Correspondence (incoming): Lathrop, Charles, 1901

Copy of cablegram sent Mrs. Stanford, August 6th 1901 Stanford

Care Kane and Company nineteen Rue Scribe, Paris (France)

Gen. T. H. Hubbard telegraphs, Mexican Int.R .R. Price, probably sold to Speyer & Co. for $7,170,000 Cash. Do not make public at present.

Lathrop

[printed letterhead OFFICE OF [crossed out] AND JANE L. STANFORD 819 MARKET STREET, San Francisco, Cal.

San Francisco, Aug. 7, 1901

Dear Sister: -

Your letter from Murren, dated July 21st was received yesterday P.M. The description given in your letter of the surrounding Country from the location of the Grand Hotel, is something grand, and I am very much pleased to learn that you have found a location that you are enjoying, and that the high elevation from the level of the sea has been of great benefit to you, and your condition is improving. I was however sorry to learn that it was necessary that an operation had to be performed in removing a wen. I remember before you left New York, that you worried and was afraid that an operation would have to be performed and how you dreaded it, but I am glad to know that the operation was a success and it will only be a matter of a short time when it will heal up and you will be releived of the annoyance.

I note what you say of your being anxious, in regard to the disposal of the Mex. Int. R.R., and hoped that I would have done as you requested, taking Mr. Leib and going to New York and get all the information possible from Mr. Hubbard. At the time I received this telegram, I advised you that I was not feeling well and was confined to my home and just escaped a more serious sickness, by taking hold of the matter in time. I do not think you would have been benefited had Mr. Leib and myself gone east, as I received a great deal of information from Mr. H. E. Huntington and Mr. C. R. Green, who recently returned from New York., and also from letters sent me by Gen. Hubbard, of which I

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mailed you copies. Mr.Green confirmed what I had been informed, that about 5,000,000 had been expended in this road. I consider the price $7,170,000 for which this property was sold to Speyer & Co. for cash, is a good sale. This is a much better offer than Mr. Hawley made. He wanted to pay a portion down and the balance on payments extending over some three years. The amount of money realized on this sale will pay off the 6 million dollars owed to the Huntington, Hubbard and Crocker interets and leave a balance which should be paid out as dividend upon the Stock of the P. I. Co. I figured out from what other moneys had been received from other sales, and with the balance after paying the six notes with interest, would leave over $2,000,000 to the credit of the P. I. Co. in their Treasury, and a dividend of $40. per share upon the 50,000 shares would make $2,000,000, and your 1/4 interest would be $500,000. This still leaves a large amount of property as assests which from time to time I hope will be realized upon, and as they are sold, dividends paid upon the stock to the owners of same. I am glad that you did not consent to dispose of your shares in the P. I. Co. to Mr. Hubbard at the price per share he offered ($200), as you should realize considerable money in dividends if the property of the P. I. Co. is handled in a business like manner.

Mr. Wilson came up from San Mateo this A.M. and I called upon him in his office. He had an attendent with him. This is the second time during the week he has been in the City, but only for an hour or two. I informed him of the disposal of the Mex. Int. Interests at the price mentioned, and he said "You say to your sister, that the sale meets with my hearty approval and I never expected that the P. I. Co. would

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realize anything from it. "The Mex. Int. in connection with some other road who wishes to fight the Mexican Central and spend 5 or 6 million dollars in branches and extensions, might be able to make the thing pay. I know that the Crockers, yourself and Mr. H. E. Huntington did not approve of expending any more money on the Mex. Int. and were desirous of disposing of the same. I am in hopes that the disposal of this property will meet with your hearty approval, as it puts the P. I. Co. in a better financial condition; would pay off the other three interests and put all on an equality, and neither of the 3 interests can remind you that the P. I. Co is indebted to them for money due them. I note what you say about Jennie and that she will leave for Metz for part of her vacation. I hope that her stay for another year at the Convent will be beneficial to her and that she will take good care of her health and not become sick, while she is there, and her family so far from her.

The labor troubles in this City, I am afraid is going to be a very serious matter and every day some of the mechanics employed at different kinds of work are being called out and it is quite noticeable to-day in seeing a large number of men out of employment standing around the streets and corners. The Unions seems to be determined and also are the mechants. I am thankful that you have no more new buildings at present being erected and none in contemplation of erection, as I am afraid the labor troubles will extend all over the United States. Material of all kinds is high and I am pretty well satisfied that within the next 12 months material will be very much

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reduced. After these strikes are settled, there will be plenty of men seeking employment and wages will have to come down.

I am pleased to say that my family and myself are all enjoying good health and I hope on receipt of this it will find you and Miss Bertha enjoying the same. With kind regards to Miss Bertha and love to your dear self, I remain

Your affectionate brother. Chas. G. Lathrop

P.S. I mailed you copies of telegram received from Gen. Hubbard, also my reply to same. Also mailed you copy of letter received from D. O. Mills and copy of my reply.

I might say that Mr. R. J. Wilson is looking much better today than when I saw him a few days ago. He is not taking much interest in his business and from what he informs me I think from now on he will not visit his office more than once or twice a week and then only for a few hours. He tells me that the Doctor informed him that he must not apply himself as he has heretofore and not over-tax himself. I am afraid that Mr. Wilson will never recover from his illness which occured 3 years ago. I informed him of your kindly inquiries regarding his health and he requested me to say to you that he very much appreciated your inquiries and wished to be kindly remembered to you when I next communicated with you.

Chas. G. Lathrop