The record-union., 1896-03-09

the Roads.
WASHINGTON, March S.-senator
Morgan yesterday resumed questioning
Z. +. Huntington in the Pacific railroad
inquiry by the Senate Committee on Pa
cific Railroads. The first question was
directed toward ascertaining whether
the Union Pacific road lost money in
consequence of the diversion of traffic
from the Central Pacific to the Southern
Pacific. Huntington replied that it had
not, as more than 90 per cent. of the
1ranscontinentaI business over all-rail
routes was carried over the Central Pa
cific. He said this matter was arranged
by an understanding as to rates and the
distribution of business among all the
transcontinental lines. He said this
was not pool but a mere agreement
This statement had the effect of di-
Verting the inquiry into the system Of
pooling and the division of business, but
Huntington professed not to be familiar
with the details. He said such agree
ments had been in effect for twenty-five
Years
Huntington asserted that the average
local rates in California were as low as
in any other part of the world, not
withstanding the expense of operating
the roads was proportionately much
greater. He said he never had heard
that freights intended for points short
Of San Francisco had been carried on to
San Francisco, thus compelling ship
pers to pay the freight back to the local
points. There had been complaints
however, of higher rates for a short
haul than for a long haul, but this was
~ doh 10 raf
haul was at tidewater, bringing the
road into competition with the water
traffic He admitted that when the
Central Pacific started first there was
some complaint among shippers along
the line of the road from the East that
they were compelled to pay rates equal
10 what they would be if their goods
were shipped to San Francisco and then
back, and they demanded if such rates
should be charged, the roads should
carry the freight twice.
Senator Morgan asked if the Cali
fOrnia Railroad Commission had taken
cognizance Of this discrimination in
favor of the long hi ul, and Mr.. Hunt
angton replied that the commission had
been elected on pledge to cut rates %
per CEN, but the question had been
taken into the courts and would be set
tied there.
Senator Morgan-You contend, then,
the right Of California to exercise this
authority,
huntington deny the authority Of
the State of California or anybody else
TO take my property without giving me
due consideration. 1 said that even
Congress has not the right to forfeit
my property, and I don't believe it will
Senator Morgan entered into long
examination of Huntington as to rates
on fruit and the distributing of the
business between the two companies
with especial reference to the shipments
to the Mississippi valley markets. Hunt
ington said the greater part of the
fruit shipped to these States from
Southern California was sent over. the
Southern Pacific and the Central Pa
ciflc in preference to sending entirely
over the Southern Pacific, as might be
done, but did not know why it was done.
He could not explain why the Southern
Pacific should receive 54 per cent. Of the
amount paid unless it was because the
Southern Pacific had the expense of
gathering and handling the fruit. Fruit
shipments were expensive because of
the necessity of carrying large quanti-
ties of ice. The green fruit transporta-
tion did not cut any great figure in the
railroad business, he declared.
In reply to questions as to the dis
posal of stock in the Southern Pacific
the Kentucky corporation Hunting
ton said he never sold any of it at any
price.
Speaking of the land grant of the
Central Pacific, Huntington said it
amounted to about 100000 acres. but
that most of it was in Western Utah
and Nevada, and was of but little value.
He said the company had so far real
lied less than $S000,000 on the land
grant. He said that the companies in
which he was interested had received
from the Government in grants about
10000, 600 acres in land.
When Senator Morgan asked what
had been done with the proceeds of the
land sold. Huntington said it had been
used in building up the road. What
else were we to do with it?" he asked,
and added: THE building of the Cen
tral Pacific was the dearest piece of
railroad work ever done in America. .
An interesting episode occurred at
this juncture Senator Morgan was
pressing an inquiry as to what Hunt
ington thought of the Pattison report,
and asked him if in saying the report
was incorrect he meant to impeach the
character of the members of the COM
mittee. Senator Frye protested against
the question. saying he did not thing it
a fair question.
81 don't care what you think it is or
what Mr. Huntington thinks am try
ing to get at" replied Morgan.
7 don't want Senator Morgan to say
that said Frye.
THE Senator has no right to plunge
ia the midst of a question by me ad-
dressed TO the witness. / don't regard
that as petite treatment
7 contend" said Frye, that the Sen
ator has no right TO examine the wit
ness as to whether he impeaehes the
character of any man
Senator Gear. who was presiding, said
every member of the committee was
here on an equal footing. and every
member must be treated with equal
propriety and comfy.
Morgan said that If the Chairman
meant to say that he had no right to
put the question he would appeal TO the
Senate.
The incident dropped with that, and
the examination went on. In reply to
questions Huntington said he had never
kept a lobby in Washington or else
where, in the usual acceptance Of that