New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-02-11
THE CENTRAL PACIFIC DEBT
@. p HUsr1Noroys PLAN FOR SETTLEMENT
HOW TnE ROAD WAS BUILT AND oPERArEp-oD'
Jrorloxs TO THE CULTIVATE BILL

the Central PACING Railroad company uo
not come to mako speech or argument pu' ohiy ~
bava talk with the committee. The settlement OF tho
Central Paclfc debt old matter. AMI sone"ha'
Irritating and he would very much like to nave IL so
He wished TO talk little about the builders and buiiu
ing Of the Central Pacific and to see IL an agreench'
could not be reached by which the Government couA
come into and the company preserve its ProP
ertv tie had been with road its organization
in 1890 His associates all neighbors Of Ills anu
came into the enterprise at bis Personal solicauoh. "
had asked them not because they we're men OF hrs'
means, but because OF their integrity He hah put IN
twelve day the companys business from ina.
day to this and OF the company's employees hAo
worked harder
DIFFICULTIES or CONSTRUCTION.
Mr. Huntington entered into long statement OF tho
difficulties and expenses attending the construc'ioho
the Central Pacific Railroad. When 1t was buii De s'u'
rails $40 per ton III addition 10 the heaVy "o,o
around Cape Horn. Locomotives were purchased AZ
high figures and all OF the materials were heavily III
creased in cost by the high cost OF transportation
the Continent And opof these fearful prices ING
company had pail the per cent revenue tax IL WAS
wonder how it built the road at all. They say we hAo
n great deal OF money" said Mr.. Huntington Dnt VIC
did not" When the road built said. they did not
have a Government bond frat mortgage bona e'''
and they owed more the shares could nave oe'h
sold for They started build the road by the ala oi
small contractors. but 1t could not be done In that way
and In the end the Construction and Finance Company
was organized. Every one OF us was In DEBT 10 tue
very limit OF our credit when we got over tho mount
aims" sail Mr. Huntington, but we kept on He told
how he had ed c. X. Garrison to advance money 10
aid in the construction and SAID that after consideration
Garrison refused saying The risk Is too
profits too remote
He had bought Crocker's shares, he said at IL IL
cents on the dollar. and hal to ask time on tnat pay
ment Much OF the material for sections OF the road
to be carre by men the slopes. LABOR was high
soue WAS imported from CAinL Anvbo ly WILING 10
work was emplo5el and the Iaborers were al IN go
for some OF which witness paid 81 y on tue d)a e
went on to tell how the company had taken care OF tue
Indians and protected them. with the result that tue
Government hal had trouble with the Piutes since
the building OF the road He said that Wells. Fargo
Comm my received o million aud quarter dollars per
annun the Cover lmont fOF N All carriage "Alo
the Central Pacific Company. clrryins hunlrel tunes
the amount got $4,000 And the "a ne treatment hai
been encountered in all OF It's business relations Win tue
Government There a great many sharrhoders-
he himself held shares and they had interestA We
find nothing apologize for said Dir. HUNTINGTON
"Tnere is nothing want changed and nothing want 70
take back do want fail settlement made 80 that ths
matter be taken on OF Congress and we can hho"
Just what we have 10 do"
At this point the committee began question the wit
ness Mr Dazel called attention to the statement that
tue Pacific and It's aided portions were built for
S4OOOO.OO0.
Mr. Huntington rcpie1 that he hal not brought his
BOOKS with Elm lney Ia gluten eOOA piCo lOt t"O
companys bonds but wnen they got through with tho
construction they hal nothing The GO 'ernuen bonds
were sold low The road had deal more than
$4,000 900. but he couli not give the figures now
although they could be procured
PLAN OF SETTLEMENT OF TIE DEBT.
The chair man invited the witness TO present his ideas
AMI plans as to what would be proper settlement OF
the eompanys He pliel that last what the COM
pany could do largely matter OF policy The Gov
erument had taken ali OF earnings OF the through
business.
