The San Francisco Call. Newspaper, March 7, 1896, Page 1

- @all == ). 98. | PRICE FIVE CENTS. MORGAN'S PROBE 1S YET AT WORK, But C. P. Huntington Shows No Sign of Telling the Truth. EVADES THE QUESTIONS. Denies That He Destroyed the Private Papers of General Colton. PARTNERSHIP WITH HOPKINS. | Peculiar Pretext for Selling Dividend- | Paying Stock for Nineteen Cents on the Dollar. WASHINGTON, D. C., March 6.—The Senate Committee on Pacific Roads this morning continued its hearings on mat- ters connected with the Pacific railway debts, John Rooney of New York pre- <ented for the consideration of the com- mittes the plan of the minority of the bondholders of the Union Pacitic for com- pel'ing a cash payment of the Pacific railroad debts to the Government{first and second mortgages), and to individual first- mortgage bondholders by foreclosure and reorganization, to be stered by Gov- ernment Commissioners, the privilege to be conferred on junior bonds and stocks of the present companies to retain their interests by subscri to the new issues of well-secured ob: tions, whose pro- ceeds are to be used in paying the first mortgage and Government debts. President Huntington’sexamination was {hen resumed. Huntington said that he had looked over the volume of the reports of the ( nment Pacific Railroad Com- ioners, given him by Morean, and had »died in typewritten form his conclu- sions thereon, which he would give the committee. He =aid the report generally was wrone. It contained so many contra- dictory statements that he is convinced the Commissi were saving. Morgan asked why Huntington, Stan- ford and others, who did know about mat- ters and were examined by the Govern- ment Commissioners, did not set the mat- ter straight. Huntington replied that Staniord did not know very much about the business affairs of the road or their construction. As fot bimself he had endeavored to fur- nish all the information of which he was possessed. Morgan then'took up the contract of the Western Development Company for build- ing ‘a- portion of the Southern Pacific. Upon receiving a non-committal reply to one of liis guestions, he said: “Mr. Hunt- ington, it's no use trying to use the white- wash brush.”” Asked if he had notdestroyed the pri- vate papers of Colton, one of the share- holders in the Western Development Com- I after Colton had died, Huntington replied very emphatically that he had not. Morgan inquired if Huntington had not framed the contracts for Idinig the vari- ous seetions of the Sov rn Pacific, and tbe, latter said-he supposed they were drawn by Judge Sand , the company’s attorney. Hopkins had managed them, Huntington thought, though they were not done without the latter’s consent. Morgan then ‘endeavored to establish the business relationship between Hunt- ington and Hopkins. They were partners 1n the hardware business, Huntington as- serted, but not in railroad transactions. The two enterprises were separate and distinct, the only connection being that they might have loaned money to the rail- roads, just as any prosperous firm would The hardware firm had paid, he said, about 12 per cent per annum for the twenty years of the parinership. Mr. Huntington would not acknowledge that Mr. Hopkins had acted as his agent in the various transactions with the railroads and construction companies. Morgan wished to know how much money was {aken out of the firm and vlaced in the railroad business. Huntington did not know. He was un- able at this day, he said, to give the details of a business of thirty years ago. Senator Morgan, being unable to draw anything from Huntington of a satisfac- tory nature, retorted to Huntington that he appeared to know all about everything in his own favor and hothing against him. “Oh, no,” replied Huntington. *“I am trying to give Senator Morgan all the in- formation of which 1 am possessed.” While he was unable to state positively Huntington said whatever money was do. drawn from the hardware and metai com- | pany and placed in the railroad business was charged to the individual account of those drawing it, for that was the only business way in which it could have been done. Hopkins was not, Huntington said, a partner of his in the railway business. When he died he had very little, if any, of his (Huntington’s) property in his posses- sion. Much of the cross-examination by Mor- gan “bore upon the business interésts of Hovkins and Huntington, in an effort to bring out their personal and business re- Jations outside of the hardware and metal company. Huntington said he had money, real estate and merchandise, which he put into the building of the Central Pacitic Railroad. He could not say how much, but it was considerable; always enough to pay the debts when they came due. Morgan pressed Huntington for a spe- cific answer, stating that generalities wouid not do. ] want facts and you must give them,” said Morgan, somewhat irritated. “If you do not intend to answer why don’t you say so?” “I am doing the best Ican, and you must give me the credit of being honest in my replies,” replied Hunt ington. Again Morgan pressed for a statement as to how much money Huntington had put into the constraction of the road tlu_t was taken from his private purse. A speci- sioners did not know what they | ! fic answer was not given, but Huntington said he furnisaed much of the money and took the stocks 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 only way money couid be put into the construction of a railroad. “How much of this stock did vou have?” “I had, I think, about 2000 shares.” “Did you pay np your subscription on the stock ?” g “I should probably say that I did.”’ “Did you?” “Ididn’t pay for it personally, for I was not there. I was in New York. I sup- pose, though, that the stock was paid for in installments.* When asked if he got back the money he paid in Huntington said he did not, but that the contract company got some proverty in the end, when everything was cleared up. Huntington entered an emphatic denial to Morgan’s question whether the Con- tract and Finance Company was not capi- talized with the Central Pacific shares i Huntington held. Thatcompany, he said, organized with money. Its capital stock was $5,000,000, but the organizers put in more than that. Much of this money was borrowed on the bonds of the Central Pa- cific. | Inresponse to further questions Hunt- ington admitted that the money, or a por- tion of it at least, was borrowed on the Government bonds until the company could sell them. “The General Government, then, and not you,” said Morgan, *‘putup the money. You stocked the Finance and Contract Company on the credit of the United States. 1 am trying to find out how much of your individual funds you or all of you put in the construction of the Central Pa- cific road.” *We put in' what could not be bought to- day for $5,000,000,” said Huntington, “‘our money and our time.” “But,” urged Morgan, “how much in money of your private means did you put in? I don’t remember, but always enough to pay its debts,” was Huntington’s reply; “but we could not have built the road with- out the aid of the first-mortgage bonds.” Huntington again took issue with the report of the Pacific Railway Commis- sioners and declared that their conclu- sions were wrong. He did not know where the Commissioners got their alleged | information, but wherever it was found the conclusions were erroneous. Reverting to the financial condition of the road again Huntington said that no dividends were declared until the road was out of debt. The yearly dividends of the road amounted to about 10 per cent. Morgan asked Huatington why the com- | pany did not take the 10 percent divi- dends for a period of ten vearsand by | funding them in this way pay off the first mortgage bonds. Huntington denied that the 10 per cent dividends extended over a period of ten years. Later conditions caused a reduc- tion in the dividends. “Why did you not?" Morgan asked, “‘put any dividends that were declared into a sinking fund to pay off the Government debs 2" Huntington replied that the stockhold- ers were entitled to ibe dividends. The company wanted to fund enough of itin | this way so it could have paid the debt when it fell due, but Congress would not let them do that. Morgan, pursuing ' yis line of examina- | tion, asked if there1 pre not enough divi- dends declared to jggregate a least two- thirds of the first mortzage on the Gov- ernment debt had they been funded. Huntington replied that that would not have been wise; the shareholders were en- titled to their dividends. Huntington was proceeding with an argument on this line when Senator Morgan called a halt, saying he did not care to hear a review of wit- ness’ life. *I amnot reviewing my life’s history,” retorted Huntington. *‘Iam perfectly sat- 1sfied with that, Senator Morgan. I have been trying to tell you all [ know. We have just dore what the law required through all this business.’” “Ishould hate to state that if I were you,”” retorted Senator Morgan. The Finance and Contract. Company only sold its Central Pacific stock, Hunt- ington said, when it began to appreciate and for the purpose of paying its debts, which amounted to between §$9,000,000 and $12,000,000. Huntington was proceeding to describe the prices that Central Pacific stock had brought at various times when Senator Morgan suggested that the stock might have been manipulated. “That stock has never been manipulated and that is not a proper word to use,” retorted Huntington, with some warmth. “I'll use it just the same,” replied Mor- gan. Huntington stated that he now held probably something less than 6000 shares. He had sold Central Pacific at 19 cents on the dollar when it was paying a small dividend. In answer to further questions he de- clared that he had not done so to break the market, nor had he given instructions to his broker to sell it as low as possible. Upon a repetition of the question whether he did not sell it in order to break the market Huntington emphatically said he never tried to bear the market. “Then why did you seil dividend-paying | stock at 19 cents?’’ asked Morgan. “To pay my debts.” “To whom were you in debt?” “To those from whom I had borrowed money."” *‘And who were they?” “‘Those who had let me have the money.” Morgan expressed his surprise at this answer and Huntington said it was impos- sible for him at this day to say who might have been creditors at that time. The committee then took a recess until to-morrow morning at 10:30 o’clock. — = INJUREJ fAT A FUX | | | { | ‘ERAL. The Sidewalk Collapsed, Throwing Many People Into an Area. CHICAGO, Irr., March 8.—While the funeral of Miss Mary Jedlica was in prog- ress this morning at 151 West Sixteentk street, the sidewalk in front of the house collapsed, causing 100 people to fall ten feet into a basement area. The casket fell on'the mother of the dead girl, breaking her foot. All those injured were women except the undertaker. Broken bones were the most serious of their injuries. R S S Big Hotels for the Poor, NEW YORK, N. Y., March 6.—Work will begin about May 1 on the two big ho- tels that D. O. Miils is about to build for the accommodation of the poor in New York City. They will be in theslum dis- trict, and wil! be thorouchly modern, fire- roof buildings, ten stories. high, The arger one will accommodate 1500 guests. | Kelly — What made you let the cat out of the bag, Jerry ? Mahoney —1 wanted to see if there wasn’t something in the sack for me. «EATH TO THE YANKEES," THE CAY. Mobs of Spaniards Parade the Streets of Valencia to Show ‘Their Disapproval. HELD IN CHECK BY A GUARD. Further Assaults Upon the United States Consulate Prevented by Force. MADRID, 8parx, March 6.—The demon- strations in Valencia continued to-day. A mob, numbering fully 3000 persons, pa- raded the streets shouting “Death to the Yankees!”” and in other ways showing their disapproval of the attitude of the United States on the Cuban question. The mob would have made a further attack on the American consulate, bul the Govern- ment had taken steps to prevent this and had placed a strong guard in the streets adjacent to the building, and the rioters were thus prevented from approaching. The crowd proceeded to the French con- sulate and cheered enthusiastically for France, this action being due to the belief that Franee would actively assist Spain in the event of trouble with America. The French Consul appeared on a balcony and bowed his acknowledgments. The reports of anti-Spanish manifesta- tions in the Iinited States’ has added greatly t0 the excitement in th".,lgn cities and towns. ‘The arsenal at Cadiz is being worked to its fullest capacity in the manufacture of guns and cartridges for artillery, etc. The greatest activity prevails. Meetings were beld at Valladolid, Granada and Ovidio last night. e Sgaaa b ATTITUDE OF CLEVELAND. The President Repudiates a Statement as to His Views. WASHINGTON, D. C., March 6.—On March 3 the Chicago Associated Press sent out, under a Washington date line, an elaborate statement which, 1t was asserted, “‘accurately reported the views of ‘the President and his Cabinet on the Cuban question, and in which it was asserted that the President and his Cabinet were “strongly opposed to the present recogni- tion of the belligerency of the Cuban in- surgents and to any declaration of their Continued on Third Page. SOCILISTS ADD T0 [TALY'S DISTRESS, Issue a Manifesto Demanding the Abyssinia. RIOTS THE ORDER OF THE DAY. During One Encounter Thirteen Sol- diers and Policemen and Two Rioters Are Injured, ROME, IraLy, March 6.—There was s renewal to-night of the riotous demonstra- tions here against the Government. The mob smashed the windows of several buildings and stoned the police. During the melee revolvers were fired and thir- teen soldiers and policemen and two riot- ers were wounded. At Pavia a mob tore up the railway, pre- venting the departure of trains. They Prime Minister Crispi of Italy, Who Was Forced to Retire With His Cabinet Owing to the Terrible Defeat and Slaughter of Troops in the Abyssinian Campaign. also cut a number of telegraph wires. The rioters then proceeded to the Prefecture of Police and smashed all the windows in the building. The police fired into them and it is reported that many were wounded. The greatest excitement prevails every- where, and reports of disorders come in from all directions. Excited radical, socialist and Republi- can-socialist members of the Chamber of Deputies were seen in Rome this evening amid crowds of people crying, “‘Long live Menelik!” ‘‘Long live anarchy!” The socialist Deputies have issued a manifesto urging the people to insist upon the Government recalling the troops from Abgssinia and granting amnesty to those persons imprisoned for taking part in the recgnt socialist riots in Sicily. The popular demonstration against the Government which it was proposed to hold to-night at the Capitol turned out to be a complete fizzle. Only a small num- ber of people gathered in the Piazza Co- lonna, the place tixed for the assembly. Later they marched to the Capitol, but the police were present in force and would not allow them to enter. A number of Radical Deputies harangued the crowd, eliciting howls of disapproval against the Government’s policy, but be- fore any overt act was committed the police intervened, broke up the gathering and dispersed the crowd. General Baldisseri, the newly appointed commander of the Italian forces in Abys- sinia, has arrived at Asmara. The newspapers here publish long dis- patches giving the details of the recent battle between the Italiansand the Abys- sinians. The Tribuna says that, contrary to the first reports, the unanimous testi- mony of the officers and askaris, or native troops, is that the Italians fought boldly thronghout. They obeyed orders im- plicitly whenever they were well led. The Italia Militaire says it is positively known that General Dabormida is dead. General Albertone fell wounded. General Arimondi has not been heard of. LONDON, ExG., March 6.