The herald., 1896-02-21
ALONG TIE RAILROAD Lines
Huntington Still Testifying Be-
fore the Senators
UNION PACIFIC SCHEMES
The Attorney General Is Asked to Give
Information
Rates Fixed for the q. A. R. Encrmpment to
BE h:ld at Minneapolis
Railroad Notes
UNION PACIFIC SCHEMES

Quoting. The questions submitted today
were based largely upon the report on The
Pacific roads made by the Pattison COM
mission, but Mr.. Hunting on said he did
not remember to have ever read this re-
port. He said the Central Pacific had
been built upon assets amounting to $4O,-
100000, of which sos 100000 consisted
of government bonds, but that it had cost
more, for all the the securities which were
sold for less than par in currency and with
the proceeds gold was purchased, which on
all average cost about 81 in currency for
each 60 cents worth. 1t was necessary to
Use gold for all transactions on the Pacific
coast when the road was constructed.
He admitted that he. Hopkins. Stanford
and Crocker were the members of the con-
tract company, but said that they took up
the construction work because they could
get no one else to do it. When the organi-
zation of this company was under con-
sideration, he wired Crocker, saying:
"Take as little of the stock as you can and
as much as you must"
When the work was completed the con-
tract company owed about l0,0O0,O0O,
and, although it received S50.000,000 in
Central acitlc stock, its assets would not
have paid it's debts. The company, how
ever, came out ahead in the end by holding
the stock until its value increased. He
declared, however, that he could not re-
member what the profit was to the COM
pany or to its individual members.
Mr.. Anderson, receiver of the Union Pa
cifc railroad, and ex-Congressman
Coombs, government director, appeared
before the house committe on Pacific rail-
roads today. They asked that the Union
and Central Pacific roads be put up for
sale as a whole and given to the highest
bidder. Anderson submitted an amend
ment, giving additional safeguards to the
government. The proposition to sell the
properties in two separate parts was not
good. They should be sold as a whole,
and in that way would bring much higher
price than otherwise. All propositions for
any proposition other than the sale, he
said, would meet with opposition from
congress, for however meritorious they
might be it was impossible to secure
unanimity of opinion from so large
body.
Coombs agreed with the proposition that
the roads should be sold together aud carry
the original plan. There should be a
through line from the Mississippi to the
Pacific. The government would probably
obtain S75 100000 from them.
INF FORMATION WANTED
WASHINGTON, Feb. 20.-In executive
session today the commitsee on Pacific
railroads adopted resolution calling on
the attorney-general to advise the commit
tee on the following points:
First-Whether the president and direc-
tors of the Union and Central Pacific rail-
road companies are personally liable for
the value of the stock of said companies,
uuIawfully issued under their administra-
lion.
Second VIII ether they are personally
liable for losses incurred by said compa-
llies in construction contracts made with
themselves or persons representing them,
AS reported by the Pacific railroad COM
mis- ion.
Third Whether such liability, if it ex-
lists, can be- enforced by the United States
as a creditor of the said corp ralions, and
whether the findings of said railroad COM
mission are based upon evidence legally
admissible against the parties in interest
and sufficient to sustain decree against
them.
The purpose of the resolution is to secure
an expression from the attorney-general as
to whether action against the president and
directors of the Union and Central Pacific
would be for recovery in order to ascertain,
if congress should decide to foreclose its
mortgage, whether it could secure from
the directors or their estates the difference
between the amount realized on the mort
gage and the amount due.
A RATE WAR POSSIBLE
CHICAGO, Feb. 2O.-WOrk of reorganz-
ing the Western Passenger association has
now been completed. 1t was announced
today that on March lst next the agree
ment would be in effect from Chicago to
Ogden and Spanish Fork. The II o Grande
Western, the Denver aud Rio Grande and
the Colorado Midland will be in full men,
bersh p. All of the lines between the Mis-
souri, river and Colorado common points
will go out of Idaho and Montana business
in either direction via Colorado common
points and Ogden. The effect of this will
be that business between the Missouri
river and Montana and Idaho via Colorado
common points and Ogden will be routed
over the Union Pacific system. On Its
part the Union Pacific will maintain rates
between Idaho and Montana and Colorado
anG Utah, and will refrain from any prac-
,tices likely to demoralize Colorado Utah
rates.
serious quarrel has broken out among
the transcontinental roads over the divs-
ion of what are known as circle rates. that
is, rates going by one route and returning
by another. The origin of the dispute is
the refusal of the Illinois Central to accept
lower proportion on tickets reading from
Chicago to San Francisco via New Orleans
and returning via Portland and ST. Paul.
than on tickets returning via the direct
routes from San Francisco. Its refusal in
this respect leaves little or nothing for the
roads from st. Paul or the Missouri river
to Chicago They declare that the Illinois
Central should not be allowed to sell Pa
ciic coast tickets at short line rates via
New Orleans, but it persists in doing SO A
rate war may be the final result of the con-
troversy.
GRAND ARMY RATES
ST. PAUL, Feb. 20.-A telegram from
Commandcr-in-Chief Walker of the G. A.
r., this afternoon, in answer to q message
from the local committee, notifying him
that the Wisconsin Central, Chicago and
Great Western, Minneapolis and st. Louis
and the 500 railroads had agreed to
cent rate for the annual encampment,
states he will promulgate the order declar-
ing the encampment will be held in st.
Paul, and fixing the exact dates.
THE VALLEY ROAD
STOCKTON, Feb. 20.-The Valley railroad
bridge over the Stanislaus river, which has
been delaying work on the line. will be
opened for travel on Monday, and track
laying will be resumed the following day.
Tfains are made up, ready to start out on
ths line as soon as the bridge can be used.
and the work will be pushed along.
THE SOUTHERN PACIFIC INJUNCTION
SAN FRANCISCO, Feb. 20.-The hearing
OF the injunction suit of the Southern Pa
cific company against the board of railroad
commissioners, which was to have been re-
sumed today, was continued until Tuesday,