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George Crocker,
Mills Building,
New York.
Nov. 15th '99

Mrs. Leland Stanford
Fifth Avenue Hotel, New York.

My Dear Mrs. Stanford:
Mr. Russell J. Wilson, your Attorney, called on
me today and asked if I would give you a statement as to the matters
which have been agreed to, so far, between the Southern Pac. Co. and
the Pac. Improvement Co.

On Nov. 1st it was agreed, - that the Pac. Improvement Co.
would give its holdings of stock in the San Antonio & Arkansas Pass RR
and in the Oregon & California RR Co, Preferred and Common, to the
Southern Pacific Co., on the understanding that the So. Pac. Co. would
pay to the Pac. Imp. Co. its claim for the monies advanced in the past
to pay coupons on the S.A.&.A.P. bonds, amounting in round numbers to
about $2,250.00.

On Nov. 6th, it was agreed, - that the So. Pac. Co. would pay
to the Pac. Imp. Co. $6,100., advanced by the Pac. Imp. Co. in what is
known as the Texas Railroad Commission Suit. At the same meeting
it was also agreed that what is known to the Lackawanna Coal & Iron
Co. Account (See Doubtful Accounts P.I.Co's Balance Sheet of General Ledger, Sept. 1 '99)
could not be collected either from the Houston & Tex. Central RR Co.
or the So. Pac. Co., as this account was contracted by the Southern
Development Co. before the H.% T.C.RR.Co. was reorganized. For the
same reason the accounts headed "H.& T.C.RyCo Suit" ($24,083.99) and
"H.& T.C.Ry Co.Lands" ($21,244.66) were decided to be uncollectible:
also the Note account of $13,987.50. But it was agreed that claims
aggregating an amount in the vicinity of $65,000. should be paid by
the H.&.T.C.Ry Co., being for money advanced by the Southern Develop-
ment Co. After the reorganization of the H.&T.C.Co. This amount