The herald., 1894-03-28
STANDING FROM UNDER.

Huntington, Hopkins ct al. Leave the
Central Pacific Directorate.
SAN Francisco, March 27.-The Ex-
aminer will tomorrow announce that
@. P. Huntington, H. E. Huntington
and Charles F. Crocker have resigned
from the directorate of the Central Pa
cifc Railway company, their purpose
being to intrench themselves in a strong
legal position whereby the Southern Pa
cific company may avoid the stipulation
of its lease that it shall pay the holders
of Central Pacific securities the annual
sum OF 81, 800, 600 in dividends.
1t is we'll known that the directorates
of the Southern Pacific and Central
Pacific railway companies are practically
identical, the great Huntington, Crocker,
Hopkins and Stanford interests being
absolutely dominant in both. When the
Southern Pacific company leased the
Central Pacific it's agreement to pay so
large sum as 81, 100000 annually Sc
cured the investment in its stock of
large amounts of English capital, and it
is this interest against which this late
move of the railroad authorities is di-
rected. Last December the South.
ern Pacific covenanted with the
Central Pacific to modify the terms of its
lease 50 that no stated annual sum
shoald be paid, but the dividends
should be based solely on the earnings.
Minor provisions of the lease, such as
the submission to arbitration OF matters
of dispute between the corporations,
and that all moneys advanced by the
Southern Pacific should be as lien on
the property of the Central, it was aleo
proposed to abrogate.
1t was some time before the London
investors heard of these astounding
notifications. They formulated for
NAL protest and sent it to both COM
panies. 1t was then determined by o.
P. Huntington and his associates to sur
render as to the minor features OF the
notifications, but to adhere firmly to
their main position, wiping out the
fixed charge. To remove as far as pos
eibla the appearance of having
made the right hand play into the
left, they concluded to sever the identity
of the two boards. II. E. Hunting ton,
the president, and @. F. Crocker and @.
?. Huntington, directors, resigned from
the Central Pacific. Mrs. Stanford has
likewise withdrawn, and |. III. Hubbard,
the Hopkins representative, is likewise
out, 80 that that the Crocker, Hunting
ton, Hopkins and Stanford interests are
left without an immediate personal rep
reconciliation on the Central Pacific
board.
The Examiner says several eubordi-
nate clerks of the Southern Pacific
offices have been substituted and the
modified lease again remodeled, incor-
porating the main provision as to the
dividends. 1t ia expected that it will be
ratified at the annual meeting OF the
Southern Pacific next month, and at the
meeting of the Central, about the same
time, the retiring directors will be rein
stated.
Another reason given by the Examiner
for the change in the Central Pacific
directory, is the desire of Huntington,
Crocker ct al. to get out from in under
when the United States government
takes possession of the Central Pacific.
The Call says: Isaac L. Requa, an
Oakland capitalist, and James o. B.
Gum, secretary OF the Union Iron
works, have been elected to fill vacancies
in the Central Pacific directorate.