The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-29

cifc from 100000 to $4,000 year had
been caused by diversion of traffic to the
Southern Pacific road.
Hilborn stated that he thought Tweed
had conveyed a false impression concern
ing the character and value of the railroad
lands by stating that most of the land was
arid and mountainous and asked if a very
large portion of the railroad grant land
was not at least claimed to be very valu-
able for their minerals, and also asked st
what value the lands were held by the
company and what had been realized from
the sale of land up to this time.
Tweed replied that many contentious
had been made concerning some of the
land of the company, but that he had not
come prepared to answer any questions
concerning those matters, and. therefore,
could not throw much light upon them.
At this point MIR. johnson said:
"Mr. Hilborn, have introduced bill
securing to the miners more chances than
road company for mineral lands, and hope
you will help me pass the bill"
Hilborn replied: s'Phat looks like con-
fession that the miners have not hereto
fore had fair chance"
Johnson retorted: "Oh, no, that don't
follow at all, but my bill will give them a
better chance"
Mcguire then, by leave of the commit
tee, proceeded to cross-examine Tweed
concerning the Central Pacific's PROPOSE
tioDs, its alleged new securities and it's re-
lations TO the Southern Pacific Company
Of Kentucky. Tweed admitted, in reply
to Maguire's questions, that the Goshen
and Lathrop road was Elortgaged to the
extent of about $4,000 per mile, and that
the mortgage would be prior to the Gov
ernmenJ's mortgage under the e-funding
arrangement.
He would not admit that the road was
worth less than $50, 900 per mile and did
not know that new and better broad
gauge railroad is now being built through
the San Joaquin Valley at cost of $4,000
per mile. He admitted that the Oakland
terminal facilities were subject as a first
lien to $4,000, 600 blanket mortgage of the
Central Pacific Railroad and that the mort
gage would be prior to the Governments
claim under the re-funding scheme. He
also admitted that the road from Niles to
Oakland is specially mortgaged at $50, 900
per mile independently of the blanket
hiOAbSd6Cs AlC d1SO dOulbtCu L1dL lub OdI-
ifornia and Oregon road between Roseville
and the State line is mortgaged for at least
100000 which would also be prior to
the Governments claim.
Tweed having stated that the California
and Oregon road was built by local com
pany and afterward acquired by the Gen.
tral Pacific by purchase. Mcguire pro-
ceeded to cross-examine him on that point,
stating that the report of the Pacific Rail
road Commission showed that at least the
northern half of the road had been built
by the Contract and Finance Company,
consisting really of Messrs. Huntington,
Hopkins, Stanford and Crocker, under
contract with the Central Pacific Railroad
Company, and that they had paid them
selves for the building of roads $8, 400 600;
whereas the construction of the road had
cost them only $3,5O0,000 and had then
mortgaged the branch road for S11 400. 900.
He asked Tweed i'll that part of the report
OF the Pacific Railroad Commission was
not true.
Tweed said that part of the report. he
thought, could not be true.
Johnson objected to this line of question
ing by Mcguire on the ground that it had
AONAAA5 W w Win bhC Al4oIlcT DCHulQE De-
fore the committee.
Mcguire said: II think the questions
are pertinent and material. These people
are offering alleged additional securities
to the Government as an inducement to
an extension of credit. / want to show
that the alleged additional securieties are
worthless because they are already mort
gagged far beyond their value.'
Johnson replied: "They have made no
such offer. as understand it,
Mcguire proceeded to question Tweed
about the lease of the Central Pacific
Railroad to the Southern Pacific Com PAW,
showing that the Southern Pacific Com
pany by lease controls all the lines o
raj lroad running to or from California be-
tween Siskiyou Mountains and Tehachapi
Pass, and asked him if he did not think
the monopoly of traffic of that region by
single company-if the re-funding
scheme should be carried through
would enable that company to charge
higher rates for transportation than could
be charged if the Central Pacific Railroad
T.It..