"That in the mean time the property be protected and further debts in priority to their rights be avoided.
"With these conditions observed, the first mortgage bondholders have every desire to preserve the best relations with the Erie, which is the natural and preferred connection. That is my advice. That is their disposition.
"If you wish any conference on the points on which differences have arisen as to the proposed lease, or as to the general relations of the two roads, I shall be happy to obtain an appointment for that purpose.
"In my judgment the faculties of the parties would be better employed in devising a complete and permanent harmony of interests than in litigation. I think, also, that to attempt to discard from the negotiations the divisional bonds which represent most of the value in the property is a practical mistake.
"Very respectfully, Yours, &c.,
"S. J. Tilden."
"To Jay Gould, Esq."
JAY GOULD TO TILDEN
"New York, Feb. 21, 1870.
"Dr. Sir,—I am in receipt of your note on the subject of the retainer of $10,000 paid you by this Co. I can only say that it was understood and treated by the company as a general retainer, and the voucher so states. The only matters I have consulted you in reference to have been A. and G. W. matters. Knowing the pressure of your other engagements, I felt like troubling you as little as possible, and I therefore simply said to Mr. Lane to consult you if necessary, but to trouble you as little as possible. The reason I could not consent to Mr. McHenry giving you a retainer was the fear that his interests and ours would clash, as I did not have confidence in his schemes.
"Yours,
"Jay Gould."