Central Pacific Railroad Company Lawsuits

complaint to you about the manner in which you were keeping the books?

A No Sir, not the least.

Q Everything appeared to suit him?

A Yes Sir. He never made any objection to the manner in which I was doing it.

Compare with Lien? [written in margin]

Q What book is that you have in your hand?

A The amended complaint.

Q In what case?

A Ellen M Colton vs. Leland Stanford, Huntington, Crocker & Wells Fargo & Co

Q Where did you get that book?

A I received this in a pack-age sometime in March last. I think.

Q From whom?

A From Mr G. Frank Smith.

Q Where were you as that time?

A I was in Arizona. I think I was at Yuma. I think the the package was for--

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[Top right corner:] 2

[left margin:] The corporations represented by C. P. Huntington owned and are operating a continues through line from the Pacific Coast to the Gulf of Mexico and to New Orleans —

C. P. Huntington and Mr. Gould were constructing lines of railroads between New Orleans and the Pacific Occean [Ocean] —

[left margin:] The Corporations represented by Mr G. [ Mr. Gould ] owned and were operating lines of road from St Louis and other points on the Mississippi River and points in the interior westward with an alternate intention of reaching the Pacific Ocean.

Mr Gould were building westward and C. P. Huntington "were stretching his"[crossed out] having completed his line through California and Arizona were building eastward thro' New Mexico and was constructing a portion of the lines of the G. H. & S. A. [Galveston, Harrisburg, & San Antonio Railway] in Texas.

[left margin:] The parties became satisfied that it was for the best interests of all of the corporations to have but one line west of El Paso.

Mr. Gould therefore claimed that these lines built by C. P. Huntington in Arizona New Mexico and Texas were the property of the Texas and Pacific because built upon its right of way and were a usuperation [usurpation] of the franchises granted to the Texas and Pacific.

[left margin:] By the terms of the agreement the title and owner-ship of that line was quoted and conceded to be in the corporations represented by C. P. Huntington.

As will be seen by a perusal of the contract of Nov. 26 1881. a long and protracted litigation arose between the T & P [Texas and Pacific] and the "lines were"[crossed out] companies controlled by C. P. Huntington and it was found to use the language of the contract that —

"the continuation of such litigation was injurious to all of said companies and incidentally "to the public" [underlined] interest so far as the business of said lines was concerned"

"And whereas said differences and litigation have been found upon conference and deliberation to the suspectable of amicable adjustment, as in this contract provided."

There after the terms of the contract are stated, its provided in Sec XV that although either party resort to the courts to protect any right secured by this agreement, yet they

[top right corner:] 2

Sub. A. "Inl' Decree" of 2 - Dist [Distance] of Ariz. [ Arizona ] T. P. of [illegible] Plaintiff

B. Final Decree of 2 - Dist [Distance] of Ariz. [Arizona]

C. Inl. Decree in Dist [Distance] of [illegible] of N.M. [ New Mexico ]

D. Final Decree " " "

E. Deed T&P [Texas & Pacific]. to S. P [Southern Pacific] of NM [New Mexico] of way and rt of way

F. Indenture T&P [Texas & Pacific] to S P. [Southern Pacific] of N.M [New Mexico] of Arizona Los An [ Los Angeles ] to S. Diego [ San Diego ] of franchises of T&P [Texas & Pacific] under act of March 3rd 1871.

G. Con from T&P [Texas & Pacific] to G. H & S A. [Galveston, Harrisburg, & San Antonio Railway] of rt of way

"Sec 6" is no pooling contract — it is more — reads 1st par. in Stubbs letter of Feb 26, 1889

The T&P [Texas & Pacific] party with 18. 000 000 A of lines & the right of Co to build a railway across the contract

Sheldon. The abitrators [arbitrators] are to fund the amt due

Stubbs. "What"[crossed out] The abitrators [arbitrators] are to determine "gross earnings"

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Taken at construction given to gross earnings ---

Loss E. used by RR [railroad] as contra [illegible] to NA Earnings

What cons passed to the T&P [Texas & Pacific] for this manificent property

[left margin:] Note To use the 70 ads as one line and to obtain a pooling contract.

B. It has none of the features of a pooling contract. Division of gross earnings.

The object of "the Trans" [underlined] C. Assn [Trans-Continental Association] — [illegible] are of doing the business — same Salaries -— What cons' passed to the T&P [Texas & Pacific] for the [mvd?]" NY bus"

cost of doing the business. 68%

[left margin:] Note that was all the risk H-line's took

Recess. [underlined] [right-justified]

Mr Stubbs [double underlined] Letter of T&P [Texas & Pacific] of Feb 24 to Board .-— Matter of accounting = How other roads Treat pooling balances Income account Equitable Const. of gross earnings claimed by Brown True? after opn [operation?] lines. they arose a cliff as to Sec 6. Freight org. at N. O [ New Orleans ] for El Paso & vice versa.

T&P [Texas & Pacific] agreed when the earnings of the G. H & S A [Galveston, Harrisburg, & San Antonio Railway] should be Copy "El Paso & N.M. Pool"[crossed out] N.M & Ariz. Agt. [ New Mexico and Arizona Agent ]

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[left margin:] Pool Sec 7 Agreement that Sub F to Pac M shall be bound by the various parties to the agremt [agreement]

Agreement with John Rosenfeld & others

[left margin:] To the Chairman. Trans. Trans pool includes all freight passing 97 [degrees] meridian?

Letter of Ms Bird

Gov Sheldon [underlined] The scope of the argument Am not a Traffic Auditor — Question one of construction — Stubbs talks about equities Legal fee pending in NM & Ariz [ New Mexico and Arizona ]: SP. [Southern Pacific] const [construction] on right of way of T&P [Texas & Pacific]. -— a very grave question Who did the T&P [Texas & Pacific] part with — lands & franchises What did the T&P [Texas & Pacific] get —

Equity relieves from mistakes _ How long before they will bury us in debt [left margin:] Note How long before T&P [Texas & Pacific] will take the whole 40% Dont care whether the Trans Cont. [Trans-Continental] was made before or after the mod. [modification] of Feb 18.

"Construction of agreement or statutes" [underlined] by common sense Reads Sec 6. in original.