The San Francisco call., 1896-02-18
next meeting of the comm ittee. The COM
mlttee thereupon adjourned until to-
morrow morning.
UNEASY ON THE GRIDIRoM.
huntington Forced by Morgan to Make
Admits Sious.

facts. He had a small memorandum book
nlled with notes. He seemed to take
Keen delight in torturing his victim.
Huntington would affect an air Of wounded
dignity and again of indignation.
When Morgan drew from his desk the
memorial adopted at the convention in
San Francisco and questioned him about
fraudulent transactions of the Contract
and Finance Company, he grew quite in
dignant and repelled the insinuation of
| fraud made against Stanford, Hopkins,
Crocker and himself. He said the fact that
Adolph Sutro and others "of that stamp
participated in this convention and in pre-
pairing the memorial making such allega-
tions would be sufficient proof OF their
falsity to those who were acquainted with
the character of these men.
Morgan questioned him closely about the
cost of constructing the Central Pacific.
"Now, Mr.. Huntington, this road did
not cost as much money as claimed. Your
directors diverted part of the funds did
they not2 What did you do with the
money? You cannot show that you ex-
pended it in constructing the road, can
you?"
After repeated questions of this charac-
ter, Huntington was forced to admit that
there was $4,000, 600 which could not be
accounted for.
"Yes, and you got that and a great deal
more, didn't you?'' asked Morgan.
Mr.. Huntington moved uneasily in his
chair; his features twitched, he clenched
his hands convulsively and looked appeal
ingly at other members of the committee.
Senator Brice came to his relief.
81 object to this mode of cross-examina-
tion," declared he; "Mr. Huntington is
not on trial here. The alleged fraudulent
transactions of the Contract and Finance
Company or of the Central Pacific di-
rectors or stockholders is not germane to
the question before US. This is business
proposition and this line of questioning is
uncalled fer"
Senator Morgan replied: 81 differ with
the Senator and think it is pertinent to
the matter at issue, whether these direc-
tors defrauded the Government. At least
| am the custodian of my own conscience,
and [ want to bring out the facts, that we
may arrive at a conscientious conclusion
in dealing with this important question. p"
Morgan then asked numerous questions
about the officers and organization OF the
Southern Pacific, Central and Union Pa
citic and Oregon Short Line. To many of
these questions Huntington replied, II
don't know; really cannot rememb ber"
Then, why don't you bring before US
some of your agents who do know some
thing?" demanded Morgan.
Brice again objected, but Morgan was
persistent, and handled Huntington as a
cat would worry a rat. He inquired about
some OF HuntinSton's steamships, and
how they were built and what they cost.
When Huntington explained that half
cash had been paid for them, Morgan de
manded to know why he had issued bonds
for half cash, what ne did with the pro-
ceeds of one-half the bonds, was it di-
verted?
81 object to this, Mr.. Chairman" said
member, but Morgan soon went after
him again. In response to one question
Huntington said he thought there was no
traffic agreement at present between the
Southern Pacific and Canadian Pacific
Railroad.
Il don't know, though, for certain"
said he.
What do you known" asked Morgan.
"You seem TO know very little about your
own business"
Huntington denied that the Southern
Pacific line from San Francisco to Portland
enabled it to compete with the Oregon Short
Line for traffic from the East 10 the North
Pacific Coast, saying: at is good deal
farther to the North Pacific Coast by our
line than the Oregon Short Line and ship
pers usually take advantage of the shortest
route. We cannot compete with them
very well''
Morgan again returned to his questions
about the contract and finance company
and Huntington got nervous again and
looked around appealingly.
Senator Frye this time came 20 his
rescue. He said that the question of
stockholders liability and of whether, in
case stockholders had defrauded the Gov
ernment, they should be pursued with
reference to that liability, was one for
court To decide.
Morgan held his ground and replied
that it was his duty to satisfy his con-
science as to whether the question was one
that could be disposed of in that way.
Senator Morgan, taking UP pamphlet,
said:
Mr.. Huntington, l have here number
OF statements which, if true, would be
damaging to you personally and to the
interests you represent. / come from
State which has no feeling in this matter
one way or the other. / shall put these
allegations to you in the form of questions
and give you an opportunity, which you
will no doubt be glad to have, of admit
ting or denying them according to the
TRUTH
In the questions that followed Hunting
ton denied that the stockholders were
liable under the State law of California,
and his counsel rose to say that this ques-
ton as involved in the Stanford case
would soon be determined by the Supreme
Court.
Points which Huntington admitted prac-
tically without reservation were that
Huntington, Hopkins, Stanford and
Crocker did own the Central Pacific and
were those who constituted the contract
and finance company: also statements
contained in pamphlet about the amount
of land which came into tie hands OF the
Central and Southern Pacific corporations
as subsidies, with special reference to tide