St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-06-08

Iunulng the RatIrOuQ'S Debt.
= WASHINGTON. June THE house
committee on the Pacific railways gave
IA hearing today to the Californians who
are opposed to the refunding of tho debt
of the Central Pacific. Ex.COngreSsman
Charles q. Sumner said he protested
for the people Ut California against
the funding scheme which would
spefpetuate the present management
one which had brought deplorable
moral, political and financial calamity
upon that state. He went into an eX-
haustive history Of the road; declared
that its cost had not exceeded s3O,OOO.-
600, and that lie thought it could be
shown to have been about $l5,-
000.O00. Stanford. Huntington, Hop
kins and Croker had not been worth
S4OO.000 all told in 1861 and in 1869
when the road was finished they were
worth Sl0,000.000 each. Croker had re-
signed from the directorate to make
construction contracts with the others.
Eighty per cent of the enormous d!vi-
bends had gone into the pockets
of Stanford, Croker, Hopkins >, and
huntington. Mr.. Sumner explained the
California law which made stockholders
responsible for debts of corpGr alton.
Representative Mcguire explained that
the statute Of limitations of California
did not apply to the government. Mr..
Boatner, of Louisiana, repeated a state
inent made to him recently byPresidtnt
Huntington that he (HuntingtuDh had
never had more than four or ten shares
OF
CENTRAL. PACIFIC STOCK.
his stock being in the Finance and Con-
struction company.
Mr.. Sumner held that it was not.
necessary for the government to take
control OF the property, suggesting that
the road might be turned over to the
holders of the first mortgage. 1t was
probably true, he admtted,aS President
Huntington had said, that the present
traffic rates could not be reduced with
out impairing the value OF the property,
since it had to pay per cent per annum
Oil an Indebtedness double its cost and
three times its present value.
Mr.. Summer SAID that Mr.. Hunting.
ton had admitted having spent over
million n past congresses for legisla-
ton. Incidentally. Mr.. Sumner charged
that the Central Pacific had corrupted
judges aud legislatures. aud had de-
bauched the politics of California.
Is Representative Geary, Of California,
said he could not subscribe to the
charges that the judiciary OF California
was debauched.
II do not mean to make wholesale
charges against the judiciary" re-
sponded Mr. Sumner. "but | nave a
challenge from Il legislator of my own
state" he continued eXcitedly, and
accept it. l say that the Central Pacific
baS corrupted judges. jurieS and iegis.
tat0rs OF California, when its interest
has been that way"
Representative Geary spoke briefly
III favor Ofa foreclosure OF the mort.
gage by the government.
HOPKINS AND CRoCkER
bad been long dead. he said. and it was
a question whether the government
scouidrecoyeE anything from their esr
rares. If sthe 'right.of .'actloire did not
alIatu:e until the debt matured there
could be no action against the
Stanford estates until some of
the bonds matured and there was no
money forthcoming to pay them. Mr..
Geary said he did not wish toappear as
defender Of the Central Pacific. but
he dld not wish it thought that Cali
fornla had been utterly debauched
by the Central Pacific. 1t could lnot be
denied that conventions had been
bought, that Legislatures had been
bought. that senators and congressman
had had their seats bought for them.
He knew that, because lie had been
elected in the face Of that opposition:
his opponent hal been All attorney OF
the company, who had been ordered to
make the race.
He referred to c. P. Huntington as
"the distinguished SAINT WIN appeared
before you a few days in behalf of the
ten Thousand orphans and widows who
were stockholders"
Again he spoke of the ..atrocious
highway robbery which had been per-
petrated by Messrs. Huntington. Hop-
kinS and company. who, he SAID,
HAD BEEN DENOUNCED,
by the nnanclerS OF the world"
When Representative Powers of Yer
mont, asked how the government could
make good its claim. Mr. Sumner said
the first mortgage would eat up the
road, aud the branch lines were bonded
for two or three times their value, so
that the government had no recourse
except by suits against the individual
stockholders.
Representatives Kyle and Powers
pushed the question as to whether the
estates were sufficient to cover the gov
eminent. debts. The Crocker estate.
Mr.. Sumner said. had been Incorporated,
and Was estimated at from $50, 600, 600 to
$50, 100000, the Hopkins estate approx
inated S30,000,00O. the, Stanford estate
admittedly at ST, 100000, and the HUNT
ington the same.
1t was suggested by Representative
Bell, of Colorado, that proceeding could
not be brought against the stockholders
OF the road until the security. the road
itself, had been exhausted, and in the
discussion it was said by Chairman
Reilly, that no proceedings could be
taken against the estates until bonds
matured: that only notice cnnlfi he