The record-union., 1896-02-15

| business. The records showed that the
Southern Pacific and its ocean connec-
/ tlons to New York had secured the
greater part of their increased business
! by driving off the ships that had been
/ carrying freight around the Cape, but
had taken very little business that
would have gone by the Union Pacific.
This business was taken at a small
profit, which the company was able to
do because of the use of its water line.
All of the overland roads were parties
| to the agreement to purchase the ton
mage of the steamship lines. The OBJ
! ject of this was to keep prices steady
SO as to keep out of bankruptcy.
He denied, in response to question
! by Morgan, that this was done in order
! to force the Pacific Coast to use the
overland railroad lines. There was, he
said, no attempt to monopolize the
freight of the Pacific Coast.
Morgan urged that Mr.. Huntington
state to the committee the differences
between the rates charged by the
steamship lines before and after they
made the agreement with the overland
roads.
Mr.. Huntington could not give these
contract had been deposited with the
Interstate Commerce Commission.
After some discussion, Mr.. Hunting
ton was notified to appear before the
committee with a copy Of the contract
and be examined thereon.
Mr. Huntington, continuing his state
ment on the roads in general, said the
Union Pacific had itself initiated the
4
which was owned by the Union Pacific,
and by charging excessive rates on
business done for the Central Pacific.
while the Central Pacific had stood by
the Union Pacific on all through busi-
ness, when it could do so without det-
riment to the public.
Senator Thurstons bill. which con-
| templated a consolidation of the Union
Pacific and Central Pacific, would, Mr.
Huntington believed, be injurious to the
interests of the owners of both lines.
Such a combination would force the
extension of other lines west Of Ogden.
No possible advantage could accrue
to the Union Pacific through the prop
osition of Senator Thurston. The Cen
trail Pacific would continue to pay all
its debts and maintain harmony among
the lines centering at ogden. The
! question before the committee was
whether this road oyer the desert
should be used as a bridge for all the
roads entering Ogden, or only one of
| them So far as the rates were con-
cerned, they We're, he emphasized, as
lew as on any other road in the world
under the same circumstances and sur
rounded by the same conditions.
Proceeding to the practical question
before the committee of the great debt
which is coming due, Mr. Huntington
said he had been in business sixty
years, and had always paid 100 cents on
/ the dollar He wanted to do so now.
He had nothing to apologize for in the
construction of the Central Pacific, and
he did not appear before the committee
asking equities or eulogies. He only
asked, in behalf of the Central Pacific,
that Congress should treat the question
of a settlement with the Government
on business principles. He recon-
mended that the company pay as much
interest currently as the road could
earn over its fixed and operating ex
penses. other than the Government
claim. as all others than the Govern
ment claim were, he contended, per-
I
floating debt, and pay into the treasury
of the United States every six months
fixed sum, until the whole indebtedness,
both principal and accrued interest, has
been paid AS these payments were
made, the amount due the Government
would be steadily diminished, while the
property would naturally continue to
increase in value. The company was
willing to do all it could; no corporation
could do more.
Continuing on this line, Mr.. Hunting
ton said he had hoped the Government
would take one-half per cent interest
in the Central Pacific debt, and require
certain fixed sum to be paid annually
or semi-annually until the whole
amount, comprising the original prin-
cipal and all back interest, had been
fully satisfied. In doing this he should
consider that the company had done
well by the Government, in view of the
/ fact especially that the road had re-
ceived so little from the Government
business sent over it, compared with
what was expected.
Mr. Huntington referred to the early
completion of the Central Pacific, seven
years before the time allowed. The
Government gave freely to the North
ern Pacific and the Atlantic and Pacific
land which was of greater value than
the bonds and lands granted tosthe pio-
neer roads. The Government he con-
tinued, must have realized that in doing
this it was deliberately destroying or
/ weakening the security it had on the
Central line, for the reason that it was
taking away much of it's earning power
from which alone the Government could
expect a return of the money loaned.
In conclusion, Mr.. Huntington said he
| had faith in the committee to believe
| that in the proposition it would lay be-
fore Congress it would not put upon the
Central Pacific burden greater than it
could bear No man, or set of men, Mr.
Huntington believed, could do as much
for the Central Pacific in clearing off it's
obligations as could its builders. The
record of the road was clean, despite
the cries of the noisy few, who, like
jackals, howled along its tracks; and
the great mass of people of California
knew and appreciated the greatness
and value of the work the Central Pa
cific had accomplished. The company
had never failed to fulfill all it's con-
tracts with the Government, with
States and with individuals.
In response to a question, Mr.. Hunt
lington said it would be the worst thing
the Government could do to sell out the
Central Pacific. II would rather" he
said, "have it arranged for US to pay a
fixed sum every year, with the agree
ment that if, at the end of any six
months, we failed, the Government