250th Congress, ) SENATE. Ex. Doc. 51, 1st Session. ( Part 10. ALPHABETICAL, ANALYTICAL, AND TOPICAL INDEX TESTIMONY, OF ACCOUNTANTS AND ENGINEER, AND OF THE COMMISSIONERS OF THE UNITED STATES PACIFIC RAILWAY COMMISSION. VOLUME IX. Prepared, under the direction of the Commission, BY EDWARD C. MANNERS, New York. WASHINGTON: GOVERNMENT PRINTING OFFICE 1888. LIBRARY OF THE LEANO STANFORD JUNIOR UNIVERSITY. , ALPHABETICAL INDEX OF WITNESSES. Compiled by EDWARD C. MANNERS, New York. 5397 ALPHABETICAL INDEX. Carpenter, Mason B., 1909-1915. Carpentier, Horace W.. 3233-3242. Chittenden, Lucius E., 3936-3956; 4002- 4006. Choate, Joseph K., 1895-1904. Clark, Charles, 2108-2111. Clark, D. O., 1447-1449. Clark, James Maxwell, 1824-1834. Cleland, Jonas M., 2276-2279. Clement, L. M., 2576-2578, 3202-3233, 3607. Cliff, John T., 2039-2043, 2048, 2049. Cobb, Moses G., 3243-3254. Cohen, Alfred A., 2381-2406, 2810, 3113, 3114, 3138, 3429, 3430, 3434-3437, 3471- 3488, 3546, 3547, 3692-3696, 3757-3759, 3855, 3996-4006, 4037-4039. Conklin, Jeremiah C, 2196-2198. Connor, Washington E., 401-403. Cooper, Kemp G., 1728-1732. Cornforth, Joseph F., 1893-1895, 1923- 1925. Crawford, George K, 1303-1317. Crocker, Charles, 3639-3695. Crocker, Charles F., 2989-3026, 3111-3113. Curtis, N. Green, 3027-3036. D. Davis, Alfred E., 3620-3626. Davis, James W., 1080-1088. Davis, Nathaniel R., 2091-2094. Day, Henry, 4007-4021. Dee, John M., 2217-2219, 2224-2226. Dey, Peter A., 1425-1430. Dexter, F. Gordon, 699-737. Dickey, John J., 1454-1457. Dillon, John P., 114, 115, 117, 182-195, 236, 248, 253, 256, 373-375, 382, 416, 457, 477, 484, 543-546, 561-564, 607, 608, 612, 613, 615, 629, 632-636, 670, 677, 692, 707, 715-721, 731, 736, 752, 817, 823-845, 852, 862-872, 3874, 3875, 3878-3885, 3085-3995, 4000, 4001, 4029, 4139, 4140, 4144-4146. Dillon, Sidney, 195-219. Doddridge, W,B,, 1562-1566. Dodge, Grenville M., 3790-3824. Douty, Frank S., 2671-2710, 2724-2727, 3254-3261, 3398-3401, 3414-3420, 3626, 3627. Doyle, Thomas IT., 1553-1556. Draper, George A., 2094, 2095. 5399 A. Abbott, O. A., 1486-1491. Adams, Charles Francis, 43-117, 604-615, 625-627, 638-644, 852, 853,947-952, 971- 999, 1834, 1989-2004, 2170, 2171, 4155- 4163, 4302, 4303. Adams, Louis B., 2212-2217. Alexander, Edward Porter, 846-862, 4304, 4305. Allen, Edward H., 1649-1651. Ames, Frederick L., 645-699, 936-947. Ames, Oliver, 801-818. Anderson, II. J., 5297-5300, 5351-5394. Andrews, Edward L.t 257, 258. Anthony, Daniel R., 1022-1624. Arents, George, 265-267. Armstrong, Francis, 2201-2202. Atkins, Elisha, 749-78*2. B. Bailey, George W., 2032-2038. Bailey, William N., 2065, 2066. Baker, Ezra H., 737-749. Barriger, D. S., 1150-1169. Barton, Guy C, 1088-1104. Bates, D. H., 3876, 3877. Bergin, T. 8., 2491, 2655, 2668, 2670. Berker, William, 1547-1549. Blair, John I., 4039-4088. Boettcher, Charles, 2029-2032. Bond, William, 258-265. Boruck, Marcus D., 3420-3429. Bradley, John J., 2044-2048, 2049, 2050, 2061'. Bristol, George E., 2061, 2062. Brown, Arthur, 2581, 2582, 3600-3605. Brown, Samuel M., 2024-2028. Brown, W. K, 2893-2916, 2977-2988. Burnell, James M., 1727, 1728. Burnham, Leavitt, 1237-1241. Burton, Edward F., 1884-1888,1928, 1929. C. Caldwell, Alexander, 1580-1583. Calef, Amos II., 285-304, 592-597. Calhoun, William, 4799-5257. Came, Virgil G., 1835-1839. Cammack, Addison, 277-282. Campbell, Benjamin, 3633-3638. Cambpell, John, 1968-1976, 1981. 5400 U. S. PACIFIC RAILWAY COMMISSION. Humphrey, James, 1656-1671. Huntington, Collis P., 8-43; 3696-3790; 4021-4037; 4153, 4154; 40:22-4037; 4153, 4154. J. Jackson, John Putnam, 3627-3629, 3853, 3854. Johnston, J. E., 4313-4316, 4402, 4403. K. Kay, David, 2241, 2242. Keene, James R., 400,401. Keisel, Frederick G., 2232-2238. Kimball, Thomas L., 1015-1018, 1C35, 1036, 1010-1080, 1122-1150, 1166, 1167, 1174-1207,1300-1414, 1436-1446, 1467-1471. Kirkman, Marshall M., 2325-2330. Klink, George T., 3201, 3202. Kramer, Carl, 1474-1477. E. Eckert, Thomas T., 282-285. Eddy, Edward, 1795-1815. Eddy, J. M., 1268-1272,1275-1293. Evans, John, 1849-1862. Ewing Thomas, 3849-3852. P. Felker, William B., 1949-1963, 1979,1980. Ferguson, J. H., 2005-2009. Fillmore, J. A., 2546, 2547. Fitch, William F., 2258-2265, 2272. Flanagan, William M., 1329-1333. Flahrer, Andrew, 1540-1543. Fremont, John Charles, 3845-3849. O. Gage, S.T., 3261-3270, 3271-3288. Garrett, William H., 1624-1639. Gates, I. E., 3860-3870,3934-3936. Gerard, Leander, 1477-1482. Gere, Charles H., 1506-1510. Glass, W.S., 1550-1552. Glick, G.W., 1556-1561. Goble, Milton H., 1247-1250,1253-1257. Goodridge, Henry, 1966-1968. Goodwin, Almon, 242-245. - Goodwin, C. C, 2202-2207. Gould, Jay, 446-592. Lansing, G.L., 4513-4517. Lau, H.P., 1539, 154U. Lett, Henry C, 2050-2061. Limberg, Charles T., 2009-2017. Lock wood, Frederick, 186G-1868. Lonergan, 1546, 1547. Loveland, William A. II., 1740-1749,1865, 1866. M. McAllaster, Benjamin, 1019-1027. McBride, Joseph C, 1522-1527. McDowell, Alexander J., 5259-5297. McShane, John A., 1430-1432. Manchester, John R., 1293-1300. Martin, John H., 1915-1922, 1981. Mason, O. P., 1510-1519. Mead, A. J., 1G48, 1049. Middledith, James, 999-1011, 3886-3891. Miller, Edward H., jr., 2333-2380, 2407-2109, 2428, 2429, 2452-2460, 2186, 2541, 2547-2558, 2583-2598, 2612-2615, 2806, 3036-3088, 3199, 3438-3471, 3551-3572, 4308, 4309. Miller, Elisha S., 3026, 3027. Miller, George L., 135:5-1360. Miller, John, 2875-2892. Miller, William H., 1G51-1G5G. Mills, Darius O., 3488-3500. Mills, William II., 2409-2428, 2558-2570, 3597-3601. Mink, Oliver W., 77, 305-319, 389, 597-603,608-644, 676,680,711,78*2-801, H31, 839. 872-935, 952-960, 1029, 1068, 111G-1119, 1149, 1150, 1166, 1173, 1191-11()6, 1198, 111)9, 1201, 1207, 1216, 1217, 1*220-1223, 1257, 1324-1326, 1328, 1372, 1373, 1:590, 1407, 142.J, 1424, 14:Jf), 1457, 1472, 30.16-3984, 4120, 4152. Mobley, Seth P., 1503-1503. Moore, H. Miles, 1583-1585. f J)-jGrant, James B., 1815-1820. ray, Richard, 3572-3583. Gsantner, Anton, 1432-1433. Gunn, James O'B., 3091-3103. Gurley, W. F., 1257-1268. H. Haar, John H., 403-409. Haley, John J., 3596-3597. Ham, James M., 219-242. Hanlon, Frank P., 1272-1275, 1317-1329. Hargreaves, Alfred E., 1534-1535. Harkins, John, 1725-1727. Harmon, John B., 3233. Hassler, Charles W., 409 -427. Hayes, George R. B., 3538-3546. Hebard, Fredericks., 2102-2104. Hedde, Frederick, 1496-1503. Hegel, P., 1482-1484. Higgins, H. I., 2017-2022, 2028, 2029. Hill, F. C, 2265-2272. Hill, Nathaniel P., 1749-1779, 1820-1823, 1862, 1863. Himebaugh, P. C, 1300-1303. Hinckley, Isaac, 4307-4308. Holmes, ArtemasH., 117-182, 267-276, 351, 364, 427, 430, 435, 462, 463, 515, 533-535, 549, 552, 569, 669. Hood, William, 2579, 2580, 3594-3596. Howard, Mason W., 1904-1909. Hughitt, Marvin, 2247-2258, 2280-2321, 4293, 4294. Hulaniski, Edmund T., 2238-2241. 5401 ALPHABETICAL INDEX. Smith, N. T., 3592-3594. Smith, Sylvester T., 1722-1725. Snell, John W., 2190-2194. Sparks, W. A. J., 4250-4258. Spaulding, Mahlon D., 818-822. Stanford, Leland, 2460-2671, 2729-2747, 2750-2837, 2917-2951, 2958, 3160, 3607- 3620, 4088. Stevens, Richard F., 3501-3536,4509-4798. Stevens, Sidney, 2219-2223. Stilling, Edward, 1575-1580. Stone, James C, 1595-1622. Stow, William W., 3410-3411. Strobridge, J. H., 2580, 2581, 3103-3111, 3139-3160. Strong, Daniel W., 2838-2875, 2916, 2917, 2959-2977. Stubbs, J. C, 2570-2575, 2598-2611, 3288- 3395. Moore, William A., 1552-1553. Morgan, Richard Price, jr., 4437-450/. Morosini, Giovanni P., 320-328. Mullen, John K., 1888-1892. Nagle, Erastus, 2095-2097. Neely, Shaw F., 156&-1573. Nelson, Alfred H., 2243,2244. Nicholas, A. Perry, 1104,1122. Nichols, Effingham H., 4089-4152. Niles, Nathaniel, 328-339. North, James C, 1473, 1474. Norwood, Thomas M., 3892-3900, 3933, 3984. O. Ott, F. W., 2115-2118. P. Patterson, A. H., 2062-2065. Patterson, Thomas M., 1868-1877. Paxton, William A., 1226-1237,1242-1247. Peery, David If., 2208-2212. Perine, P.L., 1250-1252. Perkins, George D., 2273-2276. Perrenoud, G. F., 5303-5350. Platt, W.H., 1492-1496. Rummer, Eli, 1537-1539. Pondir, John, 437-446. Popper, Charles, 2174-2176. Poppleton, A. J., 1449-1454, 1459-1467. Potter, Charles N., 2104-2105. Potter, T. J., 3871-3873. Price, William H., 1981-1989. R. Ransdell, William T., 1485-1486. Raymond, Isaac M., 1527-1534. Reel, Alexander H., 2097-2102. Reiff,J.C, 3901-3933. Riner, C. W.. 2079, 2080, 2085, 2086. -Riter, William W., 2194-2196, 2198-2201. Root, W. H., 2105-2107, 2112-2115. * Rosenbaum, Albert S., 215-256. J i RMewater, Edward, 1333-1355,1414-1423. - /-HTObidge, Robert II., 1925-1929,1936-1941. / Ryan, Emmons B., 2445-2451, 2507-2517. T. Tebbets, J. S., 1639-1648. Teller, Henry M., 1839-1849, 1877-1884, 1892, 1977-1979. Teller, Willard, 1929-1936, 2004, 2005. Tevis, Lloyd, 3114-3138. Thurston, John M., 3824-3845. Todd, W. M., 1585-1588. Towne, Alban N., 2542-2546, 3401-3409, 3584-3592. U. Usher, John P., 1672-1716. Utt, John A., 1535-1537. V. Villard, Henry, 427-436. W. Wallace, George Y., 2163, 2164, 2177-2189. Walsh, John H., 1187, 1188, 1208, 1941, 1942, 2452, 3956. Warren, Francis E., 2066-2079, 2090. Watterson, Henry D., 1543-1545. Wells. Charles, 1169-1173. Wentz, I. C, 1545-1547. West, Joseph A., 2227-2231. Wheeler, Charles, 1732-1739,1779-1795. White, Horace, 3856-3860. Wilder, Edward, 1566-1568. Willard, William A., 1863-1865. Wilson, James H., 4305-4307. Woods, De Witt S., 1963-1966. Wright, Edward C, 2429-2444, 3605,3606. Y. Yost, Daniel Z., 2711-2724, 2892, 3412, 3413. Young, Erastus, 1027-1038, 1208-1226, 1319-1322, 1325, 1326,1433-1435, 1457- 1459, 1466, 1470, 1471. Sage, Russell, 339-400. Sawyer, A. J., 1519-1522. Schindler, Henry, 1573-1575. Sharp, John, 2154-2169, 2171-2173. Shelby, Peter P., 2118-2154, 2177, 2189, 2190, 2223, 2224, 2231. Sherwin, Albert, 2022-2024. Slack, E. A., 2080-2085. Smith, Edmund M., 1942-1949. Smith, Leonard T., 1588-1595, 1719-1722. Smith, Marshall, 2086-2090. - ANALYTICAL INDEX OP TESTIMONY, AND REPORTS OF ACCOUNTANTS AND ENGINEER, OF THE UNITED STATES PACIFIC RAILWAY COMMISSION, ARRANGED IN THE ALPHABETICAL ORDER OF THE NAMES OF THE WITNESSES. Compiled nv EDWARD C. MANNERS, New York. 5403 ANALYTICAL INDEX. Abbott, O. A., testimony of: Lieutenant-governor of Nebraska in 1876; railroad facilities afforded, good; compet ing roads maintain rates, 1487. Grain elevators, 1487, 1488. Participation by railroad in elections; rumors as to influencing legislation, 1488. Public senti ment as to management, 1488, 1489. Voluntary reduction in rates; city and county aid to Saint Joseph and Grand Island, 1489,1490. Knows of no rebates or special rates; Union Pacific representatives in coal trade, 1490. All coal dealers treated equally, 1490,1491. Plan of settlement; divided public senti ment; witness in favor of extension, even if certain debt would not be paid, 1491. Adams, Charles Francis, testimony of: President of Union Pacific since June 17,1884; had been Government director and general director, 43. Intimately acquainted with its affairs since May, 1884; only slight knowledge of its affairs prior to that time; Kansas Pacific consoli dation; charges against Gould, Dillon, Ames, and others with reference thereto, 44. Financial condition of branch lines and claims against individuals by rea son of circumstances connected with their origin; Union Pacific no power to build branches; organization of branches, 45. Details of construction of Denver and South Park Branch, 46. Transfer of same by Governor Evans to Union Pacific through Mr. Gould; its chief source of revenue cutoff when collapse came in mining business, 47. Not earning operating expenses now; a case of the illusory values of that time; Union Pacific offered half a million bonus for the bargain; its future not hopeless, 48. A mineral road ; gives control Colorado business; a burden for last two years; consideration for Denver and South Park paid in money, not in Union Pacific stock, 49. Details of ownership of its stock, 50. Branches of Denver and South Park to Leadville and Gunnison, together 100 miles; consolidated bonds issued to Union Pacific for construction; method of construction of branch lines; Union Pacific construction department contracts with responsible parties, 51. Retention of this branch of doubtful ad vantage to the parent company; the Nevada Central, on the Central Pacific, be?tween Austin and Battle Mountain, 90 miles long, thrown overboard; stock and income bonds acquired in 1882; 52. The cost to Union Pacific, 53. Mining railroads a species of railroad gambling; purchase price honestly paid over; none of it went to any one connected with Union Pacific; Central Branch. Union Pacific, 54. Operated by Missouri Pacific and acquired through Gould; Gould's plan of development; Central Branch, Union Pacific, bought by Gould as part of this plan; located between Kansas Pacific and Union Pacific, 55. Character of business done, agricultural; very profitable; lease to Missouri Pacific over twenty-three years to run; its terms; none of the parties interested in the sale connected with Union Pacific, 56. Increase of stock of Union Pacific by consoli dation; subsequent increase: new bond issues of Central Branch; work done on extensions by contract.' 57. These construction bonds sold; Council Bluffs Street Railway; connects depot with town; thinks it will pay; "a good thing to sell;" why purchased, 58. Denver, Marshall and Boulder Railway; Denver to Mar shall, 30 miles; coal business; acquired by witness, bonds purchased at 35: road reorganized. Leaven worth, Topeka and Southwestern, from Leaven worth to To-peka; bought in 1882, 59. Purchased through Dillon; 50 miles long; agricult ural business; has paid operating expenses; was u forced " upon Union Pacific; coupons a joint guaranty with the Atehison, 60. Manhattan, Alma and Bur-lingame Railway; owned jointly with the Atehison; 56 miles long; agricultural road; pays operating expenses, but not interest on bonds, 61; an important connection; how paid for. Manhattan and Blue Valley Railway, a very im portant link, connects Kansas Pacific with Union Pacific, 62. Forty miles long, from Manhattan to Garrison; purchased by Union Pacific before completion; 5405 5406 U. S. PACIFIC RAILWAY COMMISSION. Adams, Charles Francis, testimony ofContinued. both through and local business; indispensable; how built. 63. Omaha Belt Railway; now property of Missouri Pacific; litigation with that company, 64. Saint Joseph and Western, now part of Saint Joseph and Grand Island; how acquired, 64, 65. Agricultural business; stock and bonds bought in open market by Dillon and Gould for account Union Pacific; prices paid; nothing unfair; road has paid; company reorganized; bonds sold; stock still held, 65. Its future value problematical; earns surplus over interest aud charges; no dividends on stock; Salina, Lincoln and Western Railway, 50 miles long, built in usual way, cost $14,0004)er mile; Kansas Pacific supplies equipment, 66. South Park and Leadville Short Line; how acquired; Utah and Nevada Railway; Salt Lake to Stockton, via Garfield; remunerative, 67. Should be retained; recent dividend. Utah Central Railway, from Ogden to Salt Lake City; extended to Frisco; not profitable, owing to failure of Horn Silver mines and competition of Denver and Rio Grande, 68. Now earns operating expenses and interest on bonds; business, agricultural, grazing, and mineral; will not be a burden; furnishes valuable through traffic, 69. Wahsatch and Jordan Valley Railroad has been wound up; Colorado Central; Denver to Cheyenne; furnishing long-haul business; Union Pacific owns nearly all the bonds; varied nature of the business, 70. Two branches built by construction department; Col orado Central of Wyoming; built by Gould to force a consolidation with Denver Pacific; Gould's first connection with Union Pacific, 71. Present directors of Union Pacific who were such in the beginning, 71, 72. Echo and Park City Railway; a siding to the Ontario mine; has earned its cost fifty times over, 72. Its great value as a feeder; branches of the Union Pacific at west end more important than those at east end; Georgetown, Breckenridge and Lead ville Railroad; "the loop line;" an engineering curiosity; mineral business; also pleasure travel, 73. Its value as a feeder to the-Colorado Central; how a branch road whose whole traffic is less than operating expenses may be an advantage; Golden, Boulder and Caribou, merged in the Denver, Boulder and Marshall; Greeley, Salt Lake, and Pacific, 74. From Greeley to stone quarries at Stout; length 54 miles; constant deficit; very valuable feeder; haul is short, profit goes to main line; stone department of Union Pacific at Stout; not a distinct com pany; of great value; stone delivered in Mississippi Valley; Union Pacific de?rives haul over entire line, 75. Junction City and Fort Kearney; agricultural feeder to Kansas Pacific; unquestionably valuable; Kansas Central Railway; road runs west from Leavenworth; narrow gauge; at present a very poor piece of property; practice as to interest account with subsidiary roads, 76. Inter est on bonds paid until this year; payment of interest on outstanding bonds has been stopped; Lawrence and Emporia, 25 miles long, Lawrence to Carbondale; mines worked out; road running at loss; why operated, 77, 78. Montana Railway; branch to the Anaconda smelting works; very profitable; no bonds; Union Pacific owns all stock; "the narrow gauge a first-class nuisance," 78. Comparison of narrow and standard gauges; still 1,500 miles of narrow gauge on Union Pacific; Omaha and Republican Valley; a system of branches in Ne braska, feeders of Union Pacific; about 750 miles in all; large increase of earn ings in 1884; good future; acquired in regular way, 79. ? Marysville and Blue Valley, the liDk between Union and Kansas divisions; original cost of con struction of Union Pacific, 80. Investments in branch lines from net earnings; several millions a year; why Union Pacific does not issue its own securities against branch lines; losses on branches fall on Union Pacific; how they are a profit, 81. Future of agricultural branches more certain than of mining branches; sinking funds; entire branch system worth $5,000,000 a year to Union Pacific, apart from the accounts of the branches themselves; investments in other enter prises; coal mines, elevators, exposition buildings, soda works, 82. Occidental and Oriental Steam-ship Company a source of profit; Central Pacific owns half, and Union Pacific owns half; witness opposed to these miscellaneous invest ments; on the whole, they have been profitable: payments to Government under 5 per cent, rule, paid in transportation; award of Court of Claims; the $900,-000 item, 83. Interest of officers in other enterprises; an employe sometimes a nominal contractor; investment of land-grant mortgage sinking-fund; proceeds of sales of land, how disposed of, 84. Last dividend, April, 1884; various mis fortunes in 1883; $4,000,000 less business in one year; net earnings for 1885 and 1886 used to pay floating debt, or for construction; $16,000,000 paid for improvement or construction since witness became president, half from net earnings, half from sale of securities, 85. Decrease of assets due to sale of se curities, 86. Method of stating floating debt, 87. Hostile local legislation in ANALYTICAL INDEX. 5407 Adams, Charles Feancis, testimony ofContinued. Nebraska and Kansas; arbitrary cutting down of rates; high taxes; land grants to competing lines, 88. Omaha, Niobrara, and Black Hills Railroad; agricult ural, 89. Profitable in connection with main line; now part of Omaha and Republican Valley system; Oregon Short Line, from Granger to Hunlington, con nection over Oregon Railway and Navigation Company with Portland, 90. Or ganization and construction; why built; plan for building road, 91. Length, 610 miles; character of country traversed; begun in 1880, operated in 1882; total cost of construction and equipment, $25,000 a mile, 92. Bond and stock issues, $25,000 each per mile; Union Pacific guarantied interest on bonds; one-half the stock now in Union Pacific treasury, other half of stock went with bonds, no additional payment; the great value of Oregon Short Line to Union Pacific, 93, 94. Miscellaneous character of business done; Idaho most promising undevel oped field the Union Pacific now has; comparison between Oregon Short Line and California and Oregon, 94, 95. Guaranty of interest by Union Pacific; advised by counsel that consent of Congress unnecessary, 95. Apparent deficit on interest more than made up by the profits on derived business, 96. Union Pacific has haul of 860 miles on Oregon Short Lino business; long haul busi ness more profitable than any other; railroad operation described; whether at certain rates movement of freight involves a loss, 97. Rates on derived busi ness, whether remunerative; why branch lines can not be left to independent ' development, 98. Branches only profitable in connection with main line; Ore gon Short Line increases net earnings of aided portion of Union Pacific; without branches Government's 25 per cent, would be reduced one-half; lease of Ore gon Navigation Company to Oregon Short Line; rental, $2,200,000 a year, 99. Will be beneficial to the public and to Union Pacific; possible results to Union Pacific, 100. Salina and South Western Railroad; in Kansas from Salina to McPherson, 25 miles; an agricultural feeder; built in 1878; has more than paid operating expenses; ownership of securities; a valuable adjunct to mainline; Salt Lake and Western; 57 miles from Ironton to Silver City, mainly mineral region, 101. Its deficit; the Solomon Railroad an agricultural road in Kansas; has paid operating expenses; very desirable; Utahand Northern, from Ogden to Garrison on Northern Pacific, 466 miles, built by Mormons, 102. Union Pacific's interest in 1875; its financial history; character ofcoun try traversed; how the busi ness is handled, 103,104. Large business; valuable feeder; constructive mileage; what it is, 104. Allowance of, by Union Pacific to branch roads; arrangement ap proved by Government directors; allowance of by Eastern roads to Union Pacific; effect on Government's 25 per cent., 105. Benefits to branch lines and to main line rates of freight, by whom fixed; special rates, 106. None since interstate law; discrimination in rates, 107. Between localities; neither discrimination in rates nor diversion of earnings in favor of branch lines, 108. Constructive mile age universal; guaranties made without consent of Congress of Saint Joseph and Grand Island bonds; also of collateral trust bonds of 1879; pools; transconti nental pool, membership, 109. Methods of division in pools; basis, the natural flow of the business, 110. Pool paid Pacific Mail $80,000 a month; comparison of rail and water transportation; Union Pacific's proportion of the $80,000; the pool an advantage to Union Pacific and to the Government, 111, 112. After disruption of pool road carried 35 per cent, heavier tonnage for 26 per cent, less money; reference for details to page 26 of report for 1886; 112. Pool settle?ments paid before reporting gross earnings; income account, how made up; dis tinction between general income and earnings; the Government's percentage computed on net earnings, 113. Not on net income; income from sales of land goes to trustees; law defines net earnings; why proceeds of land free from Gov ernment lien, 114, 115. Payment of junior liens, policy of road; the land bonds, 115. Mode of making payments to Government, 116. Branches en titled to constructive mileage and their allowances, 604. Method of fixing constructive mileage, based on dickering, 605. Policy of Union Pacific approved by Government directors, 606. Government directors admitted to board of con solidated company, without protest, 607. Question of right of admission raised by Government Director Niles, 608. No way of estimating amount charged off from main line to branches, under constructive mileage, prior to January 1, 1887; settlements of total amounts of divisions, 611. Effect of constructive mileage under Thurmau act, 612. Favors paying a gross amount yearly, 612, 614.. The Government a gainer by constructive-mileage rule. Appalling num ber of way-bills, etc., daily, 613. " Net earnings," the original source of diffi culty, 614. Allowance of constructive mileage to branch lines never intended to diminish payments under Thurman act, 615. Constructive mileage a true 5408 U. S. PACIFIC RAILWAY COMMISSION. Adams, Chables Fbancis, testimony ofContinued. principle for the proper conduct of a railroad, 638, 639. Branch-line business the most profitable business done by main line, 640. How amount of construct ive mileage charged off to branch lines might be approximated, 641. How Thurman act might be defeated by constructive mileage allowance. Detailed statement of cost of freight train; most profitable business, long haul without handling, 642. Discussion as to constructive mileage; rebates, 642, 643, 644. Explanation of certain vouchers; the bureau af information; drafts for services in the quo vsarramto proceedings, 947, 948. Payment to E. L. Andrews; to John S. Blair, 948. To H. G. Wood; to W. M. Jones; to E. R. Meade; to J. M. Thurston, 949. Other secret-service vouchers, 948, 949, 950. Alleged pay ment to Theophilus French; hisservices; letters from him, 950, 951, 952. The consolidation of 1880; 971. Comparison between Kansas Pacific and Union Pacific earning powers, 971, 972. Their relative capacity now, not one to two, but about two to three; table showing their earnings and expenses for years 1879-1886; 972. Terms of consolidation; its advantages; how the securities were commuted, 973. Results have justified the consolidation; a manifest service to the community; favorable effect on Government's security, 974. Propriety of action of directors, including Mr. Gould, 975. Witness refers only to actual financial results; value of branch lines, how properly estimated; Echo and Park City, deficit last year about $30,000; constructive mileage allowance, two to one; Union Pacific had haul of 1,000 miles on interchanged business; this business netted $250,000 to Union Pacific in 1836; 976, 977. Oregon Short Line earned for Union Pacific through interchanged business in 1886 $500,000 over its deficit on bonded interest, 978, 979. Necessity of fol lowing established lines of business; '4 arbitraries,'1979. Government about $100,000 a year better off through constructive mileage; cash payments on stock of Union Pacific, 980. The Government the greatest beneficiary.from construction of Pacific roads, 981. Their construction the solution of trans continental problem, 981, 982. Statements showing amount saved to Gov ernment through construction of Union Pacific, 982, 93.1. In donating lands Government acted only on usual business policy, 93.5, 1)3(5. Never expected repayment of its debt; "only the Government threatens the security of the Gov ernment debt," 987, 988. Annoyance caused by relations with Government; unfavorable action of the Thurman act, 983. Retention of moneys by the Gov ernment unfavorable to company; action of the Government a greater disadvan tage than competition, 939. Proposed branch lines; Denver and South Park negotiation again; proposed extensions in Wyoming, Idaho, and Colorado, 990, 991. Would not continue in partnership with Government; would pay $35,-000,000 to be released, 991. Letter to Secretary of Interior, dated March 4,1886; 991, 993. Willing to be accountable for deb Is, but must be free to manage busi ness in business way, 99/?. Market value of the securities; Denver and South Park foreclosure expected, 994. Concerning plan of settlement; independence necessary; fixed annual payment or compromise for cash, 9'Jo, 996. Different basis of settlement for Central and Union Paciiic; Government lien more secure on Union than on Central, 996. How Union Pacific *' harassed'' by Congress, 997, 998, 999. Reply to Senator Hill's charge as to witness's interest in smelting works; owns only 65 shares Kansas City Smelting Company stock; its value pros pective, 1834; complaints of the Marshall mine; Union Pacific decides to sell its mining interests, 1989. Sale of Marshall mine; Marshall Mining Company to fur nish coal at cost; rebate given on remaining output, 1990. Other mines to receive same terms, under like circumstances, 1990,1991. Union Pacific in no way con nected with any mining business; claim of Marshall mine for damages, 1991. Traffic arrangements with other mines, 1991, 1992. Willing to make same rates with all mines; this not generally understood by m'ners; what affected other mines, 1992. Amount of rebates to Marshall Mining Company; terms of the original contract still maintained, 1993. Relations of Union Pacific to the legislature; counsel employed to represent its interests, 1994. The sena torial contest, 1994, 1995. Names of counsel before the legislature; concern ing their expenses, 1995. Mr. Williams's vouchers, 1995, 1996, Politics not the business of the company; duties of the president of the company, 1996. System of railway rebates, i99G, 1997. Rebates to smelting companies, 1997. Applications of smelting companies for rebates, 1997, 1998. Referred to gen eral traffic manager; }9p8. Reasons why the application was refused, 1998. Publicity a feature or* successful railroad management; why not applied; effect of interstate commerce law, 1999. Rates are now made public;, 1999,, 2000. Reforms must be gradual and general, 2000. Management of the Den- ANALYTICAL INDEX. 5409 Adams, Charles Francis, testimony of Continued. ver and South Park, 2000, 2001. The building of an independent line to Lead-ville an error, 2001. Alleged receipt of $700,000 or $800,000 a year from Denver and Rio Grande; pooling contracts, 2001, 2002. Interstate commerce law affects Union Pacific less than other roads, 2002. The pool system is broken up, 2003. The difference between a pool and an agreement to maintain rates, 2003. The weak point in pools, 2003, 2001. Denial of nepotism; Mr. Hinkley and the soda works, 2170, 2171. Points for consideration, per letter to Com mission dated October 15,1887; 4155-4163. Copy letter of witness to Commis sion dated November 21, 1887, as to retirement of $650,000 funded-interest bonds of the Central Branch, 4288. Copy his circular letter of November 21, 1887, asking expert opinion as to profit derived by Union Pacific from through traffic coming from branch lines, 4302, 4303. Adams, Louis B., testimony of: Business transactions with Union Pacific, 2212, 2213. Difficulties in shipping salt; Lyman & Wallace favored by Union Pacific, 2213. Had to sell out to Lyman & Wallace, 2213, 2214. Could not compete, 2214. Ineffectually fighting Lyman & Wallace, 2214, 2215. Would handle salt for nothing to get a show ; under sold half a dollar, 2215. Extent of salt traffic, 2215, 2216. Who shared in the profits of Lyman & Wallace ; was there a rebate on salt, 2216. Negotiations with Lyman & Wallace, 2216, 2217. Discrimination in the grain business, 2217. Alexander, Edward Porter, testimony of: A Government director of Union Pacific, familiar with its affairs, 846. Relation of branches to main line, 847. Net earnings from branch-line system, 847, 848. Method of division between branches and main line, 848, 849. Principles of constructive mileage, 849, 850. How it could become an abuse, 850, 851. Bearing of constructive mileage on Government's 25 per cent.; reasonableness of constructive mileage allowances, 851. Non-supporting branches of Union Pacific; Denver and South Park; necessity of branch lines to Union Pacific; the actual salvation of the road, 852. New branches suggested, 852, 853. From Fort Steele to Dillon and in Idaho and Wyoming, 852. Desirableness of ad ditional lines suggested in report to Government, 853, 854. Is freight diverted by Central Pacific from Union Pacific to Southern Pacific; plan of settlement between Government and Union Pacific, 854. Suggestions in report to Gov ernment, 854, 855. Additional security to the Government; deposit of bonds and stocks of branch lines as collateral security, 855. A fixed annual pay ment suggested; company could afford $1,800,000 a year; present value of the debt about $53,000,000, 856.. Period of extension suggested; seventy years, perhaps less; possibility of increased annual payments, 857. Consequences arising upon failure to pay; the management of the road should be untram-meled, 858. The company must occupy its territory to be successful; rail road experience of witness; constructive mileage allowances, 859. Echo and Park City allowances ridiculously small, 859, 860. Injustice of the allowance to the Denver and South Park; should be higher, 860. Allowance to Utah Northern not extraordinary; unanimity of views of Government directors, 861. Constructive mileage in general use, 861, 862. No attempt apparent to reduce net earnings on main line by constructive mileage allowances, 862. Copy his letter to President Adams, as to profit to main line from branch-line traffic, 4304, 4305. Allen, Edward H., testimony of: President Exchange Building Association and Board of Trade of Kansas City, Mo., 1649. Two local rates exceed through rate; effect of discriminations; no action by board of trade, 1650. Better terms allowed certain grain buyers, 1650, 1651. Complaints since passage of interstate commerce law, 1651. Ames, Frederick L., testimony of: His familiarity with Union Pacific and its management, 645. The Kansas Pacific, 646. The pooling agreement, 646, 647. Witness's interest, 47, 649, 650. Millions of dollars in the pool; its accounts, 648. The Kansas Pacific consoli dated mortgage, 649. Comparison of rates in pooling agreement with rates in . consolidated mortgage, 650. Did not know that any holders of the securities got a preferential rate, 651, 652. The preference to witness by means of a guar anty, 652. Preferential issue of $2,000,000 bonds to Gould at 75; Gould's Kansas Pacific consols; another $2,000,000 to Gould, 653. The Kansas Pacific pool; Mr. Gould took the Saint Louis stock out, 654. Interests of witness in Union Pacific branch lines, 656. The letter to Dodge and Humphreys, 657. Finan cial condition of Kansas Pacific; careful examination necessary to an intelligent 5410 U. S. PACIFIC RAILWAY COMMISSION. ; Ames, Fbedebick L, testimony ofContinued. : report; the report of Dodge and Humphreys, 658. Probably communicated ver- bally prior to its date, 659. Gould's purchase of Missouri Pacific; alarm of Union Pacific people, 659. Terms wanted by Gould for Kansas Pacific, 660. Gould irritated at refusal of his terms; Gould's purchase of Central Branch and Saint Joseph and Western made for the protection of both properties, 661. His ; purchase of Missouri Pacific; consultations 'with Gould on his change of front, I 662. Influence of the threatening attitude of Burlington and Missouri; why Missouri Pacific leased Central Branch and Kansas Central, 663. Who were present at Mr. Gould's house,664. A protracted discussion of terms; was agree ment to buy of Gould the Saint Joseph and Western made public, 665. Bought at 40, sold at par, 666. Mr. Gould resigns, 666. His motive, 666, 667. Pro priety of the individuals acting in dual capacity of buyers and sellers, not dis cussed; agreement in Mr. Dexter's handwriting, 667. Explanation of the sig nature "R. S." ; copy of consolidation agreement, 66fL Errors therein, 668. 669. Gould's holdings in Kansas Pacific nearly doubleTihose in Union Pacific, 669. He controlled Kansas Pacific securities; the paper Mr. Dexter wrote re?cently found, 670. What witness knew of the suit to release Denver Pacific stock, 671. Pool agreement of 1878; the basis of apportionment, 672. The pool operative until consolidation; charges against Henry Villard; the resolu tion confirming his action, 673. Union Pacific in control of Kansas Pacific; Gould's loan of $230,000 to Kansas Pacific to pay interest, 674. Issue of stock to meet demands, 674. The published quotations; stock issued to pay first coupons on consolidated mortgage; Denver and South Park road; agree ment not to discriminate against, 675. Price paid by Union Pacific for stock of same; its history, 676. Decrease in traffic; Union Pacific cease paying inter est on part of Denver and South Park bonds, 677. Their withdrawal from col lateral trust 5 per cent, indenture, 677, 678. Object of paying interest on a por tion of Denver and South Paak bonds, 679, 680. The '' High Line,'' 680. Why Union Pacific still pays interest on Kansas Central bonds; poor prospects of Kansas Central, 681. The Union Pacific sells stock to extinguish floating debt, and at the same time pays dividends, 682. Propriety of declaring dividends notwithstanding a floating debt existed, 683. Government suit to recover money taken from company through Credit Mobilier, 683. 684. Union Pacific and Credit Mobilier settlement, 684. Meeting at Gould's house on January 14; 685, 689 Directors influenced by fact that Gould had them *' cornered''; the j consolidation a "good trade;" reduced rates the cause of decreased earnings, Ji 685. Witness's profits from the consolidation; Mr. Gould's profits from the if consolidation; no dividends except from earnings, 686. Witness's interest in Union Pacific at consolidation; in Kansas Pacific, 687. Present interest in Union Pacific; the good faith of the parties in forming the consolidation, 688. The sit-nation of affairs in 1880; possible results if consolidation had not taken place; the Saint Joseph and Grand Island as checkmate to Iowa roads, 690. Agree?ment between Kansas Central, Central Branch, and Missouri Pacific; constructive-mileage clause in agreement betweeu Kansas Central, Central Branch, and Mis souri Pacific, 691. Copy of lease of Central branch, made December 6, 1880; 692,693. A new lease made a year ago, 692. Union Pacific director since March, 1887; method of acquiring branch lines, 693. No improper profits to directors or officers; the South Park road, 694. Statement of stocks and bonds owned or held in trust by Union Pacific, December 31, 1882 (extract of minutes from March 7, 1883); 695. 696. When Union Pacific acquired the South Park road, 696. Denver and Rio Grande's offer to buy South Park road, paying $500,000 bonus, 697. Relations of Central Pacific and Union Pacific; diver sion of traffic by Central Pacific to Southern Pacific; the Pacific Mail subsidy, 698. Trustee of land-grant mortgage; description of the lands, 936. Sales of the lands, 937. Statement of Union Pacific R. R. Co. land grant to Decem- i, ber 31, 1886; 938, 939. Deductions and commissions, 939. Net amount; land / contracts; bonds received for lands, 940. Accrued interest; Union Pacific Rwy. ledger balances, trustee under land-grant mortgage of Union Pacific R. R. De?cember 31, 1886; 941. Premium on bonds redeemed; the investments of the funds; loan account, 942. Statement of trustee under land-grant mortgage of Union Pacific Railroad June 3,1887, 943. Outstanding land contracts all good; location of unsold lands; disposition of surplus, 914. The sinking-fund mort gage, 945. Surplus applicable to sinking fund after......... estimated at about $16,000,000; 915,946. Certificates trustee of land-grant bonds on January 1, 1887; 946. ANALYTICAL INDEX. 5411 Ames, Olives, testimony of: Witness interested in Union Pacific, Central Branch, 801, 802. The Atchison, Colo rado and Pacific road, a consolidation of all its extensions, 802. History of witness's interest in Central Branch, 802,803. The building of branches advan tageous, 803. Leases of roads to Central Branch; their provisions, 803, 804. How witness increased his holdings, 804. Negotiations to sell to Gould, 804, 805. Building rival roads l' within a stone's-throw,'' 805. What led to nego tiations to sell to1 Gould, 805,806. Negotiations with other parties, 806. Wit ness '' willing to hold the fort,'' 806, 807. Memorandum of agreement between Gould and Ames for the purchase of 6,250 shares Central Branch, 807. Did not know Gould's object in purchasing Central Branch; Gould options to buy more stock from witness, 80S. Gould very "chipper," 808, 809. Range of prices paid bv witness, 809. Additional securities turned over to Gould, 809, 810. More about the options from Gould to witness, 810. How Gould was 4' fooled,'' 810, 811. Trains held back a day; certain interests retained by witness in extensions, profits to be divided, 811. Additional statement of Union Pacific in Central Branch, 812. Understood consolidation was impending before Gould acquired Missouri Pacific, 812, 813. The Boston directors unhappy, 813. De clined to put Credit Mobilier stock in Union Pacific treasury, 813, 814. Dropped out of the board, 814. Appointed receiver of Credit Mobilier in Penn sylvania, 814, 815. Suit by Credit Mobilier against Union Pacific to collect a two-million-dollar note and a balance of aecount, 814. Details of the litiga tion, 814, 815. Suits against Credit Mobilier by Union Pacific, 815,816. The large stockholders in Credit Mobilier; their holdings, 816, 817. The minority stockholders of Credit Mobilier sold out at $20 a share, 817, 818. No release from liability or other consideration, 817. Anderson, H. J.: His report on the umaterial on hand " account of the Union Pacific Railway Co., 5297-5300. His report to the Commission on the books and accounts of the Sioux City and Pacific Railroad Company, 5351-5361. Statement of amount paid or guarantied by company for 1880-1884, and amount of new stock and bonds issued, 5361. Rebates, overcharges, pools, etc., charged to gross earnings, 5362. Stock held in trust, amount of and names of trustees) 5362, 5363. Legal expenses; detailed statement of payments made from 1871 to April 30, 1887; 5363-5367. Net earnings of Missouri Valley branch, years 1871-1887, and of the Sioux City and Pacific Railroad, years 18V0-1887; 5368. Lists of directors and officers, 63G&-3371. Balance-sheets and current statements, to June 30, 1887; 5372-5391. Loans made to company, statement of, 5391, 5392. Dividends paid on preferred stock, statement of, 5393. Fremont, Elkhorn and Missouri Valley Railroad, statement of gross earnings, operating expenses and taxes, rental, and construction expenditures, Octo ber, 1872, to June, 1884; 5393. Lands; statement showing amount received by Sioux City and Pacific Railroad from sales of, 5393, 6394. Andrews, Edward L., testimony of: How tie security of the Kansas Pacific income bonds of 1886 was lessened by the pro visions of consolidated mortgage; history of Rosenbaum suit, 257. Brought to compel restitution of the Denver Pacific stock, 257, 258. Nothing done except to obtain order to show cause why defendant should not be examined before trial, 258. Anthony, Daniel R., testimony of: A Government director, 1622. Difficulty of learning all the details of railroadiag, 1622, 1623. Past irregularities beyond remedy; brighter prospects for future; meetings of boards of directors; settlement; liberation of road imperative, 1623. Inability of road to undertake new enterprises, 1623, 1624. Abjsnts, George, testimony of: Market value of Kansas and Nebraska, and Saint Joseph and Pacific securities in 1878-1880: 265, 266. List of prices during 1879; 267. Armstrong, Francis, testimony of: Mayor of Salt Lake City, 2201. Facilities, accommodations, etc, 2201, 2202. Fluctuations i n tariff rates inj urious to community; tariff rates finally adj listed, 320*2. P R VOL IX-------2 5412 U. 8. PACIFIC RAILWAY COMMISSION. Atkins, Elisha, testimony of: U. P. director since 1869; time generally devoted to finances; form of construction ac count; construction enormously expensive, 750. Steel rails, $100 a ton; ties, $.' each; road financially embarrassed in 187:5; stockholder of Credit Mobilier, 751. Gould a valuable director; Gould's majority interest; Kansas Pacific consolida tion, 752. Gould's control ol Kansas Pacific; officials common to Union Pacific and Kansas Pacific; witness's Union Pacific holdings in 1879; 753. Holdings in Kansas Pacific in 1879; the letter to Humphreys and Dodge, 754. Gould's change of attitude, 755. Gould buys the Missouri Pacific; Gould's "scheme" for a com?peting road; witness's holdings of Saint Joseph and Western and Itair exchange lor Union Pacific, 756. Was not present at meeting on January 14, 1860, at Gould's house, 757. Was present when terms of consolidation were discussed; what he knew of Central Branch when he signed for its purchase, 758. What he knew of Kansas Central, of Saint Joseph and Western, 751). The propriety of putting in at par what cost them forty, 759. The attitude of Gould alter ac quiring Missouri Pacific; witness's interest in branch lines, 760. Their value to Union Pacific; a bankrupt without them; built economically; some were mistakes, 761. His opinion of their value not the result of careful study; effect of Southern Pacific's lease of Cen tral Pacific; threatening attitude of Kausas Pacific, 762. Pacific Mail subsidy, 763. The freight which seeks water routes, 763,764. Normal route for sugar from Pacific coast, 764. Effect of cutting oft* mail subsidy, 764, 765. Percentage of passengers by Pacific Mail; reports ex amined before voting for dividends; net earnings, were they computed in differ ent ways? 765. Witness's definition of net earnings; what are "expenses," 766. Had no interest in companies with which Union Pacific had leases or contracts, except a trust company, 766, 767. Loans negotiated by witness for Union Pacific, 767. Guaranty by Union Pacific of interest on Saint Joseph and Grand Island bonds, 768. Plan of settlement; an extension of one hundred years at 3 per cent.; use of the $7,000,000 in Government's hands, 769. Wants Government to stop persecution, and a chanoe to secure their own territory, 770, 773. Favors enlarging the security to the Government by building branch lines and putting their securities in escrow, 770. Extension for one hundred and fifty years preferable; additional security on new branch lines ample for Government lien, 771. If extended, would the debt then be paid, 772, 773. Debt to Government naturally expected to be renewed, 772. Witness's present interest in Union Pacific; ."stood by the ship;" Union Pacific favorably located, 774. No improper personal benefits derived from Union Pacific* 775$ 778, 779, 780. Only market rates of interest paid, 775. No dividends paid except out of net earnings; money never borrowed to pay dividends; not at meeting of January 14, 1880; 776. Approved of the consolidation; did Gould dictate the terms; the issue after consolidation of $3,400,000 of Kansas Pacific consols to Gould under market rates, 777, 778. Was the rate to Gould and Sage preferential, 779, 780. Witness's advantage in the sale of Saint Joseph bonds, 780. How the Government was benefited by the Pacific roads, 781. Former cost of transportation, 782. Bailey, George W., testimony of: Complaints concerning stone shipments, 2032, 2033. Red stone quarries, 2033. Insufficient car service, 2033, 2034. Injury to private quarries; Union Pacific ship 600 cars monthly; other quarries 100 cars, 2034. Extent of Union Pacific quarry interest; Union Pacific monopolizes the business; description of the stone, 2035. Extent of the stone deposit; depth not ascertained; switching facilities of the quarries, 2036. Complaint of not getting cars;, no complaint against rates; no threats against shippers for complaining, 2037. Insufficient car service, 2037, 2038. Ked stone quarry; complaints as to switching facili ties, 2038. Bailey, William N., testimony of: Coal dealer at Fort Collins, 2065. Union Pacific trying to " freeze out" competing coal dealers, 2065, 2066. Inability of outside companies to mine, 2066. Baker, Ezra H., testimony of: A director of Union Pacific, 737. His interest in Union Pacific and Kansas Pa cific at consolidation, 738. In Saint Joseph and Western in 1879; consolida tion discussed; Gould disposed to consolidate, 739. Circumstances of meeting at Gould's house, 740. Had no accurate knowledge of affairs of Central Branch; the price paid for it, a dictation of terms by Gould ; threatened line to Denver; no knowledge of Kansas Central or of Saint Joseph and Western,. 741. Very likely Gould fixed price for Saint Joseph; no protracted discussion of terms, 742. Are quotations of unlisted securities reliable; as to value of ANALYTICAL INDEX. 5413 Baker, Ezra H., testimony ofContinued. . Denver Pacific; the Kansas Pacific consolidation; witness's interest in branch roads ; those branches which result in loss to Union Pacific, 743. Saint Joseph and Grand Island road; negotiation of $7,000,000 bonds, interest guarantied by Union Pacific; no business interests inimical to Union Pacific, 744. Holdings in Union Pacific at present and on January 14; all glad to consolidate, 745. The Central Branch pat in at cost; Gould preferred to retain it; no direotor /. interested in construction or other contracts; denial that legislation has beej**- / influenced by Union Pacific, 74G. Views concerning Gould's conduct; interest taken by Goverument directors in consolidation and other questions, 747. No design to abandon Union Pacific to the Government; witness's interest in the Union Pacific partly inherited; without change of treatment by Government, other managers necessary; a gross payment rather than percentage of net earn ings, 749. Babrigeb, D. S., testimony of: Grain dealer since 1875; located at Council Bluffs since 1883; the Omaha Elevator and Grain Company; names of owners; an incorporated company; no Union Pacific people interested; its building erected on ground owned by the Union Pacific; the elevator built by six railroads and leased by witness's firm; value of elevator and land about $280,000; rent paid to the Union Elevator Com pany; the railroads which compose that company; rent paid by Elevator and Grain Company to Union Elevator Company $5,000 last year, 1152-1154. Other competing elevator companies; rebates by Union Pacific to Omaha Com pany, 1154. Failure to get rebates only temporary; a continuous rebate of 1 cent a hundred pounds ibr past two years, 1155-1156. Additional rebates; witness asked for such rebates, 1156-1157. No inducements offered to officers for allowing rebates, 1157. Aggregate rebates about $25,000 or $30,000 a year; understood that competitors have the same rebates, 1158. Statement of re bates allowed in July, 1883; in October, 1883; 1159-1160. May include over charges in freight; overcharges, how ascertained, how paid back, 1160. Twenty-four thousand pounds the minimum allowed for a car, statement of rebates in April, 1884, in June, 1884; 1161. Rebates from July, 1884, to No vember, 1885; half rates for lumber for constructing elevators; open to every body ; additional elevators belonging to witness's firm, 1162,1163. Same rebates enjoyed by other elevator companies; additional rebates, 1163,1164. The rail road the gainer by rebates, 1164. Further rebates, 1164,1165. No preferences received by witness's company under any other name; additional rebates, 1165, 1167. Allowances to the company from June, 1886, to January, 1887; 1167, 1168. The 1 cent per hundred rebate contract verbal; similar contract with other roads, 1168. "Rebate" or "preference" does not indicate advantage over other men engaged in the same business, 1169. Bates, D. H., testimony of: President and general manager Baltimore and Ohio Telegraph Company; as to his testimony before Committee on Post-Offices and Post-Roads, 3876,3877. As to testimony of witness and others before the Warner committee, 3877. Babton, Guy C, testimony of: President of the Omaha and Grant Smelting and Refining Company; number of its stockholders, fifteen or twenty, 1088. Two stockholders interested in Union Pacific, F. L. Ames and Sidney Dillon; amount of capital stock, $2,500,000; Dillon and Ames each own 830 shares; paid for their shares the same consider ation that others did; received ores and bullion over Union Pacific, 1089. Mr. Dillon interested while president of Union Pacific, and Mr. Ames while director; where the Omaha and Grant does business; has same rates over other railroads as over Union Pacific; were allowed rebates prior to April 1, 1887; the benefit of the lower rate went to the miner, 1090, 1091. Rebates varied in special cases; rates on mining products prior to April 1, 1887; competitors prior to April 1, 1887; private and open rates; competitors enjoyed same rates, 1091, 1092. How rebates were made; received rebates only on ore and bullion, 1092, 1093. Got a rebate on slag; names of their principal competitors, 1093, 1094. They all ship over the Union Pacific; and at same rates; company has smelting works at Denver, 1094. Overcharges shown in vouchers; $250,000 refunds in one year not considered excessive, 1095. Change in rebate allow ances since April 5, 1887; how railroads ascertain the grades of ores; special cases require special rebates; Iowa coal overcharged on the bridge at Omaha, 1096,1097. Voucher representing a general settlement of overcharges; other bridge overcharges on coal, 1097. Company has paid a dividend of 2J per cent, quarterly since organization; witness thinks the stock worth par; 5414 U. S. PACIFIC RAILWAY COMMISSION. Barton, Guy C, testimony ofContinued. overcharge on slag, 1098, 1099. Explanation of bridge overcharge; rebate on shipment of sulphate of copper given to allow company to sell in Helena, Mont.; difference in the character of the- payments known as " rebates," 1099,1100. Reasons Messrs. Ames and Dillon became interested in Omaha and Grant Companj; their joint interest only 7 per cent. U whole capital .stock; direction by Mr. Ames that no favors should be shown because of his interest, 1100, 1101. Small and large shippers obtain equal rates; the miners receive benefit of lowerrates; explanation of a refund of $40,871.25; 1101,1102. State ment of freight earnings refunded April 16. 