Democratic Sentinel, Volume 11, Number 35, Rensselaer, Jasper County, 30 September 1887 — CENTRAL PACIFIC. [ARTICLE]

CENTRAL PACIFIC.

J. P. Huntington Says the Government Owes the Company $2,000,000, and Will Not Pay. Che Magnate Explains How Money Was Used to Influence” United States Senators. [New York telegram.] P. C. Huntington appeared as a witness before the Pacific Railroad Commission on Friday, and the examination into the different letters sent to Mr. Colton was entered upon. The first was in relation to having convinced a • certain Senator from Florida of the advantages of the Southern Pacific Road to the Gulf States. The witness did not know whether it was Senator Jones or Senator Conover he referred to. He knew both gentlemen personally. The next was relative to having a California Senator friendly to the road. Nothing pould be extracted from Mr. Huntington on this head, except that Mr. A. A Sargent, whose name Mr. Anderson mentioned, would have been a most admirable man for the position. He was well and able, and above suspicion. Following this came a letter commenting upon the advisability of purchasing Senator Jones’ (of Nevada) road, the Los Angeles and Independence, so as to induce him to favor the Union Pacific and Northern Pacific Railroads’ sinking fund bill. He bought the road, which cost $716,000, for $200,000. Jones was hard up, and witness knew it would make Jones take a greater interest in the Pacific roads if he took the other one off his hands, so he took it. Another letter brought in Mr. Huntington’s opinion of socialism and the Congress of 1878. “This Congress is an agrarian camp. It is composed of the worst body of men that ever got together in the country.” “Do you recognize your sentiments in that passage?” asked Mr. Anderson. “Well, of late years I have remarked that there has been a considerable influx of these anarchists and socialists into public places. They can not make money themselves honestly, but I have remarked that $5,000 is a great deal to them, and they will do a lot for less.” Mr. Huntington then entered into another explanation of how money could be legitimately spent in influencing Congress. Mr. Huntington knew nothing about the books of the Contract and Finance Company. He knew that after building the Central Pacific the company’s debts weie big and its assets nothing but Central Pacific stock of less value than the amount of its debts.

“I never kept the books of the company, and carry most of my own business memoranda under my hat,” said he, “and they very seldom mislead me.” The witness went into the methods and men employed in starting the Central Pacific. Every one went in at his personal solicitation. Only good, honest, thrifty men were taken in, like Gov. Stanford and Mr. Crocker. “The Government took away our power of repaying them quickly when it subsidized parallel lines. That was not our fault. We have fulfilled every obligation to the Government. It is they who have broken the contract. The expenses at one time were enormous. Freight, insurance, provisions, everything, was high during the war. Materials had to be shipped around Cape Horn a year in advance, and thus interest was lost. At present the Government owes the Central $2,000,000, which it will not pay, and it won’t pay interest on anything it once has in its grasp. The most expensive part of the road was over the Sierra Nevadas. It cost Mr. Crocker more than the contracts came anywhere near paying him. At one time it looked like a losing enterprise. The risk was enormous, and it was not until long afterward that the profits showed themselves.” Mr. Huntington asserted that the Government paid the Central Pacific less for carrying the mails over the Sierra Nevadas than it paid the level Eastern roads. To which statement Mr. Littler responded that he would like to have the official data of that assertion, as if it was true it was a very grievous charge to prefer against the Government. The witness promised to send in the full particulars.