The record-union., 1894-10-01
RAILROAD BUILDING.
C. P. Huntington Tells Something
About 1t.
He Has Something to Say About Peo.
pie Put On the Southern Pa
ciflc Pay-Rolls.

explanatory:
To the Editor of the WaUe-DEAR SIR:
In your paper of August 18th / notice
several items referring to the Southern
Pacific Railroad Company and its affil-
lated lines, all of which treat the railroads
fairly; and while l have no fault to find
with very large majority of the news
papers of California, yet there are some
in your city which do not fairly treat the
Southern Pacific Company, but L have
no doubt that those that do not, think that
their best interest will be best served by
90 doing, though l cannot believe they
think the best interest of California will
be advanced by that course. 1 believe,
however, that the large majority of the
people of the State who have Legitimate
business of their own to attend to are sat-
ished with the railroads-that is, with the
manner in which they are conducted.
There are a few men who have been
struck from the psy-rolls of the railroad
company, and few others who would
like to get on to the pay-rolls, and these
cry loudly, and so loudly that they re-
mind me OF the story that was told by
party who crossed the plains in lS49. He
said his party was kept awake all night
by most fearful crying of coyotes, but
when morning came there was only one
OF the little pests in sight, and lone of
our party told me that that one little fell
low had made all the noise" 81 saiG to
him." continued this man, ''that no other
animal in the world contained so much
noise as he had produced" But he evil
IDENTIFY was not acquainted with that
small band of people in San Francisco
composed of those who have been struck
from our pay-rolls and who want to get
on them.
1t is not important to the people OF
California, but it is to the writer, who is
the last survivor of the builders of the
Central Pacific and other roads, that he
should be understood by the good people
of the State of California. Certainly
he knows all about the building of the
Central Pacific and all the other roads
constructed oy those who created that
property, and in all that work we did the
public no wrong-least of all the people
of California. In the building of the
Central Pacific l used all the powers Of
my brain and Drawn, even working
twenty hours day and practicing the
most rigid economies in all things; other
wise the road could not have been built
when il was built, as the company sold
its securities for currency and bought
gold, some of which cost three dollars in
currency tor each dollar of gold that was
bought. and this was used for labor, lum-
ber and all other material produced in
California that went into the construction;
and the goods bought in the East were
sold at higher rates then than at any
other time in this century.
mouths before they were used, as they
had TO be, as rule, made after they
were purchased; then they were
shipped around Cape Horn, except the
few that were sent via Panama. The
rates of freight were very high, and as
much as l5 Der cent. was paid for insur-
ance on some portions Of the goods SO
sent. Some of the rails cost, laid in the
track, as high as Sl40 a ton. Some of the
locomotives we paid S32, 900 for, and per
cent. Government tax on top OF that
very high price. The same locomotives
can now be purchased for $1,000. Fish
plates and many other articles used in
the construction of the road cost three
times what they can be bought for now.
The road was finally built, and when
it was completed those who built it did
not have any of the first mortgage or
United States bonds. All were sold and
the proceeds used in the construction of
the work. Beyond that hose who built the
road owed debt that amounted to several
millions of dollars more than could have
been realized by the sale of all the securi-
ties that they were to have for the work,
and all the assets of the railroad company
added to that But the builders of the
road had to wait-and did wait for several
years until the securities appreciated, and
then they sold, and the money received
for them was used to pay the floating
debt created in the building of the road.
L
those who created the property were en-
titled to much credit for what they had
done.
The Union Pacific was built at the
same time, but had no such physical OBJ
structions to overcome as all know who
know anything about It; and when built
IL had comparatively cheap fuel, which is
the great item of expense in building as
we'll as in operating. The construction OF
the Union Pacific "broke' some of it's
builders, and it is now in the hands of
the receiver. The Northern Pacific was
built at time when it should not have
cost one-half what il cost the Central Pa
cific, and do believe the land grant that
that company received was of more value
than was the land and bonds received by
the Union and Central Pacific. L am
quite sure that the charges for transport
alton are less on the Central Pacific than
on the Northern; but the latter is in the
hands of the receiver, | think, for the
second time. The Atlantic and Pacific
(Atchison, Topeka and Santa Fe) was
built at time when it should not have
cost more than one-half what the Central
Pacific did, and this company is in the
hands of the receiver, l think, for the Sec
ond time. The Texas and Pacific re-
ceived large land grant, and it has been
in the hands OF receiver twice, / believe.
The rates have been less, 1 do believe,
on the Central Pacific than on any of the
companies named, while the fuel has cost
two or three times as much. No fault
think, could be found with the builders
of the other roads. as they did. have no
doubt, their best; but did not those who
built the Central Pacific do better?
know we did the best we could for Cali
fornia, and l do believe large majority
of the people of the State believe with
me. and will do us no harm. Very likely
We have made mistakes. Those who do
not make mistakes do not make any
thing. 1t, no doubt, was mistake TO
put as much money as we did into dwell
ing houses when it was done, as we were
owing at that time much more money
than they all cost; and we have not
owed less at any time in the last twenty
five years; although. my house in New
York that lived in for twenty years cost
me S57, 900 and could have been sold at
any time for more than paid for it.
After the Central Pacific was completed,
! was solicited by the members of the
Board of Public Works of Virginia to
Ohio railroad, that had been commenced
some thirty-tive years before under the
name of Virginia Central and Covington
and Ohio, on which work had been con-
tinued from time to time under various
names until the commencement of the
war of the Rebellion, when the work was
stopped. 1t was taken up by myself and
associates in 1869. l had but a one-tenth
interest in the work, which was contin-
ned until the panic of 1873, at which time
all those interested in the property, ex-
cept myself refused TO go on, saying that
they would do no more; but l stayed by
it. bought largely OF the stock at from 81
TO So per share; also of the first mortgage
bonds. buying the bonds in the open
market, at from 20 per cent. to 35 per
cent. of their face value; then completed
the road and sold several millions of the