1885, to August 23, 188(5, aggre gating over $253,000; inconvenienced by delays in paying rebates, 1102, 1103. Method of settling for freight; the rebates the same to all; ail equally informed astorebates, 1103, 1104. Copy of letterfrom Mr. Barton, dated June 29,1887; chairman states that the total amount of overcharges and rebates paid to this company by Union Pacific Kail way from 1st September, 1)883, to 1st of April, 1887, was $570,112.26; 1104. Berker, William, testimony of: Newspaper man and postmaster at Marysville, Kans., 1547. Facilities and accom modations; complaints of high rates; discriminations against shippers; discrim ination against Marysville; no interference in elections, 1548. Railroads rob bing the people; passes; principal shipments; no competition for freight; in?terference in elections, 1549. Blair, John I., testimony of: Has a variety of occupations; construction of Sioux City and Pacific Railroad begun in June or July, 1866; 4039. Organization of company, 4039,1040. Stock sub scriptions; subscription of Iowa Railway Contracting Company, 4040. Cash paid for stock, 4040, 4041. His practice regarding checks, 4041, 4042. Book accounts, 4042. W. W. Walker's estimate of cost of road, $4,968,120; 4042, 4043. Character of country; difficulties of construction; Mr. Walker's esti mate; amount for the Missouri bridge, 4043. Contract with Douglas & Brown, 4044. The account books, 4044. Approximate cost of regulating road; extent of road embraced in first contract, 4045. The contract of 1867 made with Oakes Ames and D. W. C. Blair; stockholders interested in the contract; distribution of stock, $1,899,000 issued; chief stockholders, 4046, 4047,, The board of di rectors when the contract was made, 4047, 4048. How the contract was carried out, 4048. Purchase of supplies, 4048, 4049. Subcontracts, 4049. Who kept the books, 4049, 4050. "A piece of paper would keep all the accounts," 4050. Actual cost of construction, $4,640,720, 4050, 4051. Division of stock about 1871; the stock-book, 4051. Statement for stockholders as to bonds, 4052. How the bonds were paid for, 4052, 4053. The bonds not a dividend, 4054. Some of the bonds sold; as to the bank accounts, 4054. Funds entered in pocket-book, 4054, 4055. Actual cost of road, $4,650,000, 4055. Source of in?formation, 4055,4056. Land grants; Government land, 4056. State land 405(j, 4057. Sale of land to stockholders, 4057. Transfer" of stock to Chicago and Northwestern, 4057, 4058. How the consolidation was effected, 4058. Ad vantages of the arrangement, 4058, 4059. Effect of building parallel roads; present market value about $2,600,000,4059. Method of book-keeping farther explained, 4060. Auditing committee in November, 1870, 4060, 4061. An at?tachment by Mr. Lambard; suit brought by Mr. Williams in name of company, 4061. Committees of arbitration in 1872 and 1873; 4061, 4062. Dudley Field attorney for Lambard; Mitchell & Crane attorneys for company; an ap peal and compromise, 4062. A blackmailing affair, 4062, 4063. Koad got only 42,000 acres of land; in 1869, 101.70 miles completed; affidavit as to issue of bonds, 4063. Resolution of May, 1869; 4063, 40d4. Distribution of bonds, 4064. The remaining bonds and stock, 4064, 4065. $169,000 preferred stock issued for 6-) miles between California Junction and Missouri Valley, 4065. Some common stock issued, 4065, 4066. Character of country; distribution of $400,000 of first-mortgage bonds; Mr. Blair retires from presidency of road in September, 1871; 4066. Settlement of accounts, 4067, 4068. Resolution, in March, 1872, as to Sioux City and Pacific Land Company; ownership of stock in that company, 4068. How the company paid for the land, 4068, 4069. Distribution of stock pro portioned to money paid in; Sioux City and Pacific lands sold to stockholders; suit with Union Pacific as to lands, 4069. Stock issued directly to stockholders, 4070. Land obtained through consolidation with North Nebraska Air Line, 4070, 4071. Witness purchased 7,000 acres from Sioux City and Pacific Com pany, 4071. State of Nebraska brings suit, 4071,4072. Total amount of land ANALYTICAL INDEX. 5415 Blair, John I., testimony ofContinued. grants, 4072. Result ot litigation with Union Pacific, 4072, 4073. Woodbury County swamp lands, 4073. Land grants to Cedar Rapids Company, 4073, 4074. Title of State of Nebraska to their lands; county bonds prorated among stock holders, 4074,4075. Litigation with Washington County; Missouri Valley and Blair Kail way and Bridge Company; the stockholders; the directors, 4075. Object of the association; bridge cost about $1,200,000, 4076. Transfer of rights and franchises of Sioux City and Pacific, 4076. Terms of contract, 4076, 4077. Can not remember that be remained president of. the Blair Company; contractors; bonds represent the actnal cost, 4077. Terms of transfer of stock to Northwestern Company; the Government benefited, 4078. Hostile legislation in Iowa and Nebraska, 4 078,4079. Influencing legislation; Mr. Hall; only wanted what was j ust, 4079. No knowledge of insufficient vouchers, 4079, 4080. Use of money unnecessary, 4080. Telegraph line, 4080, 4081. Contract with Western Union. Sale of Government bonds in 1869 and 1870 ;4081. First-mortgage bonds, 4081,4082. Memorandum book used by witness; call for original books; Sioux City road now worth its bonds, 4082. Could pay Government about $1,000,000 for the debt; the prospects of the road; its value to the Northwestern Company; Sioux City stock realized about 10 or 15 per cent., 4083. Outstanding stock; present value; control of the road; could not the Northwestern afford to pay Government $1,500,000? 4084. Lamd patents; how obtained; effects of home?stead law; Iowa Falls Contracting Company, 4085. Other companies controlled by the same interests, 4085, 4086. President of fifteen or sixteen companies; call lor a list of officers of the several companies, 4086. As to the wisdom of building branch roads, 4086,4087. A wise i u vestment; long and short haul, 4087. Government should be generous, 4087, 4088. Sioux City debt, in 1897, about $5,000,000; cost of running a railroad, 4088. Boettcheb, Charles, testimony of: Facilities afforded by Denver and South Park Kailroad, 2029. Rates, 2029, 2030. Witness formerly had special rates, 2030. Discriminations, 2030, 2031. Ef fect of pools on rebates, 2031. Deprived of special rate, and no explanation given, 2031, 2032. Rates to Leadville higher than elsewhere, 2031. Bond, William, testimony of: President of Saint Joseph and Denver in 1873; receiver of same in 1874 to 1879; 258. Its reorganization in 1877; 258, 259. Names of reorganized roads; history of Saint Joseph and Western; formed by consolidation of Saint Joseph and Pa cific and Kansas and Nebraska; leased to Union Pacific in 1879; 259, 260. Foreclosed and reorganized into Saint Joseph and Grand Island in 1883 and 1884; description of Saint Joseph and Denver and location and length of the branches, 260. Receiver's reports of earnings and operating expenses; earnings above operating expenses in. 1878 expended in betterments, etc., 261. No in terest paid until alter reorganization as Saint Joseph and Grand Island; value of bonds of Kansas and Nebraska and of Saint Joseph and Pacific in 1878; Jay Gould largely interested; sources whence he acquired a large part, 262, 263. Saint Joseph bridge and its incumbrances, 263. Hastings and Grand Island road; built in 1879; its stock and bonds, 264, 265. The fair cost of building such a road at that time, 265. Bobuck, Marcus D., testimony of: Editor and owner of the Spirit of the Times; Appointed to solicit subscriptions to Central Pacific stock; obtained three subscriptions aggregating twelve or fifteen shares; financial difficulties attending the construction, 3421. Not a dollar in the treasury Tor seventeen days; opposition of telegraph, stage, and Pacific mail companies and of the press; the Spirit of the Times, circulation of, 3422. Business transactions with Central Pacific, 3422, 3423. The only paper that advocated construction of the road, 3423. Paper furnished to station agents, 3423, 3424. Special articles; encouraging immigration, 3424. Cost of illustrated editions, 3424, 3425. Wrote article relating to Commission without dictation or suggestion from any one; compensation for publishing articles, 3425. Subscription of Central Pacific for 332 or 333 copies of paper, 3425, 3426. Large quantities taken of issues containing special articles, 3426. Varia-. tion in annual payments, 3426, 3427. No rebates on shipments ever received from Central Pacific; employed as attorney at Sacramento, 3427. Duties while attending the legislature, 3427. The " Dolly-Varden " legislature, 3427, 3428. Nature and number of hostile bills introduced within witness's knowledge; no knowledge of efforts to influence legislation, 3428. At one time no printed files of bills before legislature, 3428, 3429. Personal character of Mr. Stan ford, 3429. 5416 U. S. PACIFIC RAILWAY COMMISSION. Beadley, John J., testimony of: Stone contractor and quarryman; location of witness's quarries; had 150 to 170 men working previous to Union Pacific coming in; then hauled stone on wagons to Loveland, on Colorado Central; difficulty of obtaining c.irs after Union Pacific got their own quarries; effect of this discrimination, 2044. Many con tracts thrown up, 2044, 2045. Had to close up his quarries; refusal to sell to witness direct or to give him a track, 2045. Kefusal to furnish cars for quarry within 200 yards of track, 2045, 2046. Compelled to sell to Union Pacific quarries or go out of business; Union Pacific bought only curbing; how the Union Pacific acquired title-to their stone quarry; lack of capital no obstacle to working quarries, 2046. Condition of stone business before Union Pacific had quarries; others able to furnish all stone demanded, 2046, SO 17. Character of stone; failure of Union Pacific to redeem promises of facilities; names of other quarrymen who were forced out, 2047. All4' staved off'' in regard to facilities; method of working quarries; owner of land gets royalty; area of quarries, 2048. Mr. Hamma, the agent; application for a rate to Cheyenne; referred by Let to Hamma, 2049. .Refused a special rate on stone; had to abandon sandstone quarries, 2061. Bristol, George E., testimony of: Mayor of Fort Collins. Colo., 2061. General complaints of discriminations, 2081, 2062. Extortionate freight on coal; Fort Collins " side tracked/' 2062. Brown, Arthur, testimony of: Sworn statement relative to cost of construction of Central Pacific, 2581, 2582. Connection with construction of Central Pacific; superintendent of bridge department; difficulties experienced iu construction, 3602. Severity of the weather nearly trebled the cost of work, 3G02, 3603. Wages of laborers; meas urements of work; who made them; reported to Charles Crocker; no efforts to influence reports, 3603. Facilities for obtaining supplies, 3603, 3604. Prices of material; difficulty in building snow-sheds; speed of construction greatly increases the cost, 3604. Advantage to Central Pacific of having repairing done by contract, 3605. Brown, SamuelM., testimony of: Agent in Leadville of Union Pacific and Denver and Rio Grande roads, 2024. Di version of traffic to Denver and South Park, 2024. By orders of the Denver and Rio Grande officials; instructions came from pool commissioner, 2025. The pooling agreement, 2025, 2026. In force since 1882; iormer pooling percent age, 2026. Decrease of Union Pacific business compared with Denver and Rio Grande, 2026, 2027. Explanation of the diversion; Pueblo smelters have had to quit, 2027. Price per ton on bullion; rate high compared to cost of produc tion; cost of transportation, 2028. Brown, W. E., testimony of: Accountant to Stanford, Huntington, Crocker, and Hopkins, 2893. Secretary and treasurer of the Contraband Finance Company from 1868-'73; 2893, 2894. Wit ness's associates in the office; date of employment, 2894. Appointment through Governor Stanford, 2894,2S95. Who subscri bed for the stock; no reason ascribed for subscribing through others, 2395. Witness prepared the books of the cor poration, 2895, 2896. Disappearance of contract between Contract Company and Central Pacific, 2890. Terms of the contract, 2896, 2897. Agreement of the Central Pacific as to payment; parties in charge of construction; their depart ments, 2897. Witness purchased supplies; Mr. Brown's department, 2898. disposition of the books, 2898, 2S99. Mr. Miller employed as book-keeper and secretary, 2899. New set of books prepared by witness, 2899, 2900. Books put in the store-room by witness; examined in Stewart case as to their disap pearance, 2900. No knowledge of what became of Contract Company's books, 2900, 2901. Considered them in possession of John Miller, 2901. Reason for pre paring new set of books, 2901, 2902. Examined in Robinson's case as to their dis appearance, 2902. When he first knew o*' their disappearance, 2902,2903. His search; how the Commission came into possession of certain evidence, 2903. . Commission not seeking to impeach witness; any testimony admissible which throws light on the subject, 2904. Inquiries about missing books, 2904, 2905. A million dollars for the t)ooks; has absolutely no knowledge of their where abouts; class of accounts kept in the books, 2905. Dealings with Truckee Lum ber Company, 2905, 2906. Prominent people dealt with as to materials; prices of rails, etc., 2906. Cost of transportation added, 2906, 2907. No transporta tion charged after road was delivered to Central Pacific; Contract Company doing business on borrowed capital, 2907. Indebtedness of the Contract Com pany; loans made on notes indorsed by stockholders; failure to borrow on Cen- ANALYTICAL INDEX. 5417 Beown, W. E., testimony ofContinued. tral Pacific stock, 2908. Last delivery of stock about 1870; 2908, 2909. Cash payments made by Central Pacific, 2909. Crocker & Co. transfer Central Pacific stock to Contract Company; 2909, 2910. Explanation of the transfer, 2910. Other Central Pacific stock purchased, 2910, 2911. Dividends of Cen tral Pacific stock; reduction of rates of interest; dissolution of Contract Com pany, 2911. The "S. H. H. & C." accounts, 2911, 2912. Who kept the accounts of Contract Company showing advances by 4(S. If. H. & C"; pro posed examination of private books of "S. H. H. & C.," 2912. How much profits; how much indebtedness, 2912, 2923. Not connected with Central Pacific after 1873; no information as to absence of books and papers; indebt edness of Contract Company on dissolution about $3,0(10,000, 2913. Net profit on construction of Central Pacific, how estimated, 2913, 2914. Verifica?tion of petition in proceedings for dissolution; indebtedness assumed by "S. H. H. & C.," 2914. Date of opening the "S. H. H. & C." books; opened from Contract Company memoranda, 2915; call for entries in " S. H. II. & C." books, 2916. Statement of liabilities of Contract Company at dissolution, 2977, 2978. Disagreement as to extent of call, 2978. Amount due by Contract Company, 2978, 2979. Debt between three and four millions on completion to Promon tory, 2979. Market value ot Central Pacific stock at that time, 2979, 2980. Financial condition of Contract Company; prudence used in conducting busi ness, 2980. Contract Company received nothing but stock, 2980, 2981. Noth?ing in Contract Company's books which persons interested in Central Pacific might not have seen; what the books of the Central Pacific show, 2981. Advan tages of seeing the written entries, 2981, 2982. Contract and finance accounts kept with various parties; balance due from Central Pacific at completion, 2982. How large and when paid; indebtedness of Contract Company, 2983. Offset of amount due from Central Pacific, 2983, 2984. After 1869 Contract and Pinance Company indebted to Central Pacific; terms upon which money was borrowed, 2984. Individual notes to settle Contract and Finance debts. 2984,2985. State ment of accounts of construction; Contract Company only received $43,000 per milein cash; indebtedness ascertained at completion of Central Pacific, 2985. Market value of Contract and Finance stock, compared with indebtedness, 2985, 2986. Stock not on the market; estimate of cost based on fact that no resources were on hand, 2980. Salaries, 2986, 2987. Huntington re-imbursed for pur?chases of stock, 2987. Crocker & Co. stock turned in and divided up, 2987, 2988. Nothing in books that Commission should not see; account with the Bank of California; still in debt at end of construction about $3,500,000, 2988. Bubnell, James M., testimony of: Secretarv of Rocky Mountain News Company, 1727. No knowledge of special rates, 1728. Buhnham, Leavitt, testimony of: Was land commissioner of the Union Division from 1st of February, 1878, to 1st of June, 1886; general policy of the company, 1237. Patenting the lands, 1237, 1238. No attempt to acquire title to adjacent lands; difference between the land accounts as kept by Government and by company, 1238. Land proceeds remitted to trustee, 12:58,1239. No diversion of land proceeds to pay dividends or otherwise; policy with regard to patents, 1239. Lands patented about as sold; patents by counties or parts of counties; experience in connection with taxes; the tax money misapplied, 1240. No hostile legislation, 1240,1241. Policy of county authorities in regard to school districts: a school district from 75 to 80 miles long; object, to iucrease taxation of road; policy of company to secure legitimate settlement by good citizens, 1241. , Edward F., testimony of: idt f Mhll Cl pany's capital stock, $4,000,000 ; names of some stockholders, 1885. Market value of the stock; the coal competition; witness has no connection with the Union Pacific, 1886. Rebates allowed, 1886,1887. The consideration for rebr+ic; where coal is delivered; rebate contract not in writing, 1887. Com peting mines, 18H8. Caldwell, Alexander, testimony of: President Kansas Manufacturing Company; complaints against Kansas Central management, 1580. Diversion of trade from Leaven worth to Kansas City because of lack of accommodations, 1580, 1581. Complaint, of management of Lawrence Branch; delay in transportation, 1581. Local legislation, 1581, 1582. Conditions on which local aid granted ; favors extension of debt, and power to build branch lines, 1582. Dividends; favorable effect of extension of time, 1583. 5418 U. S. PACIFIC RAILWAY COMMISSION. Calbf, Amos H., testimony of: Is secretary and treasurer of Missouri Pacific aud Iron Mountain ; was secretary of Kansas Pacific in 1880; had nothing to do with pool, 285. The Kansas Pacific consolidation ; circumstancea of the meeting ; directors of Kansas Pa cific at time of consolidation, 28G. Their holdings of stock ; stockholders of Kansas Pacitic at consolidation, 287,288. Certificate of Kansas Pacific stock holders approving of consolidation, 288,289. Conversations about consolida tion prior to its consummation, 289,290. Denver Pacific stock, 290. Its with drawal from the trust; where it went, 290, 291. Gould's alleged offer for Denver Pacific stock, 291. Notdiscussed in the board, 292. Earnings of Kansas Pacific before consolidation, 293. As to deposition of witness in suit of Kansas Pacific against Gould and Sage, 293, 294. The alteration made by witness himself, 294. Kansas Pacific minutes as to purchase of bonds and stock of Saint Joseph and Western, and Saint Joseph Bridge bonds, 295. Purchase of Central Branch Union Pacific stock, 296. Resolution authorizing issue of the 6,242 shares of unissued Kansas Pacific stock, 296, 297. Names of receivers of Denver Pacific and of Kansas Pacific, 297. Kansas Paci fie earnings and his tes timony in relation thereto, 297,298. Financial condition of Kansas Pacific, 1876 to 1879; 299. At time of consolidation, 300, 301. Had been connected with Kansas Pacific since 1866; 301. The Morgan suit against the Union Pa cific; interest-bearing indebtedness of Kansas Pacific in 1879, 924,335,603, 302, 903. Concerning earnings of Kansas Pacific; its ability to pay interest; value of the road. 303. The Kansas Pacific land grant; the land-grant bonds; a surplus in case of foreclosure in 1879; 304. Trustees' journal showing issues of consols and securities received, 592,593. A different rate to Mr. Leigh ton; 1 agreement between Leighton and Gould, 594. Consolidated bonds sold to Gould; account of trustees with Union Pacific, 595. Item of $927,000, consols, charged to Union Pacific and delivered to Gould, 595, 596. Calhoun, William: Accountant to the Commission; his final report on the Union Pacific bond-aided roads, 4799-4840. Net earnings of Union Pacific, Kansas Pacific, and Denver Pacific Railway and Telegraph Co., statement of, by years, from 1867-1836; 480ft, 4803. Maintenance of way, cost of, for Union Pacific and Kansas Pacific, 4803,4894. Net earnings of operated lines of Union Pacific Rwy., statement of, for years 1880-1886, inclusive, 4804, 4805. Net earnings of Kansas Pacific, by years, from 1867 to 1880; 4806. Net earnings of Denver Pacific Railway and Telegraph Co., by years, from 1870 to 1880; 4806. Overcharges, rebates, poolg, etc., amount of, on aided portion of Union Pacific, 4808. Dividends declared by Union Pacific from 1875 to 1884, statement of, 4810. Property, assets, and expenditures, liabilities and receipts, on January 24, 1880, of the Union Pacific Co., statement of, 481&-4816*. [Same] as to the Kansas Pacific Co., 4816-4818, 4820 [Same] as to Denver Pacific Railway and Telegraph Co., 4819,4820. How the book-keeping methods of the consolidated company operated to the detriment of the Union Pacific R. R. Co., 4821-4826. Union Pacific stock watered fourteen millions, 4827. Statement, December 31,1886, of expenditures of Union Pacitic Rwy. on ac count of construction of other railroads, or on account of the stocks and bonds of other corporations, and the investments therein, 4828-4832. Share capital of the Union Pacific Co., history of the issue of, 4833-4835. Legal expenses of Union Pacific R. R. Co., Kansas Pacific Rwy., Denver Pacific Railway and Telegraph Co., and Union Pacific Rwy., statement of amounts paid annually, 4837. Government transportation, cost of, per annum, years 1867-1886; 4838. Discount on Government bonds, 4838. Branch lines, as to value of, 4839,4840. His first report, 4840-4843. His second report: Correspondence with Mr. Mink as to a $13,000,000 entry, 4844. His third report: Kansas Pacific share capital account, 4845,4840. Certificate No. 11, for 38,779 shareR, issued to R. M. Shoemaker & Co., state ment showing distribution of shares out of, 484(i, 4847. [Same] as to certificate for 49.130 shares, 4848,4849. Share capital of Union Pacific R. R. (Eastern Division) and Kansas Pacific Rwy. Co., statement of original issues of, 4849-4&r)2. Account of Shoemaker, Miller & Co., analysis of, 4853)48f)6,4870-4874. ANALYTICAL INDEX. 5419 Calhoun, WilliamContinued. His third reportContinued. Capital stock of KaiiHas Pacific Rwy., statement of issues of, to subscribers of land-grant gold-mortgago bonds, 4856-4859. Share capital of $10,000,000 (Kansas Pacific Kwy.); the facts concerning its issue,4859-4864. Construction contracts (Kansas Pacific Rwy.) with R. M. Shoemaker & Co., and Shoemaker, Miller &, Co., copies of, 4864-4870. His fourth report: Kansas Pacific Rwy. built "by a ring of stockholders," 4874-4876. Denver Extension bonds, statement of account of Dabney, Morgan & Co., showing details of sale of, 4876-4880. Kansas Pacific Rwy .'s bonded indebtedness, the facts, as shown by the books, concerning its issue, 4880-4919. His fifth report: Kansas Pacific construction and equipment account, 4919-4992. Construction and equipment cost, in cash, bonds, and lands (leaving out stock), $24,919,540; 4923. Kansas Pacific Rwy., the facts, as shown by the books, concerning the con struction and equipment account, 4923-4948. His sixth report: Kansas Pacific consolidation ; the facts, as shown by the books of the several companies, as to the consolidation of the Union Pacific R. R., the Kansas PacifieRwy., and the Denver Pacific Railway and Telegraph Co., 4949, 4951-4989. Union Pacrfte; the construction and general management of the Union Pacific Co., 4952-4962. Union Pacific, assets and liabilities on December 31,1869, 496,4963. [Same] on December 31,1879; 4966-4968. Suspense account, 4070-4973. Kama* Pfreinc; its financial condition at consolidation, 4972-4985. Enumera tion of the securities purchased for Kansas Pacific by Mr. Gould, 4981. The food-grant trust, trial balance June 30,1879; 4983,4984. Mems. con cerning fund grant, 4984. Bmver Pacific; its financial condition on December 31,1879; 4985-4988. Avntmge earnings of Union Pacific, Kansas Pacific, and Denver Pacifio, per mile, for certain periods, 4988. Mems. concerning tho stock issues of Denver Pacific Railway and Telegraph Ct).,49B/),4U0Q. Mems. of yearly interest, payments by the constituent companies of the Union Pacific, excluding subsidy iuterest, 4991. Exhibits : The capital balance-sheets, Union Pacific Co., for the years 1863-1886, with comments and explanations by tho accountant, 4992-525*7. Kansas Pacific Rwy., trial balance, December 31, 1879, and balance-sheet, January, 1880, witb explanations by the accountant,5228-5239. Denver Pacific Railway and Telegraph Co., trial balances, December 31,1879, and January 31, lfc/80, and subsequently. 5240. Branch lines; statement of total earnings, mileage, etc., 5241. Salaries; persons employed by Union Paciiic R. R., Kansas Pacific Rwy. or Union Pacific Rwy. whose compensation was $5,000 or more per annum, 5242,5243. Land-grant accounts since 1880, Kansas Pacific Rwy. and Union Pacific Rwy., 5243. Land sales, statement of, 5244. Kansas Paciiic consolidated-mortgage trusts, statement of, 5245. Results of M*/ Stovens's examination of account of trustees of Kansas Pacific con solidated mortgage, 5246-524H. Extract from journal of trustees of Kan sas Paciiic Rwy.,5249. Union Pacific Rwy. Co., new construction account, 1880-'85, copy of, 5250-5255. Union Pacific R. R., particulars concerning suspense account, 5256,5257. Came, Virgil G., testimony of: Was general agent of Union Pacific freight department at Denver in 1881 and 1882; his duties; his removal without explanation, 1835. Suggesting equal rebates and facilities; passenger robateR; passenger rebates not general; ship pers'allowances regulated at Omaha, 1836. Reported complaints, and lost situation, 1837. Politics and legislation, 1837,1H38. Rebates between Deu- ver and Missouri River, ordered by Kimball, 1838. Denver Pacific and West ern road, 1838, 1839. Dispute with contractors; interference in politico not tolerated, 1839. 5420 U. S. PACIFIC RAILWAY COMMISSION. Cammack, Addison, testimony of: Director of Kansas Pacific and Union Pacific at time of consolidation ; the occa sion of the consolidation, 277, 278. Represented, with Jaines R. Kcene, a. syn dicate that had bought 70,000shares Union Pacific from Gould, 278. Witness never heard of sale of$1,833,000 Saint Joseph and Pacific hoods by Kansas Pacific, nor of the sale of 29,986 shares of Denver Pacific stock to Gould ; cir?cumstances of the consolidation, 279, 280. Why witness voted for it, 280. Purchase of 70,000 shares Union Pacific from Qouid at a price between (35 and 70, 281. At time of consolidation the interest of Uuited States not discussed, 282. Campbell, Benjamin, testimony of: General freight agent Oregon Railway and Navigation Company ; company oper ates main lino (214 miles) from Portland to Wai In la Junction, there counect- ing with Northern Pacific; also from Umatilla Junction (187 miles east of Portland) to ituntiugtoa, distance of 217 miles; connection with Oregon Short Line, 3633. Traffic arrangement with Northern Pacific; steamship lines in the company's system; connection with Oregon Short Line Decem ber 14, 1884; 3634. Character of traffic interchanged with Oregon Short Line, 3634, 3635. The benefit to Union Pacific; probable fatnro development of interchanged traffic, 3635. Character of country tributary to Orogon Rail way and Navigation Company and Oregon Short Line; what it produces, 3635, 3636. Northern Pacific is Uuion Pacific's principal competitor, 3636. As to anticipated competition with Oregon Railway Company by Oregon and California, 3636, 3637. As to competition with Oregon Railway Company by Northern Pacific, 36;7. As to inducements offered to immigrants, 36*7, 3638. Character of country tributary to Oregon Short Line; future of lava-bed country, 3638 Campbell, John, testimony of: Member of Colorado senate, 1968. Member of committee appointed to investi gate charges of corruption ; Senator Hill and editor of Tribune Mibpconaod; committee not appointed for purpose of whitewashing, 19U9. Character of the committee; knows nothing of the alleged railroad corruption fund, 1970. Legislators who changed their minds, 1970, 1971. No knowledge of corrupt ion fund; financial resources of the contestants for senate, 1971. Railroad people iu attendance on legislature; Archio Williams considered as the Union Pacific lobbyist, 1972. Railroad legislation ; tho lower house in favor of the most stringent legislation, 1973. Sentiment of tho people, 1973, 1974. The Rol lins bill; its provisions; to prevent discriminations and rebates; the com missioner has no power to enforce his decrees, 1974. Local legislation, 1975. Not an attorney for railroad companies while a legislator, 1975, 1976. Tho railroads and the Senatorial contest, 1976. Whom the Union Pacific favored, 197C. Mr. Stevenson, a railroad lobbyist, 1981. Carpenter, Mason B., testimony of: Statement regarding railroad commission bill, 1909. Concerning election of Senator Toller, 1910. Presence of Union Pacific people at legislature, 1910, 1911. The prosenco of lobbyists expected, 1911. The alleged railroad pool, 1911,1912. . Character of members of investigating committee; who liaro been re-elected, 1912. Division of legislature as to railroad legislation ; hos tile legislation, 1913. Reason for so many hostile bills, 1913,1914. Manu?factured sentiment; division of tho legislature on railroad legislation, 1914. Carpentier, Horace W., testimony of: Facilities for transportation from 1860 to 1870; rates of interest; difference in rates on city and country property, 3234. Difficulties and expenses of tele graph line construction, 3234, 3235. Obstacles surrounding construction of Central Pacific: individual liability of stockholders; marketable value of stock from 1860 to 1870, 3235. Effect of mining excitements upon community, 3235, 3236. Opposition from rival interests; some of tho rival interests, 3236. Effect upon real estate of completion of road, 3236, 3237. Efforts of project ors to raise money; corners in merchandise, 3237. Effect of railroad on such "corners;" market value of stock when road completed; appreciation of gold, 3238. Officers of California State Telegraph Company, 3238,3239. Of ficers of Overland Company; report of president of Central Pacific in 1865; opinion of witness as to report, 3239. Defines a " corner," 3239,3240. Liko tendency of pools and corners, 3240. Effect of road upon stage and express companies, 3240, 3241. A "fast freight" lino; rates of interest during con struction of road; a stockholder in tho Bank of California, 3241. Availabil ity of securities as collateral, 3241, 3242. President Stanford's report of 1865 quoted, 3242. No difficulty in raising money on Government bonds, 3242. ANALYTICAL INDEX. 5421 Chittenden, Lucius E., testimony of: Practicing attorney in New York City ; connected with litigation against Central Pacific, 3936. A short history of the suit, 3936, 3937. Willing to advise that a suit he brought; California Pacific passes into hands of Central Pacific, 3937,3038. Sale of the " Donokoo" road and a fleet of steamers, 3938. Terms of lease of portion of California Pacific, 3938, 3939. Ownership of bonds; sale of 76,000 shares of California stock; the consideration, $1,600,000 in bonds of California Pacific Company indorsed by Central Pacific Company, 3939,3940. Suit commenced; Mr. Cohen withdraws from suit; Mr. Pringle retained, 3940. Issue of tho suit; claim that the bonds had no substantial value; present state of suit; the statute of limitations, 3941, 3942. An appeal taken ; call for copy of record ; the Wilson committee; a bill relating to Central Pacific, 3942,3943. As to examination of Mr. Huntington before Wilson committee, 3943. The "Edmunds amendment;" Mr. Huntington favored the amend ment; opposition in the House, 3944, 31)45. Conferences with members of Congress; other persons employed ; the business prosecuted with diligence, 3245, 3946. An investigation not desired; the fate of the Wilson hill; the vote on the Holman amendment; a list of members, 3946, 3947. Witness* efforts limited to argument; declines to answer as to use of money; other pending legislation, 3947, 3948. Use of money in influencing legislation, 3948, 3949. Cost of construction of California Pacific; cost of the steamers sold to California Pacific; copy of Wilson bill, 3949, 3950. Production of papers, 3950, 3951. Compensation for his services; interviews with tho com missioners ; argument for use before Congress, 3952. Opinion expressed by witness regarding clients ; the complaint, in the main case ; California Pa-' cific extension bonds, 3953, 3954. Capital stock of California Pacific; its debt; amount of property, 3954, 3955. Liabilities of stockholders in Califor nia ; financial condition of California Pacific, 3955. Produces entire corres pondence with Mr. Cohen, in tho main case against Central Pacific Company and others ; copy letter from Mr. Cohen dated January 12, 1882; copy letter from Mr. Cohen dated April 27, 1882; 4002. Discussion with Mr. Cohen, 4003-4005. Compensation received by witness from Central Pacific, 4005, 4006. Purpose for which payments made to witness; their aggregate amount, 4006. Choate, Joseph K., testimony of: Superintendent Colorado Division, 1895. Legislative acquaintances, 1696. Kept track of the standing of legislators on railroad questions, 1896. Reported result** to the Union Pacific, 1897. Compared notes with Walcott, 1897, 1898. Opposed to railroad commission bill; the majority had common sense, 1898. Manner of making friends in legislature; effort to secure Senator Ballard's favor, 1899, 1900. Senator Poole interviewed, 1900. Witness' ex penses paid by the company: no effort made to purchase votes, 1901. Passes given to legislators, 1901, 1902. Special passes on application, 1902. Kansas Pacific and the Senatorial election, 1902, 1903. All the railroads had repre sentatives; meetings of the railroad representatives, 1903. Tho methods pursued more fully explained, 1903, 1904. , Clare, Charles, testimony of: Station agent of the Union Pacific at Laramie ; his duties as local freight agent; special rates, 2108. The case of Dunbar; replevined his flour, 2109. Special rates to special people, 2109, 2110. The stock-yard at Laramie; the contract to supply hay, 2110, 2111. A monopoly; the coal business at Laramie, 2111. Clark, D. 0., testimony of: Superintendent of the coal department since 1874; lands acquired by purchase, 1447. Company has seven mines; their location ; price of coal to company, ho rebates except in summer, and then to all alike, 1448. Explanation of re bate in summer. 1448,1449. Coal never higher at mines than at Omaha, 1449. Clark, James MaxweIl, testimony of: Farmer and dealer in coal, 1824. Coal monopoly; Marshall Coal Company, 1825. Names of coal agents at Greeley, 1825,1826. Location of mines; other companies' agents; eftect of unequal rates on coal dealers, 1826. Company coal sold and other dealers driven out; transportation facilities; experience as company coal agent, 1827. Coal operations of company, 1827,1828. Copy of letter of general superintendent in defense of company's coal rates, 1828 1829. Copy letter denying any interest of Union Pacific in Marshall Coa Company, 1829,1830. Special rebates and advantages to Colorado Fuel Com pany ; stone quarries near Fort Collins, 1830. Kates on stone prevent com petition, 1830, 1831. Quarry lands alleged to be owned by Union Pacific stockholders, 1831. Government should operate road; beneficial effect on community; large railroad lobby at last Colorado legislature ; produce ship ments of Greeley, 1832,1833. The Colorado Milling and Elevator Company, who compose that syndicate, 1833. Stock-yard at Greeley, 1833,1834. 5422 U. S. PACIFIC RAILWAY COMMISSION. Cleland, Jonas M., testimony of: Mayor of Sioux City;'connect ion of Sioux City with Union Pacitic; discrimina tion in favor of Omaha, 2276. Contribution by Sioux City, 2276, 2*277. No com plaints of discrimination ; character of country along the- lino, 2277, 2*2?8. Improved facilities; character of shipments; increase of traffic in last ten years, 2278. Desirability of connection with Union Pacific, 2278, 2279. Dif ference in freights from Sioux City and Kansas City, 2279. Clbment, Lewis M., testimony of: Sworn statement relative to cost of construction of Central Pacific, 2576-2578. Connection with Central Pacific Railroad, 3202. Connected with construction from section 1 to Promontory Point, how estimates of measurements of exca-tion were obtained ; original surveys in charge of chief engineer, 3203. Pres ent custodian of the papers, 3203, 3204. The papers would not state total ex cavation ; five classes of excavation, 3204. Measurements both vertical and horizontal, 3204, 3205. Determining between two classes of earth; no recol lection of cost of removing earth, 3205. Grubbing and clearing ou sections 75 to 100, 3205, 3206. Cost of part of grubbing, $5,000 per mile; " not Yankee forests," 3206. Cost of grubbing ranged from $200 to $4,000 or $5,000 a mile, 3206, 3207. Can not compare percentages of cost, 3207. Did not know that Mr. Crocker was interested in class 3, 3207, 3208. Chief engineer made the final estimates ; excessive amount of third-class material. 320d. Class of work on section 83 to section 114 described, 3208, 3209. Section 75 to section 83 de scribed ; duties connected with the masonry, 3209. Stone along the line used for bridges, 3209, 3210. Classes of masonry; wood-work in charge of Arthur Brown ; Arcade Creek the geological base of Sierra Nevadas, 3210. Construc?tion more difficult east than west of the base, 3210, 3211. No fill more than 22 feet high ; no cut deeper than 10 to 12 feet: 200 miles of the road not the most available line, 3211. Lino surveyed by Union Pacific the better, 3211, 3212. Character of country from Ogden west, 3212. Engineers who had charge, 3212, 3213. Engaged in the -ork from 1863 to 1869; completed road extended to Reno in 1868 ; commenced at Ogden and worked west, 3213,3214. Rails laid in 1869 ; laboring men in charge of Benson and West; witness em ployed for a while by Contract and Finance Company, 3214. Original cross-sec tions in custody of chief engineer; Interior Department furnished with profiles and maps; description of sections between 120 and Wells; grades reduced by cuts and fills, 3215. From Winnemucca to Wells described ; could build the road from Wadsworth to Ogden for $22,000 a mile, including a moderate equip ment; prices then bcyoud anything ever heard of; chief items of expense of con struction, 3216. A great many teams employed; did not form any continu ous estimate of cost of road, 3217. Cost of 7 miles from Sacramento eastward about $41,500 a mile, including all equipment except rolling-stock, 3217,3218. for next 150 miles eastward some miles cost from $200,000 to $300,000; witness guesses they averaged at least $84,000; next 627 miles must have cost $56,000 per mile, 3218, 3219. Nothing to add to bis statement embraced in Governor Stanford's testimony; Central Pacific had to hurry; road from Sacramento to Wadsworth only would have been valueless ; his classifications right and just, 3219. Wages to Chinamen and white men, 3219, 3220. A sum which somebody else must solve, 3220. Cost for ten days for 300 men about $4,000, 3220, 3221. Powder for grubbing; worked from 1862 till death of Mr. Ju-dah, 3221. Reconnaissance of Feather River route; from Reno east cost $56,000 a mile, not including equipment, 3222. Cost of equipment per mile, 3222, 3223. Simply an estimate as to cost, without including contractors' profits; $300,000 not too much for construction from section 1 to section 18, 3223. Same conditions would never occur again, 3223, 3224. Not feasible to divide construction among different contractors; the railroad company could Jiave huilt the road, 3224. The 10 per cent, a proper thing; can not speak as to profits; simply refers to actual doing of the work; mining crazes, 3225. How labor is affected by them, 3225, 3226. Impossible to get white labor; further explanation of the lOper cent.; railroad companies not so well equipped as construction companies, 322(5. What is economical railroad management as to construction; competency of chief officers for construction purposes, 3227. Was it economy to employ Contract and Finance Company, 3227, 3228. Advantages of contracts, 3228. Tho work bettor done by construction com?panies, 32*28, 3229. Plant of tho Contract and Finance Company ; who pur chased tho materials, 3229. Did tho railway fnrnish tho construction out fit, 3229, 3230. Class of equipment required; method of subletting repairs an exception, 3230. For large construction the contract plan preferred, 3230, 3231. Proposed tunnel through tho Sierra Nevadas; size and length of tun nel, 3231. One route of tunnel, 32.il, :$*232. A thousand feet of mountain over tho tunnel; other routes, 3232. Estimate of cost of tunneling from a quarter of a million to a million dollars a mile, 3232, 3233. ANALYTICAL INDEX. 5423 Cliff, John T., testimony of: Quarry at Spring Canon; rates paid; 2030. Insufficient car service, 039,2040. Superior facilities of Union Pacific quarries ; other quarries sell to Union Pa cific quarry, 2040. Insufficient car service; extent of switching facilities re quired, 204 L. Method of payment by Union Paciiic quarries, 2041, 2042. (Quarries near Fort CollinN; difficulty in reaching a market in competition with Union Paciiic quarries, 2042. Chicago capitalists deterred from pur chasing by high rates, 2042, 2043. Could not give rates for ilagging to com pete with Union Paciiic market; Stout and Constable got cars, 2043. There was only a demand for ilagging, 2048. Cobb, Moses G., testimony of: Suit of- Samuel Brannan against Central Pacific, 3243. Upon what information certain allegations were based, 3243, 3244. No definite information ; donation by the State of California, 3244. Guarantied interest on bonds, 3244, 3245. The correctness of other items; complaint refers to second-mortgage bonds, 3245. Information received from an omployd of company, 3245, 324U. State?ment regarding Brannan's complaint, 324G, 3247. The suit dismissed, 3247. Effort in Robinson suit to procure* the books of Contract and Finance Com-X)any, 3247, 3248. Arrest of Stanford and Miller; suit dismissed on a techni-caiifcy ; Mr. Cohen asks for court record ; where the complaint can be found, 3248. Titles of proceedings ; material from which allegations in complaint were made, 3241). Allegations as to actual cost of road, 3249, 3250. Mr. Cohen the author of the Robinson complaint, 3250. Wheroahouts of Bran-nan, Smith, and others, 3250, 3251. The case of Stewart against Huntington, 3251. Personal knowledgo as to loan on Brannan's stock, 3251. Penal stat ute under whiuh x)roceedings were brought, 3251, 3252. The books sought to bo reached; how the proceeding was brought; papers connected with the Brannan case, 3252. The Robinson case ; the $400,000 of bonds by San Fran cisco ; litigation as to city and county aid, 3253. Valuo of the bonds, 3253, 3254. Cohen, Alfred A.* testimony of: Professional employment by Central Pacific; connection with litigation against the Central Paciiic, 2381. The Robinson suit, 2381, 2382. San Joaquin Coun ty suit; object of suit, 2382. Witness's memory impaired by paralysis, 2382, 2383. Pleadings in the Robinson case, 2383, 2384. Contract with Contract and Finance Company a subject of inquiry; its terms not known, 2384. Never could iiroduco anybody who had seen it, 2384, 2385. Mr. Huntington's statement in regard to it, 2385. Contract with Western Development Company a subject of inquiry, 2385. Subjects of investigation in the Robinson suit, 2385, 2380. Stockholders of Central Paciiic and Contract Company the same; the agreement between the companies not in writing, 2386. Officers of Con tract and Finance Company, 2386, 2387. Papers, contracts and books; never could be had, 2387. Counsel in Colton case, 2387, 2388. Suit by Charles Main and others; no accounting overreached showing profits of con struction, 2388. The Lambard and Brennau suits, 2388, 2389. Settlement in Robinson case; names of counsel engaged; rate of settlement, 2389. Settlement of San Joaquin County suit, 2389, 2390. Basis of payment, 2390. Tenns made with counsel such that they would not undertake similar litiga tion thereafter, 2390. Counsel in the Brannan suit; consolidation of San Francisco and Oakland with San Francisco and Alameda, 2391. Signing of consolidation papers by witness, 2391, 2392. Terms of consolidation; no bonded debt at time of consolidation, 2392. Dividends, 2392, 2393. State ment of consolidations, 2393. The consolidation that formed the Central Pacific, 2;"93. Financial condition of consolidated roads; the liens; only San FranC'Kcoand Oakland stock valuable at consolidation, 2394. No market valuo to Central Pacific stock till resumption of specie payments, 2394, 2395. The Yuba road; San Francisco Bay Company; its stock had no market value, 2395. Central Pacific stock worth more after consolidation, 2395, 2396. The reason; amount of stock issued; effect of the Thurmau act, 2396. Oppo sition lines aided by Government, 2396, 2397. Government traffic on other roads, 2397. Transportation cheaper since completion of railroads, 2397, 2398. Condition of country prior to construction of road, 2398. Bonds did not net more than 60 per cent, in gold, 2398. The road not worth its bonded debt. 2398, 2399. Dividends; result if money had been applied to improve ment of road, 2399. .Financial condition of directors on completion of road, 2399,2400. Ability of company to pay its Government indebtedness; plan of settlement; matters to be considered, 2400. Earning capacity of road v-ry much reduced; ill-considered Congressional legislation; earning capacity coutrols its market value, 2401. Jts not and gross earnings for 1886 ; 2401, 2402. Loss of traffic caused by aid to competing lines; tUo Canadian Pa- 5424 U. S. PACIFIC RAILWAY COMMISSION. Cohen, Alfeed A., testimony ofContinued. ciiic, 2402. The Northern Pacific, 2402, 2403. Beneficial effect of competition of Southern Pacific, 240:5. Southern Pacific protects Central from competi tion with Gould's lines, 240:3, 2404. Hostile Congressional legislation, 2404. Prosperity measured by earning power; dividends prior to and since Thur-man act, 2404, 2405. Effect of Thurman acton earning capacity, 2405. The injustice of its operation, 2405, 2406. Effect of construction of Southern Pacific on Union Pacific, 2406. Abstracts of various articles of consolidation between Western Pacific and San Francisco Bay, dated October 28, 1869; between California and Oregon and the Ynba Railroad, dated December 15, 1869; 2407. Between Central Pacific of California and Western Pacific, dated June 22, 1870; 2407, 2408. Between San Francisco and Oakland and San Francisco and Alameda, June 28,1870; 2408. Between Central Pacific, Cali fornia and Oregon, San Francisco, Oakland anu Alameda, and San Joaquin Valley, dated August 20, 1870; 2408,2409. Proposes to produce books and papers relevant to investigation ; acconnts desired by the commission speci fied, 2728. Suggestion by counsel of Central Pacific as to method of inquiry, 2728, 2729. Object sought by commission in examination of b(?5ks, 2729. Commission will submit reports of experts, 2893. No question as to pro duction of vouchers, 2952. Specific vouchers called for by commission, 2953-2955. Additional call for vouchers, 2955. Statement from the New York World, 2955, 2956. Affidavit of Theophilns French, 2956. Calls made upon auditor for information, 3087, 3088. Copy first proposal of C. Crocker & Co. (from Central Pacific minutes, December 26, 186-); accepted and contract ordered, 3113. Copy letter requesting payment of bill for extra work and proposing to accept stock at 50 per cent., 3413,3114. Copy resolution accept ing proposition as to stock, dated September 12, 1863; contract covers first 18 miles from Sacramento east, 3114. Production of agreement as to telegraph ing ; copy assignment from D. W. Strong to O. D. Lambard, 3138. Resolu tion to pay D. W. Strong for services and expenses, dated July 1, 1M63; 3138. Books of Contract and Financo Company produced, 3270. No books produced showing entries between 1867 and 1873; 3271. Copy statement of Mr. Cohen, dated 15th August, 1887, asking extension of time, 3429, 3430. Explanation of Mr. Haymond, 3430, 3431. Belief that an extension of time will cause no delay ; the record the best evidence, 3432. Suggestion that depositions bo taken and submitted hereafter; contention that oral testimony more effective than depositions, 3432. Request for. time to consult with officers of road, 3432, 3433. Time when argnment will be heard, 3433, 3434. Newspapers may be furnished with copies of depositions; formal acceptance of the proposition of commission; resolution, of date May 1, 1865, relating to railroad and tele graph east of Newcastle, 3434. Report of committee on railroad and telegraph line, dated May 9, 1865; 3434, 3435. Committee directed to further report as to terms, 3435. Copy resolution offered by Mark Hopkins and terms of con tract adopted June 6,1865; 3435, 3436. Communication of C. Crocker & Co., dated April 16, 1866, request that stock be rated at 30 instead of 50, 3436. Contract with Contract and Finance Company, 3436, 3437. Terms of contract; resolution of date February 18,1S69, to give company's notes for amount due, 3437. Offers in evidence the following documents: Copy engineer's report of the location of the Contral Pacific from Humboldt Wells to Great Salt Lake, dated January 10, 1867; 3471-3477. Copy table showing comparative grades via north and south lines from Humboldt Well& to mouth of Weber Canon, in Great Salt Lake Valley; copy table showing ascent and descent of grade from Humboldt Wells to the mouth of Webor Canon, 3477. Reportof chief en gineer of Central Pacific upon the location, construction, and equipment of the road, dated July 1,1869; 3477-3483. Construction, 3480, 3481. Manner of con struction, 3481, 3482. Snow galleries and sheds, 3482. Fuel, 3482,3483. Tele graph line, 3483. Appendix ; bridges, 3483. Trestle-work, 3483,3484. Snow sheds, 3484. Snow galleries, 3484. Description of tunnels. 3484,3485. Dimen sions, timbering, etc., 3485, 3486. Labor;, progress, 3486. Copy abstract of work done withfull gangs; copy statistics of tunnels; copy listof shops, engine-houses, etc., belonging to Central Pacific, 3487. Copy statement of locomo tives and cars of all kind on hand, 3488. Declines to examine the Hunting-ton-Colton letters, 3546. And to bo guilty of a violation of professional cou-fidence, 354G, 3547. Suggestion by witness that Commission do adjourn and report to the prosideut; no further evideuce at present sitting, 3547. List of proposed witnesses to bo examined by the company, 3547, 3548. A call for original cross-sections of Central Pacific ; request for production in New York of the Huntington vouchors, 3548. ANALYTICAL INDEX. 5425 Conklin, Jeremiah C, testimony of: Ore shipments from Wood River country by Bollovue and Idaho Mining Com pany, 2196. Special rates an exception, 2196,2197. Wood River ores excluded from Salt I-ake market by high rates; the rates to different points, 2197. Complaint made as to rates, 2197, 2198. Connor, Washington E., testimony of: Members of firm of W. E. Connor & Co., 401. His account books; transactions with Gould, 402. Gould's transactions in unlisted securities (not through lirm), 403. Cooper, Kemp G., testimony of: General manager of tho Denver Republican; character of railroad facilities and accommodations, 1728. Discriminations in rates of -freight; the News re bates and smelting rebates, secret; complaints that railroad has built up one man to the detriment of others, 1729. Never had a special rate or notice that he might obtain one, 1729, 1730. Interest of Union Pacific people in other businesses, 1730. Charges that the Commission was skimming over the in-vi stigation ; denial of hostility to Union Pacific, 1731. Has taken position that rates in that section were excessive on all roads, 1732. Coknforth, Joseph F., testimony of: Kates from California at different times, 1893. Railroad fights injurious to com merce, 1893, 1894. No special rates or rebates received, 1893. An equaliza tion rate, 1694. Statement to chamber of commerce about equalization rates, 1894, 1895. Explanation of equalization rates; Denver people dissatisfied, 1895. Denial of receipt of rebate; a railroad war, 1923. Never received money Jroin any railroads or agents, 1923, 1924. Explanation as to equaliza tion rates; were extended to all alike ; not a rebate but an overcharge, 1924. Cbawfokd, George N., testimony of: Employed by Union Pacific some years ago to prosecute criminal cases; attended the legislature as a lobbyist, 1303, 1304. Duties of a lobbyist; opposed bills cstabishing rates of transportation and appointment of railway commission ; a railroad man from principle, 1304. Received $400 from Mr.Thurston, 1304, 1305. Had no agreement with Mr. Thurston ; obtained eight or ten passes for members and their friends, 1306. Entertainment furnished members, 1306, 1307. Who paid for the entertainment; witness entertained in his rodm ; the efforts to prevent hostile legislation, 1307. No money used to prevent legislation, 1307, 1308. Newspaper charges; no positions or privileges ap plied for, 1308. Associates at Lincoln, 1308, 1309. Worked together} has attended every session except one since I860; methods governed by circum stances, 1309. Eloquence and entertainment the only arguments used, 1309, 1310. Opposed to meddling with railroads ; not employed by Union Pacific before winter of 188G-'87; sentiment of the State inimical to railroads, 1310. Demagogy the cause of this feeling, 1310, 1311. Division of sentiment; did not participate in elections at the request of Union Pacific or its officers; witness came to Nebraska in 1854; divided sentiment of the people in regard to Union Pacific, 1312. Character of those introducing bills, 1312, 1313. De velopment of the railroads; cost of transportation prior to completion of road; Nebraska's greatness due to Union Pacific, 1313, 1314. Interests of farmers enhanced ; land values in Saunders County then and now : would riot have had present population for twenty years hence, 1314,1315. Country between Omaha and Salt Lake occupied by Indians when road began; freight train attacked and burned 250 miles west of Omaha; effect of road on military posts; mails by pony express and stage coach, 1315,1316. Disad vantages of tho Union Pacific; took away the business of freighting; re bates, 1316. Curtis, N. Green, testimony of: Attorney at law, 3027. Acquainted with John Miller ; attorney for John Miller in 1875 ; 3028. Accounting for a voucher for $500, 3028, 3029. Service ren dered for Burke ; bill paid by Central Pacific, 3029. The indictment against John Miller, 3029, 3030. Had no part in the Miller settlement, 3030. The criminal prosecution, 3030, 3031. Witnesses in the case; was it a desperate fight; the missing books of the Contract Company, 3031. Governor Stanford brought before tho criminal court, 3031, 3032. Suit by Robinson to discover the books ; they were of great importance, 3032. John Miller's connection with tho books, 3032, 3033. Papers delivered by John Miller to witness; used in defense of John Miller, 3033. " Put them all in the grate," 3033, 3034. Alluded to the disappearance of tho books very often, 3034, 3035. Attended to his own business, 3034, 3035. Denies that the papers were abstracts from the books, 3035. Not paid by Central Pacific for services to John Miller, 3035, 3036. Does not know Kennedv, 3036. 