The Pioche weekly record. [volume] (Pioche, Nev.) 1877-1900, 1896-02-20

Washington, Feb. 1.-THE Credit Mo-
bilier scandal figured in the hearing
on the Pacific reorganization question
before the Senate Committee on Pacific
roads to-day, and brought out incidental
reference to the possibility of such a
scandal In connection with the Nicara-
qua canal.
Mr.. F. B. Thurber, chairman of the
National Board of Trade committee on
railroad transportation, was before the
committee, and Senator Morgan was
questioning him about the relative pro-
liabilities of corruption In the scheme
under Government control and under
the management of private individuals.
Reference has been made to the Credit
Mobilier by Senator Morgan, whose evi
dent purpose was to draw from Thurber
an expression of opinion that the Credit
Mobilier scandal could never have oc-
Cured If the entire dictatorship OF the
roads had been composed of men aP-
pointed by the Government, when Sem
ator Frye interrupted to say that the
Pacific roads would never have been
built If there had been no Credit Mo
bilier.
"No more" he added, ethan can the
Nicaragua canal be built without the CO.
operation of some company under the
plans proposed"
"As much as l am interested In the
Nicaragua canal" replied Mr.. Morgan,
II should abandon It's advocacy If
believed 1t to be true that it would be
built under circumstances likely to create
such condition of affairs as grew out
of the building of the Pacific roads.
He added that in the bill which he had
reported at the last session of Congress
1t had been provided that the United
States, Nicaragua and Costa Rica should
have large majority of the directors.
This, he thought, would prevent. any
Credit Mobiiier scandal in that connec-
ton. Mr. Morgan said that he proposed
to find way out of preventing the re-
currence of any such disgraceful state of
affairs in connection with the Pacific
roads, but when Senator Gear, chairman
of the committee, asked how he propos-
ed to accomplish that desirable result,
Mr.. Morgan replied that he would en-
tighten the committee in an executive
session.
Mr.. Thurber read paper in opposi-
ton to government ownership of Pacific
roads. The report upon which it was
based had, he said, been submitted to
the board of trade.
The object of Senator Morgan's ques-
tioning of c. P. Huntington, president
of the Southern Pacific, who was called,
was to bring out the facts as to the abil-
ity of the Southern Pacific and Central
Pacific roads to control the traffic of the
Union Pacific. Mr.. Huntington was in
clined to be evasive, and declared that
the question of rates and competition by
the Canadian Pacific, Northern Pacific
and Atchison, Topeka and Santa Fe
would determine.
Senator Morgan then directed his in
quires to the ascertainment of the trans
portation lines controlled by the South
ern Pacific, under the Kentucky charter
the result being to show that the COM
pany controlled lines through an ex-
change of stock from New Orleans via
San Francisco to Portland. Or, and own.
ed not only line of steamers from New
Orleans to New York but had a bust
ness arrangement from New Orleans to
Europe.
The Kentucky company had, Mr..
Huntington said, issued stock amount
ing to about 500, 100000, but in ex-
change for capital stock in othes com.
panies and not for cash. He himself
had five or six millions of the Kentucky
company's stock, but he thought the
Stanford estate owned more than he.
On the point of individual liability oil
stockholders for the company's debts
Mr.. Huntington said he did not believe
they were liable, "and," he added, "thS
fact that these fellows say we are liable
makes me stronger in the belief that we
are not"
Mr.. Huntington declared that he had
no interest in any of the contracts for
building the Central Pacific, but he was
interested somewhat in the Contract
and Finance company as were his three
| railroad associates, Charles Crocker
| Mark Hopkins and Leland Stanford. He
could not say what the Central Pacific
had cost, but after great deal of ques.
tioning Mr.. Huntington admitted that
the Contract and Finance company had
received all the stock and bonds of the
company for building the road These,
at par value, were worth $I6,ooo,ooo on
their face, and he thought the cost Of
the road was about $So,oooooo or 500
100000. The assets would not, no viewer
have paid the company's debts Mr.