—The Daily News will to-morrow publish a dispaich from Rome saying that 2000 Italian troops who escaped from the recent slaughter in- flicted upon the army in Abyssinia took refuge in Adigrat, which vplace is now be- sieged by the Abyssinians. The position of the Italians is desperate. There isin the town a supply of provisions sufficient for only three days. A dispatch to the Central News says that 215 [talian officers have reached Asmara. A dispatch from Rome to the Central News asserts that King Humbert has de- clared that he would sooner abdicate the throne of Italy than to abandon the Italian province of Erythrea, in Africa. e CRISPI NOT ASSASSINATED. Just the Usual Canard by the Chicago Associated Press. ROME, IraLy, March 6.—Dispatches were received here to-night from the United States inquiring as to the truth or falsity of a rumor that had been circu- lated. by the Chicago Associated Press to the effect that Prime Minister Crispi had been assassinated. .. Like. much-of the alleged cable news of 'that “entarp: '’ Western concerp, the rumor had. ndation in fact and could ‘have ibeen disproved had the sughtest effort. been made to ascertain the facts. Signor Crispi is enjoying his usual health, but is, of course, greatly harassed by the troubles that have overthrown his Cabinet. That he is a much-hated man is gen- erally conceded, and this fact is the only thing that adds the slightest air of prob- ability to the sensational and false story furnished to a few American newspapers by the Chicage Associated Press: g o OF VERY GEAVE IMPORT. The Abyssinian Muddle Will Affect the Triple Alliance. NEW YORK, N. Y., March 6.—-A spe- cial cable to the Sun from London say: Italy’s defeat in the battle of Adua is re- garded ‘now throughout Europe as an eventof the first magnitude. It is be- lieved that its effect upon the political situation of Europe will be of far-reaching importance. Already the dissolution of the triple alliance is discussed in the principal cap- itals as it an accomplished fact. Some say the old league of three emperors—German, Russian and Austrian—will take its place; others that Italy and France will become friends again, Still others affirm that if England fails to go to the assistance of King Humbert in this emergency British isolation soon will become more uncomfortable than it ever hasbeen. It is asserted persistently in Berlin, Vienna and Rome that Germany and Austria have given Italy peremptory ad- vice to abandon Abyssinia, and that King Humbert hasreplied that he would abdi- cate his throne rather than comply. There is good authority for saying that Italy will within a few days test Great Britain’s friendship by endeavoring to float a large loan with English assistance. In fact, indications multiply hourly almost that the -regrouping of the powers, which has been foreshadowed for several months, is at length ‘at hand. French sympathy with Italy in her great mis- fortune is remarkable. It is accounted for-partially by the down= fall of Crispi 2nd by the fact that the im- pression prevails in France that Germany and Austria are inclined to throw over- board their uniortunate ally. Russia in this, as in a!l other complica- tions of the last few months, is the only power which regards the situation with equanimity. It is scarcely worth while to speculate in the dark what the result of the great secret game will be, but all Eu- rope is again getting on tenterhooks. The domestic condition -of Italy is ex- tremely serious, but probably does not justify the fears in some quarters that King Hnmbert’s throne is in danger. There are many wild rumors afloat, but the situation is not yet desperate. e e e FREEZING OUT STOCKHOLDERS. Charge Agdinst a Company for Which @ Receiver Is Asked. CHICAGO, Iri, March 6.—A bill was filed in the Circuit Court to-day asking for the appointment of a receiver for the Liquid Carbonic Acid Manufacturing Com- pany, which has a capital stock of $500,000 and owns three large plas in Chicago, St. Louis and Pittsburg—and is said to pay enormous dividends. The complainant is C. F. Adolph Convert, who claims to be the inventor of the process used by the company and who alleges that the de- fendants have illelfl!‘owithheld man; cfil:.ou-ndl of ‘:fll;n r; m h&,m and thl‘ are en| a scheme to freeze ou mn{ and ths‘muiu stockholders, ENGLAND'S BLUE BOOK 1S ISSUED, Documents Relating to the Boundary of Venezuela and Guiana, \ AIR ANCIENT DISPUTES. Centuries Ago, It Is Claimed, the Dutch Obtained the Only Valid Title, PRETENSIONS OF THE SPANISH. Early Controversies and Corresponds ence Cited to Back Up British Contentions. LONDON, Exa., March 6.