The record-union., 1895-10-21

Question of the RefundIng of the
Debts of the Pacific Railroads
Should Read This Interview-Cpen
and Manly Expression.
The fact that there will come before the
Congress of the United States that assem-
bles in December a renewal of the effort
to secure equitable adjustment of the
matters relating to the obligations Of the
Central Pacific Railroad Company to the
Government, induced the editor of the
Mornang Call of San Francisco, on Fri
letter transmitting certain questions to
that gentleman bearing upon this I'M
portant inject.
These questions, with the answers of
Mr.. Huntington, we quote below from
the Cau of Saturday. Mr.. Huntington,
in making the answers, transmitted with
them letter addressed to the editor Of
the CAL, which reads as follows:
SAN FRANCISCO. Oct. is, 1895.
ChdS. II. ShOrtridge, Editor Call. San
FranciSco-MY DEAR SIR: l have tried
to answer very fully, as you wished me
to, the questions contained in your letter
of the 18th, and hand you herewith some
sheets containing such questions and my
replies, which it is my wish should be
published as an entirety, if at all. Yours,
very truly, c. p. HUNTINGTON.
The questions propounded to Mr..
Huntington were nine in number. and
we give them below, with the answers of
Mr.. Huntington in numerical order fol-
lowing Immediately after:
l. What legislation does the Pacific
railroad propose TO try to obtain from the
next Congress?
.. 1t has been stated that the proponents
of funding bill claim that a majority OF
members of the coming Congress will
vote in favor OF such an Act as the Reilly
bill, and will also vote to allow the claim
OF the Southern Pacific Company for
81, ,S00.0 900 for services rendered the Gov
ernment, which was defeated at the last
session. Have you any knowledge on
this point?
3. What do you think will be the prob
able vote OF Senators and Representa-
tives on this point?
4. What, in your view. would be fair
adjustment OF the Pacific railroads debt
to the Government?
3. If the funding bill should be again
defeated do you think the frat mortgage
would be foreclosed?
6. Foreclosure WAS threatened when
the Reilly funding bill was before Con-
gress. Why, in your opinion, was the
threat never carried out?
Z. If the first mortgage ia foreclosed.
what becomes of the Government mort
gage?
S. II the Government mortgage falls in
the event of the first mortgage being
closed, would you. speaking for the rail-
roads, recognize any moral obligation to
pay the debt, er would you stand on your
strict legal rights?
8. How much does the Central Pacific
Railroad owe the Government? What is
your own idea OF the DEBT?
1. What legislation does the
Pacific Rditroad propose to
try to obtain from the nert
Congress?
Simply such an Act as will settle rairly
and justly the debt OF the Central Pacific
Railroad to the Government. 1t is a
business question which should be looked
at from the same standpoint as the debt
of one individual to another. 1t is SIM
ply a case OF the debtor being unable to
pay his creditor. But in this case the
Government, if it did not get the full
amount of the debt, would have the salts
faction Of knowing that 1t saved more by
the roads being built seven years In
advance OF the time required by the Act
under which 1t was created than the
amount of bonded aid that the Govern
ment granted, and the Government must
have known that in giving a very large
subsidy in land to the Atlantic and Pa
cific and the Northern Pacific Railroad
Companies il would create an opposition
which would lessen if not entirely de-
stroy the security it had on the Central
Pacific Road. But even if they did not
know this, 1t was a wise thirg for the
sovereign to do, as the other two roads,
like the Central Pacific, policed, so TO
sperk, large section ofcountry, thereby
saving the Government large sums of
money, and their existence gave to the
even sections of land held by the Govern
ment value far in advance of the value
OF the odd and even sections together
without such roads.
2. 1t has been stated that
the proponents Of q funding
ball claim that a majority Of
0lembers Of the coming Con-
OreSS lCiU U0te i7a favor OF
such an i Let as the Reilly
bHi, and aCiU also Uote to al
lo10 the claim Of the South
er1a Pacific Company for 81
$4,000 for services rendered
the GoCernme1lt. lchich acGs
defeated at the last session.
Haze you any knoieiedge
on, this point2
No. do not know what Congress will
do. but presume it will do what is fair
and right as between the Government
and the railroads. l, representing more
particularly the Central Pacific Railroad
Company, will be perfectly willing TO
have the Government employ any able
and honest statislician to examine the
company's books from the beginning TO
the time OF such examination, and what
ever they report that the company can
pay, and at the same time take care OF its
other Indebtedness that has priority to
the claim of the Government, including
the current expenses. as well as the fixed
charges, would be perfectly willing that
the company should undertake TO pay;