St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-02-19
SENATE COMMITTEE ON PACIFIC
RAILWAYS INQUIRE FOR VAL
UABLE DOCUMENTS,
PRESSED BY Mr.. MORGAN,
MAGNATE HUNTINGTON GIVES THE
COMMITTEE IMPORTANT EVIL
DENCE.
SOUTHERN PACIFIC FAVORED
But Only, as He Explains, to Build
Up a Business Between CALI
fornin and Europe.

WASHINGTON, Feb. 1S.-The hear
ing on the refunding Of the Pacific rail-
road debt by the senate committee on
Pacific railroads, continued today. SEN
ator Morgan continued his inquiries
concerning the destruction Of the pa
pers Of the Finance and Contract COM
pany, the examination resulting In
some very sharp passages between Mr..
Morgan and Mr.. Huntington Senator
Morgan intimated that he believed the
papers were burned for the purpose Of
destroying the proof of the Individual
liability Of the stockholders but Mr..
Huntington insists that they had been
destroyed for the purpose Of cleaning
out a room, and because the business
for which the company had been or
gained was closed. He said he had
suggested to Mark Hopkins that the
books be destroyed, but did not remem-
Der that there had been any reference
in his conversation with Hopkins to
the clause in the California constitution
regarding the personal liability Of
stockholders. The examination was
then turned into an inquiry as to the
payment Of the Contract and Finance
company in the construction of the
Central Pacific, and Of the organiza-
ton and operation of the Western De-
Velopment company and the Pacifis I'm
proVement company, composed largely
Of Central Pacific men, engaged in build
ing other roads in California.
The questioning in this connection
6QVQlOna6
ganizers had built three other roads
in California connected with the Cen
trail Pacific, and had bought about
twelve which had failed. Mr.. Hunting
ton said that the roads built had cost
about $4,000 per mile, and the con-
struction companies had been paid
with bonds at this rate, which were is
sued by the Central Pacific company.
When the afternoon session began
Senator Morgan was the only men,
Der of the committee present, though
others came in later. Mr.. Morgan con-
tinued his examination Of Mr.. Hun
tington, as to the connection of the
Central Pacific with it's branch lines
in California. Taking up the question
Of the government Indebtedness, Sen
ator Morgan asked Mr.. Huntington
If he considered the interest which, had
been paid by the government on the
guaranty bonds a part of the Central
Pacif1c's Indebtedness to the govern
ment. Mr.. Huntington replied that he
did, that his proposition was to calcu-
late the entire amount up to the ma
turity Of the bonds, including interest
as well as principal, and count it all
as interest He did not, however, I'M
derstand that he was to pay interest on
interest. He did not think the COM
pany could pay more than per cent
interest on this extension
Replying to an assertion made at a
mass meeting in San Francisco that
he, Stanford, Perkins and Croker had
accumulated a combined fortune of
5000, 000, 900, p
HE SAID IT WAS "a LIE,''
as was the statement that they had received
from the city, county, state and nation, prop
erty of four times the amount of the cost
of building the roads.
To the charge of extortonate freight rates,
Mr.. Huntington said the people in New Jer-
sey and Delaware were complaining of the
condition of California fruit because of the
low rates made by his roads. That he thought
was sufficient refutation of the charges.
Senator Morgan asked Mr.. Huntington how
much money he had put into these roads
did not bring out a direct answer, but Mr..
Huntington told in this connection how he
had made great deal of money in Chicago,
burlington C Quincy, Big Sandy and va
lucky and Tennessee, all of which he had
taken when they had been abandoned, and
which he had built up so as to make large
sums of money. He had put all these profits
into California and the West into stocks,
none of which paid him any dividends. He
thought he must have been worth 81, 900. 90
when he began his railroad career but he
was poorer when the Central Pacific work
was completed than when he began, because
of the immense debts which had been accu-
muIated.
Senator Morgan tried to show in this con-
nection that the railroad business which
would naturally have gone over the Central
Pacific was diverted by means of this con-
tract to the Southern Pacific so as to dimin-
lngton said competition was very close He
stated, however, that the business of the two
roads was managed by one man, Mr.. Stubs,
VINO was the freight agent for both roads
but while this was true. shippers were al
lowed to select the road over which they
would ship.
Senator Morgan then asked If it was not
his ambition to throw all the business he
could over the Southern Pacific. Mr. Hunt
1ngton replied he had tried especially to build
up business between California and Europe,
and he had directed his efforts to that end.
Have you ever really expected the Cen
tral Pacific could be prosperous when it's
builder and guardian was so largely interest
ed in, and the chief executive officer of its
principal rival?" asked Mr. Morgan.
4 believe" replied Mr.. Huntington, "that
the Central Pacific has, Jared as well in my
hands as it could have Jared in the hands
of any other man. 1 have never directed any
of the active officers of the road to divert
any business from the Central Pacific to the
Southern Pacific
The hearing will be resumed again next
Thursday.