The record-union., 1896-02-18

in the Field for the Republican
Nomination for President.
WASHINGTON, Feb. 1.-THE Senate
Committee on Pacific Railroads this
morning resumed it's hearings on Pa
cific railroad matters. F. B. Thurber
OF New York, representing the Board of
Trade, appeared before the committee
and made an argument in opposition to
Government ownership of the Pacific
railroads, and in favor of the adjust
ment of the Government debt on the
best terms practicable. Such an ad-
jUstment, he said. would be an impor-
tant starting point for placing the
railroad interests of the country on
better basis, and would thus have an
important bearing on the entire COM
mercial interests of the country. He
had aided Mr.. Reagan of Texas in
urging the enactment of legislation
against railroad pooling, but experience
and the logic of events had convinced
Mr.. Reagan and himself that the pro-
hibition of pooling was unwise. The
problem was now to eliminate unjust
determinations. Mr.. Thurber has
changed his opinion in regard to pooling,
because the experience of the past eight
years in which pooling has been pro-
1ibited had demonstrated that
greater inequality, more injustice and
more favoritism in rates now existed
than before.
Replying to questions, Mr.. Thurber
said he favored governmental control
of the bonded railroads, but not Gov
ernment ownership.
Senator Morgan asked Mr.. Thurber
if from the beginning Board of Direct
ors were appointed by the President and
confirmed by the Senate and of honora-
BILE character had been selected,
whether he thought the credit mobilier
would ever have grown up in that COM
pany.
Mr. Thurber replied that he thought
the chances for bad management in
creased as soon as the management OF
railroads was taken into politics. The
credit mobilier was largely due to the
Government having had nothing to do
with ownership and management OF
railroads.
Senator Morgan endeavored to get
the opinion of the witness as to whether
the Government or the private directors
were, responsible for the credit mobilier,
but Mr. Thurber either did not know or
did not care to express an opinion.
Morgan pressed his question in vari-
Gus forms, but Mr.. Thurber was in
clined to believe that the Government
directors We're probably no better than
any other class.
Senator Morgan, in his cross -exanin-
alton, was somewhat sarcastic in his
reference to the credit mobilier, and
finally Senator Frye, who had been
growing restless, said curtly: You
would never have had any Pacific rail
road had you not had a credit mobilier.
1t was nothing and is nothing but
construction company, and you have
the same in connection with the Nicar-
aguan Canal. 1t is in every great pub
lie work"
IF I thought so for a moment" re-
piled Senator Morgan, important as
consider that great work, would aban-
den it at once"
Continuing his argument, Mr.. Thur
Der said he believed by a cooperation
of all interests concerned and extending
the time for the payment of the first
mortgage bonds, the Government could
be repaid in fun and something remain
for the stockholders. Mr.. Thurber fa-
vored Frye's bill relating to the Central
Pacific
The committee then took a recess un-
til o'clock.
C. p. Huntington, President Of the
Southern Pacific Railway, was the first
witness at the afternoon meeting. Mr.
Huntington was examined closely and
at great length by Senator Morgan in
an endeavor to show that the CONSOLE
dation of the Southern Pacific and Cen
trail Pacific under one management
placed the people of the Pacific Coast
at the mercy of the combination in re-
gard to transportation rates, but Mr..
Huntington denied that the consolida-
ton would create a monopoly of the
Pacific Coast business.
After spending considerable time in
trying to worry Mr.. Huntington over
this phase of the question, Senator
Morgan produced printed copy Of the
memorial adopted at a recent meeting
in San Francisco in opposition to the
extension of the Government debt of
Pacific Railroads. This memorial was
lergely made up of allegations and
charges against Messrs Huntington,
Stanford, Crocker and Hopkins in con-
nection with the Contract and Finance
Company, which built the Central Pa
cific road.
All the charges and allegations of
fraud were denied by Mr.. Huntington,
who more than once remarked that the
fact of such statements being made by
Adolph Sutro and others whose names
were given was a sufficient indication
of their being false
Finally, at about o'clock, the other
members Of the committee. who had
taken no part in these lines of inquiry,
interfered with a suggestion that while
the examination might be interesting,
it had no bearing whatever on the real
question before the committee, which
was as to the adjustment to be made be-
tween the Government and the Pacific
Railroads.
Mr.. Morgan insisted that he had a
tight as a Senator to have his con-
science informed on the whole history
of the building of the Pacific Railroads,
end said that he would continue that
line of investigation at the next meeting
of the committee.
The committee thereupon adjourned
until tomorrow morning.
INTERSTATE COMMERCE
The Commission Hearing Cases of AL
legged Violation of the Law.