New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-01-24

A PLEA FOR THE CENTRAL PACIFIC.
c. P. HUNTINGTON BEFORE THE HOUSE CON-
MITTEE-wILLING TO PAY Ia PER CENT,
AND OFFERING NEW SECURITY.
Washington, JAN 23.-The House Committee on
Pacific Railroads to-day, by agreement heard G. =.
Huntington, vice-presdent Of the Central Pacific Rail-
road upon the subject Of the settlement of the In
debtedncss of the Pacific Railroads to the Government
Mr.. Huntington began by describing the disadvantages
under which the Central Pacific Railroad was con
sructed All the material had to be carried around
Cape Hom and the road thus cost about three times
as much as II would cost to build 1t to-day Before
the road finished, Mr.. Huntington continued, u
had been largely deprived of the through traffic 1t had
rghtfuy expected, by grants to the North
ern Pacific Railroad Company Then the business with
China had disappeared through the 100000 subsidy
granted to the steamship line connecting with the
Canadian Pacific Railroad. The Central Pacific had to
order its construction material twelve months In adj
vance, AMI carry 1t 1900 miles.
The Union Pacific had, from omaha to Cheyenne,
the easiest country to build over that any railroad
ever had they sold the land at Government prices
and thus settled it up with large constituency they
had too immense coal fields, and fuel cost only vi %
ton. From ogden, the dividing line between inc
Union Pacific and Central Pacific, there was nothing
in the country westward for distance OF GOO miles,
only one man lived there when the road was built
the country was Durnl up. Ihc tio9ohb VA N'S
Nevadas was the ugiest piece of ralroading IN the
United States 1t cost more than the grading oil the
$50 miles of the Union Pacific Railroad
So the Central Pacific had no money, or only that
derived from local business and the Interstate COM
merce 1aw had killed any chance to make money
The company wanted to do the best 1t could toward
settlement. The Union Pacific was willing TO pay
per cent; the Central Pacific could pay IL per
cent. and that must be raised on 500 miles OF It's
OnI c,fIas To 4 10 nor
Company would have to work hard through many
years The additional security offered included o32
miles Of track, and was Of great value lhe Nali
forna and oregon Railroad, the San joaquin branch
and the Oakland terminus. would all be offered with
reasonable time allowance, the Central Pacific woud
pay its debt 1t would pay during the next ten years
more than double the it now pays under the
Thurman Act.
What Mr. Huntington desired was an extension
canal To an average extension of ffty-sx years
stronger roads had bonds running much longer
Under the arrangement he had In view the STOCK
holders would get something and the Government
would get its own.
Henry Wilson, when told that the Pacific roads
might never repay the Government, had replied IN
(ongress that II IL would bring the railroad he was
willing TO vote 500 600 COO Since then there had
been some complaint People thought the roads mao
made some money and some people were thcreior0
complaining. A named Graham mad come 10
the witnesses house and demanded SoO,oOo as tho
price of not publishing pamphlet which Woari
damape the road Mr.. Huntington said he had toiu
the man to publish it, and it had been publisher.
Mr Huntington had never paid out a ten-cent piece
70 stop these things for If any road had ever peen
huiIt conscientously, that road was the Centrai
Pacific. M. -
In answer TO questions put by the committee, Mr..
Huntington told how the railroad company releVed
the Government of the necessity of maintaining large
tha TOdig N
proposed to offer the Government additional security
which had four times the earning power Of the present
Govenment security. 1t matter OF sehtlmene
With him He had been in business fifty four years,
and things were mainly behind him. lie Wdnleu W
leave ali things settled and this UOVerllnent a ~
Scbtedness among the others If he were twenty-five
Years younger, ne would not nave come oeloro .lo
committee but would have let things TAKE tle Vgu ~,
In answer to Mr. Raines MIR. Huntington said that
the Government could not foreclose uht the MA n
Sa c93nGned To the subsidized section. But he pre-
erred not to look at it in that way, for ne earnestly
ronnnt lie didn't like to talk about 1t but II
Obliged TO- the Central Pacific could bnllu lhe con
heSt nEd section at onequarter of the cost of the
section and without Government ana; Inc o nIS'
MORTGAGE Indebtedness would be reduced from S25,-
600 600 IN $4,000 900 by maturity, owing TO INC
creation of sinking fund, and certainly tie coPan3
crI secure lower rates Of interest as IL relssueu
O0' The bill Mr. Huntington favored had been IN
trodnCed by Representative Vandeyeer IN the House
49, va 80 Known as the " Omnibus Bill" 1t differed
S,ni, the cultivate Union Pacific blu IN tnat the
neriod Of settlement covered 125 years instead OF
S vears and the rate of interest to be paid on tne
AM vas ID per cent, as against per cent Tor the
Tnon Pacific Railroad Company lie ana n2t pF,Opose
~ nored irregularities by which the Government Sc
snriiy had been essened lie had not stolen any
Il I'M 1919 snch a section in the Cultivate bill.
In response to further questions NJ r Hnnng1oa
9"1 and raise money to pay on the Govern
ent Indebtedness because such mortgage could not
men. rsS nj IL per cent, and the company could
not pay more.
nun prNNsYIyANIA'S DECEMBER STATEMENT.
ntrso,,hia Ian 23-The statement OF the business
M lines Of the Pennsylvania Railroad Company, east Of
p,,huro and Erie for December 1882 as compared with
h same op.h in 1888 shows an increase In gross earn
.s.cs 200 The twelve months OF 1889 as compared
With the same period OF 1888 show an increase In gross
earnings OF $3.50 367. in expenses OF 70oo'2' In net
nings Of Al 576715. All lines west OF Pttsourg anu