Gould-Huntington

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The trouble in this case arises from [= with a strikethrough] confounded Gross Earnings with Gross Receipts.

We seek to comply with the contract to divide the Gross Earnings according to the terms of Sec 6 as modified but my adversaries want to divide the Gross Receipts.

We contracted to divide with Mr Gould's roads the earnings of our line from New Orleans to El Paso not the earnings of the Trans-Continental Association.

Difference [underlined] between "Gross Earnings" [double underlined] and "Gross Receipts" [double underlined]

"If the N.Y Central" [underlined] or any of the trunk lines receives say 1000 pounds of freight to be transported to San Francisco on which the charge is $20, if at once charges that amount to the San Francisco office of the SP [Southern Pacific] and so advises by mail — We receive the $20, but a wide difference between this receipt and our earnings, but according to the contention of the other side if we were pooling our Gross Earnings from NY to SF [ New York to San Francisco ]. we must account for this $20.

The Louisville & Nashville Road at ___[blank]___ delivered freight tons to be moved to El Paso and San Francisco we collect the charges of the L&N [Louisville & Nashville]. as well as our own "as" [crossed out] but the total receipts are not our earnings.

"Over weights" [underlined] Rebates. Are paid freight collected by mistake at the other termini

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"Gross Receipts" [underlined] are that which is gathered from every source and nature.

Gross Earnings are "that which is earned, that which is gained or merited by labor services or performances — wages — reward.

"he that earneth wages, earneth wages to put it unto a bag Haggai I - 6

Hotel keeper and his clerk

Payments made by Hotel Prop for his guests =

We know the results of the pool. and we know the consquences [consequences] of a disruption of the pool.

Will anyone say that H. [Huntington] [illegible] have made the G. H. [Gould-Huntington] contract if he was liable for the consequences of the formation of a pool. Did the minds of the parties every meet upon such a contract. — if not it cannot be so construed.

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The pool was in every way a benefit to the Texas & Pacific.

But whether that was so or not the Texas & P. [Texas & Pacific] chose to enter into it and having received its benefit, cannot now be heard to allege that it receive without impairing its relations to "one of the"[crossed out] the parties to the same agreement with whom it had "a private"[crossed out] before contracted for a division of earnings in a pool contract.

By become a member of the Trans C. Assn. [Trans-Continental Association] the Texas P. [Texas & Pacific] to this extent modified its contract with the G.H & S.A. [Galveston, Harrisburg, & San Antonio Railway] for a division of the earnings from N.O. [ New Orleans ] to El Paso from Jan 1, 1885.

It was a pooling contract modified by a later pooling contract.

Case of a borrowing bond on a vessel the latest controls

Haggar case — not to be pressed.

H. [Huntington] could not be expected to pool [illegible].

South western assn. [association] of which Mr. Midgley was business oner [owner].

It is said that H. [Huntington] should not have been guarded his lines by a stipulation in the G. H [Gould-Huntington] contract against double pooling.

Like to the case of a partnership.

Case of steam boat run of share — opposition boat

Custom of Railways to pool — Contract subject to this practice

[left margin:] p 305 The pool was to terminate on the completion core of a new line competing for Cal. [California] business

[written vertically on left side:] When the T&P [Texas & Pacific] signed [illegible] Trans. C. Agt [Trans-Continental Agreement] they in effect contracted with the earnings G. H & S A [Galveston, Harrisburg, & San Antonio Railway] should be

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The result of the pool in figures —

Payment made by G H & S A [Galveston, Harrisburg, & San Antonio Railway] to Tex P. [Texas & Pacific] their receipt by the T & P [Texas & Pacific] was an affirmation of the pool contract and a consent to the modification of the "Mod Contract of Feb 18/ 1855

Shall we pay it again?