The record-union., 1896-02-25
Thomas h. Hubbard Appears Before the
House Railroads Committee.
The Central Pacific Has Lived Up to
Its Agreement.
Reports to the Con-
trary-Proposal to Have the Com
pany Pay the Principal of the Bonds
terest-This the Central Pacific
Could Do.
Could Do.

WASHINGTON, Feb 24.-Thomas
H. Hubbard, representing the Searles
estate, to-day appeared before the
House Committee on Pacific Railroads
in connection with the affairs of the
Central Pacific Railroad. The Central
Pacific, he held, up to this moment lived
up to its contract with the Government,
Notwithstanding reports to the con-
trary. This being the case, the past
should not be talked of, but if solution
of the present difficulties was desired
the future should be considered.
He read at length from the Ander
son-Littler Commission report and the
report of Ex-Governor Pattison regard
ing the affairs of the roads, referring
especially to the charges of discrimina-
ticns and rebates
Referring to the Pattison report on
land grants and profits made from
them, he said that the statements were
exaggerated. If the same reasoning as
that taken by Governor Pattison were
applied to benefits obtained by the Gov
ernment from increased telegraph and
mail facilities the results would be fab
ulous.
He asked the committee in consider
ing matters pertaining to the Central
Pacific to carefully consider whether or
not the company had complied with it's
obligations to the Government. He
thought it had, and in light of this fact
it seemed strange to him that the COM
pany should be continuously referred
to as 'insolvent and unreliable"
With regard to the construction of
the Pacific railroads, he said the Gov
ernment wanted them built, and did
not care to build them itself. In order
to have private individuals undertake
the enterprise, the Government Of
feTed lands and bonds.
Suppose" he said, that at this time
the Government had said TO these par
ties: You are to do this without profit,
would anyone have undertaken the
work? The position was taken by some
that those who built the roads were
merely Government agents, strictly ac-
countable to the Government AS the
Central Pacific and the Government
had both lived up to the contract, the
PROPER way to settle any difficulty was
just as any two business men would
do"
He did not think that the Central Pa
cific could carry out the obliga-
ticns proposed by the Reilly bill
of last Congress. This bill provided
for the payment of the first mortgage
ia cash. To do this the road would have
to raise S2S000,000. He did not see
how this could be done without assess
ing its stockholders. To do this would
be to extinguish the stock SO far as
the present stockholders were con-
cerned They were mostly poor, the
majority of them being scattered
throughout Europe. The money might
be raised by getting syndicate to take
new stock.
The method suggested in the bill. he
thought, should be carried out. This
would let the Government out as a
bondholder, and substitute private in
dividuaIs in its place. The company
could probably pay it's bonds as they
matured. but could nit pay the Interest.
Mr.. Hubbard PROV osed 20 have the
company pay the princlTai of the bonds
as they matured and fund the interest.
The Central Pacific could do this, but
he could not speak for the Union Pa
cific. He promised at the request of
Patterson of Tennessee to draw bill
ambodVing his views