Untitled Page 3

2

will be paid by the H.&T.C.Co. or the So. Pac. Co. to the Pac. Imp.
Company. The Galveston, harrisburg & San Antonio Ry Account,
amounting to $656,304.96, has been agreed to in this respect:- that
about $240,000 of the amount was expended by the Southern Development
Co. on the G.H.& S.A.Co's property which was not called for by the
contract between these two companies. These expenditures were made
in the years 1883, '4 & '5, and up to 1893, their total amount, with
interest, is about the sum stated, $240,000. This G.H.&S.A.Account
has been figured with interest compounded semi-annually up to the
date of settlement (about Nov. 1st) and amounts to something in the
vicinity of $600,000. The G.H.&S.A. Co. will give a not for the
amount to the So. Pac. Co., and the So. Pac. Co. will pay it. This payment
however will offset the claim which the P.I.Co. has against the Port-
land & Willamette Valley RR Co for monies advanced up to and including
July 1893, in round numbers, $619,000. In other words one claim will
offset the other, although the total amounts are not quit the same.
This settles up the "Doubtful Accounts" of the P.I.Co. The rest
are uncollectible.

The San Antionio & Gulf Ry Co's account (page 2) represents
money advanced by the Pac. Imp. Co. to purchase from parties in San
Antonio the property known as the San Antionio & Gulf RR. This amount
was advanced in money, and notes for $50,000. additional were given
at the same time. The Sc. Pac. Co. has agreed to reimburse the Pac.
Imp. Co. for this money and to assume the notes.

You will rememember that at our last meeting Mr. Huntington
announced that the So. Pac. Co. did not wish to purchase at this time,
the stocks owned by the Pac. Imp. Co. in the different railway compan-
ies and that any negotiation for the purchase of the same by the S.P.

2

will be paid by the H.&T.C.Co. or the So. Pac. Co. to the Pac. Imp.
Company. The Galveston, harrisburg & San Antonio Ry Account,
amounting to $656,304.96, has been agreed to in this respect:- that
about $240,000 of the amount was expended by the Southern Development
Co. on the G.H.& S.A.Co's property which was not called for by the
contract between these two companies. These expenditures were made
in the years 1883, '4 & '5, and up to 1893, their total amount, with
interest, is about the sum stated, $240,000. This G.H.&S.A.Account
has been figured with interest compounded semi-annually up to the
date of settlement (about Nov. 1st) and amounts to something in the
vicinity of $600,000. The G.H.&S.A. Co. will give a not for the
amount to the So. Pac. Co., and the So. Pac. Co. will pay it. This payment
however will offset the claim which the P.I.Co. has against the Port-
land & Willamette Valley RR Co for monies advanced up to and including
July 1893, in round numbers, $619,000. In other words one claim will
offset the other, although the total amounts are not quit the same.
This settles up the "Doubtful Accounts" of the P.I.Co. The rest
are uncollectible.