5426 U. S. PACIFIC RAILWAY COMMISSION. Crocker, Charles, testimony of: Residence in California, 3630. Acquaintance with Huntington, Hopkins, aud Stanford, 3639, 3640. Thinks he was not a director of Central Pacific at the beginning; as to letting of first contract; its terms, 3640. Description of country through which first 18 miles were built; title of Mr. Crocker's firm, and who were interested; the first 18 miles completed before the passage of act of 1864,3641. Subcontractors; as to construction from Sacramento to New castle ; why witness was told he con Id not have more than 2 miles; other con tractors employed : their failure, 3;42. As to act of 1864 ; Charles Crocker & Co. proceed with the work; the terms, 3643. The disadvantage in employ ment of more than one contractor, 3643,3644. Copy resolution of J une 4,1865, under which Crocker proceeded, 3644. Mr. Montague, Central Pacific's chief engineer, had charge of monthly estimates, according to which payments were to be made, 3644,3645. As to cross-sections; prices for excavation, 3645. Proportion of high-priced excavation, 3645,3646. Witness did not revise the monthly estimates; locomotives hauled on sleighs ; as to when the Contract and Finance Company commenced work; witness' books of construction from section 43 to east lino of State, 3646. By whom kept and where, 3646,3647. Witness does not kuowwhat became of them after work was done, 3(547,3648. Call for books of Charles Crocker & Co., 3648. Commission wish to ascertain whether or not they are in existence, 364H,3649. Witness' recollection of compensation for work done from Newcastle to east line of State, 3649. Wit ness put the Central Pacific stock (received in part payment) into Contract Company, 3649, 3650. Were Stanford, Huntington, Hopkins, and Crocker designated to hold all the stock, 3650. Other holders of Contract Company stock, 3650,3651. Bulk of Central Pacific stock issued to Crocker & Co. for construction, 3651. Why they passed it over to Contract Company in which others were interested, 3651,3652. When that was done; great rejoicing on completion of road; earnings of Central Pacific up to May, 1869; 3652. As to suits brought against Stanford to recover oo ground of misapplication of funds by directors, 3653. As to settlement of such suitsLambard, Robinson, and Brannan suits, 3653,3654. As to value of Central Pacific stock in 1869 and 1870; 3654. What was paid for stock in settlement of suits, 3654,3655. Why the suits were settled ; witness sold all his Central Pacific stock in 1871 to Stan ford and associates for 12 cents on the dollar, 3655. The stock not paid for, but returned, 3665,3656. The contract in writing; no dividend had been paid when stock was returned, 3656,3657. The stock had not passed out of witness' possession ; notes given for the stock, 3657. As to preparation and custody of contract, 3657,3668. The sale a bona fide transaction, though no money paid; considerations of health involved in Mr. Crocker's retirement from road, 3658. What was cost of construction of stations 31 to 138, 3658, 3659. Witness' financial condition when he undertook construction of Cen tral Pacific; construction of sections 31 to 138 cost Crocker & Co. all they got, 3659. Employmentof Chinese, 3659,3660. Had 12,000 employed at one time; as to white men employed, 3660. As to bills for extra work, 3660,3661. For?mation of Contract and Finance Company; capital stock, $5,000,000; inter ests of Huntington and associates, 3661. Witness then re-entered the board of Central Pacific, 3661,3662. Character of work done by Contract Company; points of difficulty in construction ; no special difficulties for four-fifths of the distance between Reno and Promontory Point, 3662. Commencing at Wads-worth, 501 miles built in nine months and twenty days; construction 200 miles in advance of the track; witness was president of Contract Com pany during construction, 3663. Witness first knew the books of Contract Company were,missing in December, 1873, 3663; iiis efforts to find books; failure to find them a great misfortune. 3664. Conversed with Stanford about their disappearance; has no memoranda from them ; when construc tion finished contract company held Central Pacific notes for $6,000,000, 3665. For what given; as to division of surplus assets among stock holders of contract company, 3666. The witness got $13,000,000, 3666, 3667. As to other dividends; thinks he got some land-grant bonds: does not remember that Messrs. S. S. H. and C. received $13,500,000, 3667. His profits on the construction contract; does not remember exact figures; was it $13,000,000? Does not recollect how many land-grant bonds he had ; nor how much the profits were, 3668. Were the bonds given in payment of the notes f witness's connection with the Wctern Pacific; S. S. H. and C. own ers of the Western Pacific stock, 3661). Witness's connection with the Central Pacific, 3669, 3670. Construction by Western Development Company; wit ness a stockholder in it; thinks he owned about a quarter of the stock ; 3671. Says that Central Pacific never had a coutract with that company; policy of Central Pacific as to development, 3671, 3672, Method of company as to ob- ANALYTICAL INDEX. 5427 Crocker, Charles, testimony ofContinued. taining connecting roads; witness a stockholder in connecting companies and, if present, voted on leases, 3672. Did he vote for the lease of the Colorado River Bridge ? 3673. AH those contracts profitable to Central Pacific ; pro?priety of directors voting on contracts in which they were interested ou both dides; case of the Rocky Mountain Coal Company, 3073. Witness approved of everything that benefited Central Pacific ; cost to Pacific Improvement Com?pany of construction company from Delta to northern boundary of State, and payments for same by Central Pacific, 3G74. Was it a proper contract ? 3(574, 3H75. As to cost of the Colorado River Bridge; bill for $(592,000 for the Oakland wharf extension, 3675. Central Pacific counsel objects to readiug of memorandum, 3675, 3676. Not fair to put witness's defective memory against company's books; ashamed of nothing he has done, 3676. What he recalls of his release from liabilities to Central Pacific, 3676, 3677. Foreclos ure by United States would be disastrous, 3677. Thinks Government should writeoff its claim; insufficient vouchers for large amounts charged to ex penses or legal expenses; knows the moneys were applied to some good purpose, 3678. Has no specific knowledge of their application, 3678, 3679. Does not know whether they were use to influence legislation, 3679. Objec tion by counsel to questions as to Colton letters, 3679, 3680. Definition of -s* the Rocky Mountain base-line; experts fixed*it "for the purpose of the bill" at Arcade Creek, 36&). Nature of country east of Arcade Creek; the President of the United States fixed the base-line, 3681. Central Pacific un able to pay its debt to Government, 3681, 3682. Plan of settlement; one hundred aud fifty years extension ought to be given; favors fixed annual payment, 3682. Effect on Central Pacific of construction of Southern Pacific, 3682, 3683. It was bound to be built anyway, 3683 Diversion of Govern ment freight from Central Pacific, 3683, 3684. Probable effect of an act author izing sale of Government interest in Central Pacific, 3084. Suggests that the Commission meet Mr. Huntington, to formulate a plan of settlement; lm never used Central Pacific funds or securities to influence legislation, 3bXr). As to hostile legislation, 3685; 3686. Effect of Government aid to competing lines; grading of Sacramento levee very expensive, 3686. Aid-bonds from the base-line; Charles Crocker & Co. in debt after completion of Central Pacific; had Central Pacific stock as an asset; contract company in same condition, 3687. Connections made by Central Pacific to reach Ogden aud San Francisco, 3687, 3688. Oakland * and Alameda ferries purchased; ac-. ceptance of road by Government, 3688. Government slow in furnishing laud patents, 3688,3689. Construction of San Joaquin Valley road an advautage to Central Pacific; the ferries and consolidated lines an advantage, 3689. Land graut paid to members of contract company in satisfaction of loans, 3689, 3690. Mr. Cohen states that land-grant bonds were not paid out as dividends, 3690. Copy resolution September 9, 1873, from Central Pacific minutes, as to settlement of individual indebtedness to contract company, 3690,3691. Mr. Cohen states that these notes were given for benefit of the Western Development Company, 3691. When company accepted the act of 1862, they understood that one-half the transportation money would go to pay the interest and that the other half would form a sinking-fund to retire the principal, 3691. Company disappointed as to Government freights and mails, 3691, 3692. Extra cost of road from early completion; premium on gold in 1864; 3692. Supposed Government would do as agreed in regard to transportation, 3693. Mr. Cohen states that Government saved in fifteen years, to January 1, 1886, $100,000,000 on freight and passengers, and $tt),-60ft,000, 3693, 3694. The construction of Southern Pacific injured Central Pacific's through business and benefited its local business; diversion of busi ness from aided to unaided lines, 3694. Central Pacific directors have not failed in their obligations to Government, 3694, 3695. Road from San Fran cisco to San Jose* built before completion of Central Pacific, 3695. Crocker, Charles P., testimony of: Director Central Pacific and Southern Pacific, 2989. Work of executive com mittee, 2989, 2990. His election as director. Resolution of Central Pacific stockholders approving acts of Stanford. Stanford's action in Nevada and California in company's interest, 2090,2991. A resolution of confidence, 2991. Confidence in Stanford as an executive officer, 2991, 2992. No knowledge of the services rendered by him in Washington, 2992. Purpose of clause in res olution releasing him from liability, 2992, 2993. Business in charge of execu?tive officers; relations between Western Development and Central Pacific. Companies, 2993. Loaus of money; Central Pacific's rate of interest; who controlled the sinking-fund; Timothy Hopkins, treasurer, 2994. "Tags" rep-reseuting money; who received the " tags "; resolution as to money paid with- P R VOL IX------3 5428 U. S. PACIFIC RAILWAY COMMISSION. Crockkr, Charles F., testimony ofContinued. out vouchers, 2995. Nature of the expenditures, 2995, 2996. The explau tions made: the stockholders satisfied; the explanation witness made, 29 Witness made payments for general services; under advice of counsel d clines to state what explanation was made to him, 2997. The Govern me d percentage not to be affected by unexplained vouchers, 2997,2998. Advis( not to answer concerning influencing legislation; counsel desire to be ful reported, 2988. The secretary directed to report every thing, 2998,2999. 1 absolutely insufficient explanation, 2999. Necessity of resisting adverse le islation,2999. Request of company's counsel for time to consult, 2999,30C Ignorant of cost of construction of the consolidated roads; construction 1 the Southern Pacific, 3000. Nothing to do with the Central Pacific,30( 3001. Proposal of Development Company to pay note for (3,086,259.72 wi Southern Pacific bonds at 90, 3001. Central Pacific may have loaned to Wee ern Development Co,; Southern Pacific bonds as collateral security; coi mittee to investigate sinking-funds, 3002. Method of disposing oi siukin funds, 3002,3003. Place of deposit of siuking-funds; who are responsible i the securities, 3003. General nature of the investments, 300:*, 3004. Ii quest for statement of the securities; funds loaued to construction compa ies; no recollection- of $5,000,000 loaned to Contract Company., 3004. Ps 1 reports show sinking-fund operations; manuscript reports previous to 187 | his knowledge of the construction of the California and Oregon, 3005. Wi Central Pacific did not build it directly, 3005,3006. Control of Oregon ai I California stipulated, 3006. Tde furnishing of equipment, 3006,3007. Sont / em Pacific building the rolling stock; terms of contract as to equipmei 3007. Pacific Improvement pays Southern Pacific, 3007, 3008. Mr. Dou i has full information; ignorant of what profits the Improvement Compa / will make; interest on bonds of 1886,3008. Also on California and Oreg bonds, 30U8,3009. His familiarity with receipts of Central Pacific before a: after lease; Central Pacific's interests not affected, 3009. Are the net eai 1 ings more or less? was the lease a good thing? future of the through bu ness; decrease offset by increase of local earnings, 3010. The most valual feeders,3010,3011. The expected business from Oregon; effect of feeders aided lines, 3011. Northern Pacific's traffic rights; foreclosure of mortgage j October, I8rt6, would damage the aided road; present value of Central F cine; cost to reproduce it, 3012. Thinks stockholders would let it go i $5-1,000,000,3012,3013. Plan of settlement; time for payment should be e tended,3013. Was name on rolling stock changed? 3013, 3014. Who wou know it if it was so ordered, 3014. Dividend paid in 1884 from surplus eai ings, 3014, 3015. No money borrowed to pay divideuds; what constitul surplus earnings, 3015. Expenses which form part of the floating del would not borrow money to pay dividends; what is equivalent to cash i dividend purposes, 3016. Not fair to exclude dividends on account of betto ments; cause of the falling off in surplus earnings, 3017. What has becoi of the traffic, 3017,3018. Some salient points on the subject; there have be ups and downs, 3018. Why did certain directors resign? 3018,3019. Conn( tion between their resignation and a resolution authorizing ten million bo: issue; uunnimous consent of directors necessary,3019. Railroad officials i terested in contracts, 3019,3020. Interest of Central Pacific people in ent( prises connected with the road, 3020. Who are so interested, 3020,3021. ( what basis loans were made; advantageous to the funds,3021. Effect Thurmau bill on the amount of the sinking-funds; further information abo "cash-tags"; favorable result of consolidation of aided roads,3022. Wit out consolidation it could only pay interest on first mortgage; pro rata eai ings of aided and non-aided roads, 3023. Transcontinental pool, 3023, 30v Very large diversion of traffic through competition; his stock in other cc porations; grades on the Central Pacific, 3024. Heavy expenses of constrn tion; how the Government could get its money back,3025. A $10,000, tunnel suggested, 3025,3026. Bringing water from Lake Tahoe, 3026. W ness's previous testimony read to him, 3111,3112. Again declines to answ further, under advice of counsel, 3112,3113. Davis, Alfred E., testimony of: His knowledge of the topography of Sacramento; levees first built in front Sacramento entirely insufficient, 3620. Character of the country west of tl mountains, 3620, 3621. The levees a necessity; construction of road frc Sacramento River to American River bridge was very expensive, 3621. T construction and maintenance of that road was considered chimerical, 362 3622. Difficulties in constructing bridge over American River; nature the country up to Arcade, 3622. Difficulties of construction, 3622, 3623. T average snow-fall; character of work very heavy, 3623. Prices of suppli ANALYTICAL INDEX. 5429 Davis, Alfred E., testimony ofContinued. in Carson Valley, 36*23, 3624. Prices proportionately high in San Francisco; 12 cents per pouud tor freight across Sierra Nevadas; could not get it over at any price in winter; engaged ten or eleven years in building railroads, 3o24. 'Constructed South Pacific Coast Railroad; Central Pacific could now be built for less than half original cost, 3625. The projectors thought to be "a little off," 3626. Davis, James W., testimony of: Attorney-at-law, 1060. Admitted in 1850; a contractor of Union Pacific in 1868: furnished ties, timber, and lumber; contract was made in December, 1867; work completed in 1869; contracted with the trustees, not with company; had the "Davis contract;" took another contract "nominally," 1081. As signed latter to trustees of road, without consideration ; witness* associates in furnishing lumber and ties; prices for lumber and ties, 1082. Came out $200,000 behind; the firm wrecked by Boss Tweed's jurisprudence; judgment for $200,000 fraudulently taken against him; supplied ties aud lumber for the entire road; neither witness nor his associates received more than contract price; the settlement made with trustees, 1083. Witness had $500,000 worth of material on hand when road complete, 1084. Did not appear before Con gressional committeo; was a director of the Wyoming Coal aud Mining Com pany, which served Uniou Pacific with coal; assigned his stock to Union Pacific Railroad for nothing, 1085. It cost him nothing; does not know what was charged by the trnstees to the railway company on account of ties and lumber; went visiting after being served with summons under wrong name; employed 3,000 men and 500 teams on his contract; his parol contract with Du-rant to deliver 2,000,000 feet of timber, 1086* 1087. Repudiated by company ; his claim for breach of contract included in his settlement; charged only from 65 to 90 cents for most expensive ties on the road; was ruined by the con tract; the contract made with seven trustees. 1087. Never had anything to do with Credit Mobilier; the contract to the trustees covered 146 miles, 1088. Davis, Nathaniel R., testimony of: Discontinuance of Colorado Branch ; its effect, 2091. Alleged reason of discon tinuance, 2091, 2092. Discontinued about 1883; the proposed Wyoming ex?tension, 2092. What prevents the Union Pacific from building branches, 2092, 2093. Donation of $400,000 county bonds ; effect of Evener's Associa tion on cattle business of west, &093. Forcing VVyoming ranchmen to sell in Chicago ; method of cattle shipments, -'094. Day, Henry,testimony of: Connection with Atchison and Pike's Peak road, now Central Branch Union Pa cific, as to right given to Hannibal and Saint Joseph Railroad Company in act of 1862; Hannibal and Saint Joseph Railroad assigned to Atchison aud Pike's Peak Company, 4007, 4008. Witness' interest in Atchison and Pike'd Peak Company ; Atcuison and Pike's Peak road built by a construction com pany ; Mr. Osborne, the contractor, 4008. Other parties interested ; first 100 miles completed within the limitations, 4009. What Mr. Osborne was to re ceive, 4009, 4010. Owners of shares in Osborne contract, also Central Branch directors ; history of the road ; when applications to Congress were pressed, 4010. When attempts to get legislation ceased ; no intervening parties be tween railroad and Osborne people ; paid $20,000 for his share, 4011. Nature of Mr. Osborne's contract, 4011, 4012. No knowledge of the cost of construc tion; Mr. Osborno built the road, the shareholders sharing the liability, 4012. Operation of road after completion, 4012, 4013. S;ilo to Kansas Pacific ; time of sale, 4013. Afraid Mr. Gould might ruin the stock, 4013, 4014. Con dition of road iu 1878 and 1879; arrears of interest funded, 4014. Why he thought, the stock had but little value; continuing tliH funding process, 4015. Ability of the company to meet its liabilities, 4015, 40 Hi. The Central Branch's land grant, 4016. Certificates of indebted news, 401(), 4017. Secured by a land trust; lands used to raise money; trusts not recorded, 4018. An inquiry for the books, 4018, 4019. Witness' efforts at Washington, 4019. The duties of those who urged aid ; nothing of value used for the purpose of influencing votes, 4020. The Atchison, Colorado and Pacific, 4020, 4021. The railroad company and construction company not composed of the same indi?viduals, 4021. Dee, John M., testimony of: Iu charge of Ogden stock-yard ; has privilege of feeding the stock; agreement with Central Pacific and Union Pacific, 2218. Officers of the company not interested, 2218,2219. Now paid for carrying the mail, 2219. Dee, Thomas D., testimony of: Bondsman of John M. Dee, 2224,2225. The depot question the principal cause of complaint at Ogden, 2225, 2226. 5430 U. S. PACIFIC RAILWAY COMMISSION. Dexter, F. Gordon, testimony of: U. P. Director lor twenty years; hostile relations of Kansas Pacific and Union Pa cific prior to pool, 699. Not a party to the pool of 1878 ; witness' interest in Kant-as Pacific in 1879; 700. Circumstances of its purchase, 7 00,701. Interest in Saint Joseph and Western in 1879,701. Acquired from Gould, 701. Interest in Union Pacific at consolidation, 702. Gould's terms for Kansas Pacific thought unreasonable, 702-704. Letter to Dodge and Humphreys, 704. The meeting at Gould's house; what concessions were made by Gould, 705. The agreement that witness wrote, 706. Errors therein, 706,707. The Government not informed of the details; the paper lost and found ; what witness knew of Kausas Pacific at time of consolidation, 708. The consolidation a benefit to Union Pacific, to Kansas Pacific, and to Gould; the part taken by Govern ment directors as to consolidation, 709. The Union Pacific and Credit Mobilier settlement, 710. Minutes of March 6,1873, relating to Wilson report of wrongful expenditures; minutes of June 25,1873; resolution not to defend Government suit, 711. Minutes of October 15, 1873; Mr. Duff's report as to proper action on charges in Wilson report, 711, 712. Minutes of December 18,1873; as to Credit Mobilier claim, 712. Minutes of September 22, 1875, as to Ames-Davis contracts; letter of Jay Gould, from minutes of June 3, 1876, as to suits in re Ames-Davis contracts, 713. Minutes of July 21,1875, appointment of com mittee to settle with Credit Mobilier; copy of agreement with Credit Mobilier, dated December 31, 1875, 714. What directors signed it, 715. What signing directors were defendants, 716. Minutes of June 14,1876; resolution extend ing time on agreements, 717. Agreement between Credit Mobilier and Union Pacific, dated February 8,1886; 718. Directors who signed the agreement, 720. Minutes of January 26, 1881, authorizing release to M'Comb, 721. Min utes of March 29,1886; resolution'securing trustees against damages by reason of Cre*dit Mqbilier suits, 721. Also ratifying settlement with trustees under Ames-Davts contracts; minutes of March 31,1886; confirmation of release to trustees of damages; witness' interest in branch roads, 722. Union Pacifio policy as to branch lines; the branches which cause loss to Union Pacific; value to Union Pacific of Central Branch, 723. The Pacific Mail subsidy beneficial, 724. Diversions to Southern Pacifio; the Oregon Short Line; know8 of no use of funds for influencing legislation or to influence votes; question of net earnings, 725. His knowledge of the action of the consoli dated mortgage trustees, 726. Witness' interest in other roads and in tele graph companies, 726,727. Interest of directors in contracts made with road; an extract from record in suit of the United States against Union Pacific, 727. . Concerning outside business interests of directors ; arrangements between . Union Pacific and Pullman Company, 728. The Ward ell contract; no direct ors interested in coal operations for private profit; how the branch lines were built, 729. Present interest in Union Pacific; interest at time of con solidation in Kansas Pacifio and Saint Joseph securities; effect on Union Pacific if consolidation had not taken place, 730. What influenced witness in favor of consolidation; destructive power of Kansas Pacific; the Govern ment not injured by the consolidation, 731. No effort by directors to injure the Government's rights; relative values of witness' holdings in Kansas Pacific and Union Pacific, 732. Gould's course a violation of his duty as di rector, 733. The number of transcontinental lines; ability of Union Pacific to pay debt to Government, 734. The Government's treatment of Union Pacific; hoping for good results from this investigation; net earnings, 735. Litiga tion as to net earnings; the " mail" ease; plan of settlement; favors a gross payment instead of percentage, 736. An extension on easy terms and addi tional security, 737. Dey, Peter A., testimony of: President board of railway commissioners, Iowa; made reconnaissance in 1862, from Omaha to Salt Lake; was chief engineer of road in 1864-'65; his first estimate of cost of road for first 100 miles, $30,000 a mile, including equip?ment ; asked to make second estimate; Hoxie contract at $50,000 a mile excessive; why witness resigned, 1426. Extract from report of Wilson com mittee ; his estimate for road through Tooele Valley; favors an extension of time, 1427. Union Pacific could be paralleled, including equipment, for about $25,000 a mile, 1427,1428. Government operation of main line at simply operating expenses would bankrupt branch lines and demoralize freight traf fic generally, 1428,1429. Advantages of pools; constructive mileage a bene fit to both main and branch lines, 1429, 1430. Rate of wagon transportation in l863-'64, 1430. Dickey, John J., testimony of: Superintendent of telegraph of Union Pacific and also of Western Union lines along Union Pacific; his salary divided between the two companies, 1454. Telephone company, 1454, 1455. Union Pacific officials interested; no busi- ANALYTICAL INDEX. ' 5431 Dickey, John J., testimony ofContinued. ness relations between telegraph and telephone companies, 1455. Returns of telegraph department; division of profits; gross receipts last year, $120,000 ; Union Pacific's proportion for 1886, 1456. Statement of telegraph receipts and disbursements, Union Pacific, years 1878-'86; 1457. Dillon, John F., testimony of: Counsel to Union Pacific since October 1,1879; preparation by witness of articles of consolidation, 183. Who directed their preparation and their provisions; the sixth article, naming the first directors, 184. At that time had no per sonal knowledge of value of Kansas Pacific or Denver Pacific stock; draughted article 3 in accordance with instructions; knew of interests held by Gould, Dillon, Ames, and others in both Kansas Pacific and Denver Pacific stock, 185. Object of Hiiit to release Denver Pacific stock; transfer of released stock to Gould, Dillon, and Ames, 186. Signing the articles of consoli dation, 187. Copy of opinion of witness as to the power of Union Pacific Railroad Compauy to increase its capital stock, 188-190. Copy of opin ion of Sidney Bartlett, esq., on same subject, 190,191. Opinion of Dillon, Bartlett, and Holmes as to validity of Union Pacific Company's collateral trust bonds, 191. Further opinion on same subject, 191,192. Letter of President Dillon to Hon. W. H. Armstrong, Commissioner of Railroads, dated December 5, 1882; subject, the issue of collateral trust bonds and the policy and pur pose of construction of bin tick lines, 193,194. Government notified after consolidation, 194', 195. Relation of Government directors to Union Pacific Railway, 195. The telegraph line required by Congress to be constructed, 561. Copy nineteenth section, act of 1862, relating to telegraph companies; two lines of poles built along the right of way, 562. Litigations connected with the telegraph; Union Pacific telegraph now operated by Western Union under a working arrangement, 563. Earnings from 1878-1885; 563,564. In creased earnings since arrangement with Western Union, 564. The question of the admission of tbe Government directors into the board of the consoli dated company, 607,608. Attorney-General decided that they had; since then no protest against their attendance, 608. Litigations between the Gov ernment and Union Pacific; refusal to sit as judge in such litigations; act of 1862, sixth section, 822. Act of Io64, section 5; act of 1871, section 9; extract from Supreme Court decision in interest case, 823. Act of 1873, section 2; fail-lire of Government to pay half transportation mctoey; consent of company tbat it be applied to their indebtedness, 824. Suit in Court of Claims to recover full compensation; failure of the departments to recognize decision; Comp troller Lawrence's decision, 825. Supreme Court decision; the act of 187ti a violation of the Government's contract contained in act of 1862, section 6,826. The company has kept its obligations; provisions of the Thurman Act; Su preme Court decision on Thurman Act, 827. Portions of Senator Thurman's speech, 828. Deductions drawn as to intention of the act; Supreme Court decision as to net earnings; the company's claim as to net earnings, 829. Decision of Supreme Court that section 6, act of 1862, was a contract, 830. Discrimination by Government against Union Pacific; vexatious disputes and investigations, 831. What can be deducted before declaring net earn ings; the line between operating and construction expenses, 832. All ques tions adjudicated down to December, 31, 1882; reference to cases; the judg?ment paid promptly, 833. Suit involved only services on consolidated rail way, though settlement included claim for branch-line service; pending issues with the Government; disputo as to Omaha Bridge, 834. Does the Government lien include the Omaha Bridge, 835. Dispute as to Pullman car interest; Government lien applies, 837. The legal power to consolidate ; the suits brought by the State of Kansas, 838. Copy section 16, act of 1864, au thorizing consolidation, 839. Increase in Kansas Pacific stock ; manner of con solidation defined in act of Congress, 839. Legal power to issue collateral trust mortgages and guaranties; form of guarauty of interest on Oregon Short Line bonds, 840. Plan of settlement, 841,845. Favors a fixed sum; the road a national enterprise born of national necessity, 841. The initial difficulties, 842. The u paper cost" of the road, 843. How it is handicapped ; the present situa tion a legitimate outgrowth of Government legislation ; let the company dis charge its debt, 844. And have its autonomy ; junior lien-holders could not complain, 845. Question between Government and company as to investment of sinking fund, 862. Opinion of Attorney-General Garland as to sinking funds and their investment, 803-865. Diversion of mail service from Union Pacific, 866. Letter from company to Postmaster-General, 866, 867. Con tract between Union Pacific and R. G. Hazard, 8(58, 869. Another contract between same, parties, 870. Release by H. S. McConib to Union Pacific ; same to Credit Afobilier, 871. Letter: Union Pacific requests an opportunity to 5432 u. s: pacific railway commission. Dillon, John F., testimony ofContinued. reply to any specific matter that may seem to require explanation, 3b74, 3t75. Statement um to gtatus of telegraph lines ; certain railroad companies author ized by Congress to enter into arrangements with certain telegraph con)-pauiex, 3H7H. 3K79. Union Pacific built its own telegraph line; Atlantic and Pacific leaned Union Pacific's telegraph franchise, 3d79. Unite(l State* Tele graph Company given rights, 3879, 3ti60. Kansas Pacific aud ITuiou Pacific enjoined from taking pos8etsion of telegraph line; existing contract then made between Western Union and Union Pacific, 3880. An opinion by wii-uiiHM concerning the transfer, 3880,3881. American Union and Western Union consolidated in 1881. Western Union does not control Union Pacific's tele graph line, 3881, 3882. Provision for a division of earnings; a* to Union ' Pacific's [tower to make contract with other telegraph companies than West- ern Union, 3rt82, 3883. Union Pacific obliged to transmit any commercial mes sage, 3*83. Warner report as to operation of telegraph lines by land-grant roadH, 3883, 3884. No other company can force Union Pacific to make kiimo contract, 3884. Distinction in the case of Kansas Pacific to be borne in mind; in the arrangement a cession to the Western Union Company by Union l/i-ciiic of all telegraph practice, 3885. Remarks in reference to the suit of Arnold Leo against Uniou Pacific, 3985-3994. Copy letter, T. F. Oaken, as to branch lino policy, 3985,3966. References to branch lines in reports of Gov ernment directors; particulars of the company's interests in the Colorado Central Railroad Company, June 30, 1876; 3986? 3987. Ditto, in Utah Cen tral Railroad Company, June 30, 1876; ditto, in Utah Southern Railroad Company, June 30, 1876; ditto, in Utah Northern Railroad Company, Juue 30, 1876; as to aid extended by Union Pacific to other companies, 3987, 3988. Copy General Crook's letter of'October 9, 1*77, as to value of proposed branch, 3988. Building of branch roads favored ; (report for 1878); the fostering of branches a good policy (report of 1679), 3989. Congress informed of the consolidation, 3990. Statement as to branches (report of 1881), 3990, 3991. Auditors French and Armstrong approve branch lines, 3991. General policy as to branches not so much at issue as manner of carrying it out; two branches of the subject, 3991, 3992. Characterization of Mr. ReifFs remarks; : the Union Pacific at a disadvantage in building branches; failure of act to give power to build branches, 3992, 3993. Is the Government lien limited to I portion of road subsidized/ lien includes equipment, but not granted land ; to desist from appropriating all earnings would be foundation of Govern ment's lieu on branches, 3993, 3994. Position of stockholders, if coinpauy fails to pay its debt; claim of the company against the United States for . Delaware und Pottawatomie lands, 3994. As to the duty of the Commission j regarding the consolidation ; all the stock exchanged, 3995. The company would like to reserve the right to supply additional testimony, should it ap pear necessary, 3998-4000. What limitation should be put upon the power to build branches, 4000, 4001. Siduey Dillou not interested in construction of Oregon Short Line, 4029. Dillon, Sidney, testimony of: Union Pacific director since 1866; 195. His relation to Kansas Pacific; once a director in Douver Pacific, 196. A member of the Kansas Pacific pool, 197. Contest between Union Pacific and Kansas Pacific as to prorating, 197. Mar- / ket vaiuo of Kansas Pacific securities prior to April, 1-78; 197, 198. Kansas i Pacific pool committee, 198. Pool accounts, 199. Buying out of the St. Louis j parties, 199, 2**0. Witness elected president of Kansas Pacific, 200. His rec- , omtnandatiou of John F. Dillon for counsel; witness's holdings of Kausas Pacific securities, 201. His holdings, as trustee, of Denver Pacific stock; 1 39,986 shares Denver Pacific stock surrendered, 202. And an equal amount oft ho new issue received in exchange and put in Uniou Pacific's treasury, 203. Total Union Pacific Railway stock; non-appearance of the 39,986 shares on the balance sheet; the stock disposed of, 204. The suit to release Denver Pacific stock, 205, 206. Who suggested it; witness's recollection of the pro ceedings; what was to be done with Denver Pacific stock if released; value of Union Pacific stock at time of exchange, 206. Witness's evidence before Referee Ruggles, 207. Explanation of his statement that the Denver Pacific / stock, if freed, was worth only $200,000 or $300,000, 208. What was got for j the Douver Pacific stock, 209, 210. Kansas Pacific and Denver Pacific in : poor order at time of consolidation, 210. Advantages to Union Pacific of consolidation, 210, 211. Effort of Kansas Pacific to prorate; when witness elected president Union Pacific had no branches; lease of the Oregon Rail road and Navigation Company's road, 211. Branches built to support Union Pacific; ''the Union Pacific was my pet;" payment of floating debt con demned ; mouey should have gone into branches, 21*2. Plan of settlement of ANALYTICAL INDEX. 5433 Dillon, Sidney, testimony ofContinued. debt to Government; able to pay if given its independence; extension of time wanted, 213. A blanket mortgage for one hundred and twenty-five years in favor of the Government suggested : his offer to buy the branch roads, 214. Witness's long services to Union Pacific; consolidation stopped competition, 215. Consolidation in view when 1878 pool formed; object of the pool; Kan sas Pacific's claim to prorate, 216. Witness's purchase of branch roads, 210, 217. The individual interests in the pool passed to Union Pacific; how Union Pacific obtained its interest in Kansas Pacific and Denver Pacific, 217. Tho Oregon Short Line; guaranty of its bonds; half its stock in Union Pacitic's treasury to-day; profits to members of the pool, 218, 219. Ooddridge, W. B., testimony of: Superintendent Western Division Missouri Pacific, includes Central Branch; duties as general manager, 1562,1563. Condition of track, 1563. Steel to re place iron, 1563, 1564. Condition of track on aided portion; character of buildings, etc.; character of country, 1564. Proportion of earnings from local traffic, 1564, 1565. Number of competing lines, 1565, 1566. Freight and pas?senger pools, 1566. Dodge, Grenville M., testimony of: Civil engineer; connection with Union Pacific since 1853,3790. Preliminary sur veys and estimates, 3790, 3791. Explanation of witness's failure to appear be fore Wilson committee, 3791, 3792. His appearance in 1876 before the Ju diciary Committee of the House, 3792. How the mountain crossings were determined, 3792,3793. No special difficulties between Omaha and Cheyenne; later estimates of cost of construction, 3793. No relations with contractors except to see that they performed their work, 3793, 3794. As to actual cost of Union Pacific; basis of estimate of cost from Ogden to Promontory, 3794. Five hundred and fifty-five miles built in one year, 3794, 3795. Method of construction and payment, 3795. What the Union Pacific books show, 3795, 3796. Did General Dodge do the work for the railroad company ? his reports based on mileage ton; actual cash cost of road between Ogden and Prom ontory, $87,000 a mile; work between Ogden and Promontory Point heavier than between Omaha and Cheyenne, 3796. Topography from Cheyenne to Promontory Point; from Omaha to Cheyenne cash cost $30,000 to $35,000 per mile, equipped, 3797. Comparison of cost between Ogden and Promontory Point and between Cheyenne and Piedmont, 3797, 3798. Over the Rockies and the Wahsatch cost over $85,000 per mile, 3798. Actual cost of road from Cheyenne to Ogden much less than $87,000 per mile, 3798, 3799. Actual cost of road from Ogden to Promontory, 3799, 3800. Copy S. B. Read's statement of cost of grading from Ogden to Promontory Snmmit, 3800. Cost of work done by Union Pacific between Promontory Summit and Monument Point; cost of Union Pacific from 1040th mile post to Promontory Summit, 3801. As to early estimates, 3801, 3802. From 100th meridian to Ogden, estimated at the time to cost $50,000 per mile; from the Missouri River west to the 100th meridian, $30,000 to $35,000 per mile, 3802. Paper submitted, probably the original, 3802, 3803. Estimate not made up for purpose of obtaining payments, 3803. The Davis contract, 3803, 3804. Statement shows actual cost to contractors, 3804. Witness relied on Mr. Read's word as to price paid for excavation, 3804,3805. The "company" means the construction company, 3805. The Davis Construction Company, 3805, 3806. Witness's source of information as to cost of grading and other items; bridges examined by engineers, 3806. What is included in the item "track, material, and laying," 3806,3807. What proportion would be represented by the rails, 3807. Cost of work in winter ex traordinary, 3807,3808. Cost of road from Piedmont to Promontory, $90,000 per mile cash ; amount paid by Central Pacific to Union Pacific, $2,698,620; why the Union Pacific accepted so much less than cost; the Davis contract was for $15,629,000 for 171 miles; cost to the railroad" company, $23,431,768.10, 3808. How the estimates compare with cost in normal times; cost from Piedmont to Ogden, 3809. Estimated cost of Union Pacific, $50,145,000, 3809,3810. As to Mr. Dey's estimates; no knowledge of so low a figure as $19,000 per mile, 3810. As to item of $74,000 entered as paid to General Dodge lor aiding leg islation, 3810,3811. Does not know whether he has seen voucher or not, 3811. Mr. Bushnell gave witness a "call" on the stock, 3811,3812. Understood bargain was with Bnshnell; why the charge was made to the company; Com missioner Anderson defines a " call," 3812. Services of witness at Washing-ington, 3812,3813. Did not use money to influence legislation; as to Sioux City and Pacific Railroad, 3813. Character of the country, 3813,3814. Thinks local traffic would pay operating expenses, 3814. Connections with through lines, 3814,3815. Its financial stauding; debt of Union Pacific; supposed they never would be called upon to pay; take the branches away and it 5434 U. S. PACIFIC RAILWAY COMMISSION. Dodge, Grenville M, testimony ofContinued. could not pay anything, 3815. Witness's plans of settlement approved by Secretary Bristow aud President Grant* 3815,3ril6. Present difficulties of the Union Pacific, 3816,3817. Advantage of freedom from Governmental super?vision; advantage of a fixed annual payment over percentage of not earn ings, 3817. Union Pacific able to meet debt if given time and full control, 3817,3818. Junction of Sioux City with Union Pacific at Fremont; object ot constructing Sioux City road; the control of the link between Union Pacific and Sioux City and Pacific, 3818. The branch system essential to Union Pa cific's prosperity, 3818,3819. Comparative cost of construction; if whole time had been taken, road could have beeu built for 50 per cent, less; why the work was pushed, 3819. Conversation with President Lincoln, 38U),*3820. Witness made original surveys for the Ogden Branch; Union Pacific was seek ing an outlet to the Pacific Ocean ; witness approved of recent lease of Oregon Railway and Navigation Company, 3820. Witness always willing to testify, 3820,3821. Newspaper reports of the way witness was snbprctiacd, 3821. The chairman has not been interviewed, 3821,3822. Witness was a director of Union Pacific, 3822. Hostility of the Indians an element of cost, 3822, 3H23. Union Pacific can pay if it gets an extension; company should be allowed to use sinking-fund moneys to build branches; present branches the salvation of Union Pacific; it was President Lincoln's idea that the saving in Govern ment transportation would compensate for Government aid ; as to settlement proposed by Gould when president, 3823. Stock-jobbing operations interfered, 3823,3824. Douty, Frank S., testimony of: Secretary and treasurer of various corporations; particulars as to the Western Development Company, 2671. Stockholders who were rep'resentatives of others, and not owners; particulars of organization of the Pacific Improve?ment Company, 2672. Dealings of Western Development Company with Contract and Finance Compauy, 2672,2673. Employe's of Contract and Fi nance Company; transactions between the Western Development Company and Central Pacific; repairs of bridges and buildings; dealings based* on cost with 10 per cent, added, 2673. Nature of repairs, 2673,2674. Prepara tion of statement of cost; Central Pacific books contain annual amount of cost, 2674. Work of Western Development for Southern Pacific, 2674, 2675. Route of the Southern Pacific; paralleled geographically, but not as to bus iness ; entrance to San Francisco formerly controlled by Central Pacific, 2675. Assignment of contract by Contract and Finance Company to Western De velopment Company, 2G75, 2676. New contract between Western Develop ment and Southern Pacific; Pacific Improvement builds liue between Mojave and the Needles; construction continued four years, 2676. Settlement made with secretary of Southern Pacific, 2676, 2677. Loans by Central Pacific to Western Development Company on collaterals; loan acted on by directors of Western Development Company; Central Pacific notes for $3,086,259.72 paid by Southern Pacific bonds at 90, 2677. Controlling influences substantially the same in both boards, 2677, 2678. No market value to the bonds; pro duction of the Western Development books desired; transfer of Central Pa cific sinking-fund bonds to Western Development Company, 2678. Fordebt due by Central Pacific, 2678, 2679. Central Pacific used by Development Com pany as a bank; Western Development drafts honored by Central Pacific, 2679. Had large balance on deposit, as a rule, 2679, 2680. No difficulty in arranging an overdraft; Central Pacific a debtor to the extent) of $3,000,000; these Southern Pacific bonds given in payment; bonds sold to " S. H. H. and C," 2680. No other transactions between Western Development and Central Pacific, except construction of road and interchange of loans; other railroad construction of Development Company; of the Northern Railway ; location of California Pacific Railway ; Northern Railway built in sections, 2681. The men really interested in the enterprise, 2682. Construction contracts; used the Central Pacific as a banker; ledger account will show transaction, 2682. Deposits furnished by stockholders, 2682, 2683. Form of deposits; where the Western Development got its money; how deposits were regulated, 2683. Those interested furnish cash or its equivalent, 2683,2684. Northern Railway leased to Central Pacific about 1878; Central Pacific allowed interest on Western Development accounts at varying rates; Western Development stockholders never paid a dollar on account of stock, 2684,2685. Owned the company ; interest credited on deposits ; the loans by stockholders to Devel opment Company still owing; no account now between the Central Pacific and Western Development, 2685. Law of California in relation to stock issues, 2685,2686. Northern Railway stock regarded as fully paid; its stock possessed by Western Development Company, 2686. Rent of Northern Rail- ANALYTICAL INDEX. 5435 Douty, Frank S., testimony ofContinued. way credited to Western Development Company, 2686,2687. Bonded debt of Northern Railway about $4,000,000; issue to Development Company; sold in 1882 at 90 or 95 ; earnings of Northern Railway receipted for oh vouchers; dividend of bonds and stock by Development Company, in Ib77; 2687, 2688. Western Development Company a stockholder of Northern Railway; liabili ties of Western Development Company exceed assets, 2688. Principal creditors of Western Development Companv, Stanford and associates, ii688, 2689. A condensed statement of the enterprise; books show exact status of accounts; other railroad construction by Development CompanySan Pablo end Tulare Railroad ; route of Western Pacific Railroad, 2689. Construction of San Pablo and Tulare, 2689, 2090. Same course pursued as in case of Northern Railway; method ot paymentfor San Pablo and Tulare; 18,160 shares stock, 1,023 bonds, and $116 cash, 2690. Receipt of rental of San Pablo and Tulare Railroad, 2690, 2691. Comparison of net earnings with rental; two or three dividends declared; vouchers given covering dividends declared, 2691. Road from Gait to lone built by Development Company in 1876,2691, 2692. Object of its construction; lone Coal and Iron Company ; payment for construction made in stock and bonds, 2692. Disposition of rentals, 2692,2693. The Am ad or Branch ; ihe Berkeley Branch ; construction of Los Angeles and San Diego road, 2693. Leased to Central Pacific through Southern Pacific ; relations of Central Pacific and Southern Pacific; relations of Western De velopment to Southern Pacific; deposits with both Central and Southern Pa cific, 2694. Relations of Central Pacific to Western Development Company, 2694, 2695. The 10 per cent, added to every bill, 2695. Only individual funds advanced, 2695, 2696. The 10 per cent, not considered as profit; was inter?vening corporation necessary, 2696. Advantages in using Western Devel opment Company, 2696, 2697. Southern Pacific of Arizona; by whom con structed, 2697. Colorado Steam Navigation Company, 2697, 2698. Route of steamers; relations of Western Development Company and Steamship Com pany, 2699. Stockholders of Steamship Company; steam-ships first bought by Western Development Company; from whom purchased, 2699. "Alittle link near Suisun," built by Development Company for California Pacific; Los Angeles and Independent road bought by Development Company in 1877, and leased to Central Pacific, 2700. How rented by'the Southern Pacific, 2700,2701. Southern Pacific of New Mexico and other roads; work of Pa cific Improvement Company ; California and Oregon, and Oregon and Califor nia ; Improvement Company built Northern Railway from Willows to Tehama, 2701. The Oakland wharves and ferry slip, 2701, 2702. Improvements at Mission Bay; construction of California and Oregon road, 2702. Price to be received when completed, 270*2, 2703. Cost of construction and work still to be done, 2703. Agreement to get control of Oregon and California road, 2703, 2704. Enough bonds retained to insure performance of contract; the 16 miles yet to be constructed; cost of remaining construction, 2704. Disposition made of bonds, 2704, 2705. How Pacific Improvement Company operated; method of construct ing California and Oregon, 2705. Central Pacific received all returns during construction, 2705, 2706. The Northern Railway, its con struction and reutal, 2706. Road from Willows to Tehama, 2706, 2*707. The railroads bankers for Pacific Improvement Company; rate of interest on de posits ; construction of Southern Pacific ot" Arizona, 2707. Principal stock holders, 2707, 2708. Capital stock of the company ; reutal paid by Central to Southern Pacific of Arizona, 2708. Actual net earnings of Southern Pacific of Arizona, 2708, 2709. The Southern Pacific of New Mexico ; rented to Cen tral Pacific, 2709. Stock held by Pacitic Improvement, 2709, 2710. Request for books of the Western Development and Pacific Improvement Companies, 2710. Refusal to produce books of minutes; the books are subject to inspec tion, 2724, Refusal to produce books of Western Development Company, 2724, 2725. Also those of Pacific Improvement Company, and of Southern De velopment Company; or those of other companies, 2725. What they will show as to cost of construction by Paciiic Improvement Company, 2725,2726. As to cost of construction to other companies, also rentals; interest paid on deposits with Central Pacific, 2726. Books of "8. H. H., & C.," 2726,27557. Sufficiency of notice to produce books, etc.; declines to produce books, 2727. Production of account showing cost of construction of Northern Railway; in terest charged on construction ; production of account of cost of construction of San Pablo and Tulare ; of Amador Branch; of Southern Pacific of Califor nia; of Southern Pacific of Arizona; of Southern Pacific of New Mexico, and of Colorado River Bridge, 3254. Rental paid for Colorado River Bridge, $12,000 a year; rebuilt several times; dividend of stock and bonds by Western Development Company, September 4,1877; stockholders who received it, 3255. 