The other Pacific roads had treated than
the Central in matter OF land griuts The
grants TO the Northern Pacific aud the Atlantic and
Pacific oG.pauy OF greater value than the Govern
m.t bond. and land grant Of the Central Pacific As 10
the matter OF settlement the witness sad some OF
my associates anu NY ,Ya IN 10 settle some OF
then think thai If we had all OF equities tue Govern
allowed the proper equities and believe the Govern
M nj want 10 make anything our OF tue ronu
the OF interest, but simply Ia .et It's coulu
P I ~ tbe de,t as Of certain Gay-say July
dividing the total $50 -emi-annua payments that
is an extension elual to .ty two years ar hcreabOuS
ON the whole amount and all great railroads 10 this
country ar. il crossing rather than diminishing The
| length OF mort g9ge-tni N then our equities were
allowed it would briug it in where we could meet IT
Mr. Collins wished be Informed 10 the nature or
the eanites claimed that had not been allowed. me
witness replied that the company bad conpleeh ana
operatsd the road year, before the term HeI IN
the contract. He could not tell lust nr~ what Tue
equities lie had not bought the books along re
curing AGAIN tn the con pbton OF the road ahead OF
time Mr. Collins inquired IL the company was LOT Debe
Tne witness admitted that it had been He went on to
say that he Union Pacific bad been built without mncn
trouble aud was hurried along 80 - % utlSe ne
Pacific out OF The salt Lake Valley Ihe central iacuc
had led 10 believe that II could 40 great dca 81
business in that valley and it, efforts TO reach IL aheaI
OF the Union Pacific res lifted Ia the early completion OF
completion OF the road years ahead of time was
equities claimed by tue company. and he be
Another thing that might be considered as among the
equities tue fact that the country tributary 10 Tue
had 1a,u me
Mr.. Collins remarked that the witness WIN us dsso
ciaes had built lac southern Paeinc ksnroad anu no"
co upalned its having weakened the Central Pachc
Mr. Huntington answered that the southern racine
ran south and the Ventral Pacific north from Fran
cisco that there was NJ competition or Can oFhla
traffic.
THE COMMITTEE IN AN INQCIRING MOOD.
The chairman then asked IL Central Pacific claimed
that it could not pay partial payments In hfty
years
! Mr. Hunngton-You have the record OF what II is
doing certainly will not pay. There is nothing III
sight
Mt Caruth wanted to know property OF the Cen
trail Pacific OF greater value than the amount OF the
first rrortgag- bonds.
The witness replied that the position worth some
thing hut road could he put III place alongside OF It.
excepting the sierra Ne'ada scctIOh-lor ABOUT ohen"'
Mr. Weber asked the witness II he was aware that an
extension OF debt for eighty would result IN
failure pay the interest Tue witness said that MS
first to have the case referred to proper court
and have the equities ascertalncd n there were any
But he cut of from continuation OF nus sateelS
by question uf Mr. Tracy rs TO the amount OF toe ~
semiarnual payments proposed 10y Dim ne sau va -,
10 something OF the debt on account o
the equities, hut he estimated that the payments "ouiu
be a little over 81 900. 600 year.
Mr.. Collins asked II the witness believed the courts
would allow the claimed equities, as the franc
10 the Atlantic and Pacinc and Northern Pacific com
panIes and the fact that the road had been conpee
seven years ahead OF time lie responded In the anua
tive.
Mr.. Hovev inquired whether Mr. Huntington mace nli
proposition in his individual capacity or rs the teut
Pacific Railroad Company. The witness replied that nt
vice sdent and presumed that he spoke ol
from the people who the road In answer 10 ~,
Mason the witness said he did not remember All Oh ~,
uities that would be by the Central Paclc ~
case OF foreclosure lie thought there were SIX VI
seven in number.
In answer 10 Mr. Weber witness said that the annua
payments OF ~ 100000 contemplated by his pIoposuVl
were based upon assun ptlon OF the cash Ynlue ~ |
rnad al nlfN TIlllnns The nrnnerlX nLsn cnntempao.