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VOLUME JLXXVIII.-NO. 141.
REPORT ON DEBTS OF PACIFIC RAILROADS
Refunding Schemes are
Rejected by Govern
TACTICS OF HUNTINGTON
Diversion of Traffic by the
Southern Pacific Ruined
the union road.
REMEDY FOR COMPLICATIONS.
Seventy- One Million Dollars
Must Bh Paid to Prevent
WASHINGTON, D. C, Oct. 19. -The
report of the live Government directors of I
the Union I'acitic Railroad has been filed
with the Secretary of the Interior and will
be given out for publication to-morrow.
It is an interesting report and of peculiar
significance and importance to Californi- I
ans, dealing as it does with the relations of !
t Le Government toward the Pacific rail- j
roads, opposing any funding scheme and j
suggesting certain legislation.
The report was written by William J. !
Coombs, one of the five directors. He was j
a representative in Congress for two terms !
from the city of Brooklyn. He has for
many years been an exporter of American
goods, and being a wealthy man accepted
the appointment of Government director j
lait June at the request of President
Cleveland, although the emoluments of I
the office are trifling.
Mr. Coombs was, indeed, appointed as a j
personal representative of President Cleve
land to inquire into the condition of the
Pacific roads and suggest a remedy for ex
isting financial complications in which the
Government is involved.
Mr. Coombs has just returned from a
tour of the West, and his report is the re- i
suit of his personal observations. The
Call correspondent is enabled to tele
graph in advance a synopsis of the report,
which the directors preface by describing '
the territory through which the six trans- '
continental railroads extend. The conclu
sion drawn (from a geographical point of
view) is that the Union Pacific and Cen
tral Pacific route has a great advantage
over the Canadian Pacific, Great Northern,
Northern Pacific, Santa Fe or Southern
Pacfic roads, because the former extends
in a direct line westward from the richest I
and most productive part of the country — j
the great Mississippi YalJpy.
The intermountain country traversed f
by it is much superior to the territory |
through which run other trunk lines to
the coast. The Union Pacific and Central
Pacific should, therefore, prove to be pay
ing railroads, but this ro\:te Las been seri
ously crippled because the Central Pacific,
which Congress intended should operate j
with the Union Pacific as one trunk line to I
the coast, has not worked in harmony !
with the latter road. A great part of the
traffic which formerly went over the
Central's tracks has been diverted to the
The Central, instead of being a part of
the great trunk line which Congress in
granting aid contemplated would run ;
as one road from Omaha to the | I
Pacific Coast, ■is now only a feeder j '
for the Southern Pacific. According ;
to the directors, this fact is demonstrated i I
by the large number of complaints heard : '
among California shippers that they can- j
not choose their own line, but are practi- I
cally coerced into shipping by the South- i
Congress in extending aid to the Union
and Ceniral Pacific did not expect the two i
roads would pay from the start. The sterile '
country through which they were to pass j
was vastly different from the rich and vir
gin soil traversed by other roads. It was :
not supposed that the local traffic would ' l
be considerable, but chief reliance was I
based upon through traffic to be carried
OTCT the Union and Central Pacific roads,
acting conjointly as one great trunk line
between Missouri River and Pacific coast '
points. Little by little the intermo'untnin •
country ha? been built up by capital and !
labor, so that if the two roads worked in
harmony local and through trallic earnings
would soon enable the roads to pay off J
their indebtedness. The directors say that
notwithstanding adverse conditions the
net earnings of the two roads last year
amounted to seven and a half million
It will be seen, then, that the action of
the Southern Pacific in diverting traffic
from the Central route to itsei; operated
to defeat the intent of Congress, which ex
tended- aid to the Central and Union i
Pacific upon the hypothesis that the '
through traffic earnings of the two roads, I
acting conjointly as one system, would |
enable them to discharge their indebted
dess within the stipulated time.
The directors declare against any re
funding 'pioposition such as the Reillv
bill in the last Congress. They say that
the Reillv bill failed because of its compli
cated provisions and the inability of mem
bers to understand them. This was very
obvious toward the close of the debate in
the House of Representatives when that
measure was under consideration. Sec
ondly, many members hesitated about
voting for the measure, which might and
probably would result in fresh compile*
lions, involving the Government in still
deeper emoarrassment. The directors de
clare that what is wanted is a measure
simple enough for its terms to be readily
comprehended. In submitting their recom
mendations to legislation they act upon
the assumption that Congress intended
that the two roads be operated as one
transcontinental trunk line, and this in
cent-of Congress, they say. is expressed in
pvery act that has dealt with these roads.
Therefore, it is entirely within the power
jf Congress to provide for the reorganiza
;ion of the roads.
