The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-02-15
THE CENTRAL PACIFIC G. NJ.


count or the Condition OF the Road.
and How the Contract and Finance
Company Made Money.
WASHINGTON, Feb. IA, 1873.
Mr.. G. p. Huntington. Vice President of the Gen.
tral Pacific Railroad Company, was examined be-
fore the Wilson Credit MObilier Committee this
afternoon with reference to the construction OF his
road. He detailed the financial embarrassments
under which the company labored in building the
road
The first contracts, embracing perhaps scventyour or
different parties; L. p Smith had contract to build
se aa sS hui no a far
miles the Of money paid the the Contract and
to LABOR at prices and take
for the road he was one Of the ncorpor
w rus cArIrAI STOCK WAS FIVE MILLION DOLLARS; p.
CHIC Railroad in the East at the organization
has also been Vice 5 int the Sn I o
tract and rance was to rceeS i've in hs
e equip 'a saT'
they (ihe Central Pacific Company had already
and the Contract and Finance Company paid
Pacific for the Gon5aet ana s
witness impression was that the Gontrac ana Finance
amount Of stock, and stock was then worth
enSs ten e 5 soms
grants but could nosay how much; at present holds
th% %on SR SSW @ IN
b a f me w0 a pd no mi to o
with it: Impression Of was that the Contract
GS?ny e oss debt s ST %s by
ent don't what proportion OF stock of the Central
THE cosrnAor AMP FINANCE COMPANY;
edge the first lettings OF the Contract aud Finance
Company and does not remember to have been present
ny not hsvs Oh se n
Srrna By fp Facs Of the hs
no market value don't know how many stockholders
tae dozen me men r or rs majority
the road but not positive on that point; could not
bought stock good while ago for money but could
recocct exactly what he gave for it. but believed he
bought il at about par witness gave list OF
ASSETS or THE ROAD,
sta ting that these include in cash between one million
and two million dollars he also gave an account OF the
By Mr. she"barssr-suppose the government should
require the payment OF the whole OF the
pay il he q transportatiOn Would yoa be able
the Central Pacific Railroad Company meet ali its
legal obligations. A.
government H Subsidy and also on the bonds as they fall
ns Of s
had been raid MiiV to the steckhodefsp -. '
BY Mr. HoarIs 1t not your belief the persons who have
ing Yourself have received considerable values either in
its hnk maze Tor
MADE SOME MONEY;
connection with The Contract and Finance Company.
O. Are not your profits more than million OF dollars
A. Not actually but think the nominal face value OF
the stock OF the Central Pacific Railroad received would
O Is It not your belief that your firm received in the
My impression is we have received value bonds
.. Is il not more than one hundred thousand dollars
according to your bcletg A. think It very likely
q Il i not over five hundred thousand dollars' A.
Witness ha wing been Intercepted as to the business of
Mr. Franchot at Washington said i was TO bring the at
cnon of members OF Congress TO the views of the
pany on the pending questions
q. Is Mr.. FranchOt known as concerned In what Is
known the lobby Not at all; Mr. Franchot is the
agent of the Central Pacific Railroad he Is above re-
proach; have known him Tor many years.
- JOsRPH n. STEWART.
In answer to a question py Mr. Roar witness said he
here in 1854 he rec0llected meeting Joseph Is. Stew
art as q man of considerable influence.
Witness having been reminded that Stewart testified
that he received money from witness the latter said II
Stewart testified 1t truC~, he gave Stewart
5000 TO be used in proper way to explain the
affairs the company witness had never given money
anything OF value, paid directly directly TO any
matter concerning the Central Pacific Railroad; he
had knowledge of money having been paid by others
for such purposes did he ever have negoations
with Fremont and Hallett remove the opposition of
the Kansas and Iowa Railroad Company to the act Of
1864 for the benefit of the Pacific Railroad
long examination followed to the stock and bonds,
Mr.. Shellabargcr asked what the aggregate
amount OF profits divided among the members OF the
The witness replied that he did not know, any
OF the gentlemen who could answer the que stiou
this OF the country the books too were in Caor-
MAJ nothing done that not proper TO be done;
road built at less expense than any other road
proportionatcy the length and under like circum
staces the company have done everything they agreed
to do Tor the government which had been better served
than the company.
The committee adjourned till to morrow morning