Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1888-02-11
DRAWING LONG On TINE.
RAILWAY MAGNATE HUNTlNGT ON ON
~ WANTS 1926 YEARS

|
Council Blufs-Ths House.
| WASHINGTON CITY, Feb. lJ.-Mr C. r.
| Huntington, vice president OF the Central
| Pacific railroad, was heard Friday morning
| by the house committee on Pacific railroads
| in reference to the refunding OF the Central
| Pacific indebtedness to the government He
said he had been with the road since Its or
| ganizaton in 1850. He had done a great
deal OF hard work for the road, and his assoc
ciates had also worked hard. He had worked
twelve hours a day for the road, not Junket-
ing around in special car, but as a laborer,
| W hen he first went to the road rails were
| worth $40 ton, Since then they have been
worth as much as 500 a ton, and were sent
| round by Cape Horn. He had paid as much
as So, 900 cath for locomotives, and u per
cent. internal tax. 1t is wonder now, he
| said how the road had ever pulled through,
| yet there were people who believe the road
must have made a lot of money The ROAD
was built by plecemeal. The management,
| the organizers, had to work their way up
| gradually.
Huntington said he did not come here to
make a speech, but to talk individually to
the committee about the Indebtedness OF the
Central Pacific, for purpose of seeing II the
government could not be paid without rum
| ing the road He went into details as to the
building of tho road, showing the great
risks taken the hardships encountered IN
| borrowing money, selling stock, etc, anu de-
clared that for mauy years he was anxious
to let go his hold upon the road lie told
how the company had sent to China Tor
laborers; how they encountered serious oo-
stacles in procuring help for three years, at
any cost, when it seemed that everything
would fail; how he laid awake of nights
81, H,bn "a
from to pay the bills; how the Indians had
to be pacfed. Now, the government officers
and the public run over IN All hour In
palace car the road it took three years TO
build They cannot see the trace OF hard
ships the buiders had.
Huntington said he had nothing to apollo
gize for, nothing to take back; he only want
ed to see an arrangement between the road
and the government by which the latter
would get its money without Gripping the
former lie called attention to the fact that
the organizers built the Central Pacific by
borrowing money on their individual names.
not on the credit of the government They
were himself, Leland Stanford, Mark Hop
kins and Charles Croker The road was
poor, and always had been
"But have the men grown poor with the
road2" inquired Mason.
"Well, no." was the reply; "they have
grown comparatively rich, but they have
done so by their own efforts. They have
seen the time, however, when they sold per
cent bonds at 80 cents on the dollar. When
the road was finished the Central Pacific
company owned no bonds, had no money,
and owed more than they owned. "
As to the plan of settlement proposed,
Hunting ton began by saying that the gov
eminent had given the Northern Pacific more
than it had loaned the Central Pacific, which
had the effect of taking from the latter, by
competition, all the net earnings of the
through business leaving the Central Pa
cific in an impoverished condition. lie
thought that all the Central Pacific owed
the government should be put into $50 semi
annual payments, dating from next July,
which would bring 1t into shape tue road
could meet His company would like to pay
all they owed now, but they were poor and
could not do it.
Cultivate wanted to know if the Central
Pacific was so poor it could not not pay its
Indebtedness in fifty years
81 think it could not" was the reply; "but
you have our statement, and can Judge as
we'll OF that as can"
He was asked what was the value of the
Central Pacific and he replied that it could
be built now great deal cheaper than 1t was
built He believed that it gould now he
built at less than the first mortgage indebt-
edness The sem-annual payments, on a
basis of an aggregate of $50, or the whole to
run 1875 years, would amount to payments OF
about II, go, 900 year
"Do you make these propositions ndividu.
ally, or for the Central Pacific companyF
inquired Hovev, of the committee
"Wenn replied Huntington, II have no
doubt that whatever l here propose would
be fulGlIaa by the Central Pacific company.
have been its vice president ever since its
organization"
A member of the committee suggested
that when the government extends the time
for final and complete payment beyond
seventy five years. it could not get interest
for the debt. Huntington replied that his
proposition was equal to an extension of
fifty-two years.
In reply to question by Cultivate,
Huntington said he did not think it would be
advisable to throw the road on the market
and sell it, He did not think that any other
civilized government would do such thing,
but the United States government was Pc
culiar 0ne it exacted everything and paid
nothing.
A suggestion was made by a member of
the committee about what the road owed
the government, to which Huntington pas
sionately replied that, in fact, the Central
Pacific did not owe the government any
thing.
"How much security do you propose to give
the government if you get an extensionP in
quired Weber.
"Al of the subsidized property" said
Huntington, "and $50 miles of road outside
the subsidy We have between 10000, 900
and 1,00O,O 600 acres of lands outside the
subsidy. We offer that as security also. |
want to settle this debt as soon as possible.
I've had my paper out for forty years in New
York and elsewhere, and want to get out. of
debt"
Huntington frequently referred to the
equities OF his company, and said he was
willing to have them determined by court |
He believed the government owed the road.
Weber-If you could build this road for
less than you owe the government it would
be money making arrangement to give up |
the road to the government, would it mott"
Huntington-I prefer to pay the govern
ment and keep the road
Weber-And we are willing to let you |
do its
Collins-why not let the 100000 of
your money now in the treasury go on the |
debtf
Huntington-Bscause it was earned by the |
branches of the road not subsidized.
Outhwaite-Mr. Brotherton, representing |
many of the stockholders, made propo- |
siton to the committee to
Huntington-Well, Mr. Brotherton is a |
good man, but his propositions are on the
principle of "let the devil take the hind
most "
Huntington promised to lay before the
committee, not later than thirty days hence.
a definite aud authoritative proposition fer
the Liquidation of the Central Pacitics III
debteiness.
NEW YORK AND ILLINOIS.
Ihey Exchange Compliments in the Per-