5436 U. S. PACIFIC RAILWAY COMMISSION; Douty, Frank S., testimony ofContinued. Similar dividend by Pacific Improvement Company, April 11, 188*2; who re ceived it; lease of the boat Solano, 3256. It* cost between /$500,000 and $600,000, 3256,3*257. Owned by Northern Railway and operated by Southern Paciiic ; no coal lands owned by Pacific Improvement along Central Pacific; no prop erty rented to Central or Southern Pacific, 3257. The securities that wero divided up have no market value, 3257, 3258. Rocky Mountain, lone and Carbon Hill Coal Companies; have furnished coal to Central Pacific and its successor the Southern Pacific, 3258. Explanation of voucher for $29,1)74.13, received by witness from Central Pacific for "legal expenses" to General Col-ton, 3258, 3259. Vouchers prepared under General Col ton's direction, :V2.M. Does not know whether any portion used for iuiiueuciug legislation ; voucher for $50,000, dated September 1,1876; same explanations; voucher for $46,810.9 J, dated November 12, lb?8 ; 3260. Collected at request of W. E. Brown; no kuowledge of application of this money, 3461. " Suiplns profits" of VVestei u Development Company, 3398. Resolution for their distribution introduced at Colton-s request, 3398, 3399. Dissatisfaction of Stanford, Huutiugtou, and Crocker; declaration of dividend left the company insolveut; fortieth finding in Colton vs. Stanford, 3399. Forty-eighth finding in Col ton vs. Stanford, 3400, 3401. California law on dividends; forty-ninth finding in Coltou vs. Stanford, 3401. Pacific Improvement Company's dividend of bonds and stocks, 3414. The stock exchanged for stock of Southern Pacific of Kentucky, 3414,3415. Mr. Stanford and his associates furnished the money to build the Northern Railway; other roads built by them, 3415. Contractors paid in stocks and bonds of roads, 3415,3416. Took their chances upon development of country and amount of business created by lines; the Frankfort syndicate formed to place Southern Pacific bonds on market; no market for Southern Pacific bonds lor several years before the syndicate; Colorado River Bridge rents for about 6 per cent, on cost, 3416. Its destruction by water and fire; Western Develop ment and Pacific Improvement Companies banked witii Central Pacific, 3417. Borrowing of the Central Pacific, 3417,3418. General Coltou was financial director of Central Pacific; the account an interest-bearing account; leases to Centra] Pacific profitable, 341&. Rentals paid dividends -nd interest on bonds, 3418,3419. Price of Central Pacific stock in 188(5 between 38 aud 40; security of the "6V of 1866 covered by all the Central Pacific property ex cept the aided portion, 3419. Value of Southern Pacific bonds, 3419, 3420. Value of stock for purposes of control, 3420. Copy resolution of date, Septem ber 15,1875, to accept individual note for Central Pacific debt, 3626. An ex?planation of the transaction, 3626,3627. Doyle, Thomas H., testimony of: x Mayor of Saint Joseph, Mo., since April, 1886; 1553. Number of railroads at Saint Joseph; facilities afforded, 1554. Influencing legislation, 1554, 1555. Board of Trade discussion as to freight rates, 1555. Discriminations and special rates, cutting of rates, 1556. Draper, George A., testimony of: Freight rates; no knowledge of special rates; never received any,2095. Eckert, Thomas T., testimony of: Director of the Union Pacific in 1880; 282, 283. The occasion of the consolida tion meeting and circumstances attending it; no personal examiuation of the question, 283-285. Eddy, Edward, tastimony of: General manager of Omaha and Grant Company, 1795. Shipments of products; special rates; first rebate in 1879; 1796. Their rates to be the same as those given competitors; names of their competitors, 1797. Request not to expose business secrets to competitors; their contract made before Dillon aud Ames acquired their interest, 1798. Copy of agreement between the Grant Smelting Company and the Uuion Pacific Company, 1798-1801. Contract still in force, 1801. When considering question of consolidation, were assured a continuance of same privileges, 1801. No competitors in the market, 1801, lfcO-. No other written contract after consolidation, 1802. Shipment of ore to Omaha controlled by Omaha offices, 1802, 1803. Arrangements as to freight traffic; with whom made; his talks with Dillon and Ames, 1803. Rebate or overcharges refunded; witness' definition of a rebate; other companies enjoy same rebate ; why other rebates might not appear on company's books, 1804, 1805. No written agreement with the company as to rates; chief business office at Omaha, 1805. The rebate on ore, 1805, 1806. Greater over the Burlington aud Missouri, 1806. Mr. Potter's proposition to take 10,000 tons; would make any rate asked; l06,1807. Switching facili ties; why the benefit to his company is nil; Pueblo Company has same priv?ileges, 1807. Why his company should get free switching, 1808. Rate of such charges at Leadville, 1808, 1809. Switching facilities free because 5437 Eddy, Edward, testimouy ofContinued. company bound to give Union Pacific three-fourths of their freight: ability of other companies to compete, 180;). Ilia company paid $900,000 freight charges last year at Denver, 1809,1810. Amount of ore received from Lcad-ville; overcharges refunded in 1885-1887, 1810. Ore receipts from other sections; rebates on Colorado shipments; railroad competition in Denver, 1811. Increased railroad competition without increased buHinebs suicidal, 1811,1812. Instances of receipt of better rebates by competitors; result of such discrimination ; can not compete with Pueblo Company over Santa Fe*' road, 1812. Iuterest of Union Pacific people in witness* company ; their Union Pacific freight bills average $1,400,000 a year, 1813. Effect of inter state-commerce law, 1813, 1814. Uuion Pacific not prompt in refunding overcharges ; the contract and the interstate-commerce law; the contract a good one for Union Pacific, 1814. One line cau afford to do business cheaper than several, 1815.. Kiinball's iguorance of cut rate on ore, 1823. The rate made by Shelby, 1823.1824. Eddy, J. M., testimony of: Connected with Union Pacific from 1866 to 1872, and in 1875 and 187G; held va-rious positions in the company; the Omaha and Republican Valley Railroad ; how built, 1269,1270. The subsidy from Saunders County; method and cost of constructing the road; its present condition, 1270. Condition of its branches; vouchers in witness7 name; work done by Construction Company; substitut ing name of individual for the company; done on suggestion of the chief en gineer, 1271. For the convenience of accounts; never heard of Gould's threat to remove Union Pacific shops from Douglass County and from Omaha if county contributed towards construction of Omaha and Republican Valley Railroad under private subscription, 1272. Witness took the contract, and company's engineer sublet it in his name; the arrangement one of conven ience, 1276, 1277. Witness "a sort of small credit mobilier"; made no profits; received about $1,200 or $1,500 for his services; work not done l)y :i construction company, but by firm of contractors called Salt Lake Railway Construction Company, 1277. Cost about $70,000; the Omaha Belt Line; how controlling management acquired; alleged fraudulent dealings by Clark and witness, 1278. Suit of Union Pacific to acquire control; history of Belt Line, 1279. Arbitration of differences between Clark and company ; rela tions of Union Pacific to Belt Line, 1280. History of the dispute ; Mr. Clark's action, 1281. What witness' contract covered, 1281,1282. Why Union Pacific did not construct the road; public sentiment mixed as to service of Union Pacific, 1282. No general complaint; copy of contract between John M. Eddy and the Utah Contract Coinpauy, dated June 11, 1884, for grading Wood Ri ver Branch, Oregon Short Line, 1*283-1286. Copy of contract be tween Oregon Short Line and John M. Eddy, dated June 5, 1884, for con struction and equipment, 1286, 1288. Contract between Charles Francis Adams, jr., president, ami John M. Eddy, dated June 5, 1884, for cash ad vances to Eddy, in construction of Hai ley-Ketch um road, 1288. Telegram and letters in relation thereto, 1289. The purpose of the agreement, 12-9. The average cost of constructing road from Hailey to Ketchuni; what wit ness did under his contract; road stocked and bonded at $40,000 a mile, 1*290. Cash cost probably 50 per oent. less, 1290, 1291. Description of country from Hailoy to Ketchuin, 1291. Details of construction, 1291, 1292. Work begun and completed in summer of 1884; witness' compensation and method of su pervision; plan by which Union Pacific acquired control, 1*292, 1293. Evans, John, testimony of: President of Denver, South Park aud Pacific in 1867; history of the enterprise, 1849, 1850. How constructed between Bnena Vista and Leadville, 1850. Joint trackage contract with Denver and Rio Grande, 1850, 1851. Advan?tages, and how far they were successful, 1851. Negotiations for sale of trust stock, 1852. Subseaueut negotiations with Gould, 1852, 1853. Telegraphic correspondence with Gould, 1853, 1854. Authorized to sell stock; memo randum of checks received : the stock delivered, 1855. Railroad stock as a dividend, 1855, J856. Leadville business gave impetus to the values of stock and bonds; change in manner of conducting basiuess, 1856. Change in gen eral management of the road, 1856, 1857. Its disastrous effect; policy and management dictated by Gould, 1857. Copy letter from witness to Gould, dated January 7, 1881; '1*57-1859. Referred to the officers at Omaha; joint trackage pooling and extension contract canceled ; a change detrimental to the company's business, 1859. The Breckenridge branch; its disadvantages j the Leadville business since yparl882, I860. Subsidy to Union Pacific by Rio Orande road ; to control the Denver and South Park business, 1861. Plan of settlement, 1861. Extensiou of branches; extension of time; Govern ment control uot favored, 1862. 5438 U. S. PACIFIC feATLWAY COMMISSION. Ewing, Thomas, testimony of: Connection with Leaveuworth, Pawnee and Western Company, 3849,3850. Con* tracts for stock and lands, 3850. Never heard of the lists until 1872, 3850, 3851. The use made of certificates; issue of stock, 3851. Only a paper com pany in Iti62, 3852. Felkeu, William B., testimony of: Law creating railroad commission; witness first appointee; provision of law, against discrimination, 1949. Proceedings only brought by commissioner on complaint; street talk in regard to rebates; firms mentioned as receiving re bates, 1950. Charges of discriminations on coal; the Goodrich & Mariell case; the Patterson case; "mileage and transit,7' 1951. General facilities afforded to Denver by Union Pacific as good as those to other cities along lino; recommendation to establish depot at Empire; facilities adequate to requirements of trade; rates innch higher in Colorado than in other States, 1952. Union Pacific rates in Colorado not higher than rates of other roads, 1953. Lower charges from Pacific coast to Missouri River than to Denver; the reason; rates too high on the Colorado Central, 1953. Increase of tonnage in Colorado on all roads but two; rate of freight as low as ever, 1954. Rela tion of branches to main line; Denver and South Park a detriment; why route to Leadville via Buena Vista given up, 1954; the Colorado Central; other Colorado branch lines; the advantage of branch lines as "feeders" more than counterbalances loss incurred in their operation, 1955. Local busi?ness of main and branch lines; plan of settlement; Union Pacific should have time, 1956. The Government should not operate the road, 1956, 1957. Divi dends and branch line construction; Government should not enforce the pay ment of bonds when due; surplus earnings since 1884 over $9,000,000, 1957. Effect of an extension upon the community; the effect as to rates; a pool controlled by law would be an advantage to the community, 1958. Methods of railway companies with each other; diversion of freights by pools, 1959. Favorable effect of pools upon earnings of Union Pacific, 1959, 1960. Pacific Mail subsidy, I960. Concerning foreclosure of first mortgage, 1960, 1961. Methods adopted by Union Pacific in influencing legislation; moral suasion, dining, and wining, 1961. Change ofopimons of legislators, 1961, 1962. Rail road lobbies; efforts to control nominations, 1962. The community in favor of railroad legislation, 1962, 1963. Names of Union Pacific lobbyists, 1979. Their methods, 1980. Ferguson, J. H., testimony of: The Pennsylvania Lead Company, 2005,2006* Concession in rates; the Omaha company favored subsequently, 2006. Bullion from Wood River shipped at open ratvs; rates to Pennsylvania Company increased: the Utah Forward ing Compauy, 2007. Connellsville coke shipped to Leadville; Rio Grande coke, 2008. Interest of Uuion Pacific officials in Utah Forwarding Company, 2008, 2009. FlLLMORE, J. A. : General superintendent of Central Pacific; sworn statement relative to cost of operating mountain divisions, 2546,2547. Fitch, William F., testimony of: General manager Sioux City and Pacific Railroad and the Fremont, Elkhorn and Missouri Valley road ; his duties, 2258. Reports to general management at Chicago, 2258,2259. Special rates: pools, 2259. Number of passenger and freight trains, 2259, 2*260. No complaints of discrimination; local traffic; financial affairs of road, 2260. Official inspection ; competitors of the Sioux City, 2261. Property of Sioux City and Pacific road, 2261,2232. Rentals; relations of the Sioux City to the Northwestern, 2262. Direction taken by through freight, 2262,2263. Land owned by the company in Sioux City; fu ture prospects of the road, 2263. Character of country in Iowa, 2263,2264. Amount of land needed by railroad forsupport from local traffic; cost of con struction, 2264. Competing line of Northwestern running into Onawa; di version of traffic, 2264,2265. Relaying track of Sioux City with steel rails ; completion of work in about two years, 2272. Flanagan, William M., testimony of: Formerly connected with stock-yards; his affidavit presented by Mr. Nicholas, true, 1329. Discriminations against Nicholas, 1329, 1330. An illustration; another illustration, 1330. Injurious effect of discrimination ; sale of Union stock-yard to Swan & Paxfcon; personal grievance of witness against J. F. Clark, 1331, 1332. Discriminations, 1332, 1333. Communication from mayor of Council Bluffs, 1333. r, Andrew, testimony of: Butcher at Marysville, Kans., 1540. Freights cheaper by-way of Kansas City than by Saint Joseph; facilities and accommodations good; competing roads, ANALYTICAL INDEX.* 5439 Fluhrer, Andrew, testimony ofContinued. 1541. Business relations with the community ; cutting rates, 1542. Facili ties for shipping grain; grain elevators, 1542, 1543. Cattle shipments; coal shipments, 1543. Fremont,.John Charles, testimony of: Associated with Samuel Hallett in 1863-'64, in construction of Leaven worth, Pawnee and Western, 3845. Their purchase of that road for $203,000; charac ter of the property purchased; the enterprise languished, 3846. Sale of road to Kansas Pacific Company, 3346, 3847. Certificates entitling holders to stock; the interview referred to by General Stone, 3847 ; does not know how the papers became public; witness has no personal knowledge as to the facts alluded to in the memoranda, 3848. No effect given to the certificate, 3848, 3849. Witness was not engaged in securing passage of bills, 3849. Gage, S. T., testimony of i " Assistant to the president," 3261. Duties of the position, 3261,3262. Relations to President Stanford, 3262,3263. Looking after legislation in Nevada and California, 3263. Attendance on California legislature prior to 1879, 3263, 3264. Voucher showing $2,500 paid to " S. T. G.; " no knowledge or recol lection of it, 3264. Did witness receive money from Governor Stauford with out giving receipt f 3264,3265. Receipts from company would show whether or not he received moneys outside his salary, 3265. Commission referred to books of company, 3265,3266. Other vouchers showing payments to wit ness ; no recollection of what they represent, 3266. No legislature in session, 3266,3267. His personal expenses while attending legislature paid by com pany ; kept account of what the Central Pacific paid in Nevada for eight years,3267. The "rotten borough " in American politics, 3267,3268. Com plaints of discrimination in NeVada, 3268. " Reasoned with the boys " in re gard to hostile legislation, 3268,3269. The account for eight years included " legislative expenses of all characters," and amounted to $2,000,3269. Only $2,000 spent from 1871 to 1879,3270. Did witness receive money from Gov ernor Stanford? 3271,3272. "If so, it would appear on the vouchers," 3272. Receipt of money by witness for account of Central Pacific not a common occurrence, 3272,3273. Does not remember number or size of pay ments ; as much as $5,000 received at a single payment; attended sessions of California legislature between 1871 and 1879, 3273. Attended sessions of Nevada legislature since 1879, 3273, 3274. Member of California leg islature and city marshal at Placervilie; in employ of Central Pacific since 1871; knew A. C. Cleveland, of Nevada, 3274. Never paid him any money; no money paid to members of Nevada legislature during entire at?tendance, 3275. Discussions with regard to use of money, 3275, 3276. Im putations on witness; "perfectly oblivious to what was said," 3276. Mr. Twist, of Nevada, 3276.3277. Knew all the members of the Nevada legisla ture ; talked more with those in favor of hostile legislation; witness an " original Piute," 3277. Other railroad officers at Carson City; regular at torneys here attending supreme court; keeps no bank account or memoranda of receipts and payments of money, 3278. Considers written records a waste of time; witness's right to defend his personal character, 3279. Mouey not received until it was to be disposed of, 3279,3280. How it was paid out, 3280. What the $3,000 voucher represented, 3280,3281. How vouchers were made up,3281. Drew small amounts on "tags"; what the "tags" repre sented, 3281,3282. To whom given; other vouchers, 3282. Railroad officials in attendance on California legislature; everybody employed who "could pull a pound," 3283. William B. Carr and W. W. Stow, 3283,3284. Names of railroad attorneys engaged in legislative work; extent of proposed hostile legislation, 3284. A supposititious case; witness's method of proceeding, 3285. With whom witness conferred in 1871 and 1872,3285,3286. No allusions made to money; defense of hostile legislation cost an immense amount of money, 3286. Declines to answer, under advice of counsel, as to payments of money to legislators, and as to promises of reward, etc.; and as to payments by other officers of the company; and as to payments or promises to persons not members of the legislature, 3287. Declines to answer as to influencing elec tions of California and Nevada legislators, 3287,3288. Or the election of a member of Congress, 3288. Garrett, William H., testimony of: Division freight agent of Missouri Pacific; his duties; 1624. "An understood agreement" with Saint Joseph and Grand Island in regard to rates, 1624,1625. No material effect on community; in effect only short time, 1625,1626. Main-, tenance of fixed rates; special rates, 1626. Comparative rates on Central Branch and Saint Joseph and Grand Island, 1626, 1627. Higher prices for 5440 U. S. PACIFIC RAILWAY COMMISSION. Garhkit, William II., testimony ofContinued. grain on Missouri Pacific; why; Saint Joseph aud Grand Island shippers send freight over Central Branch, 1627. Inducements to shippers, 1627, 1628. Grain market for Saint Joseph and Atchison shippers; grain combination on Grand Island road, 1628. Rate on Central Branch, 1628,1629. Saint Joseph t road unaffected by *' short-haul" clause, 1629. Chief articles of transport,. 1629, 1630. Decrease of freight business for present year; invasion of terri tory by competing lines; its effect, 1630. Operating expenses; increase of population aud of shippers; cbapge in character of traffic; increase of cat tle shipments, 1631. Its effect on gross earnings, 1631,1632. Less rates where* Central Branch crosses Union Pacific, 1632. Rebates, 1632. No preferences-given, 1032, 1633. Method of granting rebate; notice to shippers, 1633. No pools on Central Branch, 1633, 1634. A " mutual understanding" to main tain freights; rates to Missouri River points, 1634. Shipments from Saint. Joseph, 1634, 1635. Giving rebates to influence trade; passes to shipper- 1635. Percentage division with Missouri Pacific, 1635,1636. Its advautage; local and through traffic on Central Branch, 1636. The percentage of mile age, "an equitable rate," 1636, 1637. Long and short haul, 1637. The short, haul and constructive mileage; principle on which constructive mileage i.s based, 1637, 1638. No advantage to Missouri Pacific; "routing" of the Cen tral Branch business in favor ot Missouri Pacific, 1638. Union Pacific peo ple uot interested in stock-yards or elevators, 1638, 1639. Gatks, 1. E., testimony of: Connection with Central Pacific, 3H60. His duties, 3860,3861. Seeing that con tracts arc carried out; how Hnntington's checks were drawn, 3801. With whom bank accounts were kept, 3801,3862. For in of check, 3862. Indorse ments, 3H62, 3863. His knowledge of the transaction; proceedings as to checks, 3863. Special bank account; where are-the stub-check books ? 3864. Name of witness upon vouchers, 3864,3865. Mr. Huntington's monthly reporl s, 3865. Witness's connection with certain checks simply clerical; never in Washington; recollection of railway legislation in Congress, 386(). As to the Wilson committee's call for books and papers; disappearance of books, 3867. Persons connected with Washington business, 3867, 3868. Regarding Mr. Huntingtou's correspondence; letter books, 3868. No kuowledge of moneys being paid to influence legislation, 3868,3869. Can give no light as to ap plication of checks amouutiug to between $300,000 and $100,000, 3869. Why checks were printed to Mr. Gates's order, 3869,3870. Book-keeper could only indicate that check was drawn to order of witness; stub entries would givo no further information,3670. Mr. Norwood's accouuts with Southern Pacific Company; how the payments were made; the amounts, 3934,3935. Paid with checks or cash? does not recall that any of the payments to Mr. Norwood were on account of Central Pacific; Mr. Huntington gave the instructions, 3935, ;?93t). Gerard, Leander, testimony of: President of Columbus State Bank ; interested in Columbus P;ickiiig Company for a time; high rates forced the company out of business, 1477. Business com petition, 1477, 1478. Proportion of local rates too high; what forced the packing trade to Omaha, 1478. Better rate secured for a time through com petition ; promises of a rebate from Union Pacific ; rates the same on competi tive roads; competition no advantage, 1479. Effect of roads ou population ; grain facilities, rates and passes; interference m elections, 1480. Pressure ou merchants; advantages extended to friendly merchants; preferential rates, etc., 1481. Names of cattle shippers, 1481, 1482. No general complaints at present; passenger and freight accommodations pretty good, 1482. Gere, Charles H., testimony of: communities, 1507, 1508. Railroad facilities good; influencing legislation, 1508. Interference in elections, 1508,1509. Plan of settlement; favors exten sion ; present railroad agreement to maintain rates, 1509. Effect of interstate-commerce law, 1509, 1510. Extension of time; effect of foreclosure; main line and branches should bo under one mauagement, 1510. Glass, W. S., testimony ot: Member of Kansas legislature in 1882and in 186; complaints against railroads, 1550. Comparison of rates ou different roads, 15C0, L551. Rebates; influ encing legislation, 1551. Discrimination between coal dealers, 1551. The lumber trade ; Kansas Railway Commission ; no power to fix rates ; can only gather statistics, 1552. ANALYTICAL INDEX. 5441 Glick, G. W., testimony of: Governor of Kansas in 1882-'8l; farmer, stock-raiser, and peusion agent, 1556. Complaints of discrimination and excessive rates, 1556, 1557. Rebates and drawbacks; facilities afforded, 1557. Interfering in elections, 1557, 1558. Sentiment of the community prior to railroad commission, very bitter against roads, 1558. Discriminations in general, 1558, 1553. Discrimination as to barbed wire; numerous complaints in l8:i; 155y. Traffic of Central Branch very large, 1560. Since establishment of Kansas railroad commission, com plaints substantially ceased; plan of settlement; Goverenmnt justified in canceling debt; road not able to pay Government debt, 1560,1561. Central Branch traffic; its development; freight rates on Atchison and Topeka lower than on Central Branch, 1561. Goble, Milton H., testimony of: Interested in Pacific Hotel Company since December 1, 1884 ; Union Pacific has half interest, 1247. Wituess' former connection with Union Pacific; cash capital of the hotel company, $50,000; Union Pacific contributed buildings; while an official, never expended money to iufluenco legislation, 1248. Mr. Kimball's alleged interest in elections; overcharges and rebates; pools, 1249, 1250. Union Pacific eating-houses; no competition ; witness' direction that, "to allay dissatisfaction along the line of road, freight be billed at full tariff, but bill rendered against Pacific Hotel Company at half tariff rates;" his ex planation, 1253,1254. Half rates in the original contract; Pacific Hotel Com pany pays no freight; 1254. Reduced rates to company's employe's as an offset; a matter of concession ; how it affects competitors; meals at schedule rates; agreement between Union Pacific and Markel, Swobe & Co., 1255. Provisiou as to rates of freight; impossible for any eating house to compete; necessity of railroad control of eating-houses, 1256. Sixty thousand dollars profit last year; disposition of company's share, 125t. Goodridge, Henry, testimony of: The Stuart coal mine, 1966. An allowance of $1,340 ; 1066, 1967. Only obtained after putting claim in attorney's hands; rebate to Mr. Binford, the Union Pacific agent; thinks there were other rebates made, 1967. His business, how affected by the Marshall Coal Company, 1967, 1968. The community not benefited by rebates or preferential rates, 1968. Goodwin, Almon, testimony of: Counsel for trustees in suit to release Denver Pacific stock, 242, 243. Expedition desired, 243. Not aware of impending consolidation; history of the proceed ings, 243. What the trustees told witness as to the value of the security to be released, 243, 244. Without value as it stood, but when freed might be worth $200,000 or $300,000; 244. After release worth about $:*,000,000; 244,245. Goodwin, C. C, testimony of: Editor of Salt Lake Tribune, 2202. Plan of settlement; small bonds at low terms of interest; should have proceeds of road for five or six years to build extensions, 2203. Description of country through which lines should be built, 2203, 2204. Irrigation necessary to raise crops; the ore deposits; reasons for extension of Union Pacific system to Pacific coast near Los Angeles, 2204. A shorter through line; this extension necessary ; the route, 2205. Favors funding Government lien into long bonds at low rate, payable by installments annually, 2206. Extension of line to Puget Sound advocated; resources of Washington Territory, 2206, 2207. Railroad situation in Utah; danger to Union Pacific from anticipated competitors; development of Union Pacific system of vital consequence, 2207. Gould, Jay, testimony of: His early connection with Uuion Pacific, 446. Bought about 100,000 shares in 1873; soon afterward found the property in danger; funding the floating debt iuto bonds; became director in 1874; 447. Not connected with Fisk suit or the procurement of injunction against Union Pacific in 1869 ; did not sug gest Kansas Pacific consolidation in 1875; 448. The Colorado Central not a rival of Kansas Pacific; their routes, 449. Agreement between Union Pacific and Kansas Pacific in 1875; 449,450 Never consumated; Kansas Pacific's claim to pro-rate j why the Colorado Central was built, 456. Another agreement, its effect on Denver Pacific: another agreement in 1875 looking to adjust ment of differences between Kansas Pacific and Union Pacific; no interest in Kansas Pacific prior to 1878; owned about 200,000 shares Union Pacific in 1878; had forgotten Kansas Pacific pooling agreement, 451. Securities of the Kansas Pacific signed for by witness, 451, 452. The income bonds; the diffi culties which culminated in the pooling agreement; Kansas Pacific incum-brances, 452,453. The Denver extensiou mortgage; original purpose of pool ing agreement, to retire at a scaled rate all liens subsequent to first tnorira- and government lien, and subst&v&e a/u&&//e) ol *Vro&i *&- T*&&Tjsas& 5442 U. S. PACIFIC RAILWAY COMMISSION. Gould, Jay, testimony ofContinued. doucd ami the consolidated mortgage made; how the prices in the pooling agreement were lixed, 458. Seventeen million dollars to be funded into $4,H55,300 in stock; summary of original scheme; when scheme for consoli?dated mortgage took shape; mortgage drawn by Judge Usher, 455. Method of scaliug securities in consolidation, 456, 457. One million one hundred thousand dollars out of the $1,500,000 funding bonds owned by Ames, Dillon, and witness, 457. Kates for income bonds; witness fixed the prices at a fair figure ; had over $2,000,000 of them himself, 458. Dillon, Villard, and Sago were trustees of the pool; how did witness know how many bonds he was entitled to get, 459. His recollection of the re-organization certificates; the withdrawal of the Kansas Pacific stock from pool, 460. Bought out the Saint Louis interest, 460, 461. Sold one-sixth to Sage; amonut of this purchase, 461. Re-organization certificates; did witness pay 12 cents for the 42,000 shares of stock, or was it thrown in, 462. What is meant by phrase "re-or ganization bonds" in Mr. Sage's account 462, 463. At consolidation witness owned 27,000 shares Union Pacific and 40,300 shares Kansas Pacific; former quoted at 1)3-, latter at 98; Gould's purchases of stamped income bonds, 463. Condition of Kansas Pacific when bought by witness; $4,000,000 interest arrears; credit, poor; why Gould bought the stamped income bonds; what they covered; other holders of stamped incomes, 464. His pnrchaso in 1879 of about $2,000,000 Denver Pacific bouds from Amsterdam people at 74; of the $4,000,000 Denver Pacific stock Kansas Pacific owned $3,000,000, and witness $1,000,000; 465. His interest in Kansas Pacific and Saint Joseph and Western, 466. Copy account show ing witness' purchases and sales during 1879 of Saint Joseph and Den ver first-mortgage bonds, stock and receiver's certificates, and Sajnt Joseph Bridge bonds and stock; also amounts of Union Pacific stock received iu ex change, 466-469. Witness allowed other Union Pacific people to take what interest they chose in these purchases, 469, 470. Witness also had 2,661 Kansas Pacific consolidated sixes, and 1,000,000 Union Pacific collateral sixes at consolidation. Copy of his Hastings and Grand Island account, 470. The 8,819 shares stock Saint Joseph aud Denver went with the bonds as "trim mings," 471; 400 of them sold for hotel bills. Details of purchases of Saint. Joseph Bridge bonds and stock and receivers certificates. Witness built Hastings and Grand Island; thus acquired his interest, 472. " Union Pacific advauces" represent actual payments to contractor, on witness' account. Payment of $25,000 to Bond for services as receiver, 473. Three hundred and seventy-five thousand dollars Hastings and Grand Island bonds cost witness $220,839.25, 4,000shares stock thrown in, 473, 474. Held 170,000 shares Union Pacific on January 1, 1879; sale of Union Pacific stock to syndicate in 1879; his interest reduced to 27,000 shares on January 1,1880; had his interest then put out of his name; why, 474. Immediately after consolidation his name re-appeared as owner of 99,000 new shares; how this amount made up, 475. Made sales immediately after consolidation; wanted to distribute the stock ; it had advanced 30 points; nominal transfers by witness of 60,000 shares; the letter to Humphreys and Dodge, 476, 477. Why they were selected ; witness purchased Missouri Pacific, November 13,1879; 477. No knowledge that Hum phreys and Dodge made a careful examination of the question, 477,478. What considerations they should have gone into; the future as a criterion in esti mating railroad values, 478, 479. The letter to Humphreys and Dodge and witness' connection therewith, 479. Their report; their suggestion as to the capital stock of the new company, the one witness had thought of, 479. Did they merely copy a form prepared by some one else, 479, 480. Mileage of Union Pacific, Kansas Pacific, and their branches, 481, 482. When witness received this report he was not in favor of the consolidation, 482. Alarm caused by witness' resignation from Union Pacific ; forced to carry consoli dation through; would have paid $1,000,000 rather than do so, 4r3. Ac quaintance with John F. Dillon, 483, 484. Did not confer with him as to let ter to Humphreys and Dodge, 484. Preparation of articles of consolidation, and witness* connection therewith, 484, 485. Names of the men who urged witness to carry consolidation through, 485, 486. How witness came to be named a director, 486. Substance of preliminary paper agreeing to consolida tion. 486, 487. Suit to release Den ver Pacific stock; conversation with Holmes on that subject, 487. Decided to put Denver Pacific stock into consolidation; his own at 10 cents, and the 3,000,000 trust stock at a valuation of $500,000,488. By the terms of consolidation- Denver Pacific stock was to be exchanged at par; witness therefore knew that, if freed, it was wo/th as much as Union Pacific Railway stock, 488. Mr. Dillon's letter to Gould and Sage, trustees, and their reply, 488,489. Verification by witness of answer to complaint, ANALYTICAL, INDEX. 5443 Gould, Jay, testimony ofContinued. 489, 490; Mr. Calef's affidavit. 490; did not think it his duty as trustee to state to Mr. Holmes the fact that the stock, if released, was to be exchanged for Union Pacific, 490. Why the proceeds of the released stock were not paid back to the trustees; why Denver Pacific was included in the consolidation, 491. Trustees could get $500,000 for the released stock, or nothiug; not in formed as to Dillon's testimony before referee, 492. Tables of mileage, bonded debt, and stock of Union Pacific, Kansas Pacific, Leaveuworth Brauch, and Denver Pacific, 492, 493. List of sales oil stock exchange from January 1,1880, of bonded debt of Kansas Pacific and interest charges when consolidated bond was issued; memorandum of Kansas Pacific land grant, 502. Kansas Pacific reorganization certificates, 502, 503. Reasons for exchange of Denver Pacific stock with Kansas Pacific Company rather than with trustees of con solidated mortgage, 503-505. Witness's purchase of Missouri Pacific; his idea of another through road to Ogden ; the true liue across the continent, 505. Effect of disclosure of the fact of purchase, 506, 507. Substance of prelimi nary paper proposing consolidation, 507, 50rf. Witness felt "committed" to the consolidation with Union Pacific: the proposed extension of Missouri Pacific would have destroyed Union Pacific, 509. Witness bought Missouri Pacific to protect Kansas Pacific; Garrison paralleling the latter; witness bought out Garrison, 509. As to Missouri Pacific extension, though tempted, witness did not yield, 509,510. Proposed extensiou would have wiped out the security of the United States; Government legislation destructive of its own interest, 510. Offer to pay present worth of Government debt in cash, 510. Whep and to whom made; amount between $15,000,000 and $17,000,000,011. Accrued interest, 511, 512, Why offer refused, 512. No recollection of the circumstances of the consolidation meetings, 613. Circumstances connected with his letter of resignation, 513, 514. Reasons for resigna tion, 514. No deals made before resignation, 514, 515. The prices for securities not then fixed, 515. Circumstances attending resignation, 515, 516. The object of getting resignation on record, on January 24. The object of canceling the Colorado lease, 516. What witness then know of the Humph reys-Dodge report, 516, 517. Circumstances of Kansas Pacific consolidation, 517, 518. First meeting Union Pacific Railway, January 2(3, 1880. Witness motion ratifying consolidation, 518. Object of resignation from Kansas Pa cific and Union Pacific, 518, 519. Why both resignations wore moved by Sago, 519,520. Kansas Pacific minutes as to purchase of branch lines; refers to agreement made at witness's house, not to any binding corporate action, 520. Statement of securities embraced iu this purchase, 520, 521. Explanation of. apparently increased holdings, 521, 522. Statement of witness's purchase of Kansas Central bonds and stock, and Denver Pacific stock, and their exchange for Union Pacific stock, 523. Situation of Kansas Central; at time of purchase witness knew nothing of its condition; purchase of 5,000 shares Denver Pacitic from Arapahoe County, 524. Statement of purchases of Central Branch stock, 524,525. How the sellers deceived witness, 525. Ames ami Gould contracts, 525, 526. Collateral trust bonds, 526. Lease of Kansas Central and Central Branch to Missouri Pacific a part of the consolidation arrangement; Central Brauch first leased to Kansas Pacific, 527; terms under which Missouri Pacific operates it; financial condition of Central Branch when sold by witness to Union Pacific; has it earned any dividend since 1880?, 528. Witness paid Garrison $3,000,000 for 4,000 shares Missouri Pacific, 528, 529. Conditional offer by witness to sell Kansas Central bonds and stock, 529. Why witness was paid in stock instead of bonds, 529, 530. Did not Union Pacific Railway assume the obligations of constituent compauies ?, 530, 531. Why payment not made in Kansas Pacific consolidated bonds; can not explain origin of authority to settle in stock, 531, 532. Pool securities, 532. An explanation asked for the difference between amount of pool securities at commutation rates and amount which mortgage states was to be given for them, 532-534. Witness never knew of the discrepancy, 533. It probably arose from advances made by witness to pay interest on Denver extension bonds, 533, 534. Holders of pool securities got no preference. The "cash advances" theory untenable, 534. The " baby bonds," 534, 535. Witness's purchase of Denver and South Park, 535. Had an interest in its construction, 535, 536. His purchase from Oov-ernor Evans for Union Pacific; turned in his own stock and bonds at same price, 536. His interest in the Utah and Northern ; turned same over to Union Pacific at cost,537. His interestin other branch liues, 537,539. His loans of mone-to Union Pacific. Persons employed at Washington to watch legislatiou,53y, 540. P R VOL IX-------4 5444 U. S. PACIFIC PA1LWAY COMMISSION. Gould, Jay, testimony ofContinued. No recollection of recommending employment of Ord way, 540,541. Witne*w recommendation that suits be brought against Credit Mobilier and trustw-s of Ames and Davis's contracts, 541, 542. Appointment of committee to ne gotiate and settle, 542. The $4,000,000 note, 542, 543. Suit by Credit Mobi lier in Massachusetts, 543. Suit against Hazard ; eqnity suit brought by Gov ernment against Union Pacific and persons interested in Ames and Davis's contracts; concerning Credit Mobilier's shareholders' assignment to Union Pacific and their release from liability, 545, 546. Article 22 of consolidated mortgage, 547. No bonds issued except those provided for by $3,400,000 con tract at other rales than those specified in article 23; 547,548. $2,000,000 bonds issued to witness to repay advances for interest, 548. The authority in article 23; bonds issued to Maxwell and Graves, 549. Tlie Union Pacific entitled to draw bonds, 549, 550. Issue of bonds to Oliver Ames for Central Branch stock, 550, 551. Issue to Russell Sage ; duty of trustees as to deliv ering bonds to Union Pacific, 551. Issue to Gould and Sage, trustees, 551, 552. Dealings of trustees with Union Pacific; other issues to Gould and Sage, 553. Prices received by witness for bonds surrendered, 553. Total in?debtedness of Union Pacific December 14, 1879; indebtedness of Kansas Pa cific at that time, 555. Witness's holdings in Union Pacific and Kansas Pacific, 555, 556. Owued Missouri Pacific absolutely; ownership of the $4,000,000 Denver Pacific stock, 556. Amount of Kansas Pacific consolidated bonds now outstanding, $16,430,000; the $4,000,000 Denver Pacific stock again; a portion used to pay Gould ; Union Pacific could just as well have issued its own stock, 557. Witness in a position to dictate the terms of the consolida tion ; actual cost of witness's holdings of Kansas Pacific, 558. Indebtedness of Union Pacific after consolidation ; object of change of name of Union Pa cific from railroad to railway, 559, 560. Witness and associates did not ma nipulate the market in 1878-1880; the Thurman act, 560. Gross and net earn- ings of Uniou Pacific in 1878-18fc3, 560. Dividends of Union Pacific and its payments under Thurman act; the telegraph line required by Congress to be constructed, 561, 562. Pool securities, their conversion at a different rate from mortgage rate, 564, 565. Provision of mortgage as to conversion of branch bonds, 565, 566. $2,000,000 of bonds issued to witness at 75; how rate fixed, 566, 567. Explanation of other issues of bonds at other than mortgage rates, 567,568. No over issue of bonds, 568. Class of credits given Union Pacific in bond account: articled; proceeds of land sales applicable to interest, 568. Not credited with interest accruing on consolidated bonds 569. Provisions of consolidated mortgage, 569, 570. No over- * issue, 570. Enough remains to retire all outstanding issues, even at par; how Utah Northern was acquired; sold to Union Pacific by witness at cost, 571, 572. Earnings of Denver and South Park, l880-'84, 572. Its pur-chase by witness, 572, 573. No profit to witness on sale to Union Pacific, 573. Rio Grande'8 lease to Atchison company, 573, 574. His sales of Kansas Pa cific to Sage and Dillon; value of these securities at consolidation ; value of Saint Joseph Bridge bonds if consolidation had not taken place, 574, 575. Purchases of Saint Joseph and Denver first-mortgage bonds in 1879; their quotations not the result of ' washed" sales; why they advanced so rapidly in 1879-'8O,575. Purchase made to protect Union Pacific from the Iowa pool lines, 576, 577. Union Pacific then hampered by not having charter power to throw out branches and thus protect its territory, 577. Has no present interest in Union Pacific, 577, 578. The building of branches during witness's connection with company, 578. No knowledge of individuals profiting by the building of branch roads; probable effect of severing the branches; motive for purchasing Central Branch Union Pacific stock, 578, 579. Did he pay . too much, 580. Central Branch and Kansas Central more valuable now; purchase of the latter from Garrison, 580. Will take Saint Joseph aud West ern, Central Branch and Kansas Central back now at cost, and pay cash, 580. Particulars as to Denver Pacific, 581, 582. Mortgage in default, stock of no value; security of bondholders under consolidated mortgage improved; why proceeds of $3,000,000 Denver Pacific stock not turned in as security for con solidated bonds, 582, 583. Did not influence Dodge and Humphries, 583. Why Kansas Pacific more valuable than Union Pacific at consolidation, 583, 584. Statement of Kansas Pacific land grant, 584. Financial condition at that time of the two companies, 584,585. Witness did not make prices on stock exchange; consolidation unanimously approved; effect on the Govern ment securities, 585, 586. Advantages of consolidation over agreement, 586. The men who urged consolidation on witness represented Union Pacific, 586, 587. Careful not to violate law that no dividend be paid except out of net + earnings, 587. Controversies with the Government as to what net earnings ANALYTICAL INDEX. 5445 Gould, Jay, testimony ofContinued. are, and as to mail compensation, and as to new construction and equipment relating to net earnings, 587, 588. Why witness retired from Union Pacific, 588. Its future; witness building roatls through Southern Kansas; con struction by other companies; necessity for concessions by Government; cost of building the Union Pacific, 589. Its benefit to the Government; witness never loaned money to Union Pacific to pay dividends; his advances to pay interest on Kansas Pacific obligations, 590. Favors extension at 3 per cent., company to have right to pay the money or take new bonds, 590, 591. Copies of his accounts concerning Denver and South Park construction, and Denver and South Park stock, 591, 592. Grant, James B., testimouy of: Governor of Colorado in 1883-)84 ; connected with Omaha and Grant Company, 1815. Lower rates to their competitors, 1815,1816. Special rates; effect of rebates upon community, 1816. Special rates advocated, 1816, 1817. Rail road people not interested in business along the line, 1817. Interference with legislation and elections, 1817,1818. No hostile legislation in Colorado; plan of settlement; Government control no advantage, 1818. Effect of ex tension of time to pay; pools short lived; political effect of Government control, 1819. Gray, Richard, testimony of: General freight agent of Central Pacific since May, 188*2; no diversion of traffic to Southern Pacific; special inducements to shippers by "sunset" route, 3572. Freight way-billed three times on Northern lines 3572,3573. Never declined to co-operate with northern lines; transcontinental traffic of secondary impor tance prior to opening of the " sunsetn route, 3573. California Fast Freight Line contains 2,900 cars, 3573, 3574. Equipments of Central and Union Pa cific; connections of Southern Pacific; Union Pacific west-bound freight de creasing ; diversion from California Pacific to Western Pacific, 3574. Branch roads feeders to parent road, 3574,3575. As to cost per ton of moving freight, between Sacramento and San Francisco, over Western Pacific and California Pacific; harmonious relations with Pacific Mail a necessity tp Central Pacific, 3575, 3578. Pacific roads constructed seven years before time required, through sparsely peopled country; capitalists said, "The line can not pay;" traffic went round Cape Horn ; tea, silk, etc., sent overland; Asiatic freight a large and valuable business, 3576. Market for coffee' via San Francisco 3576,3577. Conservation of rates became of vital importance; joint agents fixed the rates; revenue from traffic in excess of agreed proportion; how adjusted, 3577. Good reasons for the arrangement with the Pacific Mail, 3577. Result of the policy ; losses to Central Pacific through competing lines; refer ence to statements and statistics presented by Stubbs, and to Exhibit No. 12, annexed to Stanford's statement; loss on passenger and freight earnings 3578. Does not get all the Government transportation it expected, 3578, 3579. Special contracts, 3579-3581. Before 1878 most of California freight from Eastern States earried by clipper round Cape Horn; no fixed basis of charge; other elements of competition, 3579: *'Contract system "inaugur ated to meet the competition, 3579, 3580. Reasons for refunding excess in rates; the " contract" system soon became general; "rebate "a misnomer, 3580. Standard Oil Company's contract, 3580,3581. In accordance with bus iness principles; pooling or "joint purse" arrangements, 3581-3583. Pa cific Mail and transcontinental " joint purses," 3581. Other "joinj; purse " arrangements, 3581, 3582. Made for protection of revenue; illustration of their effect on revenue ; increased rates received, 3582. Business affected by pools, 358-, 3583. Copy statement showing gross freight and passenger re ceipts, also amount of earnings protected by pools aud amount not covered by pooling arrangements, for years 1877 to 1885; copy statement of the gross , freight and passenger receipts from 1877 to lt'85 inclusive; also contributions to pools and amounts not pooled during same period (Pacific system) 3583. Gunn, James O'B., testimony of: In iron foundry business in San Francisco; secretary of various corporations, 3091. His custody of books of Contract and Finance Company, 3091, 3092. His examination of books kept by John Miller, 3092. Object of examina tion; to whom report was made; left in the safe after examination, 3093. Why was witness asked to examine books; description of the books, 3094. Had nothing to do with books of " S., H., H. & C.,"3094,3095. Who bad charge of Contract Company's books after witness; left railroad service in 183, 3095. Location of vault in which books were kept, 3095, 3096. When wit ness last saw the books, 3096. Saw them several years after his examination in 1876, 3096, 3097. Production of books called for, 3097. Complaint that length of Commission's sessions gives no time to procure papers and books, 5446 U. S. PACIFIC RAILWAY COMMISSION. Gunn, James O'B., testimony ofContinued. 3097, 3098. Nature of report on books; construction accounts in the books, 309*. Who had access to the vault, 3098, 3099. No reason for destruction of books; kept on ordinary principles of book-keeping, 3099. Examination of witness in John Miller's case, 3099,3100. Owners of Union Iron Works; Stan ford and associates not interested; is trustee of laud-grant mortgage, 3100. How its accounts are kept, 3100, 3101. Through whom information as to land-grant mortgage can be obtained, 3101. When Contract and Finance books were examined, 3101, 3102. "Never saw anything wrong" in them; was an officer of California Pacific from /871-'82 ; traveling, audit or of the Central Pacific from 1869-71: does not recall any entries in Contract Com pany's books, 3102. Examined them to discover defalcation, if any ; entries made by witness, 3103. Gukley, W. F., testimony of: Employed by Mr. Thurston, one of Union Pacific's attorneys, 1257,1258. Looking after railroad bills in Nebraska legislature, 1258, 1259 Talked with mem bers ; never used money; was paid by Mr. Thnrston, 1259. No knowledge of use of money to influence legislation ; obtained passes for members and their friends; concerning "lobbying," 1260. Mr. Thnrstou present at Lincoln, 1260, 1261; discussing bills with members, 1261. His communications with Mr. Thurston, 1261, 1262. His compensation, 1262. Conversed with Mr. Man chester concerning legislation, 1262,1263. With David Mercer; members of the legislature employed by Union Pacific, 1263, 1264. Methods used to in fluence legislation, 1264. Arguing with members; does not know his par ticular qualifications for the work, 1265. Instructions from Mr. Thurston, 1265, 1266. His knowledge of the bills pending ; no bills introduced by friends of the company, 1266,1267. The " oil room;" no knowledge of the use of money to influence legislation, 1267,1268. The senatorial election ; length of . contest, 1268. Haar, John H., testimony1 of: A broker, 403. Dealt in Saint Joseph securities prior to 1879. Description of Saint Joseph and Denver as it was in 1879; 404. Value of Kansas and Ne braska and of Saint Joseph and Pacific securities in 1878 and 1879; witness had $600,000 worth in 1875-77, 405; had transactions in them with W. E. Connor & Co.; names of companies from whom Gould bought, 406. The pool to sell to Gould at 40; prices in 1879; impossible to sell $1,500,000 worth at anything like 75 or 85; fictitious quotations possible, 407. Their fair value on January 1,1880,50 cents; value oTSaint Joseph Bridge bonds in 1879; could have bought whole issue at 75 cents; value of receiver's certificates, Saint Joseph and Denver City, 408. Haley, John J., testimony of In 1870-73 knew M., G. Kennedy of San Francisco Transfer Company, 3596. Why the business of that corporation was transferred to Smith &Coleman, 3506, 3597. Ham, James M., testimony of: Assistant treasurer and secretary of Union Pacific since consolidation, 219. Treas urer of Kansas Pacific in 1880; .his duties as Mr. Dillon's private secretary; Kansas Pacific pool, 220. Kept the pool accounts; certificates signed by pool managers, 221. Buying out the Saint Louis parties, 221, 222. The pool se curities kept in a trust company ; what has become of them, 222, 223. The bonds delivered to the trustees; Kansas Pacific consolidated bonds received in exchange, and delivered to parties in interest, 223. The pool stock deliv ered to parties in interest; did Mr. Gould get. the largest amount, 224. Changes in the holdings and membership, 225. How Icing the pool existed ; how holders of pool certificates obtained bonds, 226. Was custodian of Den ver Pacific stock after its release, 227. The stock in one certificate; details of its receipt by witness, and of the circumstances connected with its subse quent conversion into Union Pacific, 228, '229. The Union Trust Company the transfer agents, 229. The stock transferred to particular persons, 230. The modus opera ndi of transfer; the new stock delivered next day; the largest certificate went to Gould, 231. Transfer at same time of 10,000 shares to same parties; to whom the new certificates were delivered, 232. After pay ing parties interested for their securities, balance of stock retained in the Union Pacific treasury, 233. Loss of paper containing a statement of the value of the securities to be paid for, 233, 234. The released Denver Pacific stock, 234. The securities passed by Gould and others to Kansas Pacitic in exchange, 234, 235. Who fixed the terms of transfer, 235. The securities enumerated; the prices fixed for the various securities, 236. Saint Joseph and Graud Island ; Saint Joseph and Pacific, and Kansas and Nebraska; total issue of bonds on these roads, 237. History of Saint Joseph and Grand Island, ANALYTICAL INDEX. 5447 Ham, JaMes M., testimony ofContinued. 