In making such reorganization the di
rectors say that the Kansas Pacific, Oregon
Short Line, Utah Northern, Utah South
;rn and branches* should not be included.
The Kansas Pacific with its mortgages
md debt complications would cause very
jreat embarrassment in effecting reor-
The San Francisco Call.
ganization. T'nder present conditions
these branch roads' are onJy "suckers"
from the main line, whereas under pro
posed reorganization they would be valua
ble feeders to it. The plan of reorganiza
tion would include the Union Pacific, Cen
tral Pacific and Western Pacific, making a
tnrough trunk line from Omaha to ban
The directors recommend that Congress
provide for such reorganization and that
when the roads have reached an under
standing on this basis, and have so certi- I
lied to the Secretary of the Treasury, he be
authorized to accept a minimum sum in !
full payment of the Government indebted- !
ness, and discharge the roads from any i
further obligation beyond transportation I
of troops, military supplies, etc., for the
Government Congress must also ex- i
pressly provide that these roads as reor
ganized shall not enter into any sort of :
agreement with any other transconti- i
nental road. If either the Union Pacific I
or Central Pacific shall not consent to re
organization as provided by Congress then \
the Government shall foreclose on the lien I
of the recalcitant roads.
The directors do not undertake to recom- !
mend any specific sum which the Secretary I
of the Treasury is authorized to accept j
from the two roads, but in conversation
with The Call correspondent to-day Mr.
Coombs suggested $71,000,000. The latter
havinc been appointed by President Cleve
land "because he had never been mixed up
in railroad business," as Mr. Coombs Him
self states, and being practically the Presi
dent's personal representative in the
matter, it is a fair assumption that
Coombs' report may be incorporated or
alluded to in the President's message to
the next Congress.
Mr. Coombs said to the correspondent
to-day that it was his belief that Congress !
would not grant any further extension of ;
time to the Pacific roads in which to pay
their indebtedness. He is anxious that
Congress shall adopt his recommendations,
and says that the effect of such a re- i
organization would mean practically a
competing road for California. Bat the
California shippers who have suffered at
the hands of the Southern Pacific and are
familiar with the tactics of Mr. Hunting
ton may be inclined to doubt whether any
reorganization can be effected whereby
Central Pacific rates may compete with the
Mr. Coombs is actuated by motives of
friendship for Californians and by a per
sonally disinterested desire to offer" a solu
tion of the Pacific railroad problem, but it
is also very evident that this proposition
of reorganization will meet with favor from
the Union Pacific folks and with deter
mined opposition from Mr. Huntington
and his lobby.
SAN FRANCISCO'S CHANCE
Prospects of Securing the
National Committeemen Who
Favor the Metropolis of
the Pacific Coast.
WASHINGTON, D. C, Oct. 18.-Colonel
John S. Mosby is at the National Hotel.
He is here on law business. Colonel Mosby
believes that McKiniey and Morton are in
the lead for the Republican Presidential
nomination. He believes that the Califor
nia peonle would prefer McKiniey to other
candidates mentioned. He thinks Reed's
geographical location will operate to his
disadvantage, while Allison is only a dark
j Colonel Mosby finds great changes in the
; South in seventeen years. Southerners
are rapidly becoming protectionists. Sev
enteen years ago the Ninth District of Vir
, ginia, where he formerly lived, was
• strongly Democratic, but Walker, a Re
| publican, will represent it in the Fifty
. fourth Congress.
] This result, he believes, is largely due to
; the protection sentiment which is fast
! gaining favor in Virginia. He thinks Mc
; Kinley will receive strong support from
tne Southern States.
San Francisco's chances for the Na
j tional Republican convention appear to be
j brightening. Three of the most influential
members of the National committee hay*
now declared emphatically in favor of San
, Francisco-Chairman Carter of Montana
Manley of Maine (who is supposed to
represent -Mr. Reed) and Clarkson of lowa.
It is said that Senator Quay is not uh
Some time ago he said to The Call cor
respondent that while he could not prom
ise to support San Francisco, he thought
it might be a good place to hold the con
vention. Hansbrough of North Dakota
THE BAI.LASTIKQ CKEW ON THE SA N FR ANC ISCO AND SAN JOAQUIN VALLKY KOAD.
[Reproduced from a photograph taken for ''The Call.''}
SAN FRANCISCO, SATURDAY MORNING, OCTOBER 19, 1895.
COL.LIS T. HUNTINGTON ANSWERS "THE GALL' 3" QUESTIONS.
has already expressed himself in favor of
San Francisco, and it is reasonably certain
that Cuney of Texas can be persuaded.
