The record-union., 1896-03-07

Huntington said that the money, or {
portion of it at least, was borrowed OF
the Government bonds until the com
pany could sell them.
The General Government, then, an6
not you,' said Mr.. Morgan, put up the
money. You stocked the finance and
construction company on the credit ol
the United States?"
1--WE put in what could not be bought
to-day for five Millions" said Mr.. Hunt
ington. Our money and our time
But" urged Morgan, chow much in
money of your private means did you
put IMP
Il don't remember, but always enough
to pay its debts,' was Mr.. Huntington s
reply but we could not have built the
road without the aid of the first mort
gage bonds
Mr.. Huntington again took issue with
the representative of the Pacific Rail-
way Commissioners, and declared that
their conclusions were wrong He did
not know where the Commissioners
wherever it was found the conclusions
were erroneous.
Reverting to the financial condition
of the road again, Mr. Huntington said
that no dividends were declared until
the road was out of debt The yearly
dividends of the road amounted to
about 10 per cent.
: Morgan asked Mr.. Huntington why
the company did not take the 10 per
cent. dividends for period of ten years
and by funding in this way pay off the
first mortgage bonds.
Mr.. Huntington denied that the 10
per cent. dividends extended over a
period Of ten years; later conditions
caused a reduction in the dividends.
why did you not" Morgan asked
put any dividends that were declared
into sinking fund to pay off the Gov
ernment debt?"
Mr.. Huntington replied that the stock
holders were entitled to the dividends
The company wanted to fund enough
of it in this way so that it could have
paid the debt when it fell due, but
Congress would not let them do that.
Senator Morgan, pursuing this line
of examination, asked if there were not
enough dividends declared to aggregate
at least two-thirds of the first mort
gage on the Government debt had they
been funded.
Mr.. Huntington replied that that
would not have been wise. The share
holders were entitled to their dividends.
Mr.. Huntington was proceeding with
an argument on this line, when Senator
Morgan called halt, saying he did not
care to hear review of witness life
hi
tory" said Mr.. Huntington. Il am
perfectly satisfied with that, Senator
Morgan. I have been trying to tell you
all I know. We have done just what
the law required through all this bust
ness.
''The Finance and Contract Company
only sold it's Central Pacific stock" Mr..
said, when it began to ap-
preciate, and for the purpose of paying
its debts, which amounted to between
$9,000,000 and $12,000,000"
Mr.. Huntington was proceeding to
describe the prices that Central Pa
cific stock had brought at various
times, when Senator Morgan suggested
that the stock might have been manip-
ulated.
THAT stock has never been manipu-
lated. and that is not proper word to
USE" Mr.. Huntington said with some
warmth.
Mr.. Huntington stated that he now
held probably something less than 5000
shares. He had sold Central Pacific at
10 cents on the dollar that was paying
a small dividend
In answer to further questions, he de-
clared that he had not done so to break
the market, nor had he given instruc-
tions to his broker to sell it as low as
possible. Upon a repetition of the ques-
ton whether he did not sell it in order
to break the market, Mr.. Huntington
said he never tried to bear
the market.
Then why did you sell dividend-pay-
ing stock at 10 cents?" asked Morgan.
ITO pay my debts"
ITO whom were you in debt?"
'To those from whom had borrowed
money"
And who were they?''
Those who had let me have the
money"
The committee then took a recess
until tomorrow morning at 10:30
o'clock.