238. Iu January, 1880, Saint Joseph and Western stock of little value, with few sales/ Saint Joseph Bridge bonds, 239. Hastings and Grand Island l))nds, 240. Kansas Central bonds, 241. The securities in question resulted in hand some profit to the company; the profits of Dillon and Gould from pool, 242. JFanlon, Frank P., testimony of: . Special agent of Union Pacific from 1872-'85; hi* duties as detective, 1272,1273. Assisting counsel for Union Pacific at Lincoln; verbal reports to Mr. Thurston; salary, $1,800 a year, 1273. Entertaining friends and members at company's expense, 1273, 1274. No money expended to influence legislation ; always ten or fifteen Union Pacific men around; ascertained how the mem bers stood, 1274, 1275. "Men often change their minds;" employe's of the railroad, members of the legislature, 1275. Explanation of certain vouchers for payments to him, 1317. How his bills were rendered to Mr. Thurston; another voucher; 1318. Erasures and corrections in a bill; manner of keeping papers accompanying vouchers; other vouchers, 1319-1321. His original memoranda of expenses destroyed, 1321. Another voucher for ex penses and hotel bill, 1321, 1322. Can not recall the items; was employed on secret service and detective work; his salary from $100 to $150 a mouth ; 1322. Daily expenses; how paid, 1323, 1324. Destruction of memoranda of expenses; the Ketcbum extension; Eddy's compensation; copy of the voucher; cost of Ketchnm extension of 12 miles, $190,580.05, 1324, 1325. Stock and bonds of the extension; voucher of J. M. Tisdel, expenses in pros pecting for coal; voucher of WalterHulburt, for cash entries on lands, 1325. These were coal lands; these entries made at request of head of coal de partment, 1326, 1327. Why entered in names of individuals; provisions of the coal act; doubt whether it excludes corporations from entering coal lands, 1327. Coal act, reference to section 2347 of the Revised Statutes of the United States; the $2,000,000 loan: power of the company to mine coal, 1328, 1329. Hargreaves, Alfred E., testimony of: Effect (-discrimination on sugar, 1534. On other articles, 1534,1535. Harkins, John, testimony of: President and manager of Rocky Mountain News Printing Company, 1725. Com plaints against Union Pacific; high rates on the Colorado Central; special rates to Rocky Mountain News have ceased, 1726. Union Pacific or its peo ple not interested in News Company; a rebate of $1,000, 1727. Harmon, John B., testimon-A: Proves the signature of D-V. Strong to assignment of stock to O. D. Lam bard, 3233. Hassler, Charles W., testimony of: Familiarity with Saint Joseph securities, 1873-'8O, 409-411. His official connec tion with the road in 1875-79, 409. Its earnings, etc., for 1878, 409, 410. Saint Joseph bonds, their exchange after the reorganization in 1875; prices for years 1875-77; sale of bonds to Gould at 40, 411, 412. Witness sold about $250,000 worth ; quotations published in fall of 1879, no guide as to value of these securities; witness thinks they were not worth more than 40 or 50 at end of 1879; Saint Joseph bridge bonds, 413. Value of receiver's certificates, 414. Saint Joseph and Denver city bonds; first placed in 1871; defaulted in 1873; foreclosure in 1875; continued in receiver's hands until 1879; Bond, the receiver, elected president; consolidation of Saint Joseph and Pacific with Kansas and Nebraska iu 1877, 415. Hypothesis to account for advance in prices of these securities in 1379, 416. Small transactions in 1879; fitsts at 90, seconds at 65, stock 55 and 50, 416. What " pegging up " is; was it done with reference to these bonds? 417, 418. Amount ot Saint Joseph stocks and bonds; how a construction from Hastings to Grand Island would have en hanced their value, 418. Statement jof sales of Saint Joseph securities by wit ness to Gould, 419. Statement monthly earnings and expenses, October 1, 1873, to October 31, 1875, of Saint Joseph and Denver City, 420. Copy of con solidation agreement, Saint Joseph and Pacific and Kansas and Nebraska, 420, 421. Copy of letter dated December 18, 1876, from witness to Saint Joseph bondholders, as to proposed consolidation, 422, 423. Copy of letter dated Jane 8, 1887, as to receiver's certificates, 423, 424. Copy court order authorizing certificates, 425. Its modification, 426. Hayes, George R. B., testimony of: Attorney at law; was attorney for Mrs. Colton; letters called for by subpoena ducestecum; a personal letter not put in evidence, 3539. Huntington's let ters printed ; counsel object to question whether witness knows the printed copies to l)e accurate; witness declines lo answer, 3540. Not prepared to produce letters while enjoined; copy complaint in Col Us P. Huntington v. 5448 V. S. PACIFIC RAILWAY COMMISSION. Hayes, George R. B., testimony ofContinued. Ellen M. Colton, 3541, 3542. Copy order to show cause, and temporary in junction, 3542, 3543. Colton case decision in lower court adverse to the plaintiff; appeal taken, 3543. Books produced which the injunction covers, 3543, 3544. Regularity of service of subpoena not questioned, 3544. The sub poena which was served upon Mrs. Colton. 3544, 3545. Proposal to put in evidence the letters with'the names, 3545. Counsel doubt their admissibil-ity, 3545V 3546. Hebard, 'Frederick S., testimony of: The coal business at Cheyenne, 2102, 2103. Freight rate on coal; crowded out dealers in Rock Springs coal other than Mr. Hamma ; special rate to shippers, 2103. No knowledge of rebates on cattle shipments, 2103, 2104. Cause of discrimination against Government unknown, 2104. HDDE, Frederick, testimony of: Editor of the Grand Island Independent; facilities and accommodations, good, 141)6. Discriminations against individuals, in lumber, salt, and grain, 1496, 1497. Private rebate given to start a lumber-yard; rebate system and dis criminations compelled witness to give up business, 1497. Favoritism in furnishing cars, 1497.1498. Discrimination only in cases of large shippers; discrimination in favor of Kearney; same rate from Omaha as from Grand Island, 1498. Union Pacific controlled elections, 1498,1499. Participation in primary elections; Union Pacific on both sides; methods of influencing legislation; passes, 1499. Legislation in cify council as to grant of right of way to Burlington and Missouri. 1499,1500. Comparison of local business on branch and main line, 1500. Rates on main and branch lines, 1501. Di version of traffic, 1501. Plan of settlement; an extension a terrible wrong to whole United States; favors foreclosure and operation by Government, 1501,1502. Such a settlement beneficial to the community ; witness's news paper, 1502. Passes for editors, 1502,1503. Hegel, P., testimony of: Produce dealer at Columbus, Nebr., 1482. Facilities and rates; complaint to company; offer of lower rate to San Francisco via Omaha than tf San Fran cisco direct, 1483,1484. Prohibitive rates; never got passes or rebates; dis crimination against Columbus in favor of Omaha; majority of community favor Union Pacific over Burlington and Missouri. 1484. HlGGlNS, H. I., testimony of: The American Mining and Smelting Company; complains as to rates, 2017. Dis astrous effects npon business, 2018. Evasive -fewers to appeals, 2018, 2019. The Midland road ; discrimination against Leadville by Denver and South Park road, 2019. Diversion of freight from Deuver and Rio Grande to Den ver and South Park; complaints of rates on fuel; effects upon community of existing rates, 2020. Relations between Union Pacific and Denver anil Rio Grande, 2020, 2021. The Union Pacific veto on rate reductions; pool percentages, 2021. Amount of railroad business at Leadville, 2021,2022. No complaints as between individuals, 2022. Rates on ore, 2028. Preference for the Denver and Rio Grande, 2028, 2029. Pueblo smelters paid top much for ores, 2029. Hill. F. C, testimony of: Was station agent at Sioux City; his duties, 2265. Other positions, 2265, 2*266. Cost of construction of Sioux City and Pacific; reported aid by the city, 2266; and by the county, 2266, 2267; falling off in traffic upon com pletion of other roads into the Territories, 2267. Competitors coming in ; local and freight traffic; increase of traffic notwithstanding competition, 2268. Effect of railroad competition, 2268, 2269. Comparison - of income in 1871 with that of 1881; physical condition in 1871 and at present time, 2269. No complaints of special rates, 2269, 2270. On what principle rebates were granted; to prevent hauling by teams, 2270. Special rates open to all, 2270. 2271. Pools; no diversion of freights; former relations of Sioux City and northwestern roads; 2271, 2272. A traffic agreement to get an outlet, 2272. Hill, Nathaniel P., testimony of: Manager of smelting company; United States Senator from 1879 to 1885; five roads now come into Denver; first road to Denver, 1749. Business relations with Union Pacific; facilities and accommodations furnished; reduction of rates, 1750. Effect of construction of other roads; did not lessen rates ma terially ; business done under pool; special rates or rebates, 1751. Contract between road and Omaha and Grant Smelting Company, 1751, 1752. Road keeps two engines for Omaha and Grant company; switching for that com pany costs Union Pacific about 815,000 a year; special preferences or rates, 1752. Special rates privately made, 1752, 1753. Effect upon community ; de structive to its best interests; effect upon shipper; names of shippers of ore ANALYTICAL INDEX. 5449 Hill, Nathaniel P., testimony ofContinued. at Denver, 1753. Application for special rates; reply of management; Kim-ball's statement tbat Union Pacific was paying no rebates to anybody; com plaints as to other shippers, 1754. Objection to hearsay evidence, 1754, 1755. Preferences given in other businesses; rebates a matter of common notoriety, 1755. Discriminations against communities, 1755, 1756. Goes on to day by reason of suspension of interstate commerce law; Utah and Montana ores; route to Denver; same as to New Mexican ores, 1756. Same as to ores shipped to Omaha and Grant company; Omaha and Grant company regarded as competitors, 1757. Reason for the discrimination in favor of Omaha and Grant company, 1757,1758. Mr. Dillon a large stockholder; also Mr. Ames; officers of road interested in Omaha real estate, 1758. Discrimination as to Denver local business, 1758,1759. Fair competition with Omaha and Grant company under present rates, 1759. Where ores are shipped to; rates cheaper than formerly ; never received rebates; au overcharge not a rebate, 1760. Total overcharges fo,r several years ? overcharges on ore, 1761. Explanation of the alleged rebate of $67,000 to witness's company, 1761,1762. Difference be tween a refund and a rebate; form in which product is shipped east, 1762. Small refunds may not appear on book; effect of pooling upon community, 1763. Effect of a pool to raise rates, 1763, 1764. Community complains not so much of high rates, as of " discriminating rates;" of building up one person at expense of others, 1764. Influencing legislation, 1764,1765. Change of opinion on the part of members after election; lobbyists around the legislature; methods of the company; liberal payments of money; passes to members of the legislature, 1765. Running a special train for a single member to Nebraska and back, 1765, 1766. The method taken to kill leg?islation ; Union Pacific as a manipulator of the legislature; interference in politics, 1766. Interference in local legislation, 1766. Defeating men they could not control, 1766, 1767. Plan of settlement; how the Government can take charge of the road, 1767. Government would have to assume first-mortgage bonds, 1767, 1768. Controversy as to extent of subsidy, 1768. Gov ernment management free from partisanship, 1768,1769. Effect of settlement on rates; effect on individuals; effect on community; danger that the road would be used as a political engine, 1769. Discriminations could not be rec tified through State commissioners of railways, 1769,1770. Road would earn more money under Government management; possession of road could be taken for default under Thurman act, 1770. Not in favor of extension of t ime to pay, 1771. Company no moral right to build branches out of earnings; railroad officers interested in mining companies, etc.; no doubt railroad peo ple make money out of business connected with road, 1772. Diversion of freight from Central to Southern Pacific; freight via Julesburgh branch instead of via Cheyenne, 1773. Railway pool to influence legislation ; use of money to influence members; efforts not to procure affirmative legislation, but to prevent unfavorable legislation, 1774. State railway commission ; re lation of Montana company to Boston and Colorado company; one stock holder the only connection, 1775. Portion of Montana stock owned by Boston and Colorado stockholders, 1775, 1776. The Union Pacific in politics; influ encing legislation ; witness' charge that unfair means were used in the Sena torial election, 1776. Committee, of legislature to investigate these charges; a fair investigation not intended; interference by Union Pacific in the Sen atorial election, 1777. Why witness did not disclose his knowledge to the committee. 1777, 1778. Why Uniou Pacific opposed Mr. Bergh's election, 1778. Witness has sometimes asked for rates b()low the regular ones, 1778, 1779. Switching charges; switching in witness' works coRts his company not less than $7,000 a year, 1020. Trackage charges paid for with slag; slag used for railroad embankments, 1821. Omaha and Grant switching facilities, 1821, 1822. Willing to make similar contract to that of Omaha and Grant company; free switching the chief advantage under that contract, 1822. Refusal to witness of cut rate on low-grade ores; statement, concerning Mr. Adams's Kansas City interests reiterated, 1862, 1863. IIimebaugh, P. C, testimony of: Himebaugh &- Merriam; membership of firm ; Union Pacific officials in no way interested; relations of Union Pacific to Himebaugh & Merriam; rebates re ceived, 1300, 1301. Net rate and rebate received; has received no advan tages other than rebates; no such advantages received under any other name; others not allowed to obtain allowances or advantages under name of firm, 1301. The Omaha Elevator Company the only competing shipper, 1301, 1302. Disastrous effect of interstate commerce law ; no attempt ever made to influence legislation ; spocial and open rates; no diversion of shipments; neither witness nor firm has holding in Union Pacific securities, 1302. Loss ( of business to Union Pacific by not giving rebates, 1302, 1303. 5450 U. S. PACIFIC RAILWAY COMMISSION. IIinckley, Isaac: Copy his letter to President Adams as to the value of branch lines, 4307, 4308. Holmics, Artkmas H., testimony of: "Familiarity with railroad construction west of the Missouri; Kansas Pacific con struction ; Leaveuworth, Pawnee and Western; its organization, 118. Dis sensions in management; built from Kansas City to Lawrence in 1865; name changed to Union Pacific, Eastern Division; its first mortgage, 119. Mortgage to 394th mile-post; Government mortgage, $16,000 a mile from Kansas City to 394th mile-post, 120. The income mortgage, dated July 1, 1866, on road from Kansas City to 100th meridian, also on Leavenworth Branch; reference to Morgan v. Union Pacific and Kansas Pacific for evidence as to the net earnings applicable to income; Leavenworth Branch mortgage, 121. Denver extension mortgage; necessity of subordinating income bonds to it; Exhibit 1,Shoemaker construction agreement, Lawrence to Fort Riley, 122. Exhibit 2,Shoemaker construction agreement, Leavenworth to Lawrence, 124. Ex hibit 3, Shoemaker construction agreement, Fort Riley to Smoky Hill River, 125-127. Exhibit 4, agreement subordinating income b4nds, 128. Exhibit T), stamp placed on income bonds; provisions of Denver Extension mortgage, 129. Two Kansas Pacific land-grant mortgages, 129,130. Temporary mort gage, $100,000; funding mortgage, 130. Denver Pacific Railway and Tele graph Company; Denver Pacific land grant, 131. Value of Denver Pacific stock-to Kansas Pacific Company; Kansas Pacifies claim to pro-rate; war of rates between Kansas Pacific and Union Pacific; default of Kansas Pacific on interest, 132. "Baby bonds"; their provisions; provisions of funding mortgage; total amount of Kansas Pacific liens, 133. Early operation and financial history of Kansas Pacific, 134. Hostility to Union Pacific: direct ors at that time; default on first mortgage; receiver; Denver Pacific mort gage, 135, About $25,000 a mile on 106 miles; Denver Pacific land-grant mortgage ; summary of its i n cum bran ces; receivership of Kansas Pacific ; extended to Denver Pacific, 136. Total incumbrances of Kansas Pacific; re ceivers of Kansas Pacific, 137. Kansas Pacific and Union Pacific contro versies in courts and Congress; no.persons interested in both companies; market value of Kansas Pacific and Denver Pacific securities from 1873 to 1878, 138. Denver Pacific stock unsalable except to Union Pacific; im provement in business after 1877; rapid development of agriculture, 139. Construction of branches of Kansas Pacific; separate organizations for branches, 140, 141. Development of Atchison road; history of Kansas Pa cific prior to consolidation, 141. The representatives of the various securi ties; result of their dissensions, 142, 143. Agreement of April 24, 1W78; funding the securities, 143. Transfer of Saint Louis interest to Union Pa cific; the purchasers; preparation of consolidated mortgage; change in the direction, a part of the agreement, 144. Advance in market value of Kan sas Pacific, 146. Suit against Gould and Sage (trustees) to release Denver Pacific stock from trust, 146-148. At Dillon's request, 146. Conversation with Dillon, 147. Haste desired ; details of the proceedings; the complaint, 148, 149. The answer; suit sent to Horace F. Ruggles, referee, 150. Decree dated January 23, 1880; its provisions; articles of consolidation dated Jau-uary 24, 1880, 152. Where the released Denver Pacific stock went; rate of exchange for Union Pacific stock; sudden rise in Kansas Pacific stock, 153. Testimony before Referee Ruggles; erasures in CalePs testimony as to Kansas Pacific earnings, 155. The record as taken and as altered, 155,156. Which answer is true/ 156. Result of the decree to vest title to the Denver stock in the Kansas Pacific, 158. Rosenbaum v. Kansas Pacific and the trustees; the transfer of Denver stock out of the Kansas Pacific, 159. Kansas Pacific and Union Pacific directories nearly identical on February 24,1884; meetings on January 24, previous to consolidation, 160. Article 22 of consolidated mortgage providing for funds for construction of branches; who fixed the rates of exchange for the securities ? 161. The prominent persons interested, lfi-2. .Copy of agreement of April 24,1878, 162-166. Of May 23 and May 30, 1878, 166. Rate of transfer of certain special securities; rate for Arkansas Valley Railway bonds under article 24, 167. Article 24 applies solely to branch lines; increase in holdings in pool; amount of Kansas Pacific stock held by pool; its withdrawal, 168. Membership of the pool and their hold ings, 169,170. The pool accounts; profits made by pool, 170. Harmonious adjustment of values of securities in pool; value of Denver Pacific, 171. Ex change of Kansas Pacific stock for Union Pacific at par; funding rates fixed at about market value; stock at 12|, 172. Floating debt at par; unsubordi nated income bonds at 50; second land-grant and Arkansas Valley at 50,173. Explanation of pool agreement, 174. Efleet of pool; securities exchanged for consolidated bonds, 175. Conversion of outstanding securities after consoli- AKalVTIcal index. 5451 Holmes, Artemas H., testimony ofContinued. dation, 175,176. Gould's Denver Pacific sold at cost, 176,177. Financial ad vantage to Union Pacific of consolidation, 177. Inception of plan of consoli dation ; plan changed when Saint Louis interest bought out, 178. Motive for: consolidation. 178,179. How Kausas Pacific obtained title to Denver Pacific stock, 179. Effect of consolidation on Uuion Pacific, 179,180. On Kansas Pact lift and Denver Pacific ; Gould and associates gave full value for tho $3,000,000 Denver Pacific; Dillon's evidence in suit to release Denver Pacific stock ; was it worth $300,000, or $3,000,000, if freed from trust/ 180,181. If the facili ties contemplated by the act of 1874 had been extended to Kansas Pacific and Denver Pacific, consolidation would probably never have taken place; how Denver Pacific stock obtained by Kansas Pacific and by the Amsterdam people, 182. Mr. Gould's $1,000,000 Denver Pacific stock obtained from Arap-ahoe County, 257,2(58. The released Denver Pacific stock applied to the pur chase of Saint Joseph and Western; Hastings and Grand Island; and .Saint Joseph Bridge bonds,2(58,269. Foreclosure of Denver Extension mortgage; the Meier puit, begun in 1876; 270. The pool of 1878; the necessity of the consolidation of 1880; witness' interest in the pool, 271. Kansas Pacific stock in the pool: its withdrawal; pool accounts; why the beneficial results of con solidation could not have been obtained under a lease, 272,273. Lease would soon be avoided, 273,274. The $3,000,000 Denver Pacific stock, 274. Went first to KaiiHas Pacific, exchanged for the branch lines, and then for Pacific Railway stock, 275. Kansas Pacific stock ; prices for 1879 ;v275,276. Profits of Gould and Sage on Kansas Pacific in the consolidation ; enumeration of the branch lines purchased, 276. Hood, William, testimony of: Sworn statement relative to cost of construction of Central Pacific, 2579, 2580. Chief engineer of Southern Pacific; succeeded former chief engineer, Mon tague ; cross-section books of Central Pacific, not all producible, 3594. A portion lost in transportation; took part in construction of Central Pacific over Sierra Nevada Mountains; arrangements made for repairs advanta geous to Central Pacific, 3595. Unprotitabto for company to regularly em?ploy skilled workmen, 3595, 3596. Howard, Mason W., testimony of: Denver Transfer Company, 1904,1905. Business relations with Union Pacific; no betterfacilitiesthanothertransfercompanies, 1905. No bonus paid toemploy6s or officers,' 1905,1906. Interest of auditor of Union Pacific; interest of gen eral traffic manager, 1906. Efforts to secure better facilities, 1906, 1907. Persons interested in transfer company; company organized to help railroads out of a scrape, 1907. Failure of first effort, 1907,1908. Subsequent success; value of the stock, 1908. Property owned by the company, 1908, 1909. Has do advantage over other carriers, 1909. Hughitt, Marvin, testimony of: President Sioux City and Pacific Rwy. Co.; list of directors; terminal points of Sioux City and Pacific, 2247, 2248. Its purchase by the Northwestern Co.; price paid, 2248. Details of purchase, 2248, 2249. Officers of the road; its financial condition, 2249. Dependence upon its connections, 2249, 2250. Al-. lowance of constructive mileage to Sioux City and Pacific by Chicago and Northwestern; contract with Elkhorn Valley road, 2250. Effect upou gross* earnings of Sioux City and Pacific; benefit derived from constructive mile age ; aggregate amount, 2251. Former relations of Sioux City and North?western roads, 2251, 2252.' Amount of indebtedness; dividends; contributions from other lines, 2252. Interest on Government lien, 2252, 2253. Indebted ness; how secured, 2253. Net earnings, 2253, 2254. Market value of stock; additional issue of stock, 2254. Value of stock at time of purchase, 2254, 2255. Financial prospects; effect of competing lines; local aud through rates, 2255. -Rebates; pool accounts, 2256. Land grant, 2256, 2257. Interest in Elkhorn And Missouri Valley road; sale of Government land grant; ho diver sion of funds, 2257. Compensation of officers, 2257, 2258. Acquisition of Sioux City and Pacific by Chicago and Northwestern, 2280. Stock held by M. L. Sykes, as trustee, 2280, 2281. The consideration paid; former owners of road, 2281. Number of shares acquired by Chicago and Northwestern, 2281, 2282. Who conducted the negotiations; attitude of road toward the Government, 2282, 2283. Present financial condition; the Supreme Court de cisions, 2284. Subjected to severe competition; condition of the company, 2285. Character of country along the line, 2285, 2286. Interest on Govern?ment lien not due; the Milwaukee and Saint Paul, 2286. Annual report for , 1887; 2286, 2287. Shows only half as much surplus as in 1886. Amount of earnings of Sioux City aud Pacific; why it is not a good paying property, 2287. Division of freight earnings; use made of surplus earnings; no plan pro- 5452 u. s. pacific Railway commission. Hughitt, Marvin, testimony ofContinued. vided for payment of Government lien; total amount of net earnings, 2288. Earnings exceed interest on first-mortgage bonds, 2288, 2289. Overdue and unpaid coupons; a working fund provided, 2289. Interest on coupons, 2289, 2290. Future prospect of redeeming coupons; refusal of Union Pacific to ex?change traffic at Fremont, 2290. Assumption of obligations by Chicago aud Northwestern, 2290,2291. Excluding the Government debt; pools; the Dakota Southern, 2291. Pools advantageous to railways and shippers alike; effect on net and gross earnings; pools have not increased rates, 2292. Pools preserve steadiness of rates, 2292,2293. How pools are managed ; tendency of compe tition to force down rates, 2293. A pooling contract does not. destroy com petition, 2293, 2294. Nor increase rates; effect of compulsory nnremunern-tiye tariffs, 2294. Relation of pool contracts to gross earnings, 2294, 2295. Diagnosis of a good railroad manager; officers of the Cedar Rupids and Missouri River Railroad elected July 2(5, 1883, 2295. Record of rebates, 2295,2296. Rebate vouchers and what they show; published tariff rates, 2296. Statement of gross earnings, etc., 2296, 2297. Relations with Chicago and Northwestern; governed only by mutual interest, 2297. Other inter ests of Sioux City and Pacific people, 2297, 2298. Of Blair, Williams, Ames, and Kimball; leases with various companies, 2298. The Chicago and North western agreement, 2298, 2299. Interests of John I. Blair in the various companies; Sioux City and Pacific stock held by Iowa leased road, 2299; Blair's interests in other roads; Sioux City and Pacific not interested in out side enterprises, 2300. What the books show, 2300, 2301. Method of com puting net earnings; same facilities furnished to the Government as toother parties, 2301. Rates charged to the Government, 2301, 2302. Net earnings; no diversions of earnings or traffic ; no constructive mileage in division be tween Sioux City road and the Chicago and Northwestern and other roads, 2302. A pro-rata division, 2302, 2303. Results favorably to the subsidized portions; no improper diversion of earnings or traffic ; assets of the Sioux City and Pacific: Total, $267,788.63; 2303. What the Government lien covers, 2303,2304. No dividends declared, 2304. Statement of net earnings from 1871 to 1887; 2304, 2305. Basis of accounts ; Government dues, 2305. Land grants, 2305, 2306. Receipts from sales of Lands, total from 1871 to 1875, $239,364.60. Value and location of lands, 2:507. Receipts from Iowa land-grants, 2306, 2307. Receipts from Nebraska land grants, total, $90,636.38; gross receipts, $330,050.98; 2307. Missouri Land Company, 2307,2308. Guar anties of liabilities of other roads; Missouri Valley and Blair Railway and Bridge Company, 2308. Dakota Southern and Sioux City and Pembina; Fremont, Elkhorn and Missouri Valley, 2309. Statement showing result of Elkhorn lease, 2309, 2310. Expiration of lease; benefits accruiog from the lease, 2310. Valuation of the road, 23 L0, 2311. Rights conferred by Eikhorn lease; obligations assumed by Elkhorn company, 2311. Loans and credits, 2312. Indebtedness of the company, 2312, 2313. Passes, 2313. No record kept of free transportation, 2313, 2314. No money expended for influencing legislation; passes to legislators; resolution to distribute assets and settle with contractors, 2314. Report of committee on construction accounts; settlement with contractors; mortgage to Iowa Railway Construction Company, 2315. Failure to produce books, 23t5, 23L6. Concerning stock held intrust; com pensation of officers, 2316. No bonuses, 2316, 2317. Legal expense vouchers; the road fully accommodates the community ; terminal facilities, 2317. Dis advantages as a branch road; taxes, 2318. Tariffs and pools, 2318, 2319. Facilities and accommodations furnished; Government benefited by com pletion of road, 2319,2320. Railroad legislation ; failure to pay for mail ser vice ; unadjusted accounts with Government, 2320. Statement of amount due for mail service; total, $23,105.79, 2320/2321. Ability of the road to meet. its indebtedness, 2321. Contributions from other roads, 2321, 2322. No record of present holder* of bonds;' who really built the road; cost of road, 2322. Express and telegraph arrangements; net earnings on which 5 per cent, applies; legal expenses, no record of, from 1864 to 1871, 2323. Accounts relating to construction, 2323, 2.J24. A request for copies of certain docu- ments; porio.I of prosperity. 2'Ail. Telegraph line leased to Western Union, 4*2;):$. Advantages to the Sioux City Company, 4293, 4294. As to Sioux City annual reports. 4294. Hulaniski, Ed.muxi) T., testimony of: Freight agutit of Union Pacilie at Ogden ; his duties, 2233. Has charge of stock -yaid, 2238,2239. Copy Mr. Dee's bond in reference to caro of cattle, 2239. Price of hay at yard, 2239,2240 Duties of manager of stock-yards; the compensation not excessive; responsibilities of company for care of cattle, 2240,2241. ANALYTICAL INDEX. 5453 Humphrey, Jamks, testimony of: Railway commissioner of Kansas; insufficient passenger accommodations on branch lines, 16T6. Two passenger trains daily over main line, 1656, 1657. Unfounded complaints of discrimination; alleged discrimination on the Junc tion City and Fort Kearney, 1657. Investigation showed no cut in tariff, 1657,1C58. Sometimes a cutting of rates at competing points ; no pools upon State traffic since 1883,1658. Maintenance of rate on State traffic, 1658,1659. Publication of special rates; management of Union Pacific; a general cut ting of rates in 1864, 1659. Its exteut, 1659, 1660. Relative amount of local traffic on main and branch lines; volume about equal, 1660. Passes, 1660, 1661. To whom issued; no participation of the railroad in politics under present management; former participation; no hostile legislation, 1661. Complaints of grangers about high rates, 1661, 1662. Reduction of rates on recommendation of railway commission; rebates iu Kausas not of common notoriety, 1662. Plan of settlement; Union Pacific property should be pre served by construction of branch lines; its preservation the Government's only security for payment, 1663. The Salina. Lincoln and Western, 1663, 1664. Donation to railroads now restricted to $2,000 a mile ; extent of agri cultural land; the agricultural line pushing west, 1664. Importance of the Lincoln extension, 1664, 1665. Dividends of $23,000,000, 1665. Effect of ex tension of debt, 1665, 1666. Of failure to extend time of payment; another road might have to be built; multiplication of roads an evil, 1666. Measur ing the needs of traffic, 16j)6,1667. Public sentiment in favor of an equita ble extension; membership of railway commission, 1667. Rates at Atchi-son and Mary ville, 1607, 16(58; grain shipments by Central Branch to Atchi- . son; discriminations, 1668. Missouri Pacific accounts to Union Pacific, 1668, 1669. Detention of freight at Lawrence; an explanation of the cause, trans fer of freight cars to fast train, 1669. Diversion of freight, 1669,1670, Con structive mileage gives branch line fair share of earniugs ; its basis, 1670. Method of measuring allowance; population not a factor; based on traffic, 1671. Huntington, Collis P., testimony of: Vice-president of Central Pacific since 1861; full accounts kept only in San Fran cisco, 8. Road organized under California charter; built from Sacramento to Cisco, 92 miles, without Government aid; Crocker contract; organiza?tion of Contract and Finance Company; cash subscriptions to stock, 9. De tails of early construction; payments made in gold; Contract and Finance Company built road in Nevada and Utah during 1867,1868. and part of 1869, 10. Contract and Finance Company stock held by Stanford, Hopkins, Crocker, witness, and a few others; terms of contract between that company and Cen tral Pacific, 11. Western Pacific; consolidation with Central Pacific in 1870; capital stock increased several times, 12. Lathrop Branch, Lathrop to Gosben, 146 miles; built by Contract and Finance Company; never saw construction contract; practice of company as to making such contracts, 13. This road a branch, not a separate organization ; other branches; from Niles to Oakland, 25 miles, constructed in 1868 or 1869 by Contract and Finance Company; also from Rone ville to Stato line; California Navigation Company's steamers, -14. Witness and associates bought steamers and control of stock of Cali- ] fornia Pacific, 15. Sale of steamers to Central Pacific for $800,000; motives ' for purchase; operation of steamers,, 16; California and Oregon road; built from San Francisco toTehaina, then consolidated with Central Pacific, which continued it to State line; ultimate destination, Portland, Oregon ; Oregon and California, a corporation to build from Oregon and meet the California and Oregon; both received land grant; details of construction; consoli?dation with Central Pacific, 17. Details of subsequent construction ; road from Redding to State line built by Pacific Improvement Company ; witness and associates main stockholders, 18, 32. Terms of the contract; all stocks and bonds payable under that contract have been issued; issue of Central Pacific before 1862, 19. Cash subscriptions less than $100,000; after act of 1862, payments under Crocker contract made in stocks and bonds; Govern ment subsidy; rate on different parts of road ; delivery of Government bonds i to witness, and their sale to the public, 20. Sold some at 89, bought gold as [ high as 220; how the stock was issued; at first to subscribers who paid money, later delivered directly to contractors, 21. Printed reports of Central Pacific for year 1872 probably the first; witness not consulted as to keeping accounts or making statements; earnings of Central Pacific ; $17,000,000 net earnings from 1864 to LS72; application of that sum shown by company's books, 22. Miscellaneous and legal expenses, 23. Names of counsel, 23. How such expenses audited, 24. Richard Franchot as counsel in Washington; no vouchers required from Franchot or his successor, Suerrell; amount 5454 a. s. Pacific hailwav commission. Huntington, Collis P., testimony of-Continued. thus paid thirty or forty thousand a year, 24. Franchot not a practicing lawyer; Sherrell, Franchot's successor j amounts paid him, 25. Theory ot' the general balance sheet, 26; increase in construction account of nine mill ions between 1872 and 1885, 27; spent on improvements at Oakland Point and Mission Bay, and on new steel rails for whole road, 27. Improvements at Oakland Point, 27. Govern ment mortgagedoes not apply to them, nor to the Mission Bay property; California and Oregon extension; its cost; in crease in equipment account; change in character of equipment, 28. Book keeping treatment of decrease in value of rolling stock, 28. Item of 1131,000,000 for construction of road is exact cost taken from contracts with out allowance for deterioration or depreciation; increase in cost of "shops"; in 1885, items for shops and machinery in shops double those for 1872; for merly repair shops; now, locomotive works; location, Sacramento; Govern ment lien applies, 29. Real estate; increase from 1872 to 1885, represented by property in Oakland and Sacramento bought for railroad purposes; lien of Government on equipment; "steamer division property," depreciation through wear; sinking funds, 30. What bonds have been redeemed; how sinking fund disposed of; most of it in Southern Pacific, 31. Pacific Improve ment Company had about three millions of it; don't know on what security; no sinking fund for United States bonds except sinking fund in U. S. Treas ury, 32. Claim that Government owes company $2,500,000; cash due from United States for business over non-aided roads, 33. First dividend in 1873; $61,000 for legal expenses in 1873; $84,000 legal expenses for 1874, 34. Wit ness's unvouched accounts, two hundred thousand a year; would pay Fran?chot $5,000 or $10,000 without voucher or account, 35. Though required vouchers for other expenses; character of services for which no vouchers were required; money required to explain matters; nature of Franchot's business, 36. His requirements larger when Congress in session; un vouched items not used to influence legislation, except to explain matters; attorneys to , help Franchot; does not know their names; influencing legislation by oral argument, 37, 3d. Moral influence distinguished from buying votes; expend itures for cigars and champagne dinners, 38. Annual statement of amounts charged to general legal expenses, 1875-*85; total over $5,000,000, 39. Lease of Central Pacific to Southern Pacific; economy of one management; prin cipal men in both companies the same, 40. Freight rates fixed by operating department; no pooling arrangement; route-of the Southern Pacific; pro?portion of through trade on Southern Pacific as compared with Central Pacific, 41. The diversion of profits; through business of Central Pacific di minished, but no attempt to influence freight in favor of Southern Pacific; the regulation of freights done by general manager; advantage to witness and associates to have freight go over Southern Pacific rather than Central Pacific, 42. Congress not consulted about lease to Southern Pacific, nor were the stock holders, 43. As to vouchers that do not give details of expenditures, 3696. Witness has no further explanation of them; expenditures all for proper pur poses, 3697. As to fees to members of Congress, 3697,3698. Legal assistance from members of Congress; employing persons recommended by members of Congress, 3698, 3699. Selection of persons to gather information; class of per?sons selected, 3699. Engaged usually for a single session, 3699,3700. Relations of such persons to members of Congress; witness consulted General Franchot and Mr. Sherrell, 3700. Funds used in explaining matters to Congress, 3700, 3701. To prevent Congross and the departments from committing robbery ; * privileges of counsel, 3701. Contending for two years against Thomas A. ' Scott, whom they employed at that time, 3702. His letters to Colton, 3702,3703. Nothing wrong in the originals unless it was the grammar and spelling ; the Colton suit, 3703. Never read the letters since he wrote them, 3703,3704. : Cannot swear whether he did or did not write a particular letter; would rather not tell to whom he referred as a hog, 3704. On the ground that it is unpleasant to answer; (another sentence quoted), does not recollect it; mean ing of the word " switch," 3705. Meaning of the phrase " commercial men "; (another letter shown) as to sending witness an order for engine; doubts having written the letter; ' with $200,0001 can pass the bill"his best re collection is that that portion is made up, 3706. Witness has an impression that the Colton letters are much garbled, 3706, 3707. If he wrote the words "I believe with $400,000 I can pass our bill," would be willing to have that published; " it costs money to fix things;" what was meant by the word "fix," 3707. Phrase "cominreial men" did not mean men whose votes were purchasable; does not nppo;- Mr. Scott, over bought a vote; letter dated New York, March 4, 188o'; thinks it contains some things he did not write, ANALYTICAL INDEX. 5455 Huntington, Collis P., testimony ofContinued. 3708,3709. "The R. R. Coinmitteo of the House was set up for Scott;" what "set up " referred to, 3709. No personal objection to the introduction of any letters written by him, 3709, 3710. Light-weight politicians crying from the house tops; his connection with injunction restraining productiou of the Colton letters, 3710. As to correctness of printed copies of the let ters, 3710, 3711. Could not say they are correct; copy letter dated No vember 20, 1874, from Huntingdon to Crocker; protest by counsel against mode of questioning, 3712. No recollection of having written it, 3712, 3713. Does not think he wrote sentence " this coining session of Congress will be composed of the huugriest set of men that ever got together;" personally would not object to production' of original letter, 3713. Copy letter Novem ber 13, 1874, to Colton in regard to coal, 3713, 3714. What is " the object of raking up these old personal matters;" not for political purposes, 3714. Instructed his people never to use mouey in any immoral or illegal seus-; copy letter to Colton, dated December 1, 1874; 3715. Does not remember who the men were " that can be convinced;" copy letter to Colton, dated December 10, 1874; does not remember allusion as to importance of discon necting Southern Pacific from Central Pacific; copy letter of December 8, 1874, to T. A. Scott, 3716. Copy letter, Scott to Huntington, December 9,1874; copy letter, Hnntington to Scott, December 10, 1874; 3717. Copy letter, Huntington to Colton, December 11,1874; suggestion as to bringing Colonel Gray, 3717, 3718. No recollection of it; copy letter to Colton, March 3, 1875; "have you sent passes and money?" does not recall it, 3718. Does not understand allusion to passes and money; copy letter to Colton, Decem ber 25, 1875, as to Scott going to Mexico; copy letter to Colton, April 9, 1875;* 3719. Allusion to argument before railroad committee, 3719, 3720. Copy letter to Colton, April 22,1875, as to Independence Narrow Gauge road; copy letter to Colton, May - 1875; " Governor S said some good tbiugs;" witness7 habit of numbering letters received, 3720. Copy letter, May 1,1875, urging defeat of--------(a member of the House); does not remember writing it; has used the expression "wild hog," 3721. Declines to state to whom he referred, 3721, 3722. Thinks Central Pacific money was not used to prevent the *' wild hog's" return; copy letter, dated September 15, 1875; does not recall it, 3722. Does not remember talking to S. T. Gage in regard to franchises in Arizona, in 1875; copy letter of September 17, 1875; allusions to Fitch and Pickeriug; did not. the initials " A. A. C." refer to Mr. Cohen f 3723. Copy letter, September 27,1875, to Colton as to Scott's efforts for Texas Pacific, and as to Arizona charters; allusion to the people of San Diego, 3724. Suggestion as to calling Arizona legislature together; remembers something about it; thinks the payment of $25,000 for the expenses of an extra session would be a proper expenditure by Central Pacific, 3725. Copy letter, October 19, 1875, to Colton; allusion to " a member of the Forty-fourth Congress, au ex-gover nor and a slippery fellow;" witness does not remember writing it; might have written some parts of it, 3726. Copy letter. November 10,1875, to CoTtou; al lusion to employment of some one who was "obnoxious to the Republican side of the House," 3727. Who " came over in the director's car with Mr. Crocker"; was it ex-Senator Gwyn? he was a confidential agent; as to payments to him; 3728. Copy letter of December 17, 1875, to Colton; suggesting that railroad and land committees of Congress would not favor subsidies, 3728, 3729. Mat ters referred to somewhat familiar to witness; copy of letter of December 13, 1875; as to Scott's making terrible efforts and numerous promises; witness does not recall it, 3729. Copy letters of January 14, 1876, as to the value of -----'s services, 3729, 3730. William B. Carr's relations with the company at that time; what are a " general utility" man's services? 37:30. Was not Mr. Carr a lobbyist ? are such services worth $10,000 to $20,000 a year? copy letter ot January 17, 1876, 3731. "1 believe with $200,000 I cau pass our bill.;" what this meant; witness does not know whether he wrote it or not; the bill referred to, 3732. Copy letter of January 29, 1876; "Scott making a terrible effort to pass his bill;" 3732, 3733. Witness does not think he wrote it, 3733. Copy letter of December 22y 1875; the railroad commit tee, " not necessarily a Texas Pacific, but a commercial committee," 3733, 3734. What " commercial" meant; " they can be convinced that ours is the right bill for the country," 3734. Did not mean that the committee was pur-chaseable, 3734, 3735. "Commercial" should have been "geographical;" if housed the word "commercial," it was not in an offensive or sinister sense. 3735. Who were tho Senators whom Scott "switched?" copy letter of March 4,1876; " the, Railroad Coinmitteo of the House was set up for Scott;" what this meant, 3736. " A difficult matter to switoli a majority of the com mittee away from him " (Scott); copy letter of March 22, 1876; " Scott mak* 5456 U. S. PACIFIC RAILWAY COMMISSION. Huntington, Collis P., testimony ofContiuued. ing a very dirty tight;" what this meant; some things published by Scott's men that were personal and unjust, 3737. What was meant by "I keep on high ground I" witness once told Franchot not to use wine and cigars to in fluence legislation ; copy letter April 27, 1876: the speeches of "a drunken, worthless dog" printed and sent broadcast by Scott; witness does not know to whom this referred, 3738. As to articles against Central Pacific being shown to certain persons; copy let/ er June 7, 1876; "the hardest fight by a hundred times;" witness thinks it possible that in every letter there is something he did write, 3739. Witness favored return of some of the California members and was opposed to others, 3739, 3740. Was it Mr. Piper who was objectionable f part of letter dated June 12, 1876; -----"should be defeated at almost any cost," 3740. Central Pacific money would not be used; and was not, to witness' knowledge; part of letter dated July 26, 1876 ; witness favored paying expenses of a party of southern men on a trip to California: would be a legitimate and proper expenditure, 3741. Part of letter dated November 15, 1876; as to meetings with Tom Scott; as to con struction of Colorado River Bridge, 3742. As to rent paid by Central Pacific or Southern Pacific; part of letter of March 7,1877 ; 3743. What is meaut by "fixing up" a committee, 3743, 3744. A change in the "make-up" of the com mittee, 3744. Copy letter, dated October 13, 1887, from witness to coiumiH-sion ; subject, compensation for mails on aided roads; 3744,3745. Copy letter of March 20,1877; wild was the Senator from Florida ? 3745. Senator Con over was a friend of the enterprise, 3745, 3746. Letter as to choice of United States Senator from California; who was the man suggested as one who "will be friendly ?" 3746. Copy letter of April 20, 1877, as to Los Angeles and In?dependence road, 3746, 3747. That road bought by the Western Develop ment Company ; from Senator Jones, of Nevada, 3747. Wanted him "to help us with our Central Pacific and Northern Pacific sinking fund bill in Con gress ; " what this meant, 3747, 3748. Witness can not supply blanks in the letters, 3748. Copy letter, May 7,. 1877; "the Florida Senator," 3749. V/hat witness meant by "don't go any money on him;" the allusion to $70,000 being tied up; the siuking-fund bill referred to, 3750. Copy letter dated May 15, 1877; Scott's "openhighway,"3751. "Senator--------, of Kansas," gets a let ter; "good fellows, but mean business," 3752. As to statement in letter October 29,1877, that Central Pacific had not earned its dividend, 3752, 3753. Personnel of railroad committee; "a different one promised me," 3753. "A good many strikers in Washington;" as to "doing battle with the whole human race;" explanation, 3754, 3755. Opposition to the Thurman. bill withdrawn; buying votes in Congress not beneficial to anybody, 3755. To get legislation this session must "pay more than it is worth," 3755, 3756. 'Annoyed by the Washington business;" "matters never looked worse iu Washington," 3756. A letter printed without signature; its introduction ob jected to by Mr. Cohen, 3757. Allusion to anonymous letters, 3758. If anony mous it would not be read, 3758, 3759. Tlie reading of the letter continued, 3759. Wi tness does not recall the letter, 3759,3760. As to miggestions from ex-Senator Pomeroy, 3760. The Santa Monica road, 3760, 3761. Floating bonds; the purchase of the Santa Monica a legitimate business transaction, 3761. "Senator Mitchell not for us," 3761,3762. "Good nature" v. "spot cash," 3762,3763. Scott's promises; sinking-fund bills, 3763. " This Cougress" an " agrarian camp," 3763,3764. Object of the Thunnan bill; Washington filled with lobbyists, 3764. The credit of the company injured; the ingratitude of Congress, 3765. The business distasteful aud repugnant, 3765,3766. How the payments to assistants were made; as to Mr. Isaac E. Gates; his con nection with the company, 3766. Attends to general expenses, 3766,3767. Mr. Gates's word enough; the book-keeping in California, 3767. What the books of the Contract Company show, 3767,3768. Land-grant bonds; dispo sition of the bouds, 3768. Their price, 3768,3769. The amount of them re ceived by witness; usually carried his personal matterp iu his hat, 3769. Contract with Mr. Crocker for construction of sections 31 to 138, 3769,3770. Transfer to Contract Company of stock received by Central Pacific; amount; why did not Crocker keep it, 3770. Effect on the security to the United States of construction of Southern Pacific, 3770,3771. Diversion of traffic by Central Pacific from Southern Pacificof New York business; very little effect on local business, 3771. Earning capacity of subsidized portion if separated, 3771,3772. Suggestions requested from witness as to plan of settlement, 3772, 3773. Colton letters; handwriting of witness; his reference to the "agra rian" character of Congress; bought the Santa Monica road as chea-p as he could, 3773.' Rate of interest paid on moneys borrowed for construction, 3773,3774. Premium on gold; financial standing of Huutington, Hopkins (% ANALYTICAL INDEX. 5457 ON, Collis P., testimony ofContinued. Co. when construction was begun; Mr. Stanford's financial condition; Mr. Crocker worth more than $200,000, 3774. Huntington's method of signing checks, 3774,3775. Company expected to pay ita debts to the Government in transportation; their policy toward the Indians, 3775. Government transportation expected to pay interest; effect of Government aid to com peting lines; surprised at the course taken by the Government; comple tion of road on May 10, 1869; guaranty required by the Government for proper conditions, 3776. When was the road accepted? 3776, 3777. De cisions by the Court of Claims and the United States circuit court in Cali fornia; why payment of the 5 per cent, was delayed; Central Pacific has fulfilled every obligation to the Government, 3777. Comparative cost of construction, 3777, 3778. Discount on Government bonds, 3778. Bonds bought back by Government at a premium; transfer of mails by Central Pacific because of shorter haul; claim for service on non-aided roads about $2,000,000: lossof interest on moneys retained, 3779. Decision of the courts in favor of company as to $2,000,000 claims, 3779,3780. Issue of land-grant bonds; division of these bonds by Contract Company not as dividends, .5780. Deposit of Central Pacific stock with Contract Company, 3780, 3781. Mr. Crocker had assumed an indebtedness; financial condition of Contract Company after fulfilling contract; effect of branch roads upon main line; no dividends declared until completion of road, 3781. All proceeds from bonds used in construction, 3781, 3782. As to amount of Central Pacific stock which witness and associates received from Contract Company; was it $13,000,000 each; legal expenses of Central Pacific compared with those of roads in England, 3782. Effect upon aided roads of construction of other aided roads; not expedient to increase rates on Central Pacific, 378*3. Aid rendered to the Canadian Pacific by Canadian government, 3783, 3784. Effect upon Central Pacific; the route; Canadian Pacific's arrangement with our Government, 3784. Its competition with Central Pacific in Government busi ness, 3784, 3785. Central Pacific paid for carrying mails less than Baltimore and Ohio ; a call for official data on this subject; 20 per cent, taken off the compensation of aided roads, 3785. Railroad Commissioners' statement as to diversion of business from Central Pacific; advantages of leasing Cen tral Pacific to Southern Pacific, 3786. Object of the lease, 37ei6, 3787. As to recent short sale of Central Pacific aud Union Pacific stock; relations of Central Pacific with Pacific Mail Company; payment to Pacific Mail not a subsidy, 3787. Witness a director in Pacific Mail, 3787, 3788. Six hundred tons of tonnage reserved ; paid for even if not used, 3788. Amount paid about $90,000 monthly; class of freight protected, 3789. Without such arrangement freight diverted by Pacific Mail from Europe to Aspinwall, 3789, 3790. The Southern Pacific as a freight line. House Bill No. 4060 and the Hoi man amendment; employment of Mr. Chittenden in 1871; 4022. Quotations from Mr. Chittenden's testimony, 4022, 4023. Nothing paid to members of Congress to influence votes ou Holnan amendment; difference with Mr. Chittenden as to compensation. 