Alaska will probably be represented, and
these together with the committeemen
from Washington. California, Oregon, Ne
vada, Utah, Arizona, Idaho, Wyoming
and New Mexico would make a strong
body of workers. There is in fact an ex
cellent chance for San Francisco, if the
Californians could only be made to realize
NEW YORK, N. V., Oct. 18.-The mem
bers of the Republican National Commit
tee are giving considerable attention just
now to the consideration of the time and
place for holding a meeting of that body.
Senator Thomas H. Carter of Montana,
the chairman, and Messrs. Hobart of New
Jersey, Fessenden of Connecticut. Clark
son of lowa, Sutherland of New York and
Michener of Indiana are in town, and other
members of the National Committe are
expected to arrive to-day or this evening.
Owing to the absence of Joseph H. Man
ley, chairman of the executive committee,
no formal meeting will be held at this
time, but there will be an informal con
ference within a day or two for the pur
pose of getting the general sentiment as
to the most desirable time and place for
the meeting of the National organization.
It is probable that a call will soon be is
Senator Carter, who is at the Holland
House, saia to-day there was a very gen
eral sentiment among Eastern members in
favor of holding the Republican National
Convention in San Francisco and, of
course, the Western members favor the
idea, he said, but he did not believe any
thing definite regarding this would be ar
rived at for some time.
Four Works linrned.
CREEDE, Colo., Oct. 18.— Property
valued at SIfiO.OOO was destroyed by five
here before daylight this morning. The
flames, which .started in the Cottage Home
Hotel, swept over four blocks of the busi
ness part, from Second to Fourth streets
and from the Rio Grande tracks to within
ir>o feet of Cliff street. In June, 1892, the
whole town was destroyed by fire.
BLOCK 21 IS SECURED.
Valley Railroad Building
Can Now Go Forward
THE BLOCKADE RAISED.
Simpson and Gray Sign a Deed
to the -Much-Needed
will woek night and day.
Track-Laying Over the Grade in
the Country to Commence
STOCKTON, Cat,., Oct. 18.— Block 21 has
passed into tbe possession of the San Joa
quin Valley Railroad. Messrs. Simpson &
(iray signed the deed to-day and the rail
road will have free access to the material
yards on Mormon Channel just as soon as
the trsck can be put down across the block.
This deal, over which there has been much
talk, involved a. small amount of money,
but its consummation was extremely
necessary, as the block lay midway be
tween the main line and the storage yards.
It it had been a square mile of land a more
complete blockade of the construction
work would not have existed.
Messrs. Simpson & Gray receive but
?10W>iri ; cftsh for the blocs, but the Coro
mercial Association, which stood respon
j sible to the railroad for the delivery of
I the block, must make a $3000 credit on the
KB. HUNTINQTON'S POLITE NOTE TO THE EDITOR OF "THE CALL."
firm's donation to its fund for railroad pur
Activity will now be witnessed all along
the line. By working both a day and a
night force Superintendent Wilbur will be
enabled to put in the track by Monday,
and, so far as is at present known, there
will be nothing to delay the beginning of
construction work in the country next
week. Near the foot of Hunter street the
company has stored several thousand tons
of coal for the use of the construction
The talk of suing the railroad for an
alleged trrade above the official line on
Taylor street sounds absurd since the City
Council provided that the grade might be
established at a point that woul.d render
the track safe during the high water.
All the city lines are being placed in ex
cellent shape by the track crews. There
is a large supply of ballast on hand and
more is arriving every day. A large
amount of this— Folsom crushed rock — is
also being placed on the street crossings,
and, in spite of ail talk to the cuntrary,
they are being left in better shape than
before the line crossed them.
Mill* and llice Hurried.
NEW ORLEANS, La., Oct. 18.— A disas
trous fire occurred here about 6 o'clock to
day. All the buildings fronting the riyer
C. P. HUNTINGTON ON THE RAILROAD'S DEBT.
on the square between Elysian Fields
street and Esplanade avenue were burned,
including- riceraill B. formerly known as
Perseverance ricemill. It was one of the
finest and best-equipped ricemills in the
country. It is stated that there was lost
$100,000 worth of clean rice in the mill.
The amount of loss could not be stated to
night, but is probably $300,000, partially
covered by insurance.
SWEPT BY THE GREEDY FLAMES.
Business Blocks, Dwellings, Churches and
Banks Destroyed by Fire at Man
BLANCHESTER, Ohio, Oct. 18.— Early
to-day fire broke out, and this place is
now almost entirely destroyed. The tire
originated in Burkes livery stable from
the carelessness of some smoker, and has
oeen raging up to 10 o'clock to-night. A
high wind prevailed almost the entire
time, sweeping the flames in every direc
tion. Buildings four blocks away caught
from burning cinders. Every business
house is either entirely consumed or gutted
and the stock completely ruined.
