The herald., 1896-03-08
Still Seeking Information From
President Huntington
CALIFORNIA RATES ARE LOW
According to the Statement of the Rail.
road Magna!c
Building the Central Pacific Road Was the
Dearest Raiir ,ad Work Ever
Done in America


WASHINGTON. March s.-Senator Morgan
today resumed questioning c. P. Hunting
ton in the Pacific railroad inquiry by the
senate committee on Pacific railroads.
The first question was directed to ascer-
tanning whether the Union Pacific road
had lost money in consequence of diver
sion of iraffic from the Central Pacific to
the Southern Pacific. Huntington replied
it had not. as it WAS fact that more than
so per cent OF the transcontinental busi-
ness over all railroads was carried over
the Central Pacific. He said this matter
was arranged by an understanding as to
rates and distribution of business among
all t-auscontinental lines. He said this
was not a pool, but a mere agreement.
This statement had the effect of diverting
the inquiry into the systei of pooling and
division of business. but Huntington pro-
fessed not to be familiar with the details.
He said such agreements had been in effect
twenty-five years.
The feature of the afternoon was lively
tilt between Morgan and Frye over the
latter objecting to one of Morgan's ques.
tions as unfair. Morgan was allowed to
ask the question after saying if he was not
he would appeal to the senate. Hunting
ton said SS.OOO,OO0 was received from
road. He denied having kept a lobby any
where, but admitted having paid altogether
about $2,000,O0O to attorneys and trusty
men.
Mr.. Huntington asserted that the aver.
age local rates in California were as low as
in any other part of the world, notwith-
standing the expense of operating the
roads were pIoportionately much greater.
Mr.. Huntington said he never had heard
that freights intended for points short of
San Francisco had been carried on to San
francisco, thus compelling the shippers to
pay the freight back to local points.
There had been complaints, however, of
higher rates for short haul than for a
long haul, but this was unavoidable when
the end OF the long haul was at tide water,
bringing the road into competition with the
water traffic. He admitted that when the
Central Pacific started first there was some
complaint among shippers along the line
of the road from the east that they we're
compelled to pay rates equal to what they
would be if their goods were shipped to
San Francisco and then back. and they de-
manded, If such rates should be charged,
the roads should carry the freight twice.
Senator Morgan asked if the California
railroad commission had taken cognizan nee
of this discrimination in favor of the long
haul. and Mr.. Huntington replied that the
commission had been elected on a pledge
to cut rates % per cent. but the question
had been taken into the courts and would
be settled there.
Senator Morgan You contest, then, the
right of California to exercise this author
ity.
Mr.. huntington deny the authority of
the state of California or anybody else to
take my property without giving me due
consideration. | said that even congress
has not the right to forfeit my property,
and don't believe it will.
Senator Morgan entered into a long ex-
animation of Mr.. Huntington as to rates on
fruits and the distribution of business be-
tween the two companies, with special
reference to the shipments to the Misss.
sippi valley markets. Mr.. Huntington
said the greater part of the fruit shipped
to these states from Southern California
was sent over the Southern Pacific and the
entirely over the Southern Pacific, as might
be done, but did not know why
this was done. He could not
explsin why the Southern Pacific
should receive 54 per cent of the
amount paid unless it was because the
Southern Pacific had the expense of gath
ering and handling fruit. Fruit shipments
were expensive because of the necessity OF
carrying large quantities of ice. The green
fruit transportation did not cut any great
figure in the railroad business, he declared.
In reply to questions as to his disposal of
stocks in the Southern Pacific (the KeIi-
tucky corporation) Mr.. Huntington said he
had never suld any of it at any price.
Speaking of the land grant of the Gem
trail Pacific, Mr.. Huntington said it
amounted to about 100000 acres, but
that most of il was in Western Utah and
Nevada and was of but little value. He
said the company had SO far realized less
than SS 900, 900 on the land grant.
He said that the companies in which he
was interested had received from the gov
ernment III grants about l6,OOO,OO0 acres
in land.
When Senator Morgan asked what had
been done with the proceeds of the land
sold, Huntington said it had been used in
building up the road.
"What else were we to do with it?'' he
asked, and added: 1.-THE building of the
Central Pacific road was the dearest part
of railroad work ever done in America"
An interesting episode occurred at this
juncture. Sena or Morgan was pressing an
inquiry as to what Mr.. Huntington thought
of the Pattison report, and asked him if in
saying the repor' was incorrect he meant
to iInpeach the character of the members
of the committee.
Senator Frye protested against the ques-
ton. saying that he did not think it fair
question:.
II don't care what you think it is or what
MI. Huntington thinks 1 am trying to get
att replied Mr.. Morgan.
II don't want Senator Morgan to say
that" said Mr.. Frye.
"The senator has no right to plunge in in
the midst of a question by mo addressed to
the witness. l don't regard it as polite
treatment"
~ contend," said Mr.. Frye, "that the
senator has no right to examine the wit
ness as to whether he impeaches the char
acter of an yman."
ut is case" Senator Morgan said, ''of
trust and say nothing-a case in which
faith removes mountains"
Mr.. Morgan examined Mr.. Huntington
at length as TO contracts with shippers for
rebates and other purposes looking to dis
ordinations, but he said he knew nothing
about the details of these matters. He
said. however. that the rebate system was
legitimate.
At 40 o'clock Mr.. Morgan announced
he had concluded his examination of MIR.
Huntington, ard the committee adjourned
until next riday.
In closing Mr.. Huntington presented a
statement giving in concise form the facts
which his examination had developed in
regard 10 the cost of building the road, the
resources upon which the work was done
and the difficulties it was necessary to
Ovorcome This statamput contained an