Los Angeles daily herald., 1888-02-11
THE CENTRAL PACIFIC.
Huntington Before the
House Committee.
CLAIMS OF THE GOVERNMENT.
The Railroad Magnate Makes an
Offer Of Settlement Extend
ing Over 125 Years.
Associated Press Dispatches to the HERALD

pointment, G. P. Huntington, Vice.
President of the Central Pacific Rail
road Company, appeared to-day before
the House Committee on Railroads
to give his views on the pending
legislation touching those roads and
to explain the resources Of the Central
Pacific. He said that he did not
come to make an argument. but only
to have q talk with the committee.
The settlement Of the Central Pacific
debt was very old matter and some
what irritating, and he would very
much like to have it settled. He
wished to talk little about the brild-
ers and building Of the Central Pacific
and see if an agreement could not be
reached by which the Government
conld come into it, own and the
company preserve its property. He
has been with the road since its or
ganizstion. His associates we're all
nelghbors OF his and came into the
organization at his personal solicita-
ton. He had asked them not be-
cause they were men of large means,
but because of their integrity. He
had put. in twelve hours day on the
company's business from that day to
this, ana none of the company's EN-
ployes had wolk ked harder. Men who
went over the'road in a palace car
said it could not have cost much, but
it had cost great deal Of work. .
Huntington describing at length the
difficulties attending the construction
Of the road, said:
"Nobody knew OF the difficulties
except the men who builtit, and now
we are brought before the American
people as if we had taken something
belonging to the Government" 1--WE
find nothing to apologize for" said
he, "there is nothing want changed
and nothing I want to take back, but
l do want q fair settlement made 80
that this matter can be taken out of
Congress, and we can know just what
we have to do" As to
TIE MATTER OF SETTLEMENT,
the witness said:
my impre ssion is that we should be
allowed proper equities, and believe
the Government does not want to
make anything out of the road in the
way Of interest, but simply TO get its
own, as they certainly do not need
any more money in the treasury at
tie present time. Put down what the
companies own, equate the interest
and fix the debt for a certain day, say
July lst next, dividing the total into
250 semi-annual payments, that is,
an extension equal to fifty-two years
or thereabouts ON the whole amount.
All the great railroads in this country
are increasing rather than diminish
ing the length of their mortgages. and
if, then, our equities were allowed it
would bring it in where We could
meet it."
The chairman asked if the Central
Pacific claimed that it could not pay
rs debt on partial payments in fifty
years.
Huntington replied: "You have q
record OF what it is doing, and it GER
tainly is not paying. There is nothing
in sight,"
Tracy asked witness as to the
amount of the 250 sepli-annual pay
ments proposed.
Witness said that he expected 10
get something off the debt on account
Of equities, but he estimated that the
payments would be a little over
81 ,090, 900 a year.
Collins asked if witness believed
that the courts would allow claimed
equities such as franchises to the
the Atlantic and Pacific and the
Northern Pacific Companies, which
are competing in the same territory.
He responded: eyes
Hovey inquired whether Hunting
ton made the proposition in his indi-
svidual capacity, or for the Central
Pacific Railroad Company.
The witness replied that he spoke
for the Central Pacific Company. The
payments of 81 900 900 contemplated
by his proposition were based upon
the assumption of the cash value of
the road at $50, 900, ,000. The PROPOSE
tion al-o contemplated the payment
of interest at 2 per cent.
C,llins inquired if the pamphlet
prepared by Conkling and Shipman
and published in the New York pa
pers did not set forth the claims of
the road.
Witness could not say positively but
the gentleman who prepared it had
all the information he could give him. +.
At the conclusion OF his statement,
Huntington agreed to submit writ
ten ,tatement of the credits claimed
by the company, and a memorandum
of his proposition, as worked out.
The committee adjourned until to-
morrow, when it is understood that
Charles Franc Adams, President of
the Union Pacific Company, will give
his views upon various funding bills,