The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-02-19

Relations of the Central and Southern Pa
ci6c Roads are the Subject of Inquiry,
Especially Directed by Senator Morgan
Huntington Does Not Admit That He
Starved the Central to Feed the South
ern Pacific and Denies That He has
Made the Millions That He is Credited
With-Money Sunk Out West.
Washington, Feb. 1S.-When the af-
ternoon session of the senate Pacific rail-
road committee began, Senator Nor
gan was the only member present,
though others came in later. Mr..
Morgan continued his examination Of
Mr.. Huntington as to the connection
of the Central Pacific with its branch
lines in California.
Taking up the question OF govern
ment Indebtedness, Senator Morgan
asked Mr.. Huntington if he consider
ed the interest which had been paid
by the government on the guaranty
bonds part of the Central Pacific debt
10 the government. Mr.. Huntington
replied that he did, that his proposition
was to calculate the entire amount up
to the maturity of the bonds, includ-
ing interest as well as principal, and
count it all as interest. He did not,
however, understand that ne was TO
be expected TO pay interest on interest
He did not think the company could
pay more than two per cent on this
| extension.
Replying to an assertion made at a
mass meeting IN San Francisco, that
| he, Stamford, Perkins, and Croker had
accumulated combined fortune Of
| 5000, 900, 600, he said ii was "a lie as
| was the statement that they had re-
| ceived from city, county, state and na-
ton, property Of four times the amount
| of the cost of building the roads. To
! the charge of extortionate freight rates
! Mr.. Huntington said that the people
| in New Jersey and Delaware were COM
| planning of the competition Of Califor-
MIA fruit because of the low rates made
by his roads. That, he thought, was
a sufficient refuta ton of the charge.
MADE MONEY AND LOST IT.
Senator Morgan asked Mr.. Hunting
| ton how much money he had put into
| these roads which he had not made in
| railroading. This did not bring out
a direct answer, but Mr.. Huntington
told, in this connection, how he had
made a great deal of money in the
! Chesapeake and Ohio, Big Sandy and
various roads in Virginia, West Vir-
! ginia, Kentucky, 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 div
| idend. He thought he must have been
worth a hundred million dollars when
| he began his railroad career, but he
was poorer when the Southern Pacific
work was completed than when he be-
gan, because of the immense debts
which had been accumulated.
Huntington stated that the Southern
Pacific company had agreed to pay ST.
| sec, 900 per year for the lease of the Cen
trail Pacific, but that the earnings in
some years on this line had not been
equal to the rental, and the contract
was changed so as TO provide that the
| amount paid was not to exceed the
| earnings.
Senator Morgan tried to show in this
| connection that the railroad business
which would naturally have gone over
| the Central Pacific was diverted, thro'
| the means of this contract, to the
| Southern Pacific, so as to diminish the
/ Central Pacific earnings. Mr.. Hunt
| ington said competition was very close
| He stated, however, that the business
of the two roads was managed by one
man, Mr.. Stubs, who was the freight
agent for both roads, but while this
was true, shippers were allowed to Sc
lect the road over which they should
ship.
| HUNTINGTON'S AMBITION.
| Senator Morgan then asked if it was
not his ambition to throw all the bus
! mess he could over to the Southern Pa
cific. Mr.. Hunting replied that he had
tried especially to build up a business
/ between California and Europe and he
had directed his effects TO that end.
! The senator also tried to develop the
! fact that Mr.. Huntington, being more
! largely interested in the Southern Pa
cific than the Central Pacific, would
naturally have required the oint Off
/ Gals of the two roads to exercise their
| offices in behalf of the Southern Pa
cific line, but Mr.. Huntington parried
the thrusts and did not admit this to be
| true.
Have you ever really expected that
the Central Pacific could be prosperous
when its builder and guardian was 50
| largely interested in, and the chief ex-
ecutive officer, its principal rival?''
| asked Mt. Morgan.
/ II believe" replied Mr.. Huntington
that the Central Pacific has Jared as
well in my hands as 1t could have Jared
in the hands of any other man. 1 have
never directed any of the active Off
| GERS of the road to divert any business
from the Central Pacic to the Southern
| Pacific
The hearing will be resumed again