4023. Witness was examined be fore Poland committee, 4023, 4024. Probably had counsel present, 4024. . Everybody dropped in bills about Pacific roads, 4024, 4025. As to Credit Mobility discloHures, 4025. Cost of construction of Central Pacific, 4025, 4026. Former testimony of witness as to amount of Central Pacific stock owned by him; does not remember it, 4026. Mr. Hopkins attended to everything, 4026, 4027. When dividends were paid, 4027. Who offered to sell the Colton letters/ 4027, 4028. Employment of Mr. Norwood, 4028. Sidney Dillon not interested in Oregon Short Line construction contract; copy letter, witness to Mr. Norwood, 4029. Not a mistake to charge the Norwood bill against Central Pacific; a correction as tostock; was there a distribution I 4030. May have been, owner of one-quarter of Contract and Finance Company, 4030, 4031. The Norwood matter again, 4031, 4032. The stub-check books, 4032, 4033. Probably destroyed, 4033. Nature of entries on stubs, 4034. En tries upon blotter, 4034. The blotter probably destroyed, 4034. Limit of time for current accounts; scheme of Thomas A. Scott, 4035. Space can be better utilized than in storing dead matter, 4035, 4036. Sure he paid Mr. Chittenden $10,000 ; 4036. No money paid him except for services rendered, 4036, 4037. Suggestions of settlement, per letter dated October 11, 1887; 4153, 4154. Jackson, John Putnam, testimony of: President of California Pacific R. R. Co., 3627. Knew San Francisco Transfer Company, Kennedy, Long & Co., andM. G. Kennedy individually; financial status of San Francisco Transfer Company, 3627, 3628. Officers of Central Pacific not concerned in sale; purchase of California Pacific beneficial to Cen tral Pacific; almost an absolute necessity for Central Pacific to own Califor- 5458 U. S. PACIFIC RAILWAY COMMISSION. Jackson, John Putnam, testimony ofContinued. nia Pacific, 3628. Proportion of local business clone by California Pacific, 3628, 3629. Scheme for extension of the California Pacific, by way of Beck-with Pass, to a connection with Union Pacific at Ogden, 3629. Copy of his affidavit as to sale of Los Angeles and Independence Kail road, 3-53, 3854. Johnston, J. E.: Detailed statement of mileage of roads operated March 1,1687, by various com panies to which the United States have loaned bonds in aid of construction, 4313-4316. Copy his letter to Secretary of Interior, answering inquiries of the Commission, 4402,4403. Kasson, John M.: Copy letter to Commission requesting an investigation of a report concerning himself, 3852. No evidence requiring investigation, 3852, :W53. Copy Com missioner Anderson's reply to Mr. Kasson, 3854. Mr. Cohen deuies that Mr. Huntington ever wrote the letter referring'to Mr. Kasson, 3t&5. Kay, David, testimony of: Shipments of grain, 2241. Freight rates and rebates, 2241, 2242. How received; complaints of shippers; direction of wheat shipments; rates to California, 2242. Keene, James R., testimony of: Became a director of Union Pacific at Sage's request; not present at consolida tion meeting, 400. A director for only a year, 401. Keisel Frederick G., testimony of: Adams & Keisel Salt Co.; 2232. Conditions of contract with Union Pacific, 2232, 2233. Bathing resort at Syracuse; other bidders; the bathing resort to be established, 2233. Advantage to Union Pacific, 2233. Price paid for salt; no rebates allowed; length of haul, 2234. Amount of salt delivered under contract, 2234, 2235. Rates on salt; negotiations with Denver and Rio Grande, 22W). Competition with Lyman & Wallace, 2235, 2236. Effect on Ogden of interstate commerce bill, 2236. Plan of settlement; extension and reasonable rate of interest, 2236, 2237. Would enable them to extend their feeders, 2237. Effect upon rates; just as favorable to community, if terri?tory opened by other companies, 2237, 223d. Kimball, Thomas L., testimony of: General traffic manager Union Pacific Railway, 1015. His duties; has charge of business arrangements for procuring traffic, local and through; of rebates, and also pool arrangements; constructive mileage, adjusted by the auditiug department, 1016. His department embraces the freight, passenger, coal, and stone business, 1017. . Enumeration of the departments of the road, 1018. An officer of Union Pacific since 1871; duties of general passenger and ticket agent; ticket agents as solicitors of business; had power to issue passes, 1040. To whom they were issued, 1041. Class of passes issued by general manager; general passenger traffic from 1871 to 1880 ; 1U41. Passen ger rates in 1871, about an average 7 cento; special rates, to whom giveu ; accounting for passes, 1042. His special duties as passenger agent; can vassed territory in which new branch roads were proposed; defended policy of company by writing for the press, and by explanation to members of the leg islature, 1043. Wrote for press in defense of company's charges for freight and passengers; employed to defeat hostile legislation, 1044, 1045. Publica tion of agent's articles not paid for; free transportation given to editors, 1045. Railroad methods of defeating legislation ; only argument used ; who were employed to argue, 1046, 1047. No knowledge that they used money, 1047. Gave them general instructions, 1048. Did not authorize or permit the use of any other means than argument; members of the legislature gen erally get passes; an "anti-monopoly" member, witness* definition of; passes to others issued on request of members of the legislature, 1041), 1050. No rebates at request of members; no improper means used to influence legis lation; has influenced nominations and the election of members, 1050, 1051. His individual expenditure of money for that purpose; none expended by the company; no promises of position in company's service used, 1051. Participa tion in local elections; the company's employe's free to vote ; no nioinlMTH re tained as attorneys, 1052. No hostile local or State legislation from lfc)71-'&(), except the provision in Nebraska State constitution of 1875, prohibiting tlw Union Pacific from exercising the right of eminent domain in the State of Nebraska, 1053. Copy of that provision; effect of this prohibition; com pany paid double or treble for lands wanted for Missouri River bridge ap proach; has delayed acquisition of right of way, 1054, l0f)5. All Nebraska branches built since that prohibition in force; chief embarrassment in Omaha; money might have been used to influence legislation without wit ness' knowledge; passes to members, a general practice among railways, ANALYTICAL INDEX. 5459 Kim ball, Thomas, L., testimony ofContinued. 10o5,1056. His duties as assistant general manager from 1880-)84; special passenger rates from 1880-'84 ; 1056. Not different from rates between 1871 and 1880; applicable to more classes; freight rates on branch lines higher than on main line, 1880-)d4; 1057. Detailed statement of local passenger tariffs in 18eO; 1058. Why tariffs on branch lines higher than on main line; did not result in discrimination in their favor, 1059, 1060. Constructive mileage defined; introduction of constructive mileage system in 1879 or 18bO; 1060. Table of allowances in 1880, or when branch line opened for business; " arbitrages" defined; changes in rates, 1061. Witness responsible for the rates and for changes in them ; illustrations; the Denver Pacific, 1062. The Oregon Short Line; improvement in main and branch lines since 1880, about the same, 1063, 1064. The conditions considered in fixiug rates of constructive mileage, 1064, 1065. Illustration, the Denver and Rio Grande; constructive mileage, a legitimate compensation to branch Hues, 1065, 1066. Constructive mileage not new; comparative cost of traffic ou main and branch lines; his knowledge of the population on branch lines, when rates were fixed, 1066, 1067. Union Pacific makes money by operation of constructive mileage, 1067. Statement of amounts of constructive mileage allowances by Uniou Pacific to auxiliary lines, and by lines east of Missouri River to Union Pacific and its auxiliary lines for month of January, 1887; Union Pacific pays to auxiliary lines about $166,000 a year, 1068. Meaning of term "auxiliary lino;" witness would make such constructive-mileage allowanccsifbraiicli lines were independent corporations; il constructive mileage" with the Denver and Rio Grande, 1069, 1070. * Arbitrages " allowed to foreign roads; to the Northern Pacific ; to other roads, 1070; "constructive-mileage" advantages that are not in cluded in the statement; memorandum in relation to constructive-mileage allowances, January, 1887; 1072,1073. Shows estimated balanco of profit under the constructivc-mileago rule in favor of Union Pacific, $297,982.16, for the year 1887 ; 1073. Does not contribute a cent to support branches; without branches the Union Pacific would be bankrupt, 1074. The strict mileago basis would result, disastrously; advantages of constructive mileage to branches; present and future benefits to main line of branch system, 1075, 1076. Transcontinental business now divided between four or five com peting truukroads; Union Pacific now sustained by branch-line business; development of branch-lino system begun in lb71-72; profits to stockholders less since branch system was developed; " arbitrages" defined; difference between " arbitrages " and " constructive mileage ;" companies with which there was an arbitrary rate, 1077, 1078. Why Denver, South Park and Pa cific is treated as a local road; length of road an element in arranging constructive mileage; volume of business another element, 1078. Discus sion of the rate allowed Echo and Park City; of rate allowed Omaha and Republican Valley, 1079. Branch lines entitled to 50 per cent, per mile more than main lines; only a legitimate division of the through rate, 1080. Was assistant general manager from the fall of 1880 to the fall of 1884 ; re bates, 1122, 1123. Fixed by witness, in the absence of the general mana ger; competition, the basis from competing territory; basis of rates from local territory; why rebate rates private, 1123. Necessity of rebates; ho w determined; rebates varying with competition; rebates in local territory where there is no competition, how applied, 1124,1125. No rebates on ore or bullion to individual shippers, not smelters or dealers or samplers; why lower rates given on shipments of ore to Denver than to Pueblo; rates to grain ship pers determined by competition ; Omaha and Council Bluffs elevators, 1125. All elevator business in Omaha controlled by Himebaugh, Merriam & Co.; an allowance in their favor of 1 cent for use of their storage plant; an additional rebate to Omaha elovator, 1126, 1127. It goes to the seller of grain ; length of existence of rebate system to Omaha elevator ; ceased when interstate law took effect, 1127. Considerations governing allowance of re bates on shipments of cattle; in the case of small shippers no recent cases of preferences to shippers, 1128. No Eveners' Association on Union Pacific; what such an association is; how applied to cattle shippers; the shipper's consent ordinarily obtained, 1129. Pools; do not affect individual shippers; complaints that robal es to larger shippers shut out small dealers, 1130. The Uniou Stock Yards Company of Omaha; no rebates given it by the road; the yardago chargo; unloading of stock, 1131. Controlled by shipper, 1131, 1132. The Standard Oil Company; rebates allowed it; all sorts of rates; rates to other coal companies; prior to the payment of rebates, oil pretty much all went by ocean to Pacific coast, 1132. Preference to Standard Oil Company ; embarrassing effect on smaller dealers; allowance to Stand- P B VOL IX------5 5460 U. S. PACIFIC RAILWAY COMMISSION. Kimball, Thomas L., testimony ofContinued. ard Oil Company on account of car service furnished by it; return of such cars without charge, 1133, 1134. For empty tank cars, a charge of $10 to $20; cars sometimes returned free, sometimes not; private rate allowed the Standard Oil Company ; also tbe Consolidated Tank Line and the Con tinental Oil Companies, 1134, 1135. Standard Oil Company has controlling interest in both ; purchase of the Continental by the Standard; discrimina tion would assist tbe Standard Oil Compauy in lighting competition, 1135. The Standard Oil Company ship over 90 per cent, of aJl the oil, 1135,1136. , Policy governing the road in regard t o such shippers ; car service account not a rebate, 1136. The pool statement; copy of iiooling agreement of April 7, 1879; and amendment of June, 1879; 1137. Amendment of September t, 1879 ; copy of second tripartite agreement, in effect April 1,1885; 1138. Copy of third agreement, of October 13,1882; in effect November 1, 1882; 1138, 1139. Copy of agreement of October 1,1871); copy of agreement of October 21,1882; 1140. Copy of agreement made Jauuary 24,1884 ; 1140,1141. Colorado-Utah Common Points Association ; agreement made January 24, 1884,1141. Ne braska traffic agreement; agreement of December 1,1884; 1141,1142. Mon tana traffic agreement; agreement of February 23, 1883; Oregon Traffic As sociation; agreement of December 1, l&6i; 1143. California pools; iirst agreement, 1143,1144. Second agreement; third agreement, 1144. Fourth agreement, 1144-U46. Mileage rate from April, 1880, to July, 1887; 1146. Instructions relating to freight and passenger rales, 1146, 1147. Statement concerning Territorial population called for, 1150. Copy witness7 letter to freight claim agent as to $40,000 rebate allowed Omaha and Grant Company; the poblished rates on ore and bullion, 1175. Difference between special rates on ores, 1175, 1176. Whyclaim papers marked " personal;" rebate ac counts private; interest of Union Pacific in property of Omaha and Grant Company; rebates to Wells and Neiman ; rates allowed them ; directors or einployds not interested in that firm, 1177. Chicago Lumber Company; Ames and Dillon's interest in Omaha and Grant Company;, Presiden t Adams a stock holder in the Argentine Smeltiug Company, 1178. Directions given that no favors be shown because of such interest; the Northwest Forwardmg Com pany; its rebate on salt, why allowed; witness' interest in the Utah Cen tral ; Utah Forwarding Company, same concern as the Northwest Fo warding Company; their rebate on freight in the nature of a commission, 1180. Cost of coke, 1180,1181. Other companies engaged iu tbe coko or salt business: Adan s &Koisel,Eldon Coal Mining Company, rebate to; La Plata Mining and Smelt ing company; Boston and Colorado Smelting Company, in Butte, Mont., llbl. Large shipments of low-grade ore tor Senator Hill at lowest rates ; Horn Silver Mining Company, rebates to ; a cut rate refused on a largo ship ment of bullion, which subsequently went over the Rio Grande ; robaie to C. W. Collins & Co., 1182. Their rebate a part of their construction con tract with company; " various stations, free transportation," 1183. Union Pacific coal department, 1183,1184. Its rebate on coal; Swan Land and Cattle Company, 1184. Philadelphia Smelting Company at Ketchum, Idaho, 1184,1185. Rocky Mountain News Company; rebates allowed to it, 1185. Was it a preference as well as a rebate f 1185, 1186. Robates not usually granted except on individual applications; Clydo Mill Company, rebates to, 1186. Result of refusal to allow Horn Silver Mining Company a rebate ou 3,200 tons of bullion shipped over the Rio Grande road, 1190. Differences between overcharges and rebates, 1192. Earnings made up after making de ductions for rebates, constructive mileage, etc., 1192,1193. Sums paid out as rebates regarded as trust moneys, 1193. Gross earnings and expenses have nothing to do with the published tariff, 1193,1194. Railroad settle ments, illustration of; the " refund of freight earnings " book, 1191. What it shows; difficulty of distinguishing between "overcharges" and "re bates," 1195. Estimated cost of getting out statement for Commission in regard to robates, $15,000 to $lfc(,0()0, 1198. Rebates and pool payments, while in hands of company, regarded as trust funds; u large part of entire earnings arises from pools, 1199. Copy of lease of Union Pacific with Omaha and Grant Smelting and Refining Company, 1201, 1202. To whom rebates are allowed, 1202. How constructive-mileage accounts are made up, 1203, 1204. "Movement and distribution of freight earnings" book; its relation to the constructive-mileage account, 12U5. Monthly settle ments, 1205, 1206. Explanation of the entries, 12(KJ. Detailed statement of constructive-mileage settlements for January, Ib87, 1206, 1207. Special passenger rates from 1880 to 1-87; 1360. 1361. To excursion parties, 1361. m. Comparative rates from Omaha west, 1361, 13li2. Coal aud stone busi ness; Wyoming Coal Company; instructions as to freight and passenger ANALYTICAL INDEX. 5461 Kimball, Thomas L., testimony ofContinued. rates, 136:2. Passes, to whom allowed; passes to live-stock companies and firms; also to elevator men, merchants, and millers, 13615. Agreement to re strict the issue of free or reduced transportation adopted October 29, 1884, at a mooting of general managers, 1364,1365. Order of general superintend ent concerning passes, dated December 23, 1886; instructions from gonoral superintendent as to taking np passes, dated April 4,1887,1366,1367. Mem orandum of car mileage paid Standard Oil Company and Continental Oil Company from 1882 to 1886,1368. Rebate to Anaconda Mining and Smelting Works, 1368,1369. Transcontinental pool; explanation of item, $6,123.35: of rebate to Omaha and Grant Smelting and Refining Company; othor refin ers who got samo rebate, 1369. Effect of robatc, 1369,1370. Complaint of Senator Hill's company; Jenning's rebate of $24 ; all shippers treated alike; the fact that such rebates were paid generally understood, 1370,1371. Fail ure to n)ako application for rebate before shipment; only remedied by appli cation of shipper afterward; explanation of rebato on" ore to Omaha and Grant Smelting and Reflniug Company, 1371,1372. Unless Union Pacific al lowed the rebate, business would go to other lines; other rebates on ore and bullion ; item, Pacific mail subsidy ; how it is divided, 1372. Branch lines not interested, 1372,1373. Explanation of rebato to Murphy, Grant & Co.; who compose the lirm, 1373. Same rebates to other shippers; explanation of re bato to A. Hanaucr; of rebate to Standard Oil Company; same rebate to Con tinental Oil Company, 1374. How business of Standard Oil Company divided between tho railroads, 1374,1375. Pool on Utah business; rebate to A. Han-auer, 1375. Explanation of rebate to Utah Forwarding Company, 1375,1376. Of robato to R. S. Van Tassell, 1376. Of robato to N. W. Wells, 1376,1377. Same rebates allowed to his competitors; contractors for Indian supplies famil iar with rebato rates, 1377. Rebate obtainod after letting of contract, 1377, i:$78; explanation of rotund to Central Pacific; of rebate to S. R. Howell & Co.; all lumber dealers had same rebate, 1378. Notification by freight canvasser, 1378, 1379. Explanation of refund to Chicago and Northwestern ; of refund to Utah Forwarding Co.; of rebate to Willow Spring Distilling Co.; of re bato to ' Mary Murphy " nrino, 1379. Of another rebate to Omaha & Grant 5. & R, Co.; of rebato to Union Cattle Co., 1380. Alleged discriminations against Sioux City shippers, 1380, 1381. Union Pacific's report of pool bal ances on passenger business and on freight business, from February 1, 1880, to December 31,1883; 1381-1:385. Rebates to Horn Silver Mining Co. explained, 1386. Rebate to Boston and Colorado 8. &R. Co., in 1883and 18d6-'7,1386,1387. Riibato to Whittier & Fuller explained, 1387. Sioux City complaints, 1387, 1388. Remedy, the construction of a branch from Norfolk to Sioux City, 138S. Explanation of rebato to Denver and Rio Grande Railroad Co.; to Omaha and Grant S. & R. Co.; to St. Jo. and Western Railway; to Central Pacific Railway Co.; to R. S. Van Tassell, 1389. To Wells & Neitnan, 1389, 1390. To Omaha and Grant S. & R. Co.; to Central Pacific; to Himebaugh & Merriam ; to Oruaha Elevator and Grain Co.; to R. S. Van Tassell, 1390. To Pacific Mail Steam-ship; to Transcontinental Association; to Northorn Pacific Railroad Co.; to Himobaugh & Merriam; to Burlington and Missouri Railroad in Nebraska, 1391. To Northern Pacific Railroad, 1391, 1392. To Omaha Elevator and Graiu Co.; to Himebangh & Merriam; to John S. Ingles; to Denver and Rio Grande Railway; to F. Knowland; to Pacific Hotel, 1392. To Utah Central Railway; to F. J. Kiesel & Co.; to Pacific Mail and Steamship Co.; to Omaha aud Grant S. & R. Co.; to Philadelphia Mining 6,Smelting Co.; to Himebaugh & Merriam ; to Omaha Elevator and Grain Co., 1393. To Georgo W. Walts, 1393, 1394. To Standard Oil Co.; to Atlan tic Coal and Mining Co.; to Burlington and Missouri River Railroad; to Denver and Rio Graiulo Railway; to "Mary Murphyv Mining Co.; payments t various railroad companies, 1394. To C. Bailey, 1394, 1395. To Utah Forwarding Co.; to Himebaugh & Merriam, 1395. To Omaha and Grant S. & R. Company ; 1395, 1396. To Continental Tank Line Com pany, 1396. To Continental Oil Company ; to Kansas Smelting Company; to Mary Murphy Mining Company; to Paxton, Gallagher (fe Co.; to V. M. C. Silva; to R. S.Van Tassell; to F. J. Keisel (fc Co.; 1397. To A. W. Bristol, 1397, 1398. To Chicago Lumber Company ; to Himebaugh & Mer-riam ; to Georgo W. Walts ; to Montana Improvement Company, 1398. To Reynolds Brothers, 139H, 1399. To Omaha Elevator and Grain Company ; ex planation of overcharge settlement; a controversy between Saint Joseph and Western and Saint Joseph Bridgo Company, 1399, 1400. Rebato to Omaha Elevator Company continued from November 1, 1882, to April 1, 1887; com-moncemeut of rebates to Continental Oil Company in 1874; consolidation 5462 U. S. PACIFIC RAILWAY COMMISSION. Kimball, Thomas L., testimony ofContinued. ?with Standard in 1884; 1400. Rates allowed Standard Oil Company, January 1,1884, to April 5, 1887; 1401. Allowance for return of cars, the same to all, 1401, 1402. The Consolidated Tank Company, 1402. Return of tank cars to other shippers, 1402, 1403. But few exceptions to uniformity of rule about re turn of cars, 1403. No discrimination against other tank companies, 1403, 1404. Company has no rebate contracts in writing, 1404, 1405. The diary finally produced, 1405. Dates of witness* attendance on legislature, 1405, 1406. No data showing relative cost of service on branch lines and on main line, at time constructive mileage rates wero fixed; cost of operation of branch lines nearly 50 per cent, greater than of main line; reference to page 22, re port of 1886; 1407. Average of net rates allowed special shippers, 1408. Omaha Bridge; the$250,000 payment by city of Omaha; why made, 1409. Alleged diversion of 300 cars through freight to Santa F6 road, 1409, 1410. Diversions to and from Union Pacific, 1410-1112. Alleged preference to Himebaugh & Merriam at present time ; alleged payment of $1,000 to O. P. Mason for political speeches, 1412. Coal discrimination denied, 1412, 1413. Alleged salt deal denied, 1413. Statement of rebates and overcharges paid Consolidated Tank Line Company during years of 1882 to Juno 22, 1887, and gross earnings on same business; samo as to Continental Oil Company, for years 188l-)87 ; same as to Standard Oil Company 1880-)87; 1413. Charges, refunded Standard Oil Company for empty oil tanks returned, 1880-)86; same to Continental Oil Company, 1884-'86; 1414. Tables of popu lation in 1880 of counties through which trunk and branch lines run, 1436-1439. Table of rates charged on oil in tank cars for Conti?nental and Standard Oil Companies, years l878-'86 ; other special rates, 1439. Detailed explanation of the basis for dividing rates on Union Pacific system; mileage pro rate; pro rate per rate; ** constructive mileage," 1440. "Arbi trary rates," 1440,1441. Arbitrary tfivisions; as to propriety and equity of the mileage pro rata principle, 1441, 1442. Of pro rate per rate, 1442, 1443. Of the constructive mileage principle, 1444, 1445. Company needs branches; if equal mileage distribution of earnings is enforced, no prudent man would invest a dollar in their securities, 1445. Preamble .and resolution of Omaha Board of Trade, adopted April 28, 1-86, urging bill for construction of branches; copy bill proposed by Omaha Board of Trade, 1446. Summary of earnings on freight diverted to and from Union Pacific, account of various pools during years 1882 to 1886, inclusivo, showing not gain to Union Pa cific, account of diversions, $500,335.67, 1467. How mado up; no returns of tank cars for other companies than Standard; coal department Union Pacific Railway; and the Union Coal Company, 1463; statement of oper ations of coal department for 1886; statement of operations of Union Coal Company for 1836; statement of operations of the stone depart ment for 1886, 1469. Raising invoice prices on company's purchases by charging freight and handling, 1470. Effect on earnings, 1470, 1471. In creases the earnings of one line and the expenses ot the other, result being no difference in net earnings; no diversion of freight prior to 18o0, 1471. Kir km an, Marshall M., testimony of: Resolutions to dispose of lands and issue land stock, from minutes of Sioux City and Pacific, 2325. Adjustment of Government's 5 per cent., 2326. Aid from private sources, 2326, 2327. Interest on bonds; default in payment, 2327. Money loaned by individuals; statement of floating debt of company on Au gust 31, 1H87, 2328. Overdue coupons paid with borrowed money, 2328,2329. Bought up by Chicago and Northwestern, 2329. Indebtedness of land de partment, 2329, 2330. Resolution to sell Nebraska lands, 2330. Klink, George T., testimony of: Clerk in office of secretary Central Pacific ; fails to find two vonchors, 3201,3202. Kramer, Carl, testimony of: Mayor of Columbus in 1886-'87, 1474, 1475. Railroad facilities afforded, very fair; discrimination against Columbus and in favor of Omaha; comparison of local and through traffic on main and brauch lines, 1475. Rates on branches und on main line; public preference for Union Pacific over Burlington and Missouri; rates too high for packing-house business, 1476, 1477. Lansing, G. L., Assistant secretary Central Pacific Railroad; copy statement prepared by him showing method of ascertaining earnings of the aided roads, 4513-4516. Copy his letter to Accountant Stevens, as to constructive mileage, 4516, 4517. Lau, H. P., testimony of: Wholesale grocer, 1539. Rebate on sugar, 1539, 1540. Delay in payment; rebate claims against other roads, 1540. , ANALYTICAL INDEX. 5463 Lett, Henry C, testimony of: Superintendent of stone department; Iris duties; the Stout and Buck Horn quar ries, 2050. Purchase by Union Pacific from Stout; improvements ; switches always put in when asked for by competing quarries ; Union Pacific owns about 320 acres in all, 2051. Others get same freight rate as stone depart ment ; department has trouble in getting cars ; no rates made to enable de partment to underbid, 2052. Witness7 recommendation to Bradley to pur chase stone of Cheyenne agent, 2052, 2053. Agent for stone on Kansas divis ion ; others can, but none do, sell stone; lack of capital the cause, 2053. Why Bradley was compelled to shut down, 2053, 2054. Freights on stone alike to all; witness ships 300 to 500 cars a month ; employs 300 to 400 men, 2054. Freight and cost of production about equal to selling price; freight charges governed by competition east, 2055. Lowering of freight rates would let in competition, 2055, 2056. Freight charge fixed at the difference between cost of production and selling price ; freight charges to Omaha, $30 to $40 a car; character of labor omployed, 205(5. The company boarding-house ; no in terest in store; no Union Pacific people interested in quarries or stone lands; value of Union Pacific quarrying facilities, 2057. Other quarrymen could compete; offers of facilities to other quarrymeu; why Bradley was referred to Cheyenne agent, 2058. Mr. Hamma's profit for hauling and transferring, 2058, 2059. Railroad agents for stone; get no commission, 2059. Kind of stouo bought by company, 2059, 2060. Special rate on stone : open to evory-body, 2060. The regular public rate, 2060, 2061. ' ' Limberg, Cnarles T., testimony of: Arkansas Valley Smelting Company; their shipments, 2009. Rates; special rates in 1883 came through their connection with the Kansas City works ; 2010,2011. Anew contract; complaints in community concerning freights,2011. Effect of discriminations on business, 2011, 2012. An appeal to the company; refusal to make changes, 2012. No competition between the two roads, 2012. 2013. The Colorado Midland; the pool at present time between Denver and Rio Grande and Denver and South Park, 2013, 2014. Disadvantage of existing rates; wages and fuel expensive, 2014. Railroad competition with drawn ; excessive rates, 2015. Rates not properly adjusted, 2015, 2016. Dis crimination against Arkansas Valley Company, 2016. Diversion of traffic from Denver and South Park to Denver and Rio Grande, 2016,2017. Lockwood, Frederick, testimony of: Secretary and treasurer of Marshall Coal Mining Company, in 1882-'85; 1866. Names of owners; could not get equitable rates, 1837. The rates a matter of special correspondence, 1868. Loveland, W'illiam A. H., testimony of: Was President of Colorado Central; its early history; chartered in 1865, com pleted in 1877: Denver Pacific completed in l868-'69; 1740. Relation be tween Colorado Central and Union Pacific at that time, 1740, 1741. Effect of completion of Colorado Central; diversion of traffic from Denver Pacific; effect on rates; lease of Colorado Central, 1741. Witness owned Rocky Mount ain News from 1878 to 1885; rebates to the News; allowed on account of witness' connection with road, 1742. Arrangement made with S. II. H. Clark, 1742, 1743. Rebates on newspaper material; allowances made while Union Pacific director and after, 1743. When rebate ceased; allowed for about five years ; his paper criticised the rates and tho general policy of the road; also their policy regarding legislation, 1744. Customary to grant rebates; plan of settlement; extension of timo to pay favored; sentiment of community divided on this point, 1745. Assistance required from tho Government, 1745, 1746. Opposition roads taking Union Pacific's business ; dividends declared when road had no competitors, 1746. Denver and South Park a detriment; its future not at all good; reduces earnings of whole system; competition with the Midland road now building; the Colorado Central, 1747. The only valuable feeder in Colorado, 1747, 1748. Greeley, Salt Lake and Pacific; a paying branch; Colorado Central controls business in the Northwest, 1748. No improper diversion of Colorado Central funds, 1865. Gould and Dillon suggested to witness that ho run for governor; alleged use of funds for cam paign expenses, 1866. McAllaster, Benjamin, testimony of: Union Pacific laud commissioner; his duties; why some lands remain nnpat-ented; heretofore taxes not paid on uupatented land ; recent act of Congress taxing all lands in unorganized counties, provided they have been surveyed, 1019,1020. Whether patents should be taken out or not was within the power of the president and directors; in Kansas division many times lands not pat ented until they were sold by the company to individuals, 1020, 1021. This 5464 U. S. PACIFIC RAILWAY COMMISSION. McAllastkr, Benjamin, testimony ofContinued. done in order that it might avoid the local tax ; other officials of land depart ment ; witness in charge of Kansas division since 1875; delay of Government in issuing patents; since 1881 company has applied for patents for nearly a million acres of land and paid the fees, hut got no patents, 1021. Method of payment of taxes; hy cash or cashier's check, 1022. County treasurer notifies land commissioner, and then the laud commissioner the cashier ; ap plications for land greater than patents issued, 10*23. Kansas land& uutaxable and un patented in uninhabited localities, 1024. Uu selected unsurveyed lands covered by land-grant mortgage ; the books containing laud accounts; mode of keeping the books, 1025, 1026. McBride, Joseph C. testimony of: In real estate business at Lincoln, Nebr.; sentiment of community, 1522. Natnro of complaints, 1522,1523, Discrimination against communities; discrimina tion against individuals ; his dealings with town-site companies, 1523. Com pany not interested in town-sites, 1523, 1524. Donations of lands for depots, etc.; city aid to road ; plan of settlement; favors closing out the road; in fluencing legislation, 1525. Railroad pool to influence legislation; witness never saw money paid ; a " yea and nay " list, 1525. Methods of the railroad pool, 1525, 1526. The part Mr. Stout took; the road active in the senatorial election, 1526. *The part Mr. Thurstou took ; complaint of the agricultural interests; rebates, 1527. McDowell, Alexander J. His report to the Commission on the books and accounts of the Union Pacific Railway Company at Omaha, Nebr., 5259. Drawhacks, overcharges, and rebates, summary of for years 1868-'S6; 5262. Pool settlements, amounts paid, years 188l-'8'i; 5262. Freight and passenger earnings from 1867 to 1886, summary of, 5263. Constructive mileage allowances by Union Pacific to auxiliary roads, state ment of, 5264. Earnings and expenses of Union Pacific, detailed statement of, years 1867 to 1886, inclusive, 5266. Gross freight receipts (same period), 5267,5268. Gross passenger receipts (same period), 5268, 5269. Miscellaneous receipts (same period), 5270, 5271. Mail earnings and express receipts, 5272. Pool settlements, years 1881-'84, detailed statement of, 5275, 5276. Insufficient voucher, $10,000 to C. S. Bushnell, 5277. Auxiliary roads, details of construction of, years 1877 to 1886, inclusive, with comments and explanations by accountant, copies of letters, vouchers, etc., 5277-5295. Construction and equipment of operated lines, expenditures for, years 1880- '86; 5296. (Same) of main lino, years 1867-'86; 5297. McShane, John A., testimony of: Connected with Union Stock Yards Co., 1430. Business relations with road since .1872; 1430,1431. Has heard complaints against special rates; thinks first-mortgage bonds will take property at maturity, and Government's lien and stockholders' interest will be wiped out, 1431. Manchester, John R., testimony of: Claim agent of Union Pacific ; duties of claim agents; visited legislature three times on hehalf of company, 1293,1294. His salary then $200 a month; got nothing additional; Nebraska railroad legislation last session ; bill No. 192 to create a commission to fix rates, 1294. Arguments used against it, 1294, 1295. Many, other bills of same character; bill to prohibit discriminations hy company, 1295. Knows of no legislative "oil-rooni," 1295, 1296. Enter taining legislators with talk; expenses paid by Thurston; never used money to influence legislation ; procured passes for members and their friends, 1296. 1297. Probably four hundred passes; no special instruction how to act, 1297. Purpose of hostile legislation, 1297, 1298. Not generally pressed in good faith ; the Watson bill for a commission, 1298. Passes issued because asked for, 1298, 1299. The pass system onerous; can nofc give reason why his expenses at Lincoln were not itemized and vouched; practice of Union Pacific like that of other roads as to passes ; passes to hostile members, 1299. Martin, John IL, testimony of: Paid tariff rates, 1915. Special rates to competitors, 1915, 1916. Effect of rebate and special rates on competitors, 1916. Circular of Estabrook & Co.; effect on witness's business, 1917. Denial by the Union Pacific, 1917. Equal iza tion rates to Cornforth & Co., 1918. Why Union Pacific worked against wit ness; suing the road7 19L8. Result of the suit; discriminated against,for ANALYTICAL INDEX. 5465 Martin, John H., testimony ofContinued. sixteen years, 1919. Making charges and having trouble, 1919, 1920. Cheap rates indnce growth of population, 1920. The people taxed to pay interest aud dividends, 1920, 1921. Better rates wanted to Denver, 1921,1922. Road should be sold out; objects to Government running the road, 1922. Injuries to Denver by reason of rates, 1981. Mason, O. P., testimony of: Secretary of Nebraska State railroad commission, 1510. Rebates and special rates, 1510,1511. Discrimination against way freights; interstate commerce law increases way-freight rates, 1511. Railway commission of Nebraska, 1511, 1512. Complaint* against the road, 1513. Public sentiment, 1512. Railroad's interest in water-power afc Blue Springs, 1512,1513. Railway offi cers interested in town site companies, 1513. Interference in primary elect tions; influencing legislation, 1514. Facilities and accommodations, 1514, 1515. Comparison of'business of inain and branch lines; land speculators; railroad facilities throughout the State, 1515. Effect of multiplication of roads on freight rates, lf)15,1516. Competition in rates between roads; pools, 1516. Favors foreclosure, 1516,1517. Effect of such settlement; Mr. Gould's offer of -30,000,000, 1517. Benefits of such settlement to whole community, 1517. 1518. Basis of settlement, the margin over first mortgage; value of road per mile, 1518. Lower freight rates as traffic increases, 1518,1519. Mead, A. J., testimony of: Grain and elevator business; Kansas City board of trade, 1648. Two local rates exceed through rates, 1648, 1649. Difference of rates; never got special rates or rebates, 1649. Middleditii, James, testimony of: His preliminary statement, 1000. Stockholders not legally entitled to the $28, 000,000 of Union Pacific dividends, 1001. Decision of Chief-Justice Waite; dividends illegal when in debt; branch lines, 1002. Securities sold to re duce floating debt; the Government lien covers all assets, 1003. The guar auty of bonds a violation of act of 1873; 1004 Tho branch lines subject to Government lieu, 1005. The branch lines a detriment, 1006. Amount invested in branch lines; unsold lands; act of 1862; 1007. Validity of land-grant mortgages, 1008. Loss of $1,012,000; 1009. Payment to Mr. French* 1010. Conferences with Mr. Reddington, 1010, 1011. Govern ment lien extends over all branches of Union Pacific, 3886. Scope of the original lien ; claim that lien was extended by Thurman act, 3887. Judge Edmunds says Union Pacific repeatedly violated Thurman act, 3887, 3888. Claim that Government loses $111,000,000 by a settlement at 3 or 3- per cent.; believes in making an extension of the debt; as to manner of computing debt in Outhwaite bill, 3888, 3839. His communication to the New York World, 3889, 3890. Particulars of Union Pacific's violations of the act of 1873; 3890. As to violation of tho Thurman act; as to division of Kansas Pacific earnings by Mr. Adams, 3-91. Miller, Edward H., Jr., testimony of: Secretary of Central Pacific since 1864 ; Central Pacific of California, 2333. Con solidation of 1870; Companies included, 2334. Articles of consolidation; officers of the Central Pacific, 2335. Names of counsel, 2335,2336. Its Wash ington counsel,Henry Beard; tho board of directors,2336. Course of con struction, 2336,2337. The Western Pacific ; the San Francisco Bay Railroad, 2337. Commencement of construction of Central Pacific from Sacramento oast, January 1,1863; 2337,2$38. Method of construction; contract of Charles Crocker & Co.; its terms,2338. Custody of the contract, 2338, 2339. Not entered in full on minutes; contract missing, 2339. No means of ascertaining its whereabouts, 2339, 2340. Papers missing owing to frequent use in suits, 2340. Persons having access to vaults containing papers, 2340, 2341. Coun sel employed at times papers were missed, 2341. When contract was last seen, 2341,2342. Other con tracts, 342. Contents of the box of contracts, 2342,2343. A year needed to thoroughly examine tho vault; positive Crocker contract is not in the vault, 2343. The next large contract with Crocker, 2343,2344. Who composed the board of directors; E. B. Crock'er, 2344. Second Crocker contract also missing, 2344, 2345. Statement as to missing contracts, 2345. Does not believe the papers are in the vault, 2345, 2346. Terms of second contract, 2346, 2347. Changes made in contract will appear on company's books;. The Contract and Finance Company, 2347. Special object of its organization, 2347, 2348. Its members; its books,2348. Second contract also missing; witness' testi mony in Coitou case, 2349. Governor Stanford's deposition, 2349, 2350. Terms of Contract aDd Finance Company's con tract; Government bonds sold for ac count Central Pacific, *J350. Cost per mile in securities at par, $100,000; 2350, 53351. Character of securities issued to Contract Company; Tho Western De- 5466 U. S. PACIFIC RAILWAY COMMISSION. Miller, Edward H., Jr., testimony ofContinued. velopment Company ; what'became of Contract and Finance Company, 2351. John F. Miller, 2351, 2352. Books and papers of Contract and Finance Com pany; the Western Development Coinpauy; contract for road from Sacra mento to Niles, 2352. That contract also missing, 2352, 2353. Offices in Sac ramento; construction of California and Oregon branch, 2353. The Pacific Improvement Company, 2353, 2354. Its contract produced, 2354. Copy con tract between the Central Pacific Railroad Company and the Pacific Improve ment Company, 2354-23f,6. Reports made by Stanford, Huntington, Hopkins, and Crocker, 2:557. Purchase of steamers owned by California Pacific; minutes will show the price paid, 2:558. Purchases of officers subsequently ratified by board; Huntington had full power of attorney; books kept by the Central Pacific, 2359. General auditor's books, 2359, 2360. Freight auditor's books; rebate and refund books, 2360. TJie distribution book, 2360,2361. Rebates on separate and distinct vouchers ; receipts and payments of pool contracts, 2361. Land account books; trustees under land-grant mortgage*, 2362. Auditor of motive-power aud machinery, 2362, 2363. The treasurer's books ; lines leased to Central Pacific ; leases canceled in October, 1886; lease of Cen tral by Southern Pacific in February, 1885; 2363. Constructive mileage ac count; minute-books of board of directors; no minutes kept by executive committee ; personnel of execntive committee, 2364. Informal verbal reports to board of directors; method of acting on such reports, 21565. Use of execu tive committee, 2365,2366. Organization of Central Pacific, 2368. Articles of incorporation recorded in minute-book, 2368. Mortgage of July 5,1865; 2368* Amount of bonds outstanding, $'3,378,000; could bo renewed at 3 per cent., possibly at 3 per cen t. at maturity; how secured, 2369. Mortgage of January 1, 1867; 2369,2370. Bonds issued under it; amount outstanding, $ 19.505,000; terms of renewal; no default in payment, of interest, 2370. Same particulars as to mortgage of January 1, 18158; 2370, 2371. Land-grant mortgage of Oc tober 1,1870; 2371, 2372. Mortgage of January 1, 1872; is a confirmation by Central Pacific of mortgage made by California aud Oregon; but one issue un- ' der mortgage of 1868; 2372. Anticipated terms of renewal at maturity, 2372, 2373. Bonds paid to Pacific Improvement Company; mortgage of October 5, 1885; canceled of record, 2373. Mortgage of October 1, 1880; is a second mortgage on land grant; embraces telegraph line and river steamers, 2374. Purpose to which bonds wero applied, 2374, 2375. Mortgage of October 1, 1870, on San Joaquin Valley Branch; mortgage of October 26, 1864 ; 2375. . Extension of these bonds by Mr. Huntington, 2375, 2376. Mortgage of October 23,1865; means provided to take up the $111,000 outstanding bonds; mortgage of October 28,1869; 2376. The San Francisco, Oakland and Alaineda mortgage; unpaid taxes, 2377. Stock issued and unissued; application of issue of $5,000,000 in 1885; 2377, 2378. The last issue, $8,000,000; to what ap plied; amount due Southern Pacific, 2378. Outstanding obligations; produc?tion of papers; list of officers and directors; Huntington powers of attorney, etc., 2379. Construction contract with CyniH Collins & Bro., 2379,2380. Pro duction of papers of other leases of Central Pacific ; of pool agreements, 2380. Papers produced ; estimates of engineer; meaning of ' section," 2453. Ex planation of estimates, 2453, 2454. How the prices were ascertained; how the contractors were paid, 2454. Consideration received by Crocker & Co.; how estimated; location of sections; papers produced; reports of com mittees as to construction contracts, 2455. Statement as to guarantied bonds, 2456. Application of $5,000,000 *f ncreaso of stock, 2456, 2457. Did proceeds go to pay dividends t When and why this increase was made, 2457. To pay off floating debt, 2457, 2458. Papers produced ; reports of officers, 2458. Request for history of construction of road, 2458, 2459. Time required to prepare the statement; with vouchers, 2459. Statement of witness as to dividends paid by Central Pacific, 2547. Affidavit of witness that Central Pacific has complied with all obligations ef the laws, 2547. Statement of wit ness relative to dividends paid by Central Pacific, 2547. Statement of wit ness showing surplus profits available for dividends from organization to De cember 31, 1884; 2548-2550. Statement of the consideration paid Central Pacific by each stockholder receiving stock and when and in what property such payment was made, 2550-2558. Statement showing from official records the saving to the United States in transportation of mails, troops, munitions of war, supplies, etc., by the construction of the Central-Union Pacific Rail road, 2583-2598. Statement relative to amounts due from the United States for transportation on non-aided roads, 2612-2615. Complete statement of con tracts, 3037. Union Pacific built from Ogden to Promontory Point; Cen tral Pacific statement showing amounts paid in cash, stock, and bonds for different portions of'the road, 3037, 3038. Au analytical statement; state ANALYTICAL INDEX. 5467 Miller, Edward H., Jr., testimony ofContinued. ment showing amounts paid in cash or its equivalent for different portions of the road, also amount per mile, 3038. Money expended before the purchase, 3038, 3039. Each road paralleled the other; Union Pacific received from Cen tral Pacific $2,840,000 iu full for that portion of its road and its interest; $751,000 expended for a parallel tracka dead loss, 3039. Character of the country; at what figure Crocker & Co. took stock; Crocker & Co. succeeded Collins &. Co.; different contractors for sections 21 to 29, 3040. Sections 30 to 54 built by Crocker & Co.; time of payment and terms of contract, 3041. Three-eighths in stock, five-eighths in cash, 3041,3042. The 6tock entered at par; stock for sections 55 to 138 taken at 50; 3042. Stock issued to Contract Company. Total Central Pacific stock paid for construction, 3043. Construction costs $195,000 a mile, 3043, 3044. Work under the Crocker contract, 3044. Copy of detailed estimate for sections 55 to 67, Crocker (fc Co. contract, 3044, 3045. Copy of detailed estimate for sections 68 to 92, Crocker & Co. contract, 3045, 3046. Copy of report of committee appointed to examine into question of con tracting for the grading, 3046,3047. Copy of report of committee upon question of contracting for construction, 3048,3049. Resolution containing rates, 3049. Rates substantially the same as those stated in the estimates, 3049, 3050. What witness then knew of the relations of Crocker & Co. with Contract Com pany, 3050. Copy of report upon the progress of work of constrnction during 1866; 3050, 3051. Grubbing and clearing, $3,000 a mile; cost of first-class ex cavation, 3052. Cost of different classes of excavation; cost of the several classes of masonry; cost of riprap wall; of brick, 3053. Cost of timber and truss bridges, 3053, 3054. Cost of track-laying; work entirely in rock on a steep side hill, 3054. Character of the country; clearing away the snow to get at the earth; most difficult work on east side of the summit, 3055. Esti mate on north and south sides of Donner Lake, 3055,3056. Copy of approxi mate estimate of cost of constructing road on north line (14,000 feet) from Summit (east), including cost of Summit tunnel, 3056. Copy of approximate estimate of constructing road on south line (14,000 feet) from Summit (east), including cost of Summit tunnel. Tunnel at lower ond of Donner Lake and 2i miles of increased distance, 3057. "Snow protection" explained, 3057. Central Pacific constructed its own sheds, 3057. Contracts with Development Company and Contract Company; pencil-marks on the exhibits, 3058. Esti mate for sections 93 to 138; 3059. Engineer's reports show work done beyond section 138; character of the country, 3060. Was cost of grubbing and clear ing $2,000 or $200 a mile ? 3060, 3061. Work east of State line done by Con tract Company, 3061. Witness did not know who owned the stock of that company, 3061, 3062. Proceedings of board of directors of Central Pacific, 3062. Terms of contract with Contract Company, 3062, 3063. Character of the country; personnel and practice of the auditing committee, 3063. Mr. Crocker's bill for extra work, 3063, 3064. Resolution to increase Central Pa cific stock, 3064. Question of increase submitted to stockholders and ap proved, 3064, 3065. Resolution ratifying acts of the board; Contract Com pany's bill for building snow-Bheds, 3065. Proceedings of board of directors approving same; resolution adopted ratifying two contracts with Telegraph Company ; arrangements as to telegraph business, 3066. Telegraphing prior to contract done by Central Pacific, 3066, 3067. Resolutions approving ex penditures as judicious, 3067. Disbursements and expenditures as appear ing upon books, 3067,3068. Resolution ratifying all acts of Huntington as agent; witness never questioned Huntington's statements of account, 3068; authorization to purchase interest of California Pacitic in certain steamers, 3069. The controlling stockholders in that road, 3069, 3070. Subsequent his tory of the steamers, 3070. Extract from minutes concerning charges made in Brannan suit, 3070, 3071. Proceedings of anti-Brannan meeting of stock?holders; who were present, 3071. What the resolution amounted to, 3071, 3072. Resolution ratifying acts of President Stanford, 3072, 3073. List of stockholders and number of shares voting on the proposition, 3073. Voting on proxies at the meeting, 3073, 3074. Large stockholders present in person; the transactions as to which the release was given, 3074. Investment of sinking-fund of Central Pacific in Southern Pacific bonds; number of Southern Pacific bonds in Central Pacific sinking fund, 3075. Contract with Pullman Palace Car Company, 3075, 3076. Purchase of construction outfit of Pacific Improvo-ment Company, 3076. Resolution releasing Stanford, Huntington and Crocker for expenditures for which there were no vouchers, 3076, 3077. Releases in prior cases, 3077. Class of expenditures covered by release, 3077,3078. Nature of payments; statements and vouchers not questioned by witness, 3078. Ex planation of Huntington's report of stock sales, 3078, 3079. Leases of the Northern Railway, 3079. Rent paid and allowance for repairs, 3079, 3080. 5468 U. S. PACIFIC RAILWAY COMMISSION. Miller, Edward H., Jr., testimony ofContinued. Lease profitable to the Northern road; operation of Central Pacific, bcforo and after its lease of April, 1885; 3080. Southern Pacilic of Arizona and New Mexico leaso, 3081, 3082. How tho Central Pacific was fixed, 3081. Leasing of bridge over Colorado River, 3081, 3082* Division of rates between steamers and Southern Pacific; rates on Rocky Mountain coal, 3082. Rate fixed by general manager, 3082, 3083. Rocky Mountain Coal Company had a monop oly ; express business controlled by Wells, Fargo & Co., 3083. San Francisco and Bay Railroad, its issue of stock, 3083. Relations between Central Pacific and Government; sinking fund; witness disagrees with Government officials, 3084. Can not oxplain Government account, 3084, 3085. The Government overpaid $500,000, perhaps $1,000,000; settlement with Railroad Commis sioner unsatisfactory to witness, 3085. Plau of settlement, 3085, 3086. Gov ernment should wipe out debt, or require payment of principal only, giving at least fifty years extension; company can not pay over $600,000 or $700,000 yearly; earning power of aided branch, 3086. Difficulty with the Government, 3086, 30b7. Witness illustrates trouble with tho Gov ernment; Government accounts not kept on any correct principle, 3087; The notes held by Contract and Finance Company, 3438. Resolution under date January 20,1871, to sell or exchange land bonds, 3438, 3439. All the bonds issued to Contract and Finauce Company; total proceeds of all the as sets ; were they insufficient to pay indebtedness to Contract and Financo Com pany ; date of issue of notes in 1869; 3439. Amount of the notes issued about $6,000,000; 3439,3440. Statement of proceeds of sale of lands obtained from trustees of the mortgage; printed reports of land agent contain all information on subject of sales; copy statement of land-grant bonds sold and redeemed, 3440. Copy statement of land-grant bonds redeemed with proceeds of land sales; land grant mortgage property, 3441. Rate of interest on land-grant contracts, now either 6 or 7 per cent., 3441, 3442. Interest p:ud oat ot general earnings; amount of land undisposed of, not known by wit ness; expenses of land department from $50,000 to $100,000 a year; land-agents' compensation from $3,000 to $7,000 a year; rate of interest at timo of exchange of bonds for notes 10 per cent., 3442. Value of land-graut bonds below par; memoranda of terms of leases, 3143. Central Pacific to Southern Pacific; Southern Pacific of Arizona to Central Pacific; Southern Pacific of New Mexico to Central Pacific, 3443. Southern Pacific to Central Pacific, 3443, 3444. Berkeley Branch to Central Pacific; Amador Branch to Central Pacific; Los Angeles and San Diego to Central Pacific; Los Angeles and Independence to Central Pacific, 3444. San Pablo and Tnlare to Central Pacific; California Pacific to Central Pacific ; California Pacifio to Central Pacific and Southern Pacific, 3445. Northern Railway to Central Pacific, 3445, 3446. Copy agreement between the Southern Pacific Company (of Ken tucky), and the Central Pacific Railroad Company, dated February 17, 1835; 3446-3449. Copy statement regarding leased lines, 3449-3451. Copy "State ment showing profit to Central Pacific from leased lines from 1880 to 1880; Copy statement of earnings and expenses of leased lines; Amador Branch Railroad; California Pacific Railroad; Northern Railway, 3451. San Pablo and Tulare Railroad; Los Angeles and Independence Railroad; Los Angeles and San Diego Railroad; Stockton and Copperopolis Railroad, 3452. Sacra mento and Placerville Railroad; Southern Pacific Railroad ; copy statement regarding United States transportation accounts, 3453-3456. Settlements made by U. S. Commissioner of Railroads for requirements, account of trans-* portation charges, 5 per cent, of net earnings and sinking fund account, 3455, 3456. Statement; of gross freight and passenger receipts, and amounts pooled and not pooled, 3456. An illustration, 3457. The statement made up in the freight office, 3457, 3458. The statement withdrawn; copy statement of amounts of capital stock issued, showing disposition of same, 3458, 3459. Consolidated stock issued to branch-lines stockholders on surrender of old cer tificates; Contract and Finance Company a large holder of branch-lines stock, 3459. Statement of Central Pacific sinking-funds securities, 3459-3461. Bonds of Southern Pacific of New Mexico well secured ; a good investment; can not default, 3460. Bonds of Southern Pacific of Kentucky acquired for sinking-fund at different dates; worth more than par, 3460, 3461. Bonds of Galveston, Harrisbnrg, and San Antonio road listed ; worth considerably more than par; statement of securities in sinking funds of Central Pacific; the California law that sinking funds shall be provided for railroad mort-gages,3461, 3462. Copy stntomontof funded debt in detail, December 31,1886 ; ' 3463. Bonds of San Francisco sold below par; cost of collecting these bonds, nearly $100,000 ; rate of interest. 