Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-02-15
Union PAOTFIC RAILROAD.


WASHINGTON, February II. - The
Wilson Committee took a recess until
twelve o'clock, as c. P. Huntington, a
witness, had not appeared.
John J. Cisco, of New York, has been
summoned, and if it is reported favor
ably by the subcommittee, Governor
Dix and Mr.. Barlow will also be sum-
moned.
General G. NJ. Dodge has not yet ap.
peared, and it is feared he is evading
the summons.
At the sitting of the Senate Commit
tee this morning, Senator Conkling de-
MED that he ever owned, in any way,
any stock of the Credit MObilier or the
Union Pacific railroad.
Senator Patterson made a lengthy
statement as to his transactions with
Oakes Ames.
Mr.. c. P. Huntington, Vice-President
OF the Central Pacific Railroad Com
pany, was examined before the Wilson,
Credit Mobelier Committee, this
afternoon with reference to the construe-
ton of his road. He detailed the finan-
cial embarrassments under which the
company labored in building the road.
The first contracts, embracing perhaps
or seventy-five miles of the
road, were let to eight or ten different
parties of the Contract and FL
nance Company, organized in 1867.
Witness thought he could procure labor
at reasonable prices and take contracts
for constructing the road He was one
of the iucorporators, and believed that
the capital stock of the company was
five million dollars. Witness got the
that the Contract and
Finance Company was 10 re-
ceiye in payment for building
six hundred miles of the road II part in
the stock of the road, and part in bonds.
The company was to build and equip
the road. Before the Central Pacific
Railroad Company had let the contract
to the Finance Company, they the
Central Pacific Company had already
bought a large amount of iron for the
road, and the Contract and Finance
Company paid the Central Pacific Com
pany for it. The Contract and Finance
Company received GOvernmeHtand first
mortgage bonds. WitnesS's impression
was that the Contract and Finance Com
pany made nothing on this contract but
a certain amount of stock, and that
stock was not worth more than ten per
cent. as collateral. Witness received
dividends on The contract, some stock,
and few land grants, bat could not re-
how much; at present holds
perhaps a million dollars worth of stock
in the road, but don't remember how
many shares he held in the
Finance Company; don't know who
made the contract with this company;
it is TIE impression of the witness that
was the contract; the company now
owes little or nOthirs, except its bonded
debt; its floating debt is covered by cash
or its equivalent; don't know what pro-
portion Of stock was owned; the stock
of the Central Pacific Company would
not have brought ten cents on the dollar
in market; at the time of its organiza-
ton stock was taken at par by friends Of
the enterprise; the stock of this road
had no market value. ] do not know
how many stockholders there are in the
road. 1t was the impression of the wit
ness that dozen men or firms control
the majority of the stock of the road,
but he was not positive on that point.
He could not give any idea of what the
stock would bring now.
BY Dir. ellSbarger-SuppOse the
should require the payment
of the whole of the sel1li-annual inter-
est on the Government subsidy, except
what you pay in the way of transporta-
tiOn, would you be able punctually to
meet tie interest?
Answer have no doubt that the
Central Pacific Railroad Company can
meet all its legal obligations.
Question-COuldy yOuin the case stated
paw the interest in Government subsidy,
and also on bonds as they fall due?
Answer-I have no doubt the compa-
ny could.
The witness, in further examination.
said that the gross earnings of the road
were two million eight hundred thou
sand dollars, and that the running ex-
penses were little over forty per cent.
No dividends had been paid to stock
holders.
Bv Mr.. HOar-Is it NOT your belief
that the persons who have been prOmi-
nent in the management of the road, in
cluding yourself, have received conside-
rable value, either in money, bonds, or
stocks, in profits on contracts made for
its construction?
Answer-I think We have made some
money. If have received any at all it
is as q stOckholder and in connection
with the contract and finance of the
Qnestion-Are not your profits more
than million dollars?
Answer-Not actually but 1 think in
or face value of stock of the
Central Pacific railroad, received what
would equal that sum.
QuestiOn-Is il not yeur belief that
your firm received in the shape of bonds
profits on your shares?
Answer-My impression is that we
have received some value in bonds.
Question-Is it not more than one
hundred thousand dollars, according to
your belief?
Answer think il very likely.
Question-Is it not over five hundred
thousand dollars?
Answer-Not five hundred thousand
dollars.
The witness having been interrogated
as to the business of Franchot at WASH
ington, he said it was to bring the atteD-
ton of the members of Congress to the
views of the company on the pending
question.
Question-Is Franchot known as being
in what is known as the
lobby?
= Answer-Not at all; Franchot is
agent of the Central Pacific railroad,
and is above reproach; witness said he
was here in 1864; reeolleets meeting
Joseph B. Stewart as a man ofconsider-
able Influence; witness having been re-
minded that Stewart testified that he
had received money from witness, the
latter said that If Stewart had SO testi-
fed it was true; be gave Stewart two
thousand dollars, to be used in a proper
way. 20 explain the affairs of the com