The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-02-18
BONDS AND DOODLE.
NO Credit Mobilier Wanted in
Nicaragua Canal.
QUESTIONS FOR HUNTINGTON,
Morgan Makes >uch a Searching In
Man. Tries 20 Stop Investigation.

Washington CITY Feb. 1.-THE Credit
Mohilser scandal figured in the hearing OF
the Pacific reorganization question before
the senate committee on Pacific roads to-
d2y- and brought out incidental references
70 tae possibility OF such scandal IN con
nection with The Nicaragua canal r. r.
tnurcer. chairman OF the national hoard
CT trade committee on railroad transpor1a-
uons vas before the committee, ana SEN
ator Morgan WAS questioning him about
the relative probabilities Of corruption i'm
the scheme under government control and
under the management Of private indi.i1-
uals. Reference had been made 20 the
Credit Mohiiier BY Senator Morgan whose
evident purpose Vas 70 draw from Thurbsr
an expression OF opinion that the Credit
Mobliler scandal could never have occurred
II the entire dictatorship OF The roads had
Deem composed of men appointed hy the
government. when Ssnator Frye intercept
Ell TO say that the Pacific roads would
never have been built IL there had been
no Credit Mobilier. No more = he added
Than can the Nicaragua canal be built
without the cooperation OF some company
under the plans proposed -
Much as | am interested in The Me
aragaa canal" replied Mr.. Morgan. L
should abandon It's advocacy if believed
" 10 be true that il would be built under
circumstances likely 10 develops sueh a
ing OF the Pacific roads. lie added that
IN the bill which he had reported 81 the
last session OF congress il had been pFo-
vided thar the United States Nicaragua
and Costa Rica should nave a large MAJOR
ity OF the directors. This. he thought.
would prevent any Credit Mobilier scandal
IN that connection Mr.. Morgan said he
proposed TO ind a way of preventing The
recurrence of any such disgracefai state
OF affairs in connection with the Pacific
roads, but when Senator Gear. chairman
or the committee, asked how ne proposed
10 accomplish that desirable result, Mr.
Morgan replied that he would enligntea
the committee in an executive session.
Mr.. Thurber read a paper in opposition
to government ownership of the Pacific
roads The report on which it was based
had, he said. been submitted TO the Board
of Trade
BE object Of Mr.. MoFgan's questioning
OF c. T. Huntington. president Of the
southern Pacific. who was next called
was To bring out the facts as TO the abiI-
ity of the Southern and Central Pacific
roads to control the traffic Of the Union
Pacific MIR. Huntington was inclined to
be evasiye, and declared that the question
of rates and competition by the Canadian
Pacific, Northern Pacific aud Atchison,
Topeka a Santa Fe would determine.
Senator Morgan then directed his in
quiries 10 the asceTtainment Of the trans
portatfon lines controlled by the Southern
Pacific under the Kentucky charter, the
result being TO show that the company
controlled railroad lines through an eX-
change OF stock from New Orleans via
San Francisco to Portland. Or, and owned
not only a line of steamers from New Or
leans TO New York. but had a business
arrangement from New Orleans 10 Eu-
rope. The Kentucky company had. Mr..
Huntington said. issued stock amounting
10 about sl00,0oo00e. but in exchange for
capital stock in other companies, and not
for cash. He himself had i've or six
millions of the Kentucky companys
stock, but he thought the Stanford estate
owned more OF it than he. On the point
of the individual liability OF stockholders
for the companys debts, MIR. Huntington
said that he did not believe they were la-
BILE. "and,'' he added. "the fact that those
fellows say We are liable makes me
stronger in the belief that we are not"
Mr. Huntington declared he had no in
terest in any of the contracts for building
the Central Pacific, but he Was interested
somewhat in the Contract and Finance
Company. as were his three railroad asso-
ciates Charles Croker. Mark Hopkins
and Leland Stanford. He could not say
what the Central Pacific had cost. but az
ter great deal of questioning Mr.. Hunt
ington admitted that the Contract and FL
nance Company had received all the stock
and bonds or the company Tor h9iidlnS the
roads. These at par value We're worth
SIG. 0eo. 90 on their face and he thought
the cost OF the road was about
$50 600 600 or 100000. The as
sets would not. however, have paid
the company's debts Mr.. Huntington said
he thought the books Of the Contract Com
pany had been destroyed, as was the
paper.
At the conclusion Of the hearing Senator
Rrjce EXPRESSED dissatisfaction n the wide
range the investigation was taking. but
Senator Morgan said that his purpose was
TO ascertain whether congress could legis-
late 81 as 10 provide for the sale OF the
roads or for proceeding through the courts
hv means 81 foreclosure. The hearing viii
be continued tomorrow.
To Suspend Land Grant Patents.
Washington City, Feb 17.-Senator Al