ. Ross granted a temporary restrain
ing order and appointed Charles Wier
as receiver with bonds at SS0,000
The action viii be watched with con-
siderable interest by local railroad
men, for it has been limited that an
effort viii be made by the defense to
show, during the progress Of the trial,
that Z. H Hartman, head of the big
Southern Pacific system and is sup
posed TO have a large interest in the
san Pedro. Los Angeles and Salt Lake
road, is behind the suit The Empire
Construction Company has as its presi-
dent J. Ross Clark, a brother of Sena-
tor W A Clark, president of the Salt
Lake road. and was organized by the
Clarks for the purpose Of constructing
the road between Salt Lake and Los
Angeles.
WANTS RETURN OF MONEY.
The complaint filed yesterday al
leges that on December l, 1902 the
complainant advanced S3S. 400 for the
purchase of lands on which to cut
railroad ties and agreed to advance
$4,000 per month for six months for the
labor Of making the ties. The title
was put in the name of the COM
plainant and the latter gave a deed to
Bender Brothers and placed it in es-
crow in the First National Bank to
secure complainant for the money ad-
vanced to be paid for in railroad ties
It was agreed further that out of the
price Of every cargo of ties delivered
the complainant should have the right
10 retain 25 per cent for the purpose
Of repaying the amount advanced for
the purchase of the lands and rs per
cent for the purpose of repaying the
amounts advanced for supplies and la
Dor
1t is alleged that the Benders have
delivered only 366, ISL ties and have re-
fused to deliver the balance of 1928
1t is further averred that the Benders
are in possession Of the land and have
greatly lessened its value by cutting
tan bark and redwood timber thereon
and that if they are permitted to con-
tinUe the complainants security will
be still further impaired. 1t is further
charged that the Benders. in viola
tion Of their contract, have sold large
numbers Of redwood ties TO other par
ties and that there are a large num-
Der Of ties on the ground.
The injunction is designed to prevent
the Benders from disposing of any of
the real and personal property.
BENDERS WILL FIGHT.
Attorney Hu Jones. representing
Bender Bros. stated yesterday after
noon that the suit would be bitterly
fought by his clients, who he claims
are prepared to prove that they have
not violated any of their contracts and
that the suit was actually brought to
abrogate certain contracts between the
company and the lumbermen in order
to get out Of paying the price of ties
agreed on in the contracts. The mate
rial was contracted for at a time when
ties were very high. a fact over which
the defendants had no control. and
could now be bought in the market at a
very much lower rate. AS to the money
advanced by the construction company.
il is claimed by Attorney Jones that
his clients would have long ago wiped
out the Indebtedness had the Clark
concern kept its part of the agreement
II is claimed that the storms along the
coast for a time prevented the loading
( Of schooners with the ties, and the re-
+ cent engineers strike also materially
delayed the deliverance of the ties, but
3 these obstacles were amply provided
( for in the contracts between the two
parties.
HARTMAN TAKES A HAND.
An interesting fact in connection
with the suit developed yesterday, when
+ it was learned that one of the auditors
, Of the Southern Pacific Company, act
ing in a similar capacity for the Salt
1 Lake road. had been conferring lately
with Bender Bros. with regard to ar
amicable settlement of the existing diff
ficulties between them and the CON
struction company, which would SIG
gest that Hartman is taking a more
active interest in the affairs Of the Salt
Lake road than he has been willing tc
admit Bender Bros. are inclined t.
view the suit somewhat in the light OF
a move Of Hartman for revenge.
According to their side of the case
when the Clark people first attempted
to get their rights of way for theil
road they were confronted on all sides
by opposition from the Hartman inter
ests. and later when Senator CLARK
and his brother went into the marke
in search Of ties they were again made
TO feel the Hartman influence The
only firm that would consent to sci
them ties was that of Bender Bros
Some time ago it developed that Har.
riman had gained control of the Sal
Lake road. and from that time on, it i:
claimed, the lumbermen began to NEE
opposition from Hartman.
1t was learned yesterday that tn,
dissolution of the Empire CONSTRUCTION
Company has been planned for som,
time, and that hereafter the San Pedro
Los Angeles and Salt Lake road viii
do its own building and contracting foI
material.
Inquiry for John j. Hill.
Mrs. Douglas w. Montgomery o.
this city brought to the Morgue yes
terday a letter of inquiry from hei