The record-union., 1896-03-07
PACIFIC RAILWAY DEBTS.
The Senate Committee Continues Its
Hearings in the Case.
President c. P. Huntington's Exami-
nation Resumed.
The Hardware Firm of Huntington q
Hopkins Separate and Distinct
Business From the Central Pacific
Company-Loaned Money to the
Company just as Any Prosperous
Business Firm Would Do.

Business Firm Would Do.
WASHINGTON. March 6-The Sen
ate Committee on Pacific Railroads this
morning continued its hearings on mat
! ters connected with the Pacific railway
debts. John Rooney of New York pre-
sented for the consideration of the COM
nittee the plan of the minority of the
| bondholders of the Union Pacific, for
compelling a cash payment of the Pa
cific railroad debts to the Government
first and second mortgages), and to in
dividual first mortgage bondholders by
| foreclosure and reorganiza ton, to be
administered by Government Commits
sioners, the privilege to be conferred
on Junior bonds and stocks of the pres
ent companies to retain their interests
by subscribing to the new issues if we'll
secured obligations, whose proceeds are
to be used in paying the first mortgage
and Government debts.
President Huntington's examination
was then resumed. Huntington said
that he had looked over the volume of
the reports of the Government Pacific
Railroad Commissioners given him by
Morgan, and had embodied in type
written form his conclusions thereon,
which he you'd give the committee.
He said the report generally was
wrong. 1t contained so many contra
dictory statements that he is convinced
the Commissioners did not know what
they were saying.
Asked if he had not destroyed the
private papers of Cotton, one of the
shareholders in the Western Develop
ment Company, after Cotton had died
Huntington replied very emphatically
that he had not.
Morgan inquired if Mr.. Huntington
had not framed the contracts for build
ing the various sections of the South
ern Pacific, and the latter said he sup
posed they We're drawn by Judge San
derson, the company's attorney Mr..
Hopkins had managed them, Mr.. Hunt
lngton thought, though they were not
done without the latter's consent.
Morgan then endeavored to establish
the business relationship between Mr..
huntington and Mr.. Hopkins They
were partners in the hardware business.
Mr.. Huntington said, but not in rail-
road transactions. The two enterprises
We're separate and distinct, the only
connection being that they might have
loaned money to the railroads iust as
any other prosperous firm would do
Inc hardware firm had paid, he said.
ABOUT Il per cent. per annum for the
twenty years of the partnership. Mr..
huntington would not acknowledge
that Mr. Hopkins acted as his agent in
the various transactions with the rail
ROADS and construction companies.
morgan wished to know how nucb
money was taken out of the firm and
piaced IN the railroad business.
MT. Huntington said he did not know
he was unable at this day, he said 10
give the details of a business of tbirt,,
years ago.
senator Morgan retorted to Mr. Hunt
lngton that he appeared TO know All
ABOUT everything in his own favor and
nothing against him.
on, no, replied Mr.. Huntington ..T
am trying to give Senator Morgan all
the information of which / am nos
sessed. While he was unable to sta+a
positively, Mr. Huntington said what
ever money was drawn from the hard
ware and metal company and nlacad ~
the railroad company was cbarsad 80
the individual account of those l7,7o - -
u Tor that was the only business wav
in which it cold have been 6ora na.
hopkins was not, Mr. Huntington eaid
q ~ partner OF his in the railway business
W ~ nen ne ulea ne had very little if any
- nls nun ntlngton' 50 property in his
possession. ''i'
Much of the cross-examination of
'lol sdH 9ore upon the business relations
Ol Messfs. Hopkins and Huntington in
az eHort to bring out their personal and
BUSINESS relations outside of the hard
ware anu metal company. Mr.. Hunt
instoh SAID he had money real estate
ana merchandise which he put into the
guiding of the Central Pacific Railroad
lie could hot say how much. but n uas
considerable, always enough to pav tba
debts when they came due.
Morgan pressed Mr.. Huntingdon for !.
specihc answer, stating that general
illes would not Go. II want facts ard
You must give them," said MORGAN
somewhat irritated. IF you do not in.
tend to answer, why don't you sav so9,
am doing the best I can. and Won
must give me the credit of being honest
~ my replles, replied Mr. HUNTINGTON !
AGAIN Morgan pressed for a statement |
as 10 now much money Mr. Huntington |
nad put INTO the construction of the |
fcad tnat was taken from his private
purse.
Mr. Huntington said he furnished |
much of the money, and took the stock |
or bonds of the company. When he |
bought stock he paid for it, and when |
he bought bonds he paid for them. That
was The OI7lu vxyox-
INTO the construction of a railroad.
How much Of this stock did Won /
have?"
had, think, about 1000 shares"
Did you pay up your subscription on
the stock?'
I should probably say that 1 did,
did you?"
I did not pay for it personally, for I 7
was not there. I was in New York. I
suppose, though. that the stock was
paid for in insta1lments'
When asked if he got back the money +
le paid in Mr.. Huntington said he
lid not, but that the Contract Company
got some property in the end when
everything was cleared up.
Mr.. Huntington entered an emphat-
cal denial to Mr. Morgans question
whether the Contract and Finance
Company was not characterized with
he Central Pacific shares Mr.. Hunting
on had That company, he said. or
anized with money. Its capital stock
vas So,0O0.000, but the organizers put
n more than that. Most of this money
vas borrowed on the bonds Of the Cen
raj Pacific.
In response to further questions, Mr..