6 or 7 per cent.; the contracts all furnished, 3464. Statement relating to land entries, 3464, 3465. Reference to his state* ANALYTICAL INDEX. 5469 Miller, Edward H., Jr., testimony ofContinued. ment annexed to Stanford's testimony, 34(i5, 3406. The leases profitable to Ceutral Pacific, 3466. Method of computing gross earnings, 3467. Deduc tions made to ascertain gross receipts, 3467, 3468. Difference between re?ceipts of 1884 aad 1885; explanation of entries in the books, 3468, 3469. Messrs. Gray aud Stubbs control what routes freight shall go by, 3469. Prac tical operation of Central Pacific lease to bo shown, 3469, 3470. Copy state ment of bonds of leased lines guarantied by the Ceutral Pacific, 3470, 3471. Progress of construction of Central Pacific in 1863; financial condition, 3551. Preliminary expenses paid out of stock subscriptions ; total outside subscriptions to stock, $312,700, 3551. Subscription of D. W. Strong; the alleged refusal to show Strong the stock book; contract with Charles Crocker & Company, 3552. Contracts lor sections 19 to 138; cost of constructing sec tions 1 to Id; failuro to complete contract for sections 19 and 20; cost of constructing sections 30 and 31, 3553. Amount paid for sections 32 to 138, 3553. Witness's figures larger than those used by Commissioner Anderson in his examination of Governor Stanford, 3554. Payments to Charles Crocker & Company havo not cripple- the road, 3554. Central Pacific books show the terms of the contract, 3554,3555. Object in forming the Contract and Fi-nace Company; amounts paid Contract and Finance Company; amounts paid ) the several contractors, 3555. Available resources; how expended, 3555,3556. Moneys received from sale of stock, 3556. Cash payments on construction, 3556, 35o7. Always loyal to the interests of the Central Pacific; strict busi ness relations of Central Pacific and Contract and Finance Companies, 3557. No particular efforts to obtain other contractors, 3557, 3558. Efforts were made to obtain stockholders in Contract and Finance Company; financial con dition of contractors during the work; amount of supplies in transit; finan cial condition of Contral Pacific, July, 1868; 3558. Prices paid for materials between 1862 and 1889; 3558, 3559. Spikes and fastenings; ties, hay, aud grain ; present prices of rails, 3559. Grading from Salt Lake to Promontory Point a loss to the company, 3559, 3560. Prices paid in Utah for materials; the question of time an important factor; accounts of freight for Salt Lake division, 3560. Pricesof wood, lumber, provisions, and labor; floating debt, May 1869; 3561. Cost of locomotives, 3561. Monetary arrangements with construction companies; not banking business, 3561,3562. Advantages to Central Pacific; investment of the sinking fund, 3562. Advantageous terms made with construction companies, 3562, 3563, 3565. A case in point, 3563. The usual charge, 10 per cent, added to cost, 3563, 3564. The company could not havo dono its own construction so advantageously to itself; construction companies beneficial, 3564. Charged only actual cost, 3564, 3565. The ar rangement decidedly beneficial to the road; cost of snow galleries and snow sheds, 3565. No diversion of assets, 3565, 3560. Constructive mileage allow ance ; illustration of its workings, 3566. Discontinuance of constructive mileage to certain roads, 3566, 3567. Refusal of Government to pay for trans portation over leased lines; nearly $2,000,000 now due from Government to Central Pacific for transportation withheld; Government does not pay fair, reasonable, compensation, 3567. Former average cost per annnmof Govern ment transportation; reference to one of the exhibits annexed to Stanford's statement, 3567, 3568. Letter dated January 12,1884, from Abraham Lincoln, fixing the base of the mountains, 3568 Letter dated March 23,1863, from State geologist upon the same subject, 3568, 3569. Letter dated April 30,1863, from U. S. surveyor-general for California, 3569f Letter dated June 29,1863, from State surveyor-general; no affidavits required in connection with fixing the base, 3570. Gross earnings and gross receipts of Central Pacific, 3570, 3571. Accounts so kept as to show net earnings of aided roads, 3571, 3572. No effort to impair Government's interest, 3572. Copy resolution directors Central Pacific Railroad, passed June 6, 1865, relating to the contract of Charles Crocker & Company, 4308, 4309. Miller, Elisha S., testimony of: Book-keeper of the Southern Pacific Company, 3028. Daily cash statements fur nished, 3020, 3027. Explains the meaning of " tags," 3027. Miller, George L., statement of: History of the Union Pacific, 1355, 1356. Conditions in trans-Missouri country previous to advent of Union Pacific and for some time afterwards; Nebraska in 1854. Discovery of gold in Colorado brings traffic ; supplies to miners car ried at enormons cost, 1356. Mineral development in Colorado, 135(3, 1357. Lands practically worthless over this vast area of 70,000 square iriles; In dian wars; the locomotive subdued the savage; relative value of land in 1869 and Ifc87; 1357. Relations of peoplo to railroad ; in many cases the feel ing sharply antagonistic, 1357, 1358. Prosperity of thoso dependent on Union 5470 U. S. PACIFIC RAILWAY COMMISSION Miller, George L., testimony ofContinued. Pacific ; high rates on short hauls; failure of Union Pacific to occupy terri tory, 1358. The richest part of Nebraska occupied by the Chicago andNorth-. western and the Burlington and Missouri, 1358, 1359. Needs of the Union Pacific; above all things, the construction of branch lines; these may be made an additional security; dividends too large; strengthen the credit of the Union Pacific, 1359. Interests of the people fostered, 1359, 1360. Integ rity of local management, 1360. Miller, Jcmy, testimony of: Clerk of California Pacific in 1870; 2875, 2876. Employed by Contract Company; made entries in the " construction and repairs " books; secretary of Contract Company in 1873; 2876. His duties; description of company's books, 2877. Charles Crocker & Co.'s books kept separate, 2877,2878. Used now books with balances brought forward ; the entries made by witness; 100 balances carried forward, 2878. Books turned over were brand-new books; disap pearance of old books of Contract Company, 2879. Disappeared during lunch . time, 2879/2880. Witness had abstracts of principal accounts in old books ; destroyed because of no value; what they showed, 2880. Office removed to San Francisco; no re-appearance of the old books, 2881. General nature of the entries, 2881,2882. Witness was also secretary of Development Company. Transfer of business, 2882. Duties as secretary of Development Company. Principal contract that was assigned relates to Southern Pacific extension; accounts of Contract Company adjusted by witness, 2883. First entries in Development Company's books; Contract and Finance Company's books the source of information, 2884. Witness's associates i n the office; statcmen t made by Mr. Brown; refers to new books; witness explains his first entries, 2885, 2886. Transfer of balances from Brown's books; relations between wit ness and Mr. Curtis, 2886. Their recent meeting, 2886.2887. Their conversa tion ; a good thing for the company that the contract was destroyed; no knowledge of other books, 2887. His employment of Mr. Curtis; criminally prosecuted and declared innocent; the personal claim had already been ad justed; 10,000 shares Development Company's stock owned by Mark Hopkins in witness's name; receipt of "N. Greene Curtis" to Central Pacific Com pany ; no extra services performed by witness for Development Company, 2889. Names Central Pacific officers he has talked with concerning his testimony ; conversed with Mr. Yost; spoke to the deputy marshal, 2890, 2891. Negotia tions between witness and Central Pacific as to settlement of his case; impor tuned by Kennedy to buy property, 2891. Calling the account square, 2891. 2892. Miller, William H., testimony or: Secretary of Board of Trade of Kansas City, Mo., 1651. Com plaints of high rates on Kansas Pacific, 1651, 1652. Favors to Toledo grain firm; effect on grain market, 1652. Pools; their effect to raise rates, 1653. Higher rates charged by roads west of the Missouri, 1653, 1654. The Colorado pool; through rate higher than two locals; how rectified, 1654. Effect of through rates on grain shipments, 1654, 1655. General low through rates an advantage; plan of settlement; favors extension of time, 1655. Debt should be paid before de claring dividends, 1656. Mills, Darius, O., testimony of: President of the Bank of California for some years ; acquainted with Central Pa cific since i ts incorporation, 3488,3489. General knowledge of its construction - and financial affairs during that time, 3488, 3489. Declined overtures to take 1 an interest; cause of such declination; rate of interest charged Central Pa cific at least 1 per cent, per month, 3489. Offered a controlling interest after its construction, about 1873; 3489,3490. Terms of the offer; great difficulties, financial ami physical, encountered in construction from Sacramento to Promontory Point, 3490. Test of the market value of stock, 3490, 3491. Effect of putting a largo amount on the market at once; Union Pacific stock more active than Central Pacific, 3491. Financial standing of projectors of Central Pacific, 3491, 3492. Difficulty of borrowing money during construc tion; no difficulty in borrowing on Government bonds, 3492. Transactions in first-mortgage bonds from 1866 to 1869 ; knows of none in San Francisco; hearsay knowledge of some in New York; bonds not rated high for loans, 3492, 3493. Depreciated price of Government, first-mortgage, and county bonds, 3493. Difficulty of obtaining loans on them, 3493, 494. Slow sale of bonds first issued, 3494. Bank of California books do not show names of indorsers who receive or present checks, 3494, 3495. Progress of road ex plained to witness when offered an interest; Contract and Finance Company was doing tho construction; interest offered in both Contract and Financo and Central Pacific Companies, 3495. Had all the data in view, 3495, 3496. ANALYTICAL INDEX. 5471 Mills, Darius O., testimony of Continued. Production of copy of proposal called for; proposed to buy 80 per cent, of Central Pacific stock at rato of $25,000,000 for the whole, 3496. Mr. Stanford to retain 20 per cent, of stock, 3496, 3497. The property of the road went with the stock; proposed purchase had no relation to bonds already issued, 3497. Sales of stock dependent on influences on the market, 3497, 3498. Larger amounts of stock sell for lower price, 3498. Failnre of negotiations through disagreement, 3498, 3499. Report of president of Central Pacific in 1865 not recalled by witness, 3499. Several years connected with Wells, Fargo & Co., 3499. Pacific Express; was in organization of, in 1869; Contract and Finance Company; recalls no information as to its object and pur pose when formed; terms of proposal to sell part of Central Pacific stock, 3500. Mills, William H., testimony of: Land agent of Central Pacific ; Lis duties, 2409. 13. B. Bedding's administration, 2409,2410. Books of land department; amount of land patented and dis posed of, 2410. Amount applied for and un pa ten ted, 2410, 2411. How applica tions are made; suspensions for further examination, 2411. Effect of failure to make survey, 2411, 2412. Method of making selections; policy of company in regard to applications, 2412. To urge the issuance of patents, 2412,2413. The early occupancy of the land a consideration in selections; when taxes are due on patented lands, 2413. Amount of original grant to the Central Pacific about 9,000,000 acres, 2414. Reduced to 7,500,000 acres by Government de lineations ; amount of grant in California, 2414. The California and Oregon grant; amount of land disposed of about 1,321,000 acres ; amount received therefor about $2,000,000; 2415. Value of land remaining undisposed of about $4,000,000; 2415, 2416. Settlers invited to go upon unpatented lands; leases of unpatented lands, 2416. Income derived therefrom, 2416, 2417. Map of land-grant of Nevada; company's title to unpatented lands; right of possession, 2417. Decision in Utah confirming lease to Promontory Stock Company, 2417, 2418. Terms of leases ; division of Nevada lands into grazing ranges, 2418. The reason of such division, 2418, 2419. Area of ranges ; all set tlers, except those in grazing business, excluded; the water *' bodied up" under law of Nevada, 2419,2420. lint two large ranges sold in Nevada, 2420. Seem ing discrepancy as to character of these lands with report for 1882; 2420, 2421. No description of land in subsequent reports ; value of unsold lands on main line in report of 1885, $24,000,000 ; value of California and Oregon grant, 2421. Value of aggregate of lauds unsold, $12.500,000; 2421,2422. Annual reports: Government land-grant the only one, 2422. No purchases of mineral land-grant by the company, 2422,2423. Title to Wyoming coal-lands; description of tl)o land-grant map, 2423. Leases of mineral land, 2423. Avoidance of tax ation of land, 2424. Policy in regard to disposal of land, 2424. Failure to patent lands duo to tardiness of Government, 2424, 2425. Land entries and location of lands; witness refers to his deposition submitted with. Governor Stanford's evidence, 2425. The land-fund, 2425, 2426. No land-grant from California; grant of terminal facilities at Mission Bay; waterfront at Sacra mento, 2426. No State land-grant before consolidation, 2426, 2427. Central Pacific vs. L. B. Adams; lessees of large ranges, 2427. Table showing aggre gate acres selected by and patented to Central Pacific, and Central Pacific as successor to California and Oregon, at end of each half year, from earliest date to January 1, 1887, and during the five months thence ensuing, ending June 1, 1887 ; 2428. Sworn statement of witness relative to lands of Central Pacific, 25582570. Sales of land of Central Pacific to President Stanford, 3597, 3598. Unsurveyed laud in Butte and Tehama Counties, 3597, 3598. The sales impartially conducted; sale of land on opposite side of Sacramento River, 3598. The " Promontory Range," 3598,3599. Abortive sale of southern X)ortion of the range ; default of Tarpey & Phillips on their purchase; contract surrendered, 3599. An option to Tarpey, 3599, 3600. Sale to representative of Charles Crocker; effect of Tarpey's option; price to Mr. Crocker higher than previously asked, 3600. Receipts and expenses of land department from dato of grant to August 1, 1887; 3600, 3601. Total receipts, $7,560,478.45; 3600. Total expenses (oxcludiug interest), $1,029,876.73; 3601. Requirements of Commissioner of General Land Office; the act of July 10,1876; 3601. Mink, Oliver W., testimony of: Copy of his letter to the commission as to the exchange of Denver Pacific stock, dated May 11, 18-7; 305-307. Minutes of meeting Union Pacific directors, January 24, 1880 ; 307-311. Copy articles of consolidation, 307-310. Minutes meeting Kansas Pacific directors, January 24, 1830; 311-313. Minutes meet ing Denver Pacific directors, January 24,1880; 313,314. Union Pacific profit on Denver Pacific stock in its treasury, 314. Purchase by Kansas Pacific 5472 U. S. PACIFIC RAILWAY COMMISSION. Mink, Olivkii W., testimony of Continued. Company of Saint Joseph and Western stock and various other securities, 315. Including $784,000 Saint Joseph Bridge bonds, 316. The $7,000,000 Saint Joseph and Grand Island bonds; interest guarantied by the Union Pa-cilic, 317. Tho road's ability to pay interest, 317,318. The consideration for the guaranty, 318. Copy of Dodge and Humphrey's report on tho advisa bility of Kansas Pacific consolidation, 318,319. Witness's connection with Union Pacific ; duties as comptroller, 597. How the books are kept in Boston; everything summarized there; details of operation and maintenance at Omaha, 598. Pool settlements kept in books at Omaha; only pool balances in Boston books, 599. Construction accounts; where original repair" entries are kept; location of heads of subordinate departments; constructive mile age accounts at Omaha, 600. Where the vouchers are kept, 601. Miscella neous expense accounts; relative to gross earnings ; accounts of rebates at Omaha; no constructive mileage account, 602. How the constructive mile age is determined, 609. Road received millions at Omaha, paid out probably half as much; concerning now system of computing mileage, 610. State ment of gross earnings of Union Pacific on tratnc interchanged with branch lines in 1886; 616. Tho parent company's proportion of earnings; gross earn?ings, 617. Branch roads deficits, 618. Earnings of Union Pacific ou its investments in bonds and stocks of branch lines in 18*6; enumeration of securities, 619. Branch lines paid 11 per cent, in 1886; 619, 623. Net earn ings of branch lines, 1886; 6*20. Roads not self-supporting; self-supporting roads, 621. Tho branch lines as feeders, 622. Trans-continental business ; gross earnings of Union Pacific in 1886, 624. Benefits of branch lines, 625. Amount earned on branch-lino business, 626. Concerning amounts received from pool contracts; as to rebates, 627. Payment by Union Pacific of $916,704.02 to the Government, 628. Why no such item appears in the Gov ernment books, 629. Concerning floating debt account; system of book keeping in Union Pacific, 630. No agreements affecting earnings other than constructive mileage and pooling arrangements; legal expense acount, 631, 632. Boston vouchers for 1883-'85; payment 1o M. E. Olinstead; interest of Union Pacific in keeping Credit Mobil ier alive, 632. Organization of law department, 633. The attorneys and their salaries, 633-636; branch lines of which Union Pacific owned all the stock, 636. Net earnings of auxiliary lines for 1886; 637. Table of gross and net earnings Kansas Pacific division for 1869; 782, 783. Expense items, 783-785. Conducting transportation ; motive power, 783. Maintenance of cars; maintenance of way ; renewal of rails; general expenses and taxes, 784. Construction expenses; table of gross aud net earnings, Kansas Pacific for 1870; 785. Construction expenses; its bear ing on Government's 5 per cent., 786. Gross and net earnings and construction, expenses for years subsequent to 1870; 7f6-788. The manner of stating the account with the Government, 788. Tho Omaha Bridge; the question of the rato ef transportation across it, 789. Gross and not earn ings for 1883 and 1884; Gross and net earnings for 1885; 790. Gross and net earnings for 1886 ; 791. Methods of keeping accounts of branch lines, 79*2. Statement of free trans portation, Union Pacific, during 1885 aud 1886; 792-796. Statement of con structive mileage allowances, October 11,1886; 797. Commencement of operation of 5 per cent, rule, November 5, 18'j9 ; 798. Gcoss and net earnings of Union Pacific for 1870; 798, 799. Gross and net earnings of UnioYi Pacific from 1871 to 1886; 799-801. Statement of original issue of Kansas Pacific stock; date of issue and to whom issued, 872,873. Statement as to issue of 6,242 shares for interest on consolidated bonds, 874,875. Statement of original issues of stock by Union Pacific R. R. Co., date, amount, and to whom issued, 875-885. Issue of $4,000,000 Denver Pacific; total stock of Union Pacific Rwy. Co., issue of stock in 1831; 835. For which tho company realized cash ; which was applied to construction of 235.4 miles branch lines and grading of 149.5 miles; reference to page 14,report of 1831; 836. UuionPacific R. K.; state ment of debits to installment account; a recapitulation showing actual issue of stock, with amounts and dates, 836,837. Statement of divideuds paid by tho Union Pacific Railroad and the Uuiou Pacific Railway to April 1, 1884, as shown by company's books; divideuds declared by branch lines, 888. Memo randum in relation to United States transportation, 889, 890. Credits the Union Pacific is entitled to, 890-894. Matters in controversy between the Government and Union Pacific, 94. Suits pending in Court of Claims,895. Gross aggregate charges for Government transportation,$26,000,000; $4,000,000 received in cash; balance should bo to company's credit,896. Statement showing relativo earnings of Union Pacific and Kansas Pacific divisions for )'? 1879-'82; 897, t)98. Statement showing net income of auxiliary lint's; estimated net earnings of parent company from interchanged traffic; aud interest ac- ANALYTICAL INDEX. 5473 Mink, Olivek W., testimony ofQontinued. crued on bonds issued on such lines; and in the sanio connection interest actually payable on bonds thus issued, but uot owned by the Union Pacific, 899. Constructive mileage in the accounts, 900. Concerning balance sheet of 1886; 900,901. Concerning floating debt account, 902. Cost of Denver, South Park and Pacific, 902, 903. Copy of contract between Denver, South Park and Pacific R. R. Co. and Denver and South Park Construction Company, 903. Letters as to Gould's purchase from Evans, 904. Details of the construc tion account, 904-906. Legal expense vouchers, particulars of, 906-934. Pay ments to Allen, W.F., 909, 911. Armstrong, George, 910. Atkins, E., 927. Atkinson, Edward, 911. Baker, IT. M., 921. Bartlett. S., 929. Bell, Mr., 909. Bell, Clark, 911. Black, J. S., 908. Blair, F. P., 913. Blair, Montgomery, 911. Brooks, James, 912. Burrill, Davidson, and Burrill, 9.U. Bnshnell, C. S., 909, 915. Butler, B. F., 908, 909. Chandler, W. E., 911, 918, 919, 921,925. Dillon, Sidney, 920,923,925,926,928, 929,930,934. Eldridge, Charles A., 925. Emott, Burnett, and Hammond, 919. Emott and Hammond, 909. Emott, Hammond, and Pomerov, 909,914. Ewing Thomas, 909. Farnsworth, J. F., 920, 924. Gray, H. Vf., 909. Ham Brothers, 918, 919. Hani, James M., 926. Ham mond, H.B.,910. Hammond and Pomeroy, 910, 914. Hayes, Wingate, 910. Henderson, J. B., 931. Hill, B. H., 937. Jenks, G. A., 915. Jennings, J. W., 924. Latham, H., 914. Lincoln, W. S., 924. Lord, Daniel, 907. Martin, W. R., 923. Meado, E. R., 929, 931,932, 933. Merritt, J. ., 932. McFarland, 909. Olmstead, M. E., 932. Painter, U. H., 916, 917,922. Poase.L.P.,915. Rhodes, George, 922. Roach, A. S., 926. Bobbins, R. E., 918. Rollins, E. H., 913, 915. Rosenkranes, E. II., 907. Sawyer, F. A., 921. Shellabarger and Wilson, 921. Sherman, C. F., 908. Spence, B. W., 915. Stewart, J. B., 929. Stoughton, E. W., 919. Thayer, J.M., 918. Tilden, S. J., 909. Town-ley, W. H., 933. Tracy, Charles, 909. Tracy and Olmstead, 909, 912. Van-derpoel, A. J., 90y. Van Zandt, Mr., 909. Van Zandt, C. C, 910. Van Zandt and Jenks, 909. Walker and Stanton, 907. Ward, Samuel, 927, 028. Warden, W. W., 916. Williams, A. L., 933. Williams, J. M. S., 914. Wil son, James F., 924. Worcester, J. II., 918. Total securities of Union Pacific ; their market value, 934. Disposition of the securities; letter from witness to Commission as to consideration paid to Denver Pacific by original subscrib ers, 935. Union Pacific securities ; stocks and bonds owned by company, 952-960. Table showing credits for transportation* to Union Pacific Company; Central Branch Union Pacific, and Kansas Pacific; and amounts covered into United States Treasury to credit of sinking fund of Union Pacific (to March 31,1887), 952, 963. Gould's account current with Kansas Pacific, Union Pa cific R. R. and Union Pacific Rwy., 964-969. Copy indenture securing income bonds, 970. Earnings are made up of amounts remaining after making de ductions for constructive mileage, pool settlements, rebates, etc., 1192, 1193. What the "refund of freight earnings" book shows, 1194,1195. Difficulty of distinguishing between overcharges and rebates, 1195. The question of re bate, 1196. States that Mr. Young's estiniato of cost to company to get out statement of rebates is $15,000 to $18,000, 1198. Why profits from pool system and ordinary system not kept separate, 1216. What determines whether a pool is successful, 1216, 1217. As to Mr. Young's explanation of the land vouchers, 1220. Deduction of land expenses from current income, 1220, 1221. The income account; items deducted from gross earnings; taxes: State, county, and city, 1221. Land expenses not carried into land account, 1221, 1222. An illustration; taxes and land expenses not included in items de ducted from gross earnings to get net earnings, 1222. Land expenses not inci dent to ordinary operations of the road, 122*2,1223. Grounds for right of way, etc., withdrawn from trust, 1223. Memorandum in relation to eating-houses and hotels, from December 1,1884, to April 30,1837, showing debit balance of $43,874.74, 1360. Copy contract, dated December 24, 1875, between Beckwitb, Quins & Co. and Union Pacific, 1423,1424. Vouchers of Jobn M. Thurston, 1472. Western Union contract; copy Pacific Express contract, January 19, 1886; 3956, 3958. Markel, Swobe & Co., contract, December 1,1884; as to payments to U. H. Painter, not included in legal expense account of the company, 3958. Constructive mileage: Statements in relation to, for months of July and August, 1886, and January and February, 1887, 3958-3966. Earnings on in terchange business between Union Pacific and branch linos re-apport.ioned on an actual mileago basis (Imsiuess paying any part of the Union Pacific . system, an arbitrary not included), montho July, 1886; 3958. Ditto apportioned to some part of the liuo on Iho basis of local rates or arbitraries, month of July, 1886; summary of interchange and local earn ings ou the Union Pacific system, month of July, 1886; earnings on interchange business between Union Pacific and branch linos, rc-apportioncd on an actual mileage basis (business 5474 U. S. PACIFIC RAILWAY COMMISSION. Mink, Oliver W., testimony ofContinued. paying any part of the Union Pacific system, an arbitrary not included), month of August, 1886; 3959. Ditto apportioned to some part of the line on the basis of local rates or arbitrages, month of August, 1886 ; summary of interchange and local earnings on Union Pacific system, month of August, 1886; 3960. Earnings on interchange business between Union Pacific and branch lines re-apportioned on an actual mileage basis (business paying any part Of the Union Pacific system, an arbitrary not included), month of January, 1887; 3960. Earnings on interchange business between the Union Pacific and branch lines apportioned to some part of the line on the basis of local rates or arbitraries, month of January, 1887 ; summary of interchange and local earnings on the Union Pacific systetn, month of January, 1887; earnings on interchange busi ness between the Union Pacific and branch lines, re-apportioned on an actual mileage basis (business paying any part of the Union Pacific system, an arbi trary not included), month of February, 1887; 3961. Ditto apportioned to some part of the line on the basis of local rates or arbitraries, month of February, 1887; summary of interchange and local earnings on the Union Pacific sys tem, month of February, 1887; 3962. Statement of freight business between Chicago points and Mississippi River points on the east and all points on the Union Pacific upon the west, transcontinental busiuess included, during month of July, 1886 ; 3962. Ditto during month of August, 1886; 3963. Ditto during month of Janunry, 1887; 3963. Statement of transcontinental business via Council Bluffs and Kansas City, showing the earnings as apportioned on the basis of constructive mileage and arbitraries, and the amounts the Union Pacific would have earned on the basis -of straight mileage divisions, Jan uary, 1887; 3964. Statement of freight business between Chicago points and Mississippi River points, upon the east, and all points on the Union Pacific system, upon the west, transcontinental business included, during the month of February, 1887 ; 3964. Memorandum in relation to the constructive mileage allowances for tire year ending February 18,1887, based on the returns of July and August, 1886, and January and February, 1887; memorandum in relation to constructive mileage allowances, based on the returns of July and August, 1886, and January and February, 1887 ; 3965, 3966. Statement of payments made at Omaha on account of coal lands, and charged to "Coal land," Union division,3966-3968. Statement of amounts expended on account of Boulder Valley property, 3969. Statement f account, Boulder Valley Coal Company; statement of amounts expended at Omaha for coal lands, Colorado Division; statement of account of South Park Coal Company, 3969. State ment of expenditures for construction of new lines during the years 1877-*86, inclusive, as shown by the books in the auditor's office at Omaha, 3970,3971. Statement of miscellaneou s earnings of the Union Pacific system from 1880 to 1886, inclusive, 3971. Statement showing the " pool" and "non-pool" passen ger earnings of the Union Pacific system, February 1,1880, to January 1, 1887; statement of the passenger earnings in the various pools, by years, from February 1,1880, to December 31,1886, inclusive, 3972. Statement show ing the " pool" and " non-pool" freight earnings of the system, from Febru ary, 1,1880, to December 31, 1886, 3972. Statement offreight earnings in the various -00/3, by years, from February 1, 1880, to December 31, 1886, inclu sive, 3973. Statement of passenger pool balances, by years, from February I, 1880, to December 31, 1886, inclusive, 3974. Statement of freight pool balances of the Union Pacific system, from February 1,1880, to December 31, 1886; 3975, 3976. Statement of payments made to individuals and companies, and foreign railroad companies, from January 1, 1868, to January 31,1H80, in clusive, on account of passenger traffic ; statement of payments made to in dividuals and companies, and foreign companies, from February 1, 1880, to December 31, 1886, inclusive, on account of passenger traffic, 3977. State ment of amounts paid on account of overcharges, rebates, and pools, in annual periods, from April, 1867, to December 31, 1883, on account of freight traffic; statement of payments for freight, rebate-, overcharges, and pools, made by the Union Pacific system in 1884-'8b'; 3978. Statement of gross receipts and gross earnings from April, 1867, to Jauuary 31, 1880, showing deductions from freight and passenger receipts, on account of interchange business, rebates, overcharges, and pools, 3979. Statement of gross receipts and gross earnings from February 1, 1880, to December 31, 1886, showing deductions from freight and passenger receipts, on account of interchange business, rebates, overcharges, and pools, 39dO. (Comptroller's office): Statement showing amounts of il aid " bonds received by the Union Pacific or its branch lines to December 31, 1886; 3981. Statement of certain particulars in relation to investments made by the company in bonds of other railroad companies, De cember 31, 1886; 3982. Statement of certain particulars in relation to invest- ANALYTICAL INDEX. 5475 Mink, Oliver W., testimony ofContinued. ment8 made by the company in stocks of other railroad companies December 31,1880 ; statement of railroad stocks deposited in the Kansas Pacific consoli dated 1ru8t, 3983. Disposition of "aid'' bonds, 3983. (Comptroller's office): Statement concerning the disposition made of the "aid" bonds received by the Union Paci lie, the Kansas Pacific, the Denver Paciiic Railway and Tele graph Company, the Colorado Central, and other companies, 3984. State ment of income and expenditure of the Union Pacific system for the six months ending Jane 30,1887, and Ife86 ; 4152. Mobley, Setii P., testimony of: Manager of "The Independent" at Grand Island; complaints in community as to discriminations and rebates, 1503. Discrimination in the coal trade, 1503, 1504. Discriminations in lumber; railroad participation in elections, 1504. Effect of Burlington and Missouri River Railroad on tariffs, 1504,1505. Com plaint as to railroad shops, 1505. Change of management, 1505,1506. Moore, II. Miles, testimony of: * Secretary Leaveu worth Board of Trade; Leaven worth complaints of management ofLawrenco branch; brought before Stato railroad commission; complaints not remedied, 1584. Efrect of Kansas Central management upon Leaven-worth, 1584, 1385. Decision of railroad commission; the "plug" train, 1585. Moore, William A., testimony of: In lumber business at Marysvillo, Kans., 155*2. Complaints of high freight rates, 1552, 1503. Witness always paid open rate; discrimination against individ uals; facilities afforded; discrimination against communities, 1553. Morgan, Richard Price, Jr.: Inspecting engineer for the Commission; Union Paciiic; his report on its material and physical condition and that of its branches, and on their equipment, 4437-4449. Its future productive capacity, engineer's letter to President Adams request ing suggestions as to, 4450. President Adams' reply, 4450, 4451. Mr. Adanis reports $200,000,000 as " the fair, present actual value" of Union Pacific and it3 branches, 4451. Earning capacity; present and future of the Union Pacific system consid ered, 4451-4453. Present cost of reproducing Union Pacific Railway and its branches, and the Central Branch and its branches, and their equipments, 4453-4458. "Fair, present actual value," $150,000,000; 4458. Present " cost of reproducing," $120,207,120; 4458. Sioux City and Pacific Railroad in Iowa and Nebraska ; Its material and physical condition, 4459. Its "fair, present, actual value," 4459, 4460. Central Pacific and branches: Their fair, present actual value, correspondence with President Stanford as to, 4401. Net surplus of Central Pacific system for 1887, 1888, and 1889, estimated by engineer from reports of company to be $5,600,000 per annum, 4463. Their material and physical condition, 4463-4466. "Cost of reproducing," detailed estimates of, 4467. " Fair, present actual value" should be $110,000,000; 4468. " Present cost of reproducing," $50,867,540; 4468. Appendices: Method, work, aud date of the inspection, 4469, 4470. Motive power of Union Pacific Railway system ; statement of its condition September 1, 1887 ; 4470-4476, Car equipment of Union Pacific Railway and operated lines, April 30, 1887; 4477, 4478. Rails; weight, material, and location of, in main line of Central Pacific and branches, 4478-4503. Locomotives of Central Pacific, 4504-4507. Morosini, Giovanni P., testimony of: Concerning the account books of W. E. Conuor & Co., 320, 321. Their disap-pearanco; his talk with W. E. Connor about them, 320-323. Why he did not ask Gould about them, 322,323. Did business only for Gould, 323. Con cerning the consolidation of tho Kansas Pacific, 324. Signed approval of consolidation as holder of 20,041} shares, 325, 326. Owned them only nom inally, X'26. Had no personal knowledge of tho affairs of tho companies, 327. Mullen, Joiin K., testimony of: General manager of Colorado Milling and Elevator Company, 1888. Capacity of its mills, 1888, 1889. Length of haul and rates, on grain j locaUoi* of ot- ? B JOh IX------6 5476 U. S. PACIFIC RAILWAY COMMISSION. Mullen, John K., testimony of Continued. mills; nominal value of stock, 1880. Rebate to Denver mills; reason for al lowing rebates, 1890. Destination of the Hour, 1890, 1891. No discrimination in rates in favor of bis company. Rale on flour from Greeley, 1891. Nagle, Erastcs, testimony of: Special rates and rebates; effect of closing of Colorado Central on trade ; sbould be reopened ; Burlington and Missouri, 2096, 2097. Nbely, Shaw F., testimony of: Mayor of Leavenwortb, Kans., number of roads at Leavenworth; facilities af forded, 1508. Nature of complaints, 1588, 1569. Prejudicial effect on busi ness interests of manner of ruuning Leaveuworth branch; motive for failure to provide facilities, 1569. Volume of business, 1569, 1570. Diversion of trade from Leavenworth Brauch; protest of the Board of Trade, 1570. Insuffi?ciency of accommodation, 1570, 1571. No competition as lo rates; discrimi nations against communities, 1571. No attompts to influence local elections, 1571,1572. Kansas Central operated in interest of Kansas Pacific Branch, 1572. General sentiment of community in favor of extension of debt, 157(, 1573. Beneficial effect of extension, 1573. Nelson, Alfred II., testimony of: Secretary of Utah Salt Company; failure to secure the contract to supply Union Pacific, 2243. Prepared to comply with terms of the contract, 2243,2244. Pub lic sentiment favors extension afc reasonable rate of interest; extension would be beneficial to the community ; road enabled to branch out, build depots, and broaden the narrow-gauge, 2244. Nicholas, A. Perky, testimony of: Built the Omaha stock-yard in 1878. Election of county commissioner in Omaha, 1104,1105. Witness received $100 from S. H. H. Clark to help election of a man friendly to the road: how it was spent; excursion of Omaha Board of Trade to Colorado, 1105, HOG. Organization of the Omaha stock-yard Com pany ; organization of the Union Company, 1106, 1107. Sale of the Union yard, 1107. Witness proposed sale of the Omaha stock-yard; Flannigan's statement about Council Bluff's conversation; letter of William A. Flannigan, 1108, 1109. Discrimination against the Omaha stock-yard ; refused to furnish cars, or to send the cars ot the companies over the road, 1109. Continued from 1878 to 1880 ; the Omaha stock-yard transferred to the road; witness got about 40 or 50 per cent, of their cost; agreed not to sue on ground of discrimi nations; its liens and liabilities assumed by the road, 1110. Witness was " froze out; " no discrimination by the road as to rates; a stock ring ; Swan &Paxton; their "silent partners," 1111. The now compauy; favoritism continued np to two years ago; the new management; the Swan Land and Cattle Company, 1112. Swan the president until recently ; not crippled by railway company's discrimination ; the Ogallala Cattle Company ; fair deal ing to cattle dealers under new management: his losses by the Omaha Stock yard Company; suit for damages against C iark, Swan, andPaxton, 1113,1114. Consideration for withdrawing the suit; he was to run the yard; the road's management of the Omaha stock-yard, 1114, 1115. Advantages of its loca tion ; lease embodied a contract to purchase; disadvantages of other stock yards; his rebate on Eastern shipments of cattle, 1115, 1-116. Inability of Omaba stock-yard Company to pay rent owing to combination ; copy of lease between Union Pacific Company and Omaha stock-yard Company, 1116, 1117. Copy assignments to Union Pacific of various claims against witness, 1117, 1118. Release from witness and stock-yard Company to Union Pacific, 1118, 1119. Copy witness's account for surrender of lease and sale of yards; copy surrender of lease, 1119, 1120. The surrender caused by discrimination and lack of money; his business, feeding and re'shipping stock, 1120, 1121. The yard on the Iowa side ; delivery of through cattle on tho Council Bluff's side of the river; tho general policy of the company, 1121. " Through," cat tle business, 90 per cent, of wholo ; Mr. Spearman's five cars of cattle; un loaded to Council Bluffs after they were ordered to Omaha, 1122. Nichols, Effingiiam II., testimony of: History of his relations with Central Branch Union Pacific, 4089-4098. The Osborno contract; its terms, 4090, 4091. Virtual cancellation of the con tract, 4091. Conditions of cancellation, 4092. Passage of tho Smoky Hill bill, 4092. Proceedings before Secretary Cox, of the Interior Department, to have lands withdrawn, 4092, 4093. As to authorization to extend tho road; opposition in Congress by Kansas Pacific, 4093. Further procedure before Interior Department, 40fJ3, 4094. Map approved by President Grant, 4094, 4095. Afterward, Prcsideut Grant tore oil' his signature, 4095. The cause of such action, 4095, 4090. Efforts to secure a remedy, 4096. Limit ation in the law as to length of roail, 4090, 4097, Was the Kansas Pacific ANALYTICAL INDEX. 5477 Nichols, Effingiiam PL, testimony ofContinued. required to connect, 4097, 4098. The building of extensions, 4098. Their consolidation, 4098, 4099. The men who controlled; the sale to Ames; Ames's transaction in the stock, 4099. The $250 a share carried also an interest in the consolidated extensions, 4099, 4100. Equivalent to 65 per cent, ou the ag gregate ; selling price of Central Branch stock before and after the sale to Gould, 4100. The counsel employed by the company, 4100,4101. Cost of the road, 4101. Bonds retained by the oid organization, 4101,4102. Tho Chalice party. The books do not show to whom certain bonds were issued, 4102. Tho Osbornu contract, 4102,4103. As to profits under that contract; Wheeler authorized to negotiate bonds, 4103. Settlement with Wheeler, 4104. A call for the books, 4104,4105. As to disposition of bonds, 4105. Bonds given as commissions on loans, 4105, 4106. As to cost of road, 4106. As to the Os-borno contract, 4106,4107. Balances taken from the books, 4107. Disposi tion of bonds, 4107, 4108. As to disposition of money paid for stock, 4108, 4109. As to sale of bonds; no bonds donated or distributed except the 400; 4109. As compensation for loans, 4109, 4110. "Existing obligations," 4110. Compensation bonds charged to witness, 4110, 4111. Witness's interest in construction, 4111. How much witness paid, and what for, 4111, 4112. As to Mr. Day's interest; default on first-mortgage coupons, 4112. The funding bond, 4113. Financial condition of company between April and November, 1879; 4114,4115. Mr. Gould pays $250 a share; has the stock any intrinsic .value, 4114. A test question, 4114,4115. Why Mr. Gould paid $250 a share. Mr. Gould an extraordinary man, 4115. Fixing the time of the interview, 4115, 4116. Payment to witness, 4116. As to tho claim of the witness, 4117. Was it contingent on success, 4117, 4118. Further information asked as to the " extraordinary purchase," 4118. Value of the Central Branch to the Union Pacific, 4118, 4119. Additional value "thrown in," 4119. Central Branch ownership of Afchison, Colorado and Pacific stock, 4119, 4120. Union Pa cific ownership of sanio stock; financial condition of branches, 4120. Interest paid by Missouri Pacific; cost and character of branch constructions, 4121. Lease of tho brauches to the Central Branch Company, 4122. Effect of the lease on the value of the Central Branch ; guaranty of branch bonds by Cen tral Branch Company, 4122. County aid to branches, 4122, 4123. Witness's in terest in Atchison, Solomon Valley and Western road, 4123. Relation of cost to earning capacity of branches, 4123, 412-1. Expenses at Washington, $4,-325.28; 4124. Nature of those expanses, 4124, 4125. Interviewing members of Congress; no portion of expenses use-l to influence members of Congress, 4125. Some dinners given, 4125,4126. Purposes for which money was used; further expenses at Washington, $7,140; forspecial services of witness, $20,000; for disbursements and services, $23,344.91,4126. Amount paid General James Craig, $500, 4127. As to value received by company for stock issued, 4128, 4129. Amount paid for stock by witness; what tho books show, 4129. Other books kept, 4129,4130. Reading from an affidavit, 4130. What the books show as to payments made, 4130, 4131. Witness paid cash for all ho got; the accountant could not have seen all the books, 4131. The witness can not bo mistaken that $1,000,000 was paid in, in cash, 4131, 4132. Certificates of interest in tho Osborno contract, 4132. What they entitled the holder to, 4132,4133. As to tho consideration paid to the company when issuing stock, 4133. The probable whereabouts of the certificates, 4133,4134. Price of tho stock in January, 1879; 4134. How much monoy Central Branch received for first-mortgage bonds, 4134, 4135. Bond purchases in name of witness, 4135. An explanation, 4135,4136. Tho Trod well suit, 4136. The Chalice suit, 4136, 4137. William Osborne's suit, 4137. As to tho lands of tho Central Branch Company ; what tho books sliow as to the receipts from lands, 4138. As to the transfer of lands to tho Union Pacific, 4138, 4139. Mr. Sidney Dillon acted as trustee, 4139. A struggle to get tho title from Pomeroy, 4140. A request for explanation as to expenditures, 4140, 4141. How the money was expended ; nothing given to Congressmen, 4141. As to vouchers, 4141, 4142. Price of first-mortgage bonds, 4142. As to failure of company to get full land-grant, 4142, 4143. Claim that the company was entitled to the lands, even though road not built; the law says lands "arc hereby granted," 4143. Wrong dono to Central Branch, 4144. Effect of the act of 1886; 4144, 4145. Map of extended line filed; claim of right to extend road nnder act of 1886; 4145. Mr. Dillon's views, 4146,4147. Effect on Central Branch of chango of locatiou of Kansas Central: was stock paid for in full, in cash ? 4146. Did proceeds of first-mortgage bonds and Government subsidy pay for construction ? 4140,4147. Witness says no bonds were misapplied by directors, 4147. What was received by Central Branch Company on sales of stock, 5478 U. S. PACIFIC RAILWAY COMMISSION. Nichols, Effingham H., testimony ofContinued. 4147,4148. No stock sold for less than par, 4148. Suggestion as to plan of settlement, 4148,4149. The equities -hat exist; this commission bound by the law, 4149. Government business sent by way of the Isthmus; to whom benefit of cancellation would inure, 4150. Defeat of the Canadian Pacific and the interstate commerce act, 4150,4151. As to Reverdy Johnson; the treasurer's book found, 4151. Memoranda showing cash paid for stock and showing disposition of bonds, 4151,4152. Niles, Nathaniel, testimony of: Government director in 1879; 328. Union Pacific well managed ; when consoli dation first mooted, 329. Present wben consolidation was voted for, 330. What took place, 330, 331. Why he voted for it, 331-333. Had no interest in the roads that were consolidated, 334. Obligations of Union Pacific, 335, 336. Government lieu, 336. What is meant by the Government security; Government security preserved by consolidation, 337. Effect of increase of stock on ability to meet obligations, 338. Report to Government, 338, 339. North, James E., testimony of: Mayor of Columbus, Nobr.; complaints against railroad management; complaints as to rebates and special rates, 1473. Relations of road to the commuuity, 1473, 1474. Rates on corn and wheat; value of lauds, 1474. Norwood, Thomas M., testimony of: United States Representative; as to publication in the New York World of pay ments to witness by Central Pacific Company, 3892, 3893. Never received any sum from Central Pacific; witness's connection with Southern Pacific, 3893, 3894. Copy his contract with Southern Pacific; character of witness's work in Alabama, 3894. Joint discussion between ex-Governor Watts and witness as to merits of Southern Pacific and Texas Pacific, 3894, 3895; uever employed by Central Pacific, 3895. How accounts were paid, 3895, 3896. Re ceipts given Southern Pacific. Paid by drafts. Nothing on drafts to indicate that they were drawn on account of any particular fund, 3d9i). Mr. Gates drew the money and gave it to witness. Nothing to indicate whether checks were drawn on Central Pacific or Southern Pacific funds, 3397. Was coun sel of Southern Pacific. Did not know of other gentlemen similarly eugaged. Services rendered Southern Pacific publicly. Were Southern Pacific and Central Pacific working together? 3898, 3899. Rendered company value re ceived. Whether Central Pacific paid for services rendered Southern Pacific, 3899, 3900. A further explanation, 3933, 3934. Ott, F. W., testimony of: Publisher of " Wyoming and its Future," at Laramie; complaints as to facilities and accommodations; effect on the coal business at Laramie, 2115. Special rates, 2115, 211G. Wyoming Stock Owners' Association; the stock-yards, ex?cessive charge for hay, 2116. Complaints as to rebates, 2116, 2117. Nearly every heavy business controlled by the company; Pacific Hotel Company, 2117. The Stock Owners' Association 2118. Patterson, A. If., testimony of: Handles coal and farming machinery at Fort Collins; discriminations on shipments; on coal; reductions at Marshall mine met by corresponding increase in freight-rate, 2063. Why coal is delivered cheaper at Greely, 2063, 2064. Shippers have to bring Union Pacific coal; other discriminations against Fort Collins; futility of complaints, 2064. Central Colorado used to force down price of Denver Pacific stock, 2064, 2065; building the Greely, Salt Lake and Pacific; lawsuit about right of way, 2065. Patterson, Thomas M., testimony ol k Discrimination against coal-mining companies, 186S. The Fox mine, 1868, 1869. Insufficient car accommodations, 1869. Union Pacific interest in Marshall mine, 1869. 1870. Supposed rebates to Marshall mine; disastrous to small mines, 1870. Union Pacific's special coal tariff, 1870, 1871. Tariff upon, different, 1871. Competing mines will be crowded out, 1871 1872. The Fox and Mar shall mines equally well located; Fox mine able to compete on equal terms, 1872. Change of sentiment in State senate, 1871, 1872. Erecting industrial enterprises into monopolies, 1873. Supposed interest of Union Pacific people in Marshall mine, 1873, 184. Opposed to Government going into railroad busi?ness, 1874. Copies of letters from citizens regarding the coal discriminations, 1874-1877. Paxton, William A., testimony of: His various business interests in Omaha, during last twenty years; has shipped cattle over Union Pacific since 1869; interested m Ogaialla'Land and Cattle Company since December, 1879; names of principal men in that corporation; XJnion Pacific people never interested, X227t Territory covered by Cattle Com- ANALYTICAL-INDEX. 5479 Paxton, William A., testimony ofContinued. pany, 1227, 1228. Got no rebates, except on one occasion; no connection be tween Swan Land and Cattle Company and witness' corporation; his other in terests in connection with Union Pacific, 1228. Complaint against Union Pa cific on account of preferences extended to his company, 1228, 1229. No pref erence as a stock-yard company; facts about the stock-yards, 1229. Extract from report made to governor of Iowa by investigation committee, 1229, 1230. Witness' comment thereon; cattle and grain charges at yard, 1230. Higher than local rates; prices have since remained the same; privileges extended at Council Bluffs "just as good " as at Omaha; not true that shippers were com pelled to unload at Omaha, 1231. No other privileges than those rjamed in the lease; may have had special rate once or twice on large shipment of fencings, 1232, 1233. Difference between special rate and rebate; refund to Paxton & Gallagher, 1233. No bonus paid to Union Pacific people; general sentiment of the community; very well satisfied with the treatment they have had; only one ground of complaint; as to rate from Omaha to Cheyenne being same as from Kansas to Cheyenne, 1234. Why one stock-yard prospers and others fail; lease from Union Pacific to Omaha Union Stock-Yards; witness has no agree ment of any sort with Union Pacific, 1236, 1237. His lease of cattle-yard from Union Pacific; preferential features of lease; no one else had same accommoda tions, 1242. The lease of 1879; Etock-yards in Omaha and Council Bluffs; investment of $100,000 at Council Bluffs only on condition of protection from rivals, 1243. Union Pacific's reservation of right to build stock-yards; Union Pacific benefited by construction of stock-yards; dividends of Union Stock-Yards; its capital, $1,200,000; cost about $800,000, 1244. " Water" in the stock; value of stock-yard property now about $1,250,000; cattle charges, 1245. Rebate allowed Paxton & Gallagher, 1245,1246. Rebate to Union Cattle Com pany, 1246. Location of Union Cattle Company, 1246,1247. Sturgis & Lane, 1247. Peeey, David H., testimony of: Mayor of Ogden, Utah, in 1883-1887; business relations with Union Pacific; fa cilities afforded by Union Pacific; the depot building, 2208. Promises not fulfilled as to depot building, 2208, 9/209: Another proposition; value of land donated, 2209. Public sentiment that Ogden was discriminated against, 2209, 2210. Rebates for favored shippers; Ogden discrimated against, 2210. No rebate on flour shipments, 2210, 2211. Rebate3 on wheat and general mer chandise; no knowledge that officers and employes are interested in concerns allowed special privileges, 2211. Central Pacific and Union Pacific interested in depot building, 2211, 2212. Stock-yard at Ogden; Rock Springs and Pleas- u ant Valley coal, 2212. Perine, P. L., testimony of: Cashier of Union Pacific Loan Department in 1861), 1250. Proceeds from sale of land not used for dividends, 1250, 1251. Alleged improper use of funds to in-fluence legislation, 1251. Alleged participation of the Union Pacific in legis lation, 1251, 1252; rebates on "land tickets," 1252. Perkins, George p., testimony of: Reported donations to Sioux City Railway Co.; the Sioux City and Pacific an enter prising road, 2273. Complaints of discrimination, 2273, 2274. In regard to shipments West; character of country along Sioux City and Pacific; settle ment by payment or extension would not affect community; effect of Govern ment taking possession of road, 2274, 2275. The Sioux City as a connecting link; the manufactures along the line, 2275. The Union Stock-Yard Company, 2275, 2276. Population and real estate values, 2276. Perrenoud, G. F.: His report to the commission relative to the affairs of the Central Branch, Union Pacific R. R. Co. Brief history of the road, 5303-5306. Replies in brief to the inquiries of the commission, 5306-5309. Exhibits: Earnings; statement of net earnings and yearly income of main and leased lines, 5310-5314. Balance-sheets; yearly balance-sheets, years 1879-'86; 5315-5320. Lists of directors, 5321. Legal and extraordinary expenses, notes from company's books, 5321-5326; statement of amounts paid annually since 1868, 5326. List of stockholders at the various meetings of the company, 5327-5329; amount paid by each stockholder and the date when each became such, 5329, 5330. 