The herald., 1896-02-18

omewhat in the contract and finance COM
pany, as were his three railroad associates,
| Charles Crocker. Mark Hopkins and Le-
land Stanford. He could not say what the
Central Pacific had cost. but after great
deal of questioning Mr.. Huntington ad-
mitted that the contract and finance COM
pany had received all the stock and bonds
Of the company for building the roads.
These at par value were worth $116,OOO,-
on their face, and he thought the cost of
the road was about SS0,0OO,000 or $9O.-
600, 900. The assets would not, however,
have paid the company's debts. Mr..
Huntington said he thought the books
of the contract company had been de-
stroyed, as were the papers.
At the conclusion of the hearing, Sena-
tor Brice expressed dissatisfaction at the
wide range the investigation was taking,
but Senator Morgan said that his purpose
was to ascertain whether congress could
legislate so as to provide for the sale of
the roads or for proceeding through the
courts as a means of foreclosure.
The hearing will be concluded tomor-
row.
INVITED TO SETTLE.
WASHINGTON, Feb. 17.-Sepator Allen
today introduced a bill requiring the secre-
tary of the interior to suspend the issue of
patents for lands granted to government
aided roads, until the accounts between
those roads and the government shall be
settled.
SILLY sCHEMING
CHICAGO, Feb. ia deal is said to have
been made between the Southern Pacific
and the Seaboard Air Line whereby all the
traffic that can be possibly diverted to the
formers Sunset route will be delivered by
the latter at New Orleans. This deal is
considered to be direct blow at the South.
ern Pacific direct connections at Ogden
Its object, however, is said TO be to divert
as much traffic as possible from the Cen
trail Pacific road, the Southern Pacific hav-
ing entered upon deliberate and system
attic policy of impoverishing that part of its
system with the view OF frightening the
United States to settle its claim against
that road Oh the easiest terms.
THE PANAMA DEAL
New YORK, Feb. lS.-The World this
morning says: The Pacific Mail.Panama
railroad contract has not been a success,
and plans are now afoot to bring it to a
short stop. As soon as President G. P.
Huntington of the Pacific Mail Steamship
| company returns from Washington, he
will be confronted with demand from the
Panama Railroad company that the con-
tract Which went into effect On December
] last be fulfilled.
&. P. Huntington has the Sunset route
or Southern Pacific railroad from San
| Francisco to New Orleans, and thence by
| the Morgan line of steamers to New York.
Mr.. Huntington got into the Pacific Mail
| and became its president. and when the
time came to renew the Panama contract,
made such objections that the Panama
railroad was compelled to maintain steam
| ship lines on eaeh coast.
This went on for time and the Pacific
mail boats kept on the route with empty
holds. as they were not able to give through
bills of lading. After much backing and
| filling new contract was made under
which the Panama end did the Atlantic
| coast steamship service with the ships
Allanca. Advance and Finance, while the
Pacific mail boats had the exclusive
service on the Pacific coast. Almost
Immediately the Panama people
found that they were getting no freight
from tho Pacific Mail boats at Panama,
and matters reached crisis when the AL
lianca, a 27O0-ton steamship. came into
this port last week without single ton of
freight via the Panama railroad. She was
SO topheavy and light that she came near
laundering. The officers protested against
such risks and the matter will probably
come before United States court. Other
of the Panama steamers on this side have
! been similarly treated.
In the meantime the Morgan liners were
very heavily laden, and the San Francisco
agent reported that all freight was being
diverted over the Southern Pacific route
Pacific Mail people for not delivering the
| freight to the Panama railroad at
Panama was that there was so much
freight for points between San Francisco
! and Panama that when the steamers
| reached the latter point they we're empty.
| 1t is said the upshot of the fight will be the
re-establishment of the Panama line.