The San Francisco call., 1896-02-15

had taken very little business that would
have gone by the Union Pacific. This busi-
ness was taken at a small profit, which the
company was able to do because of the use
of its water line. All TIE overland roads
were parties to the agreement to purchase
the tonnage of the steamship lines. The
object of this was to keep prices steady SO
as to keep out of bankruptcy.
He denied, in response to question by
Morgan, that this was done in order to
force the Pacific Coast to use the overland
railroad lines. There was, he said, no at
tempt to monopolize the freight of the Pa
cific Coast.
the committee the differences between the
rates charged by the steamship lines be-
fore and after they made the agreement
with the overland roads.
Huntington could not give these figures,
but stated that copy of the contract had
been deposited with the Interstate Com
merce Commission.
/ After some discussion Huntington was
notified to appear before the committee
witha copy of the contract and be ex-
anined thereon.
Huntington, continuing his stateme mt
on the roads in general, said the Union
Pacific had itself initiated the competition
of the Oregon Snort Line, which was
owned by the Union Pacific, and by charg-
ing excessive rates on business done for
the Central Pacific, while the Central Pa
clfc had stood by the Union Pacific on all
through business when it could do so
without detriment to the public.
Senator Thurston's bill, which contem-
plated consolidation of the Union Pa
citic and Central Pacific, would, Mr..
Huntington believed, be injurious to the
interests of the owners of both lines. Such
combination would force the extension.
of other lines west of Ogden. No possible
advantage could accrue to the Union Pa
cific through the proposition of Senator
Thurston. The Central Pacific would con-
tinue to pay all its debts and maintain
harmony among the lines centering at
Ogden. The question before the commit
tee was whether this road over the desert
should be used as bridge for all the roads
entering Ogden or only one of them. So
lar as the ra les were concerned they were,
he emphasized, low as any other road in
the world under the same circumstances
and surrounded by the same conditions.
Looking back upon the situation at the
time the acts of 1862 and 1864 were passed,
huntington said he would unhesitatingly
say that he never contemplated that the
Union Pacific and Central Pacific should
form one continuous connecting line, to
be operated without being permitted to
make connections or arrangements for in
terchange of traffic with any other COM
pany which should compete for a common
traffic. Proceeding to the practical ques,
ton before the committee, the great debt
which is coming due, Huntington said he
had been in business sixty years and had
always paid. 100 cents on the dollar. He
wanted to do so now.
He had nothing to apologize for in the
construction of the Central Pacific and he
did not appear before the committee ask
ing equities or eulogies. He only asked.
in behalf of the Central Pacific. tnat Con-
gress should treat the question of a set
tlement with the Government on business
principles. He recommended that the
company pay as much interest currently
as the road could earn over its fixed and
operating expenses other than the Gov
ernment claim, as all others than the
Government claim were, he contended,
perfectly good, there being little or no
the United States every six months fixed
sum until the whole indebtedness, both
principal and accrued interest, has been
paid. AS these payments were made the
amount due the Government would be
steadily diminished, while the property
would naturally continue to increase in
value. The company was willing to do all
it could; no corporation could do more
Continuing on this line, Huntington
said he had hoped the Government would
take n per cent interest on the Central
Pacific debt and require certain fixed
sum to be paid annually or semi annually
until the whole amount. comprising the
original principal and all back interest
had been fully satisfied. In doing this he
should consider that the company had
done well by the Government, in view OF
the fact especially that the road had
received SO little from the Government
business sent over it, compared with what
was expected. Mr.. Huntington referred
to the early, completion of the Central Pa
cific-seven years before the time allowed.
The Government gave freely to the
Northern Pacific and the Atlantic and Pa
ciic land which was of greater value than
the bonds and land granted to the pioneer
roads.
The Government, he continued, must
have realized that in doing this it was
deliberately destroying or weakening the
security it had on the Central line, for the
reason that it was taking away much of
its earning power from which alone the
Government could expect return of the
money loaned.
In conclusion Mr.. Huntington said he
had faith in the committee to believe that
in the proposition it would lay before
Congress it would not put upon the Gen.
trail Pacific burden greater than it could
bear. No man or set of men, Huntington
believed, could do as much for the Central
Pacific in clearing off its obligations as
could its builders. The record OF the road
was clean, despite the cries of the noisy
few who, like iackals, .howled along it's
tracks; and the great mass of people OF
California knew and appreciated the great
ness and value ofsthe work the Central
Pacific had accomplished. The company
had never failed to fulfill all It's contracts