The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-02-21
rHg PACIFIC RAILROAD prsr.
House and senate Committees Trying
To solve the Problem.

Washington City. Feb sa.-E Ellery An
tsersen. receiver Of the Union Pacific. and
Ex-tsongreSsfnan Go1mhs. government 6s-
rector. appeared before the house COM
raittee on Pacific railroads today They
asked that tie Inion and Central Pacific
roads be put M for sale as a whole and
given 70 the highest hi8fer Andersen
submitted an amendment giving additional
safeguards 10 the government IN the bill
presented by him providing for the issue OF
patents 70 the several roads. The Union
Pacific. he said. had used the proceeds ~
the sale Of lands for payment af interest
on bonds What was done with the money
secured from the bonds he did not know.
The Union Pacific was very much misun-
derStecd as TO financial ability. FOR. al
Though Il was insoiyent. il had been able
TO pay every bill for operating expenses
The proposition 70 sell the properties In
two separate parts was not good. They
should he sold as a whole. ard in that way
would bring A much higher price than 9th
erwise All propositions for any other So
luton than sale he said. would meet with
Opposition from congress. for. however
meritorious they might he. il was impoS-
sible TO secure ananimity of opinion in So
large a body.
Coombs agreed with the proposition that
the roads should be sold together TO carry
out the original plan that they should be
through line from the Mississippi 70 the
Pacific. The government wGssid probably
obtain S15 ooa 90 from them. IL might he
well. he thought. for the government TO
protect itself by making an upset price.
II would also be Well to bring these parties
owning terminal facilities into the suit,
in order TO settle the question whether the
terminals should be sold with the road.
1he government should not sell its lien
upon the property. for. though il would
relieve the government, the lines wonld be
left with all their complications. bur II 1t
came TO d question whether the government
should operate the roads. IL would be bet
ter he thought. to surrender all its rights
than to make such an attempt. If we cam
rid ourselves OF these railroad scandals.
the value of our stocks all over the world
would appreciate.
Coombs was greatly irritaied by repeated
questions from Sulzer. which ne thought
were not couched in proper language. and
inquired whether Sulzer was attempting
to buIldoze him. He said he did not think
the government should guarantee the bonds
of the road if sold.
Senator Morgan today continued his ex-
animation of c. r. Huntington concerning
the affairs of the Central Pacific Rail-
road Co. in connection with the nearing
which the senate committee on Paciic
railroads Is conducting. The questions
submitted today were based largely upon
the report on the Pacific roads made by
the Pattison commission. but MIR. Hunt
ington said he did not remember TO have
ever read this report He said the Cen
trail Pacific had been built upon assets
amounting to S44 010,U00. of which $-e,Vn,-
Go consisted OF government bonds. but
that il had cost more, for all the securi-
ties were sold for less than par in cur
rency and with the proceeds gold was
purchased which on an average cost about
81 In currency for each 90 cents worth,
1T was necessary 10 use gold In all trans
actions on the Pacific coast when the
road was constructed He admitted that
he Hopkins Stanford and Crocker were
the members Of the Contract Company,
and said they took up construction work
because they could get no one else to do
it, When the organization of this COM
pany was under consideration he wired 10
Crocker saying: Take as little of the
stock as you can and as much as you
must" When the work was completed
the contract company owned about Slo.-
00e. 600, and. although II received $3o.00o,Mo
in Central Pacific stocks. its assets would
not have paid its debts, The company,
however came out ahead In the end by
holding the stock until its value Increased.
lie declared. however, that he could not re-
member what the profit was TO the compa-
ny or TO its Individual members.