"One word as to Mr. Flagg. The payment of the $1000 for his services was due him, and should have been provided for. I first called the attention of Col. Stebbins to it, and then yours. The purchase of the bonds of Mr. Flagg--to a trifling amount--was no greater favor than had been accorded on a large scale to parties who had stood in the way of the arrangement for the close of the receivership and the making of the lease. That he had taken no selfish care for himself did not seem any reason why he should be treated with less consideration. I submitted the matter to you as the proper party. You treated it with equity and courtesy. You are entitled to the same spirit from Mr. Flagg. But you could not have supposed that he would be unfaithful in any respect to his trust. "In conclusion, what the first mortgage bondholders want is: "1. That the suit for foreclosure should be prosecuted, in proper form and with proper parties, to give a good title at the sale, and that they be represented in these suits by their own agent and not by agents of any adversary party. "2. That, if a sale and purchase of the property be made which operates to discharge their lien, with or without an agreement for reorganization, the title be taken by satisfactory agents for their security. "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_.