The San Francisco call., 1896-01-17
Two Points in the Railroad Case
Wherein the Magnate
Erred.
CENTRAL PACIFIC BOOKS LOST
Strange Disclosures in the Suit Brought
Against the Railroad Commits.
SionerS.

Ex-Judge Daily, who on Wednesday be-
gan reading the voluminous testimony
printed as the report of the Congressional
Committee on Pacific and Aided Roads,
failed to put in an appearance in Judge
Mchenna's courtroom yesterday morning.
Attorney General Fitzgerald was still dis
inclined to undertake the reading, be-
cause, as he stated, the dingy courtroom,
with its miserable ventilation and acous-
tics, did not allow him TO remain in it
more than little while at a time. True
enough, the general spends most OF his
time smoking cigarettes in the outer room,
where there is no steam radiator.
As for ex-Judge Hayne, he covered HIM
self with enough distinction during the
arguments which caused Judge McKenna
to reconsider his first ruling and take un-
der advisement the admiSsibility as evi-
dence OF the Congressional committees
report. He is not a very robust man,
either, and the dark lines beneath his eyes
denote his burning of midnight oil, study
ing up points of law by which, when the
real argument comes, he Will try TO score
a victory Tor the State of California. The
ex-Judge tried most nobly to follow the
reading of the testimony as taken some
eight years ago
He turned his back 10 the faint glimmer
of daylight struggling to get into the
courtroom through the murky windows on
the alley between the Appraisers building
and the Postotfice. Upon his limbs ex-
tended to another chair he held copy of
the Congressional committees report be-
Ing read.
He followed the lines faithfully and
caught the reader in a mistake.
"Engineers!' he exclaimed; mot en-
gines."
True, 1t was engineers" and the ex-
Judge lay back cortented and more than
ever somnolent. He awakened later on.
1t was William H. Anderson, the Assist
ant Attornev-G General, who was reading
the testim Ony. He was the only man
among the counsel for the Railroad Com
mission fearless enough of consequences
10 undertake the task. Tat the reading
had some anesthetic effect on him was
evinced when, at the close of the davis
proceedings, he was asked which particu-
lar point. IN the testimony impressed him
most.
Don't ask me-" he begged. az have
read sixty-hve pages of testimony and that
is all l know. l spoke the words as thew
came to me line after line in the hook
without attempting TO do more than ex-
press them for the court to understand.
10 save myself from berdition ! do not
think l could remem Der their significance
u.
that there are 1900 more pages mapped out
TO be read. which will take up twenty-five
davs in all. l hope that l will not be
called upon to follow up this days ex-
perience."
The testimony of Coils P. Huntington.
partially read the day previous, was again
taken up. 1t ran IN the same vein show
ing the inexcusable extravaganza in the
expenditure incurred by the Central Pa
CHIC while building the road. The items
Tor instance. covering the legal expenses
at Washington during the session of Con-
gress furnished food for much comment.
Besides the acknowledged salaries paid
the regular attorneys for the railroad.
amounting to hundreds OF thousands OF
dollars, other EXPENSES were acknowledged
by the railroad magnate as "incidentals"
These amounts aggregate more than the
legitimate expenses and his testimony ex-
plains them as necessary expenditures to
entertain mem bers OF Congress while
making them understand that the railroad
wanted nothing but what was right and to
the best interests OF the public
In his testimony given before the COM
mittee Mr.. huntington stated MANY ne
culiar things showing the free and-co-easy
manner III which he and his associates
iuggled with the interests of the Govern
ment and the public. One instance is
when the lease of the central Pacific road
was given the Southern Pacific Companv
without submitting the proposition to the
stockholders and without asking permis-
sion OF Congress-
In view Of the fact that the funding bill
Is a pertinent question at this time, a
pretty comparison comes to the surface
Mr.. Huntington, in his endeavor to obtain
an extension of time IN which 20 liuuidate
his Indebtedness to the Government
makes the assertion that the Indebtedness
of the Central Pacific is so great that it
overshadows com pIeteIy the value of the
road. He would like, therefore, to be all
lowed more time in which to place the
road on a paying basis before liquidating
its Indebtedness or turning it over to the
Government.
In a fiat contradiction of this is his state
ment or allegation in the present injunc-
tion suit that the value of the road is more
than its indebtedness.
These are points that will hardly escape
notice later on when the decisive argu-
ments will be undertaken.
At the conclusion of the reading of the
Huntington testimony that Of E. H. Miller
Jr., secretary of the Central Pacific Com
pany. was taken up in full. Nearly four
hours were spent in trying to ascertain
where were the contracts for construction
OF the road entered into by the Central
Pacific Conn pany with the Contract
and Finance Company: the Pacific I'm
provement Company and the Western De-
velopment Company.
The Congressional committee must have
had hard time OF it, judging from the
report as read.
Mr.. Miller could remember nothing about
these contracts excepting that they had
existed. AS to their whereabouts and, in
fact, the whereabouts of the hooks OF these
companies re was in perfect darkness.
The materidlity of these documents be-
comes apparent when it is considered that
the officers of these branches of the rail-
road Office were the very men at the helm
of the Central Pacific Company. The
books and contracts show, it is claimed,
how Huntington, Stanford. Hopkins and
Crocker awarded themselves contracts to
the roads north from Sacramento to Port
land, Or, at the average rate OF $l25,0O0
mile.
Mr.. Miller could not remember whether
the books and contracts had been shipped
TO England.
Among the scores of contracts called for
by the committee Mr.. Miller could pro-
duce but one made between the Central
Pacific, the Pacific Improvement Company
and the Southern Pacific Company, Octo-
ber II, 1886. 1t was for the building of 1C4
miles of road between Roseville and the