Pawtucket tribune. (Pawtucket, R.I.) 1890-189?, 1894-06-08
A SlhONG PROTEST.
Refunding Of Central Pa
CIfiC's Debt Opposed.
Mr.. SUMMERS SUGGESTION
Railroad Magnate Huntington Severe
lV Censured.

WASHINGTON, June S-Californians OPP
posed 10 refunding the debt Of the Central
Pacific railroad were given hearing yes
terday 10y the house committee on Pacific
roads.
x-Congressman Charles G. Sumner
said that he protested for the people OF
California against any funding scheme
which would perpetuate the present
management, one which had brought de-
plorable moral, political and financial
calamity upon that state. He went into
an exhaustive history OF the road. de-
clared that its cost had not exceeded $780,
1000, and that he thought it could be
shown to have been about els, 600 600.
Stanford, Huntington, Hopkins and
Crocker had not been worth $500, 600 all
told in 1861, and In 1869, when the road
was finished, they were worth tl0, 900, ,0O0
each.
Croker has resigned from the director
ate to make construction contracts with
the others For 800 miles over the plains
the road, exclusive Of materials, had not
cost as much as the average turnpike.
Eighty per cent of the enormous divi-
dends had gone into the pockets Of Stan
ford, Croker Hopkins and Huntington.
Mr.. Sumner explained the California law
which made stockholders responsible for
debts of a corporation.
Representative Mcguire explained that
the statute of limitations of California
did not apply TO the government.
Representative Boatner of Louisiana
repeated a statement made to him re-
Gently by President Huntington that he
(Huntington) had never held more than
four or 10 shares of Central Pacific stock,
his stock being in the finance and con-
struction company.
Summers Suggestion.
Mr. Sumner held that IL was not neces-
sary 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 admitted, as President Huntington
had said, that the present traffic rates
could not be reduced without impairing
the value OF the property, since It had to
pay o per cent per anuum on an indebted
ness double its cost and three times its
value.
He referred to G. p. Huntington as the
distinguished saint who appeared before
you few days ago In behalf Of the TO-
900 orphans and widows who were stock
holders"
Again he spoke OF 'the atrocious high
way robbery which had been perpetrated
by Messrs. Huntington, Hopkins g. Co"
When Representative Powers of Ver-
mont asked how the government could
make good its claim, Mr.. Sumner said
the first mortgage would eat up the road,
and 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 govern
ment debts. The Crocker estate, Mr..
Sumner said, had been incorporated, and
was estimated at from g.. 600 900 to 80, 0OO,-
600; the Hopkins estate approximated
100000: the Stanford estate admittedly
at $4,000, 600, and the Huntington the
same.
Must Wait Until Bonds Mature.
1t was suggested by Representative
Bell of Colorado that proceedings could
not be brought against the stockholders
of the road until the security, the road IL
self, had been exhausted, and in the dis
cussion II was said by Chairman Reilly
that no proceedings could be taken
against the estates until bonds matured;
that only notice could be given of the
claim against the estates.
Mr.. Sumner said that Mr.. Huntington
had admitted of having spent over $l,-
600, 600 in past congresses for legislation.
Incidentally Mr. Sumner charged that the
Central Pacific had corrupted judges and
legislatures and had debauchsd the poll
tics of California
Representative Geary of California said
he could not subscribe TO the charges
that the judiciary Of California was de-
bauched, and spoke briefly in favor OF
foreclosure OF the mortgage by the gov
ernment. Hopkins and Crocker had been
long dead, he said. and it was a question
whether the government could recover
anything from their estates
II the right of action did not mature
until the debt matured, there could be no
action against the Stanford estate until
some of the bonds mstured, and there
was no money forthcoming 10 pay them.