—The expected Venezuelan blue book, which is entitled “Documents and Correspondence Relating to the Questior: of the Boundary of Guiana and Venezuela,” will be issued by the Gov« ernment to-might. The volume consists of 443 folio pages, with a separate portion containing nine maps. The book opens with forty pages, comprising a preliminary statement dealing with the history of the territories from 1520 until the issuance of her Majesty’s memorandum to Venezuela in March, 1890. The book is divided into historic periods, from the earliest time to 1648, from 1648 to 1796, and from 1796 to 1840. Afler that period references are made to various claims and dispatches, and the report concludes with a brief summary. The preiiminary matter is summarized as follows: *‘The purpose of the present statement,” the book says, *‘is to explain a general out= line of the position of Great Britain in the long-pending dispute with Venezuela as regards the boundary between British Guiana and that country. The territories now known as British Guiana and Vene- zuela had been discovered before 1520. Between the date of their discovery and 1648 the Spaniardsand the Dutch occupied portions of ‘this territory, the extent of such occupation by each country continus ing to be a matter of considersation.” In 1580 the united provinces of the Netherlands threw off their allegiance ta the Spanish crown and war ensued, which lasted almost uninterruptedly for seventy years. In January, 1643, peace was cone cluded by the treaty of Munster, by which Spain acknowledged the independence of the Netherlands, and the two'countries, re« spectively, confirmed their then posses- sions on ' the ' South’ American continent. From 1648 to 1796, with 'the exception of the interval between 1781 and 1783, the Dautch remained in possession of the terri- tory they had occupied prior to the treaty of Munster, and extended their settle- ments within it. In 1786 the territory now known - ag British Guiana was acquired by Great Britain. That acquisition was recog- nized and confirmed by a treaty cone ‘cluded in 1814. In 1810 Venezrela re- volted, - but her ' independent existence apart from the United States of Colom~ bia, by "which she -was for a time merged, did not commence until' 1830, and was not ' formally recognized by Spain until 1845. It is therefore held that the following conclusions have been clearly established: First—That prior to 1590 the Dutch had established themselves ‘on the coast of Guiana. Second—That prior to 1596 the Spaniards had established no settlements in Guiana. Third—That by 1648 the Dutch settle« ments in Guiana extended along the coast the whole way from the River Maroni to the Barima, and inland to vari- ous points in the interior upen the rivers Essequibo, Luyuni, Pomeroon, Waini and Barima and their tributaries. Fourth—That up to 1723 the only settles ment of Spaniards in Guiana was San Thome de Guayana, on the south bank of the Orinoco, originally founded in 1596 at a site shown on the sketch-map. Fifth—That between 1723 and 179, the only additional settlements founded by Spaniards in Guiena were those established by the Capuchin missions south of the Orinaeo, in the direction of the River Yuruan, and two villages on the upper Qrinoco, seyeral hundred miles above. San Thome de Guayana. . Sixth—That Dutch occupation to the extent above indicated was perfectly well known in Spain, and that the attempts of the Spanish to dispossess the Dutch had wholly failed Seventh—That subsequently -to. 1796, Great Britain has continuously . remained in possession, and her subjects have oc- cupied further portions of the territory to which the Dutch established their title. “From the first settlements to 1648,”" the report continues, ‘the Dutch appear to have been the first. Early in the sixteenth century they turned their attention to Guiana, and there is abundant evidence from Spanish sources that during the lat- ter half of the century, prior to 1500, the Dutch established themselves on the coast of Guiana. In 1595 the explorer Captain Charles Leigh found the Dutch established near. the month of the Orinoco, a fact which is confirmed from Spanish sources, The first settlement by Spain in Guiana was in 1596, when Antonio de la Hoz Berro founded San Thome:de Guyana on the south bank of the. Orinoco. A dispatch from Roque de Montes, Treasurer of Cu- mana, to.the King of Spain, dated April, 1506, shows that the Spaniards did not then hold any part of Guiana.” In the early part of the seventeenth century the various companies which were afterward merged into the great ‘West Inaia Company were employed in colonizing Guiana, and had established several settlements there before 1614, and the existence of these settlements was officially reported to Spain. The follow- ing extracts from memoranda on Guiana, which was deliberated upon by the Span- ish Privy Council, are dated 1614. They say in regard to the Dutch settléments then existing: “Itis well clear that those coasts belong