The San Francisco call., 1896-12-30
DOYLE ARRA|GNED
c. P HUNTINGTON
The Anti Funding Memo
rial Has Been Com
pleted.
All the Alleged Iniquities of
the Central Pacific Re.
vived.
Liberal Contributors Made to the
Fund for Sending Agents to
Washington.

The committee of fifty met at Mayor
Sutro's office in the City Hall yesterday to
hear the reports of committees selected to
raise funds and make other preparations
to fight the funding bill. There were
present: Mayor. elect Phelan, Mayor Su-
tro, James Barry, Thomas f. Barry, A. S.
Barny, 6. w. Monteith, Max Pepper,
John Button, George M. Coward, Judge
Thompson and Frank P. Sullivan.
The following subscriptions to the fund
were reported: Mayor elect PheIan $500,
Examiner $500, George K. Fitc.4 $100, Max
Pepper $100, Mr. Button $100 and Frank
Sullivan 5000.
The chairman OF the finance committee
was given full power to disburse the funds.
1t was announced that Hon. Charles Sum-
ner will soon leave for Washington as the
committees representative, and that
Mayor-elect Phelan may go alter he is
installed in office.
The memorial to Congress prepared by
John +. ID oyle was com pleted yesterday
afternoon, too late TO be submitted to the
meeting. Il bears this title: The Gen.
trail Pacific Railroad. Debt-California'
Remonstrance against Refunding 1t, and
consists of pamphlet of twenty-nlne
pages, comprising about 20 600 words,
After referring to the more than gener-
Gus policy of the Government in the mat
ter OF subsidy bonds and land grants to
the Central Pacific Railroad Company the
memorial says:
involved are asked under false pretenses, the
d1s1ngenuousness of which should forbid en-
tertalning the proposal. The demand for time
to pay is based on the suggest ton OF poverty
on the part of the debtor, whose earning
power it is said cannot reach beyond the pit
tance proposed to De required by the pending
pill, but the pretense OF poverty is entirely
false. The Central Pacific Railroad Company
is paying dividends TO its shareholders to-day,
with promise to double them as soon as the
bin passes, and it has very large means, money
claims, which should be called in and applied
to the payment of its debts. Some of the Sc
are as follows:
Claims against its former directors and man
ayers amounting to many millions for misap-
proprianon of its funds and property by means
of fraudulent contracts and dealings with
themselves through the disguise OF construc-
ton companies: the Contract and Finance
Company, the Western Development Com
pany, etc.
Claims of great magnitude against the South
ern Pacific Railroad Company, its successful
rival in business.
Claims against its directors for fraudulent
mismanagement whereby its revenues have
been impaired for their own benefit.
1t is shown how, by the ''acquiescent
cooperation" of Mr.. Searles, who married
Mrs. Hopkins and inherited her Southern
Pacific Company stock. G. P. Huntington
secured control of the corporation, and
continues:
Being a Kentucky corporation, the Southern
Pacific Company organization is not governed
by the laws of this State, wherein its business
lies, and the proportional represen tation of
stockholders in the direction allowed by Cali
fornia law has NO place. The other parties in
interest are therefore indebted 10 the consid-
GRAFTON OF Mr.. Huntington for their positions
in the board, and must dance TO such music
as he sees fit to play. He is the president of
the company and is no King Log. He con-
trolls everything, and is to all intents and pur-
poses the company.
Returning from this necessary introduction
of the characters we come to the gigantic
fraud on the Central Pacific Company, perpe-
trated by its managers in 1880. 1t consisted
essen TALLY in using the credit and means of
that company to build for their own benefit
The Southern Pacific road as a rival line, de-
signed and calculated to destroy the value of
the Cenuall
How this was done is related in detail
1t is stated that Southern Pacific Railroad
bonds to the amonnt of $4,000, 900 were
sold at an average price OF 90 per cent of
cifc and that $l0,000,0 900 worth of land
was granted to the comp pany by Govern
ment. "All these large sums" says the
memorial, should be accounted 10 the
Central Pacific Company as the fruits OF
the fraud" 1t continues as follows:
Thus the dishonest directors of the Central
Pacific road procured the means for construct
ing the Southern Pacific, which by its shorter
mileage between the oceans, its easier grades,
and the preference given 1t in the routing of
freight has been almost the ruin of the Gen.
trail Pacific. To ensure the disastrous result,
however, the managers determined to cut off
its local freights also, and to this end con-
structed lin the names oil companies ultimately
consolidated with the Southern Pacificl a sub
stantially parallel road through the San
Joaquin Valley on each side OF the Central,
ready to intercept every pound OF freight ap-
preaching it on either sidel
Other important excerpts from the
memorial follow:
To pay dividend of per cent on the stock
OF the Central Pacific Company requires $672,-
q slip in bookkeeping or to be easily concealed
under some general head. And the question
whence comes the money wherewitn they are
paid is not without impor tance.
Denied authoritative information as to the
motives for or the source of this extraor-
dinsry dividend which was paid TO the stock
holders without being earned by the company,
declared by the board of directors or show on
the books OF account, we are driven TO conjec-
ture; and the suggestion arises that they may
be paid by one or more OF the guilty directors
the dissatisfied stockholders and pass
ing the refunding bill. This conjecture
is not without probability, and If
accepted, public opinion will not be
apt to hesitate long as TO the name of the dis
tributor OF such lavish largess or in conjec-
turing its motive. settlement made with
the United States, embodied in an act of Con-
gress, which at the same time condones so
many and such moDstrous frauds, insures his
Southern Pacific Railroad for eighty-eight
years against the competition of the Central
Pacific road, and gives TO his dishonest ninety
nine years lease the sanction of the law of
the land, may well be worth double or treble
the sum required to pay these dividends-say