In addition to this wholesale destruc
tion, twenty residences are burned down
and fan ilies made homeless. Two
churches, two bank buildings and the
Odd Fellows and Masonic halls were also
Editor A. C. Bell and Fred Rey, a fire
man, were badly burned. The total loss
will be over $100,000, with insurance not
YET TO REACH THE POLE
Lieutenant Peary Has Not
Given Up Exploration in
Next Year He Will Be Chosen
to Lead Another Expedi
tion to the North.
PORTLAND, Me., Oct. 18.— Lieutenant
Peary returned to-day after his trip to
"Washington to superintendent the storage
of the Arctic collection brought back by
the expedition at the Smithsonian Institu
tion. The mounting of the collection will
not take place for another month, as Lieu
tenant Peary has been in very poor health
since his return and work cannot progress
until his recovery. Notwithstanding all
reports to the contrary, he has by no
means given up Arctic explorations, and
it is even now a strong probability that he
will return to active wort next year.
When seen to-day he stated that all re
ports that he had given up the idea of con
tinning his work were untrue, as he had
never intimated such a thing.
"I have just begun my work, and as long
as my strength lasts and I am able to se
cure support I will never relax my efforts.
Arctic explorations in the near future will
be comparatively easy, when compared to
the hardships of past expeditions. The
discovery of the north pole is a thing
which to my mind is only a matter of a
few years. Each succeeding expedition is
in the nature of a great teacher rendering
the following one so much easier.
"If a man can stand tropical heat there
is nothing that can prevent him from com
bating §rctic cold, and as he has overcome
the former so will he overcome the latter.
I have made no definite plans for the ex
pedition, but I have received assurance
from several sources that an expedition
will be organized and' if I am asked to go
I shall surely do so. It is my one object,
and I hope to see it attained, of reaching
the north pole."
Suit AfiainMt Gould and Sage.
NEW YORK, N. V., Oct. 18,— An order
of consent and discontinuance was entered
in the Supreme Court to-day in the suit of
the Soldiers' Orphans' Home of St. Louis
against Russell Sage and George J. Gould
individually, and the executors of the es
tate of Jay Gould and the Union Pacific
Railroad. The action was brought to re
cover certain stocks and bonds, amount
ing to over $10,000,000, which it is alleged
the defendants wrongfully diverted.
For additional Pacific Coast new tee rages! and £
PRICE FIVE CENTS.
The Magnate ■ Answers
Pointed Questions for
the "Call 11
I WHAT THE ROAD WILE
ASK OF CONGRESS.
His Idea of a Settlement op
the Central Pacific
moral OBLIGATIONS and legab
He Would Not Build the Rail*
way Again for All He
Made Out of It.
The railroad will attempt to put. through
Congress a bill similar to the Rcilly fund
ing bill and the accompanying act to get
$1,800,000 from the Government which
should show for the payment of the Cen
tral Pacific's debt. So the fight will have
to be made all over again.
It is an understood thing that the cor
poration believes that it has the votes of a
sufficient number of Senators and Repre
sentatives to push the measures through.
In yesterday morning's Call Congress
man Maguire and (Senator Thurston gave
their views of the proposed legislation.
The Senator very frankly gave his idea
that the Government had lost its chance
to collect millions of dollars owed it by
the Central Pacific. The Congressman
was still hopeful that the measures might
i be beaten, but even he considered the
j statement that the railroad had a majority
in Congress as within the bounds of pos
Yesterday Collis P. Huntington con
sented to make a . statement of ' the rail
road's position m the matter— its hopes
and its intentions. In order that the
statement should be full and free of pos
sible errors he wrote it himself.
, The questions were submitted to the
magnate and he answered them one by
■ ' .■■.'■-* v nit
The questions were :
1. What legislation does the Pacific rail
road propose to try to obtain from the next
Congress? - ' . T
. 2. :■ It has been stated that the propo
nents of a funding bill claim that a ma-
jority of members of the coming Congress
will vote in favor of such an act as the
Reilly bill, and will also vote to allow the
claim of the Southern Pacific Company for
$1,800,000 for services rendered the Gov
ernment, which was defeated at the last
session. Have you any knowledge on this
3. What do you think will be the prob
able vote of Senators and Representatives
on this point?
4. What, in your view, would be a fair
La Belle Creole
3 for 25c--10c Straight— 2 for 25c
ASK DEALERS FOR THEM.
RINALDO BROS. & CO.,
Pacific Coast Agents.
[ 300-302 BATTERY ST., S. F.