The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-07
NR. HUNTINGTON MAD.
He Gives Sharp Answers to Mr..
Morgan's Questions.
DIDN'T FIND coLTons PAPERS.
When Convenient. the Railroad Man
Forgets. and Denies That He Made
Much Out O Central Pacific.


OF the Pacific railroad debt question. HUM
ingtcn was present. but senator Morgan
was absent at the beginning OF the hear
ing. John Rooney, representative Of the
junior boniholterS. Was permitted 10 lie
Il brief in opposition 70 the plans hereto
fore offered fer reorganization Of the Pa
cific roads. lie advocated consolidation
of the Union Pacifsc and Central Pacific.
assessments on the subordinate interests
for cash payment Of the first and second
mortgages. and for management by gov
eminent commissioners of the foreclosure
and reorganization Of these properties.
When Morgan appeared. the linguistic
contest bel .een himself and Huntington
began. the senator beginning Immediately
by asking Huntington as 10 his objections
20 the Pattison report Huntington re-
Piled that he objected 10 il as a whole
He admitted that he had been before The
commission. bat contended that the COM
mission had certain theories 10 work out
and did not pay much attention 10 his
statements. II know" he said. ''all about
the building Of the Central Pacific.
1T is not so much about building the
roads" replied Morgan. that We want 10
know, as about what was made cut Of II.
We did not responded Huntington,
make any more than we were allowed 20
make under the statut>s'
Continuing as TO the division of the
proceeds. he said he could divide, when
two were interested. exactly in the middle.
Morgan asked: Can YOU do that when
you are on one sidesand the people on the
other sideg''
Huntington replied: II can"
Morgan-I am going 10 give you a
chance before we get through,
Referring to the construction OF the
Southern Pacific 10 Yuma Ariz.. Hunting
ton said Cotton was interested In thst
transaction. and ne tHuntingtonl had
nothing TO do with the disposal Of his es-
tate.
ibid you not" asked Mr.. Morgan. buy
Mrs. Coiton's house i'm san Francisco?'
Il did"
And did you not find Colton's papers
in the house?''
Il found the wall paper there"
But did yeu not find private papers
there and burn them
IF you charge me with that | viii an
swer."
1T is charged ny men who have written
TO me, men as good as ! am
Then they are good men"
Huntington then asserted with much
emphasis that he neither found any of
Cotton papers in the house nor destroyed
them.
Huntington was examined as to his part
nership with Mark Hopkins in the hard
ware business in San Francisco. He de-
clared that the hardware business was in
no way connected as e partnership with
the railway business. The firm, he said.
loaned money TO railroads. also bought rail
road securities. which were divided be-
tween them as individuals.
He said Morgan was asking too much
when he asked him TO give details of busi-
ness transactions thirty years ago.
There had been no general settlement OF
his and Hopkins account upon the lat
ters death. but Mrs. Hopkins had gone
on as representative of her husbands in
terests in the railroads.
Mr. Huntington said in reply to ques-
TONS that he had considerable means out
side OF that invested In the hardware bust
ness, which he put into the construction OF
the Central Pacific. He could not. how
ever. rememher how much actual money
he had put into that construction. Still
he was confident the amount was consider
able. He had bought. he thought, about
. 900 shares of the stock at the rate Of 500
per share before the road reached New
castle. He had also put money into the
Contract and Finance Company. by which
the road was continued. More than S. Goo
coo had been put into that company by him
self and his associates. but much OF the
money had been borrowed. some Of it on
the government bonds.
He resented with some show Of indigna-
ton a question tending 10 show that II was
the government and not the company which
had conducted the construction. saying that
the company. with resources Iegitimately
placed at their command. had constructed
1t. He added that the company had built
thirty-one miles Of the road without any
government assistance.
Mr. Morgan complained in this connec-
ton that Mr.. Huntington was too much in
clined 10 give opinions and not facts. bat
Mr.. Huntington contended that he was Civ
ing all the facts he had. He said that 40
miles OF the road had been built in sever
years: that 81. 60 c9 IN bonds had been re-
eeived from the government: that frst
mortgage bonds were issued for IS 000 coo
more, and that there was $50 000 600 worth
Of stock. He SAID be would not do the work
again for twice the amount received.
Taking up the report OF the P3ttison COM
Mr.. Huntington said that part Of
the road west Of ogden. from Bonneville
table 10 Promontory mountain. had cost.
according TO Gen. Dodge. 81. 000 per mile.
whereas the commission had put the price
at $4,000. He gave this as an illustration
Of the Inaccuracies Of the commissions
report. This part Of the road had been built
by the Union Pacific ard afterward pur-
chased by the Central Pacific for the pur-
pose Of getting into the Salt Lake valley.
Mr.. Huntington said the road paid well for
the first ten years and until the Atchison
and Northern Pacific had come IN as COM
petitors. Mr. Morgan asked why the divi-
dends had not been put into sinking fund
and used in paying the government and
first mortgage debt. 70 which Mr.. Hunting
ton replied that IL ru.ght have been done.
- 81 L. A..
are never done H." he added "the stock
was entitled 10 SIS dividend. Furthermore.
the government had interfered wifh tho
purpose to do this through the Thurman
act"
Mr.. Huntington said he could no, re-
member how much money he had received
on account OF dividends hat he did not
think the amount was large. He thought
the dividends had never exceeded 10 Der
cent. II appeared upon examination that
Mr.. Huntington obtained bis dividends
principally through his interest in fhs
Contract and Finance Company. lie adj
United that this company had used a part
OF its assets in bulI1inc other roads. hrt
these we're built in the Interest ~ the
Central Pacific company. The Contract
ana Finance Company had begun 70 sell
its stock when II began 70 apprec.a ate. and
this vas done N order 70 pay The debts.
which amounted - from g. efG 0l0 TO ga
60. 40 They had disposed Of a great deal
Of the stock FER this purpose. The price
Of the stock sold had ranged in price from
1s 70 p cents.
Senator Morgan referred 10 the 1u-tua-
ions in the stocks a. the result q -nanjp.-
uiat5cE. bat M Huntington took exeep-
ZION ~ the use Of the word Re sad there
rad been no manipulation. and '9hat -
rot proper word - use" str hunting
ton said ne had sold stock paying a diYi-
dend Tor 81 cents on the dollar. out de-
ciared. in reply To a question. ira. this
VAS nos done 10 break the market He
also declared that this Was not remark
able. ana thaf BE hsi nlade the sale aa-