5480 U. S. PACIFIC RAILWAY COMMISSION. Perrenoud, G. F.Continued. ExhibitsContinued. Disposition of first mortgage and United States subsidy bonds and capital stock, 5330-5333. Stock held in trust, and for whose benefit, 5333. As to accounting between company and Government, 5333, 5334. Report on matters developed from account-books furnished by E. H. Nichols, formerly treasurer of company, 5334, 5335. His Saint Louis report: The dealings of Central Branch, Union Pacific R. R., with Missouri Pacific Rwy., and the method of division of earnings and expenses, 5339-5345. Extracts from the Gault-Tucker award, 5345-5348. Extracts from letters of instruction, Missouri Pacific Rwy, 5348, 5349. Basis of division of freight earnings, from letter of T. J. Potter, 5349, 5350. Platt, W. H., testimony of: Local attorney for road; the Platt land-grant case; denial of receipt of $1,000 from company in that case, 1492. Facilities and accommodations; no general com plaints; interference in elections; relations of road to people; company not maintaining its contract as to the shops, 1493, 1494. Effect of a second road on Grand Island; freight rates not changed by compatition; voluntarily re duced; opposition to the Burlington and Missouri, 1494. History of the rhitfc ejectment matter, 1494, 1495. Pay of defendant's counsel, 1495. Plummer, Eli, testimony of: Wholesale grocer; effect of discrimination in California shipments, 1537. Effect ou interior of Nebraska, 1537, 1533. Discrimination against Lincoln; effect to build up Omaha, 1533. Attitude of road detrimental to Lincoln, 1538, J53J; building up Omaha at expense of all other points; sugar cheaper from the West than from the East, 1539. Price, William H., testimony of: General agent of Union Pacific in Leadville in 1879-'8O; 1982. Concessions to ship pers alike to all; extent of concessions, 1983. Rates on coke shipments, 1983, 1984. Reasons tor making the concessions, 1984. Effect upon other companies, 1984, 1985. Peculiar methods of the Union Pacific, 1985. Criticism of Mr. Choate's management, 1985, 1986. Can not specify iho particulars of misman agement; criticism of Mr. Kimball's management of South Park road, 19vS0. Injudicious in selection of subordinates, 19S(), 1987. Charge that witness whilo agent used station funds to pay charges tor running stone quarries, 1987. The present superintendent a capable m?n, 1988. Doubt of Government getting its money, 1989. Pondir, John, testimony of: A broker; his connection with Union Pacific since 1885; 437. Early history of road; loan of $1,000,000 on Government scrip; Credit Mobilier, 438. Further connec tion with Union Pacific, 439. Bushnell and Alley offered to divide spoils, 440. Witness made fiscal agent; the Union Pacific moves to Boston; the Barnard in junction, 441. Utah Northern built by Joseph Richardson, 442. Saleof the stock to Gould; told by Richardson that Gould bought at one priceaud sold to Union Pacific at another, 443. Scott elected president, 444. Mr. Blaine's bonds, 444, 445. Popper, Charles, testimony of: Wood River ores; long and short haul discriminatious, 2174. Almost excluded from market by high rates, 2174, 2175. Rebate discriminations; quantity of ore shipped; equal tariff denied, 2175. Forced to go to Omaha for a market, 2175, 2176. Extravagant rates on bullion; 2176. Poppleton, A. J., testimony of: What gross earnings means; published tariffs have no relation to expenses or to gross earnings, 1193, 1194. General attorney of Union Pacific since consoli dation; connected with road since December 1, 1863; 1449. Explanation of legal-expense vouchers; payments to M. B. Hoxie, 1450. To Wells Brewer; to M. H. Sessions, 1451. To J. M. Thurston; to F. P. Kennard, 1452. To Will?iam R. Steele, 1452, 1453. To John M. Thurston, 1453, 1454. To J. M. Thurston; to S. H. H. Clark, 1454. Further explanation of vouchers; pay ments to J. M. Thurston, 1459, 1460. Paterson r. Union Pacific; to Edward F. Bishop; fine for contempt of court, 1460. To Thummell & Platt, 1460,1461. Services in Platt ejectment suit; particulars of that suit; its object; payment to J. M. Thurston,' 1461. To M. J. Reilly; to John M. Thurston, 1462, 1463. To T. S. McMurray; to J. G. Mclntyre; to John M. Thurston, 1463. To George M. Crawford, 1463, 1464. To Frank P. Ireland; to W. M. Robertson; to C. L. ANALYTICAL INDEX. 5481 Poppleton, A. J., testimony ofContinued. Lamb, 14G4. To Loren Clarke, 14G4, 14()5. To N. K. Griggs, 1465. To George II. Roberts, 1465, 1466. Services of F. E. Sickles; payment to J. M. Thurston, 1466. Vouchers not produced; witness' telegram concerning em ployes' votes, 1467. Potter, Charles N., testimony of: Extension of branch lines, 2104, 2105. Benefits to main line; desirability of open ing Colorado Central and Colorado extension iu Wyoming, 2105. Potter, T. J. Vice-president of Union Pacific; communication to the commission on the relatiousof Union Pacilic main line to its branches; iu building feeders the Union Pacilie only followed a well-established railroad policy, 3871. Considerations govern ing rates of compensation to branch lines; constructive mileage divisions; pol icy of Illinois Central, 3872. Its vindication after legislative investigation, 3872, 3873. As to allowance to Burlington and Missouri River Company; al lowance to Palouse branch by Oregon Railway and Navigation Company, 3873. Ransdell, William T.f testimony of: Produce dealer at Columbus, Nebr.; shipping rates; about the same to San Francisco as from Omaha to San Francisco; rebates; had no advantage over competitors; 1485. Witness as well off as to San Francisco trade as Omaha sliipper, at same rates; two roads no advantage to community. 1186. Raymond, Isaac M., testimony of: Terminal facilities, lair, 1528. Rates to Omaha and Lincoln on sugar, 1528, 1529. Effect on sugar business in Lincoln; local freight rates; rebates, 1520. Effect on communities; special rates; rates from Lincoln to California, 1530. Former tariffs, 1530, 1531. Agreement between railroads as to sugar freights; discrimi nation against certain cities, 1531. Diversion of freights; local business, 1532. Effect of pools, 1532, 1533. Comparison of rates; influencing legislation; inter fering in elections, 1533. Plan of settlement; favors foreclosure, 1533, 1531. Effect on the community, 1534. Keel, Alexander H., testimony of: Stock-raiser, resides at Cheyenne, Wyo.; rebates, 2007. No complaints or prefer ences; necessity for branch lines; sentiment of the people as to branch lines, 2098. The Elkhorn and Fremont, 2098, 2099. Facilities for shippers; nostcck-yard competition, 2090. Control of stock-yards; effect of competing lines ou Union Pacilic business, 2100. Effect of completion of Northern Paciiic, 2100, 2101. The Northwestern road; territory from which shipments are received, 2101. Increased receipts due to growth of population, 2101, 2102. Why Gov ernment should aid Union Paciiic, 2102. Reifp, J. C , testimony of: Stock broker; of the firm of Woerishoffer & Co.; has made a study of the financial condition of Kansas Pacific and Union Pacific; why not a volunteer witness, 3901, 3902. Has given general attention to Union Pacific affairs from 1871-'83; what has impressed witness in regard to Union Pacific; Union Paciiic has dis regarded act of July 2, 1861, as to stock subscriptions, 3902. Mr. (IonId ac quires large interests in securities of Kansas Pacific, 3903. He made Denver Pacific absolutely worthless; absorption of Kansas Pacific through consolida tion; Gould made the contract on both sides; consolidation without legal effect; early completion of the line desired; the ** Gould method," 3903. As to issue of $10,000,000 stock in 1881; criticism of methods pursued iu constructing branch lines; roads would not submit to law; exclusion of Government direct ors; spirit of ths law was to aid these roads, 3904, 3905. Resolution of Con gress, in 18G9, directing Attorney-General to bring suit; intention of the Thur-man act to include Kansas Pacific; State of Kansas opposed to consolidation, 3905, 390(). Authority fcrconsolidation, 390(i. Ten million dollars'stock issued without power; date of issues of stock, 3907. Was the issue of stock illegal? Violation of law as to construction of branch roads, 3908,3909. Methods pursued in constructing branches; thinks some of the directors were interested in the construction of (he Oregon Short Line, 3900, :.91O. Called on to specify; un doubtedly certain directors of the Union Pacific hail an interest in acquiring Kansas Paciiic, 3910. General effect of the branch system pernicious; no au thority for construction of Oregon Short Line, 3011. Oregon Short Line not profitable, 3912. Guaranties open to criticism, 3012, 3913. Collateral trust a violation of law, 3913. Construction of the Union Pacific telegraph line, 3913, 3914. The case in 1)8 U. S. Reports, 3011. Wero the investments in Oregon Short Line and Denver and South Park good or bad ones? 3014, 3015. The 5482 U. S. PACIFIC RAILWAY COMMISSION. Reiff, J. C, testimony of Continued. sustaining of branches a correct theory; construction of tributaries to Union Pacific necessary, 3915. Branch lines not to be developed at expense of main lines, 3915, 391G. A good deal of attention given to the subject of railroads; ignorance regarding the Sioux City and Pacific, 3916. Plan of settlement; the companies should not be oppressed; stock ought to be paid up; dividends ought to be repaid; bill should be passed to give' Government a stockholder's rights, 3917,3918. Debt should be paid before dividend declared; extension at lowest rate at which Government could borrow; restrictions as to new indebtedness; system of paymentsfixed amount might become onerous, 3918, 1*919. Ail railroads should be subject to legislative control; how to increase the Govern ment's security, 3919, 3920. The Supremo Court on the Thurman act; a fifty years' extension ample; plan of settlement, 3920, 3921. Foreclosure all bosh; as to restrictions on dividends, 3921, 3922. As to adjustment of debt of Sioux City and Pacific; the Government and the Chicago and North western Company, 3922, 3923. An illustration, 3923. Effect of taking possession of Sioux City and Pacific 3923, 3924. Congress could apply a remedy; dividends declared by Union Pacific without authority of law, 3924. North western's "surplus" wiped out in same way, 3924, 3925. How construction account should be kept; no undue conditions desirable, but conditions should be imposed, 3925. At tempts to restrain the roads; power of the Commissioner of Railroads, 392U. Has restraining legislation failed? prescribe a penalty; concerning the duties of Government directors, 3927, 3928. Ten dollars a day not first-class compen?sation; how much outstanding Union Pacific stock is legal? 3928, 3929. A sufferer from the conduct of the Union Pacific. 3929. Should alleged illegal Union Pacific stock be treated as null ? 3929, 3930. Suit of Arnold Leo against the Union Pacific, 3930. As to animus of witness, 3930, 3931. Witness was a director in the Rio Grande Company; regarding the Thompson bill, 3931. Why witness has taken so much interest in the Union Pacific affairs; all the able opponents of Union Pacific subsequently become their employes, 3932. Mr. Thompson's employment, 3932, 3933. RlNER, C. W., testimony of: Mayor of Cheyenne, Wyo.; complaints of high rates; rates reduced to some extent, 2079. Rumors of preferences to special shippers; discriminations; necessity of constructing branch lines, 2080. Coal business at Cheyenne, 2085. Almost a complete monopoly by Union Pacific, 2C85, 208G. Colorado coal; cost of pro duction of Rock Springs coal; prices of coal, 2086. Riter, William W., testimony of: Manager of Utah and Nevada and Salt Lake and Western, 2194. Built the latter, 2194, 2195. Cash and materials furnished by Union Pacific; vouchers in the Omaha office, 2195. Books will show the vouchers, 2195, 2196. Superintend ent Utah and Nevada and Salt Lake and Western, 2198. Construction of the Salt Lake and Western road in 1881 and 1882; 2199. Details of the course of business with regard to construction and payment, 2198, 2199. Details of the construction and equipment, 2199. Cost per mile of construction, about $16,-000; cash items do not agree with books; mixed up on a money item, 2200. J. W. Gannet signs receipts as treasurer, 2200, 2201. J. W. Gannet elected per manent treasurer, 2201. Root, W. H., testimony of: Dealer in agricultural implements, etc., in Laramie, Wyo., 2105. Facilities and accommodations, 2105, 2106. No special rates; arbitrary changes in classifica tion of freight, 2106. Rebates to Mr. Trabing, 2106, 2107. Rebate on Stude-baker wagons; compelled to sign a release; "a thousand and one complaints," 2107. Rebates on paper; cattle rates; no man can sell coal who does not'4 whack up," 2112. No duplicate receipts issued; coal business and soda works run by Union Pacific people, 2113. How they u froze out" a soda competitor, 2113. Extentof soda deposits, 2113,2114. Copy of the Studebaker rebate letter, 2114. Copy of release to Union Pacific given by witness, 2114, 2115. Rosenbaum, Albert S., testimony of: His suit against Union Pacific on the coupons of Kansas Pacilic income bonds, 245, 246. Union Pacific's offer to settle; complaint against disposal of Denver Pa cific stock, 247. Management of road; differential rates and threatening circu lars; driven out of his California business, 248. The circular issued by the transcontinental lines; itsobject; witness never afterward offered freight, 249. His ownership of income bonds; their coat; bought bonds after1 Settlement of his suit, 250. Market vahic of Saint Joseph and"Pacific bonds, and of Kansas and Nebraska bonds in 1880; 251. Witness's acquisition of the bonds; Kansas ANALYTICAL INDEX. 5483 Rosenbaum, Albeet S., testimony ofContinued. and Nebraska road; Saint Joseph Bridge bonds [ Hastings and Grand Island road, 252. Saint Joseph and Grand Island road; enhancement of land value along line between 1878 and 1884: 253, 254. Kansas Central bonds; invited to join a pool to sell to Mr. Gould, 254. Rosbwatee, Edward, testimony of: Editor of the Omaha Bee; has lived in Omaha twenty-four years, 1333. The Union Pacific methods of influencing legislation, 1333,1334. Interference with nom inations in 1872or 1873; contest over the Nebraska Central Railroad; "the Federal Ring;" composed of railroad and Government officials; the bond prop osition beaten; projection of the Republican Valley Branch; carrying in other counties the bond proposition for the Republican Valley Branch, 1334, 1335. Victory of the Union Pacific at the Republican State convention at Lincoln in 1876; "corruption of delegates;" "something more than oratory;" the Sen atorial contest, 1335. Rivalry of the Union Pacific and Burlington and Mis souri, 1335, 1336. The beginning of railroad manipulation of the Legislature in 1877; names of the railroad lobby, 1336. Railroad methods; definition of "oil-rooms," 1336, 1337. Origin of the name; who had charge; the "oil-room" frequently changed; boodlers, 1337. Alleged offer of $5,000 to chair man of the Railroad Committee of the House of Representatives; Union Pa cific employes as legislators; agents of Union Pacific attending the Legislature, 1338. What they did; "continuous interference" to influence legislation; under the Clarke regime, droves of men taken from the shops to vote; general interference with elections, 1339. Attempted instruction to railroad employe's how to vote, 1339, 1340. How it was prevented; choosing between duty and bread and butter; the Senatorial contest last winter; Mr. Thurston a candidate, 1340. Mr. Thurston's part in elections; "whooping up the boys;" Mr. Kim-ball's part; bringing about complete subordination to the railroad forces; con stitutional amendment of 1875 as to right of eminent domain, 1341. Amount paid for right of way; Nebraska Central R. R. Co.; its efforts to get a donation from Douglass County; defeated by Union Pacific, 1342. Threat of Union Pa cific to remove machine-shops if bonds voted to Nebraska Central, 1342, 1343. Gould's threat to ruin Columbus; purchases of land by Dillon and Gould, 1343. Discriminations, 1343, 1344. Railroad and anti-railroad Republicans, 1344. Passes and special privileges to members, 1345. Discriminations against the Bee, 1315, 1346. Stopped when Doane law passed; relations of Union Pacific to the community; relations of Union Pacific people to enterprises along the line; interest of railroad officials in smelting works and other concerns, 1346. Poor facilities between Omaha and Council Bluffs, 1346,1347. Bridge account; bonded for $2,500,000; income for the first six or eight years varied from $300,000 to $700,000 or $800,000 a year, 1347. Charges for crossing the bridge, 1347, 1348. Efforts to reduce bridge charges; $150,000 to $200,000 a year for operating bridge; must have included illegitimate expenses, 1348. Proposed extension of time condemned; a large portion of the Union Pacific debt fraudulent, 1349. An incubus placed on the people by extravagant management, 1349, 1350. To extend the debt an injustice to the Western people; not more tham-10 per cent, paid on the stock; excess should be col lected from stockholders and applied to liquidation of debt, 1350. Exten sion of railroad debt will continue extortionate rates, 1350,1351. Other roads will also keep high rates; the Burlington system; effectofaliquidation; plan of settle-men t, 1351. Recovery of misappliedf unds and payment of balance due on stock, 1351,1352. Decision of United States Supreme Court as to payment of balance due on stock; liquidation of first mortgage, 1352. Relations of Government and people; how the road can be foreclosed; give the debt to the people, 1353. Re ducing capitalization of road to actual value, 1353, 1354. How foreclosure of Union Pacific would affect other roads; what Union Pacific would bring under the hammer, 1354. Dissolution of partnership between Government and Union Pacific, 1355. Copy of telegram of A. J. Poppletcu asking that vote of shops be given for Grebe; entries of railroad on ungranted lands; the Dudymot claim; Secretary Schurz's order as to railroad lands subject to pre-emption; the fic titious Platt entry; the test ejectment suit brought thereon by railroad; deci sion of Supreme Court, 1415, 1416. Case of August Arndt, involving right of railroad to exclusive control of sale of unpatented part of land grant; his papers stolen; question never tested, 1416. Union Pacific's influence on Federal offi cers, 1416* 14171-; Efforts by people to compel company to take out their land-grant patents; Federal officials treated substantially alike by the different roads, 1417. The Platt entry again; the Arndt case again, 1418. Witness's hostility 5484 U. S. PACIFIC RAILWAY COMMISSION. Rosewater, Edward, testimony ofContinued. to railroad methods, 1418, 1419. Was a telegraph operator within rebel lines, 1419. War reminiscences, 1419,1420. Working for Uncle Sam; witness' suit for libel, 1420, 1421. The Poppletou telegram, 1421. Particulars as to how it Came into witness's hands, 1421, 1422. Never betrayed his official trust when connected with Government telegraph corps or at any other time; coal rates, 1422. Destroying business of other coal miners by discriminations, 1423. How the Government is fleeced on its coal purchases; Beckwith & Quinn, 1423. Copy of company's contract with them, 1423, 1424. Rubidge, Robert H., testimony of: Rebates paid to the Marshall Consolidated Coal Mining Company, November, 1885, to April, 1887; 1925. Marshall Coal Company, transfers of stock since May 1, 1887; insufficient supply of cars, 192G. Rebates; rebates in consideration of withdrawing claim for damages, 1927. Case of the Welch Coal Mining Com pany, 1928. Explanation as to contract for rebates, 1928,1929. Consideration of rebate to Marshall Coal Company, 1936, 1937. Aggregate amount of rebate: cost of production of coal, 1937. About $2 a ton; price paid the miners; cost of hoisting, 1938. Total annual output; price paid per diem to laborers; av erage cost per day of running the mine, 1939. Railway company benefited by the contract, 1910. Statement of average cost of producing coal, 1940, 1941. RyAn, Emmons B., testimony of: Tax agent for Central Pacific; his duties; amount of taxes paid upon land since 1869 about $420,000, 2445. Detailed statement of taxes paid on lands by Cen tral Pacific road from 1868 to 1886, inclusive, 2446-2451. Sage, Russell, testimony of: His first interest in Union Pacific, 340. Excursion to Larimer Plains in 1868 ; di rector in 1878; 341. Then already interested in Missouri Pacific and in Kansas Pacific and Saint Joseph and Western; other purchasers of Pacific securities; had frequent conferences with Gould in relation to Kansas Pacific, 342. Wit ness's purchases and sales of securities, 343. Kansas Pacific embarrassed in 1878; the pool; his connection with it, 344. Gould and Sage, trustees of con?solidated mortgage, 345. How the -scaled rates were determined; who took part in the discussion, 346. An explanation called for of the record that com pany had contracted with Dillon, Villard, and witness to exchange certain se curities for $3,400,000 consols; they were committee to close up the trust and pool, 347. Witness had no personal interest in the $3,400,000 bonds, 34S. Who got them, 348, 349. Witness's duty as a trustee, 349. His duty as mem ber of the committee; they fixed the terms with the owners, 350. Exchange of old securities for consols, 351. The released Denver Pacific stock, 352. His recollection of the transaction, 353, 354. Acted under advice of counsel, 33. Propriety of trustee buying for himself; sale of this Denver Pacific stock to Gould for Saint Joseph and Western securities, 355. Witness's first knowledge of this transaction, 356. Witness did not favor consolidation, 356, 357. Knew, at time of suit, that consolidation would go through, 358. And that Denver Pacific stock was worth whatever the Union Pacific was; became director of Union Pacific in 1878; large holder of Kansas Pacific and* Union Pacific stock at consolidation, 359. Kansas Pacific above par in 1880; 360. His purchase of one-sixth interest in Saint Louis pool, 361, 362. What the securities were, 3d2. His interest in securities purchased by Gould from a German syndicate, 363. Denver Pacific bonds below par in 1885; 364. His interest in Union Pacific and Kansas Pacific and their branches at consolidation, 365. Saint Joseph and Western and Kansas and Nebraska bonds exchanged for securities of consoli dated company, 366. As to Gould's holdings in Kansas Pacific, Saint Joseph and Pacific, and Kansas and Nebraska at consolidation; Kansas Pacific consol idation, 367. Gould's resignation, 367, 368. No knowledge of Gould's motive; Gould reappointed a director within an hour, by articles of consolidation, 368. Proceedings of the consolidation r-eeting, 369. Gould a director for many years; Solon Humphreyshis connection with railroads; the letter to Dodge and Humphreys- 370. Who signed it, 371. Their report; witness did not know its tenor before the meeting, 372. The report submitted to John F. Dillon, 373. Further proceedings of meeting, 374. Canceling Colorado Central lease; Colo rado Central a benefit to Union Pacific; filing the Dodge-Humphreys report; moving the consolidation, 375. A Government director against the consolida?tion; meeting of Kansas Pacific board to accept consolidation;, witness moves to accept Gould's resignation, 376, 377. Gould had not told witness of his in tention to resign, 377. President's report of securities purchase./ by company, to be paid for with Kansas Pacific stock or consolidated bonds, 378. Name of ANALYTICAL INDEX. 5485 Sage, Russell, testimony ofContinued. seller omitted, 379. Transaction had been discussed, 378-380. Table of se curities delivered by Jay Gould to Union Pacific in payment for its stock, 381. Includes the securities purchased by Kansas Pacific; Gould represented a large number of holders, 381. Purchaseof 7,616 shares of Central Branch, 382. Was $239 a share too high a price? its financial condition in 1884, 383. Present earnings of Central Branch; approval by witness of the purchases, 384. Never owned a share in Central Branch. 385. Gould's offer to sell Kansas Central stock and first-mortgage bonds; acceptance of the offer, 386. Witness knew nothing of the road, 386,387. Not a director of the Union Pacific; the consol idation meetings. 387. Witness's recollection of the proceedings, 387, 388. His own motion authorizing issue of 6,242 shares Kansas Pacific stock; object of the issue, 388. His interest in the Utah Northern, in Saint Joseph and West ern, in Denver and South Park, 389. Financial condition of the latter, 390. His sale of Denver and South Park stock to Union Pacific, 390, 391. List of branches in which witness had transactions, 391. Still owns original stock in Utah and Northern, 392. His interest in Kansas Pacific and Union Pacific at time of consolidation, 393. Why he voted for consolidation, 393-396. Union Pacific fairly dealt with; exchange of shares, 396. Earnings Union Pacific, Central Branch, for 1884, 397. Statement of Mr. Sage's holdings of Denver and South Park, Utah and Northern, Union Pacific Railway, Kansas Pacific, in 1880, 397. Detailed statement of his purchases of Kansas Pacific first-mortgage land-grant bonds and Denver Pacific first-mortgage bonds, 398-400. Santnek, Anton G., testimony of: Intermediary in company's land purchases, 1432, 1433. Sawyer, A. J., testimony of: Mayor of Lincoln, Nebr., since April, 1887; complaints of discrimination in favor of Omaha; rebates, 1519. A specific complaint, 1519, 1520. Another instance, 1520. Giving passes to jurors, 1520, 1521. Influencing legislation; plan of settlement; favors extension of time; effect of such settlement on the commu nity, 1521, 1522. Effect of settlement on pools 1522. Shabp, John, testimony of: Subcontractor under Brighani Young; Utah Central and Utah Northern Railroads, 2154. Transfer of Utah Central to Union Pacific, 2154, 2155. Its extension by Union Pacific; it3 bonded debt; issue of Utah Southern bonds, 2155. Bonds taken in proportion to stock, 2155, 2156. Cost per mile in stock and bonds; the consolidation of Utah roads, 2157. Payment of Utah Central float ing debt; character of traffic, 2157. The Horn silver mine, 2157, 2158. Witness's holdings in Horn silver mine; the Horn silver mine's smelter, 2158. Rebates, 2158, 2159. Freight rates from Salt Lake City to Missouri River, 2159. The carrier'3 percentages of through rate; rebates, 2159, 2160. Div idends of mining and smelting companies; the salt business, 2160. Traffic arrangements, 2160, 2161. Utah Forwarding Company; who arranged rates; what is netted, 2161. Distribution of interests in salt company, 2161, 2162. Establishment of salt interest urged by President Dillon; forwarding com panyofficers and interests; who fixed price of salt, 2162. Competition in salt, 2162, 2163. The Tintic Iron Company; length of haul over Utah Cen tral; personal interest, 2163. Amount of iron shipments and rates, 2163,2164. No preference given; no rebate allowed, 2164. Pleasant Valley coal mine; owned by Utah Central; how paid for, 2165. More coal lands acquired, 2165, 2166. Bought for railroad, 2166. Who were the Utah Central? 2166? 2167. The coal business; quality of coal and cost of mining; transportation charges, 2167. Price free on board, 2167, 2168. Price charged at various points, 2168. Tintic iron deposit acquired like coal lands, 2168, 2169. Castle Valley coal lands; Utah Central should enter Nevada; why extension is desirable, 2169. The suggested Utah Southern extension; character of country proposed to lie * traversed, 2171. Cost and length of proposed extension; contract to build from Echo to Ogden; details of contract; gross cost about $2,000,000, 2172. What the contract covered, 2172, 2173. Contract between Brigham Young and Union Pacific; Utah Northern, 2173. Shelby, Peter P., testimony of: Assistant general traffic manager Uniou Pacific; his duties and powers, 2118, 2119. Freight rates; preferential rates, 2119. Parties granted rebates, 2119, 2120. Time during which rebates were granted, 2120. Deseret Salt Company, 2120, 2121. Rebates on salt; special rates, 2121, 2122. Inducements to large ship pers not offered to small shippers; agreement to maintain rates; war of rates, 2122. Percentages under the new pool, 2122, 2123. Cut rates adjusted by re- 5486 U. S. PACIFIC RAILWAY COMMISSION. Shelby, Peter P., testimony ofContinued. bates; differences in earnings made up by diversion of freight, 2123. Explana tion of *' diversion;'' the coal business at Salt Lake City, 2124. Company sells coal so low that scarcely any one could compete, 2124, 2125. Rock Springs coal compared with other coal, 2125. Freights on coal regulated by cost of production, 2125, 2126. Superintendent of coal department fixes prices, 212(5. Proportion of coal hauled by Union Pacific and Denver and Rio Grande, 2126, 2127. Central Pacific controls, mines at Evanston; Union Pacific rates for trans porting coal, 2127. Alma coal second class, 2127, 2128. Abundance of coal south of Salt Lake City; no railroad officers interested in coal mines, 2128. Little Alma coal shipped to Salt Lake, 2128, 2129. Difference in price between Rock Springs and Alma coal; stock yard at Ogden, 2129. Charge for feeding cattle, 2129, 2130. Control of stock-yard; Ogden yard different from other yards, 2130. Different arrangements as to feeding; what the price of hay cov ers, 2131. Pocatello stock-yard, 2131, 2132. Stock-yard agent not a paid agent of Union Pacific; minerals, wool, and stock the principal shipments; names of shippers; rates for carrying ore, 2132. Purpose of special rates; like rebates to all under like circumstances; rate governed by interests of Union Pacific, 2133. Salt Lake City smelters, 2133, 2134. Depression of business causes cars to stand idle; no special rates on ore to Missouri River, 2134. Rebates not granted merely to benefit shippers, 2134, 2135. Officers of road do not get benefit of rebates; interests of Union Pacific directors in smelting and salt works; no rebates on salt, 2135. The.salt "rebate" a misnomer, 2135, 2136. Who furnish salt at Ogden; freight rates on salt, 2136. Amount refunded . always the same, 2136, 2137. Anybody can ship at same rates; ore, live-stock, and wool principal items of traffic, 2137. Different rate for wool from pub lished tariff, 2137, 2138. Cheaper to ship wool to Boston via San Francisco than by direct route; when tha$ would occur, 2138. Verbal understanding between Union Pacific and Central Pacific; concerning power to make freight arrangements; rate agreements or pools, 2139. Influencing legislation, 2139, 2140. Attendance on legislature; received only regular salary, 2140. The class of legislation opposed, 2140, 2141. Sentiment as to railroad legislation; hostile legislation; "hostile legislation" sometimes proves beneficial to com pany 2141. How to determine whether legislation was hostile, 2141, 2142. Method of explaining to members; no inducements to friends of members, 2142. No methods other than argument, 2142, 2143. Expenses charged to company; vouchers for hotel board bill; no money unlawfully paid out; was a member of the Legislature, 2143. How to ascertain who were for and who against; as certaining grievance of members, 2144. Twenty per cent, horizontal reduction proposed, 2144, 2145. Referred to appropriate committee; majority report against such a sweeping reduction, 2145. Conference committee appointed, 2145, 2146. Enough sensible men to defeat the bill; railroad legislation at every session, 2146. Passes issued to shippers to secure freight, 2146, 2147. Money the potent factor to secure business; Utah Forwarding Company, 2147. Diver sions of traffic from Central toSouthern Pacific, 2147,2848. Proportion diverted; character of freight diverted, 2148. Foreign goods, 2149, 2149. Shippers pre fer Southern Pacific route; same people, interested in Central Pacific and South ern Pacific, 2149. Decrease of Union Pacific business due to Southern Pacific- 2149, 2150. Freight diverted from Central Pacific, 2150. No agreement with Central Pacific, 2150, 2151. Business sent to San Francisco via Oregon Short Line, 2151. Future traffic of Oregon Short Line, 2151, 2152. Character of traffic; direction of preponderance of traffic, 2152. Destination of ore ship ments, 2153. Contract with Utah Salt Company, 2153, 2154. Explanation of rates on Wood River ores, 2177. Utah Forwarding Company hauled coke for nothing for awhile, 2189. The inducement, 2190. Explanation of alleged discrimination in favor of Salt Lake over Ogden; Utah Central not a part of the Union Pacific system, 2223. Union Pacific does not own controlling interest, 2223, 2221. Mr. Ames holds the balance of power, 2224. Why contract was not awarded to Utah Salt Company; denial of assurance to build switch, 2231. Sherwin, Albert, testimony of: Manville Smelting Company, 2022. Diversion of shipments from Denver and Rio Grande to Denver and South Park, 2022, 2023. Ordered by pool commission; effect of discriminations upon community, 2023. Special rates or rebates, 2023, 2024. Agreements to maintain rates favorable to railroads, 2024. udler, Henry, testimony of: Correspondent of Kansas City Times, 1573. Discrimination against Leaven worth, 1573, 1574. Facts cited in petition of bondholders of Kansas Central for re ceiver, 1574, 1575. Effect of discrimination upon the community, 1575. ANALYTICAL INDEX. 5487 Slack, E. A., testimony of: Publisher of the Sun in Cheyenne, 2080, 2081. Complaints as to facilities and accommodations; desirability of certain special rates; passenger rates; satis factory rates on cattle, 2081. Favors low tariffr (open to all) on latent indus tries; the Itock Springs coal mines, 208*2. Competition from Colorado, 2082. Character of Kock Springs coal; complaints about rates on coal; Union Pacific has monopoly of Kock Springs coal, 2083; and lixes the price; the Blair Broth ers; out of business because of high freight rates; Union Pacific stock-vard at Cheyenne, 2084. Yardage charges, 2084, 2085. Stone shippers, 2085. " Smith, Edmund M., testimony of: Editor Evening Telegram, of Denver; concerning efforts of Union Pacific to influ ence legislation, 11)42, 1943. Was deputy sergeant-at-arms of United States House of Representatives in 1873; failure to subpcena General Dodge, 1943. Witness not an agent of the Union Pacific; attended legislature as newspaper correspondent; many bills introduced against railroads, 1944. Sentiment of the community against the Union Pacific; never received special rates on printing stock, 1915. Meeting with General Dodge in ISIS, 1945, 1940. Witness the owner of the Denver Telegram;, the railroad question in the last election, 1946. Kesultof the issue a victory for the people; hostile legislation, 1947. Attitude of political parties regarding railroad legislation; the Senatorial contest, 1948. Concerning alleged corruption fund raised by railway companies, 1918, 1949. Smith, Leonaud T., testimony ot: Connection with railroad construction, 1588. Insufficient facilities by Kansas Cen tral, 1588, 1589. Also by Lawrence Branch, 1589. Witness constructed Kan sas Central, 1589. Road foreclosed and bought in by Garrison, witness, and associates, 1589, 1590. Sale of Garrison interest in Kansas Central and in Mis souri Pacific to Gould for $3,800,000, 1590. Negotiations with Gould in New York, 1590, 1591. Acquisition of the property by Union Pacific; Mr. Gould's Western visit, 1591. Cost of road, 1591, 1592. The price paid to Garrison, $3,800,000; cash cost of construction, 1592, 1593. No profit to Garrison onsale to Gould; plan of settlement; to require payment of interest at 2 or 2} percent, and let principal go, 1593, 1594. Poor facilities of Lawrence Branch, 1594. Not result of financial embarrassment; copy letter from witness dated September 2, 1887; as to cost of road fromOnaga, 1594, 1595. Details of construction of Kansas Central, 1719. Company issued bonds to itself and advanced the money; costof construction, $20,000 to $25,000 a mile; cost of iron at different periods of construction; cost of right of way, 1720. The aid extended by Leaven worth; the $250,000 in stock surrendered by the county; difficulty in securing its trans fer to the twelve associates, 1721. Its sale to Gould, 1722. Witness's con versation with Gould; sale at 80; the market price at that time, 1722. Smith, Marsh all, testimony of: Coal dealer in Cheyenne; Colorado and Rock Springs coal; effect of the Rock Springs coal monopoly; coal delivered at price of freight, 2087. Discrimination in fur nishing cars; plenty of cars for Union Pacific coal; discriminations in stock yard business; room for another stock-yard in Cheyenue, 2088. Union Pacific agent also in hay and grain business; where he gets his grain; coal used by the Electric Light Company, 2089. The stone business in Cheyenne, 2090. Smith, N. T., testimony of: Assistant treasurer of Southern Pacific, and treasurer of various other companies; San Francisco Transfer Company, acquainted with, from 1872 or 1873. Kennedy & Long ran that company, under an arrangement with the Central Pacific, 3592. Nature of business, 3592, 3593. Circumstances of transfer to successors, Smith & Coleman, 3593. Details of transfer, 3593. Transfer caused by financial embar rassment, 3594. Smith, Sylvestick T., testimony of: General manager of Denver and Rio Grande, at Denver, 1722. Official positions held by witness, in Kausas Pacific and Union Pacific; auditor of Kansas Pacific in 1804; rebates, 1723. Allowed upon application, 1723, 1724. Union Pacific people not interested in other business along the line; passes; to whom compli mentary passes were issued, 1724,1725. Transcontinental pool; became receiver of Kansas Pacific, November 1, 1879, 1725. Snell, John W., testimony of: Prohibited from bringing coal to Salt Lake City from Coal Valley, 40 miles, 2190, 2191. More about the coal business, 2191. Made the first iron-oro shipment from Tintic, 2191, 2192. How the railroad took the business away from him; the Utah Forwarding Company's finger in the pie, 2192, 2193. Shipping oats from San Francisco to Montana, 2193. A big salt dealer a iewf ears ago; driven out by railroad favoritism; Union Pacific has figureheads in every good business along the line, 2194, 5488 U. S. PACIFIC RAILWAY COMMISSION. SrARKS, W. A. J.: Copy letter to Secretary of Interior, May 31, 1887, containing statement of lands patented, selected and unselected by the various Pacific railways, 4250-4258. Spaulding, Mahlon D., testimony of Relations of Union Pacific to the Government; the policy that should prevail, 818, 819. The nature of the Government's security; the company able and willing to pay, 819. Plan of settlement, 819, 820. An extension necessary; should be put in a position to pay dividends, 820. Wreckers like a non-dividend stock, 820, 821. Government directors; as a rule, two sets of directors unde sirable, 821. Stanford, Leland, testimony of: Congress admits equities in favor of road, 2460, 2461. Examination possible only by consent of company; company consents to examination; aid for construction of road urged by all, 2461. Early surveys and routes, 2401, 2462. Act ot 1862; business from Comstock lode; Government transportation prior to road, eight millions a year, 2462. United States transportation charges and 5 per cent, net earnings to pay the debt; act of 1862 not adequate; aid by State of California; construction begun in 1863; act of 18(54; 2463. Keasons for modi- Ified terms, 2463, 2464. Kailroad over Sierra Nevadas declared impossible; an tagonism of other interests; Central Pacific authorized to build eastward from California; road completed. May, 1869; seven years before time fixed, 2464. Extra cost by early completion; additional loss to company by early comple tion; heavy discount on bonds; extra cost of construction; public benefits real?ized through construction *$fcPacific Kailroad, 2465. Injury to company by unjust laws; the Tlfurman act; investment of sinking fund by United States; road has not received itsoroportion of Government transportation, 2466. Aid to competing lines; r*arant to Northern Pacific more valuable than that to Cen tral Pacificand Union Pacific, 2466, 2467. Loss caused by competing aided lines at least $17,000,000; the debt of the Government to company in excess of that of the company to it, 2467. Statement of principal claims against the United States, amount, $62,873,557.81, 2467, 2468. The bonds went into the con struction of the road; Government bonds sold at 40 cents in gold, 2468. How such rapid construction made, 2468, 2469. Prospecting around Donner Lake; compelled to hasten construction to meet Union Pacific, 2469. Central Pacific has fully complied with the laws; statement of Attorney-General to Forty-eighth Congress as to full compliance, 2470. Statement in 1882 of United States Com missioner of Railroads, 2470, 2471. Same in 1883; same in 1884; in 1885, 2471. Statement of Theophilus French; Central Pacific books so kept as to show net earnings of aided roads, 2472. Office of Auditor of Kailroad Accounts created in 1878; 2472, 2473. His suggestions adopted; net earnings shown from comple tion of road to December 31, 1888, $59,276,387.54; paymeuts under Thurman act; constructive mileage, 2473. Statement of earnings and expenses of Cen tral Pacific aided line from November 6, 1869, to June 30, 1878; 2474. Net earnings July 1, 1878, to December 31, 1886; 2474, 2475. Net earnings re duced by competing lines; lacks $930,000 a year of meeting accruing interest on United States bonds; future net earnings not more than $740,000, 2475. State ment of earnings and expenses of Central Pacific aided Hue (860.66 miles) from July 1, 1878, to December 31, 1886 (under Thurman act), 2475, 2476. Con structive mileage allowances; have benefited aided road, 2476. Average mile age allowances favored aided road, 2476, 2477. Constructive mileage as allowed favored aided road, 2477. Illustrations; Amador Branch road, 3477, 2478. Los Angeles and Independence road; Los Angeles and San Diego; San Pablo and Tulare, 2478. Southern Pacific, 2478, 2479. Stockton and Copperopolis, 2479, 2480. Aided road has received more than fair proportion of earnings; a double allowance to Nevada roads, 2480. Allowance of constructive mileage optional with eastern road, 2480, 2481. Allowances have resulted favorably to United States, 2481. Illustrations of usual custom as to constructive mileage; Northern Californiaand Central Pacific roads, 2481,2482. Carson and Colorado and Ceutial Pacific roads; Eureka and Palisade and Central Pacific roads, 2482. Aided li ui s allowed constructive mileage by other roads; New York to San Francisco, 218.), 2483. Through rates and divisions, 1880, between New York and San Francisco; rates and divisions as allowed; rates and divisions had no constructive mileiigo been allowed; profit to aided roads by system of constructive mileage allowam-c, 2483. Earnings used exclusively for benefit of Central Pacific; no discrimination in favor of unaided as against aided roads, except that made by the United States, 2484,2485. No money due to United States for erroneous accounts; money due to comnany from United States: annual settlements by United States. Commia- ANALYTICAL INDEX. 5489 Stanford, Leland, testimony ofContinued. sioner; overpayment to United States by company, $321,152.72, still due; traffic diverted to non-aided'roads only by the Government, 2485, 2486. De ductions from gross earnings by rebates, pools, etc.; such arrangements have always favored aided roads, 218G. Assets of Central Pacinc, 2486, 2487. Ap praisement of company's property, 2487. Assets subject to United States lien; aided line assets, July 1, 1887; no dividends unlawfully declared by the Cen?tral Pacific, 2488, 248;). Average dividends 2.63 per cent., 2489. Dividends paid out of net earnings, 2489, 2490. No money borrowed to pay dividends; no trust funds have been diverted; sinking fund applicable to first-mortgage bonds, 2490. The law of California regarding sinking funds, 2490, 2491. Loans of sinking-fund money to the corporation itself; exchange of bonds, 2491. Have stocks or bonds been unlawfully issued? 2491. No issues or pledges by Central Paciiic contrary to Ihw; guaranty of bonds of California Pacific, 2492. Interest owned in other companies by President Stanford, 2492, 2493. Statement of money loaned by Central Pacific, owing June 30, 1887; 2493,2494. Money borrowed by Central Pacific, and owing June 30, 1887; company claims nothing aa expenses for which sufficient vouchers are not furnished, 2494. Un-vouched payments approved by directors and stockholders, 2494. 249$. Influ encing legislation; assets invested in other enterprises, 2495. Statement show ing extent and character of invested assets, 2495, 2496. Settlements with Fisk (& Hatch, 2490, 2497. Coos Bay Coal Company, interest in; interest in auxiliary roads, 2497. List of consolidations, 2497, 2498. List of leases; what stock holders paid for stock, 2498. Date when each stockholder became such, 2498, 2499. Totalamountofstock,$100,000,000; $68,000,000issued,2499. Thevari- person, 2 y ; road to interests of communities, 2502. Views of F. F. Strother, 2502,2503. Views of John H. Wise, 2503, 2504. Views of Mayor Pond, 2504. Views of William T. Coleman, 250$, 2505. Views of Senator L. J. .Rose, 2505. Increase of wealth caused by railroad; shown by increase of taxable property; table of tax-rolls ot counties in California, 2506. No taxes due to Government or on lands granted by Congress, 2507. Statement of E. B. IJyan, tax agent of Central Pacific, as to taxes, 2507-2517. History of the tax litigation; equality of old constitu tion; assessments to railroads promptly paid when assessed as other private prop erty, 2507. Tax provision of new constitution; inequality of new constitution; a separate assessment for railroads, 2508. Assessed more than elsewhere in United States, 2503, 2503. Efforts to get judgment on the merits of case; tech nical objections by State; San Mateo test case; pending litigation, 60 per cent, tendered: State board admits overassessment, 2509. Three years' taxes on as sessment of 18812 offered to State, 2509, 2510. Statement advocated by San Francisco Chronicle; State controller refused to receive money on account; taxes paid 1881-'86 after judgment declaring it void; taxes paid over six millions, 2510; Central Pacific paid more than any other road in the United States, 2510, 2511. Assessments of railroads in various States, table of, 2511. Statement of amount paid liy Central Paciiic in each year for taxes on lands gaanted by Congress, tho date of each payment, and the year for which such payment was made, 2511-2517. Voluntary payment of taxes; no delays in taking out pat ents for lands, 2517. Injury to company by inability to get patents; rates and charges; low rates on Central Pacific, considering the circumstances; facilities ibrnished and effect ou communities of settlement for debt; facilities first-class, 2518. Settlement proposed shouhJjiQiburdfcu country along line, 2518, 2519. Loss on sale of Govenunent bun-7$7/5niO,O73.5i 2519. Amount saved to Government on transportation by/early completion of road, Central Pacific's proportion, 21,971,002; amount duV-byGoVerauxent for transportation over unaided roads, $1,853,1523.15; interest on land sales lost by company through delay in issuing patents, 2520. Loss on account of sinking-fund provision, $1,G12,/)6(J.72; 2520, 2521. By diversion of busiuess, $17,000,000; amount of equities exceed amount due to Government, 2521. Liquidation of debt antici pated by payments which have been made under original laws, 2521, 2522. Property not subject to United States lien; United States has no right to de mand other security, 2522. Difficulties in crossing the mountains, 2522,2523. A race with the Union Pacific, 2523. Cost of United States transportation prior to road, $8,000,000 a year; saving to United States to 1886, $139,347,741; cost pf United States transportation 8jnce completion, gne-tentfy of former cost; 5490 U. S. PACIFIC RAILWAY COMMISSION. Stanford, Leland, testimony ofContinued. additional facilities to Government and people furnished by roads, 2524, 2525. Cost of road paid in gold, 2525. Currency bonds issued by United States, 2525, 2526. Sold at a discount of $7,120,073.55; amounting, with interest to matur ity, to $20,000,000, for which company received nothing; depreciation in Gov ernment securities due to the war, 2526. Supplies had to be ordered a year in advance; bonds issued to Central and Western Pacific; average amount received for each bond, $744.41; 2527. Loss from discount, principal, and interest, $19,-936,205; statements showing dates and amounts of United States bonds issued to Central and Western Pacific roads (known as currency sixes), with value of same in United States gold at current average rates of premium for United States currency, 2528. Bonds bought for sinking fund under act of May 8, 1878; premium averaged 34.21 per cent.; loss resulting from premiums and dis counts in re sinking fund, 2529. Loss on bonds and interest by early comple tion of road, $40,000,000; 2529, 2530. Relative purchasing power of gold and bonds, 2530. These circumstances well known when contract for construction made with Contract and Finance Company, 2530, 2531. Sacrifice of bonds issued on mountain portion; CentralPagifjc cost more than double by early completion, 2531, 2532. Before codTpBtiorrrFf-ic- Pacific Mail stock worth $330; benefit to United States by e/rly completyHfof road; road completed May 9, 1869; more than seven years belir-jtimejitifed; by early completion the Gov ernment benefited $47,000,000 on transportation of freight, mails, and troops; under original acts, payment for transportation was to liquidate debt and in terest; testimony of United States Commissioner of Railroads as to indirect sav ing to Government; public benefits, 2533. Trade monopolies prior to road, 2533, 2534. Saving to United States in transportation in seven years, $47,000,-000; 2534. Antagonistic local and State legislation, 2534, 2535. Central Paci-fU antagonized from the first by conflicting interests; continued hostile legisla tion proposed, 2535. California railroad commission under new constitution, 2535, 2536. Hostile sentiment during Granger excitement, 53$. Average freight lower than in 1878, and 1879, 2536, 2537. Redpetfyn ofljjfevada and Utah through freights; extreme legislation defeatine/itself, 253?: The anti-railroad sentiment, 2537, 2538. The so-called "Butch-flafr-windle;" in jury by competing aided lines; earnings of Pacific rattrtfads impaired by United States aid to other lines to. amount of f&y-ftfOjOOO; 2538. Pay ment for service on non-aided leased lines withheld by United States, 2538, 2539. Cash due under Supreme Court decisjon, $1,853,323.15; embarrass ment to company by United States not-jSg) amounts due, estimated at $560,000 annually, 2539. Central Pacific/fias inlly complied with the acts; injury to Nevada and Utah by demanding(early payment; aided line earned on local traffic for 1886 about $2,984,000; 2540, 2541. Increase of local rates re quired to meet accruing interest, 2541. Reiteration of claims against Govern ment, amounting to $62,873,557.81; exhibits annexed to witnesses- testimony follows; affidavit of E. H. Miller, jr., secretary, that Central Pacific road has complied with all obligations of the laws, 2541. Statement of A. N. Towne, general manager, relative to diversion of business to non-aided lines, dated San Francisco, July 5, 1887; 2542-2546. Diversions to the lines of other compa nies, 2542, 2543. Diversions to non-aided lines, 2543,2544. Additional letter on same subject, 2544-2546. Statement of J. A. Fillmore, general superintend ent, relative to cost of operating mountain divisions, dated July 25,1887; 2546, 2547. Statement of E. H. Miller, j r., secretary, relative to dividends paid, 2548. Statement showing surplus profits available for dividends from organization to December 31, 1884; 2548-2550. Statement of consideration paid company by each stockholder receiving stock, and when and in what property such payment was made, 2550-2558. Report dated June 20, 1887, to President Stanford,-relative to lands of Central Pacific, by William H, Mills, land agent, 2558 -2570. Extract from Mr. Stanford's letter to Secretary of Interior, dated February 19, 1864, urging early completion of surveys, 2560. Lists of selections filed, 2562. Due diligence to secure patents, 2563. The Government fails to survey the land, 2563, 2564. Discouraging and unreasonable requirements, 2564. Ob?structive measures, 2564, 2565. Government unable to meet the company's demands, 2565, 2566. Governmental policy as to disposition of even-numbered sections, 2566. A summary of points, 2567. General Land Office hopelessly in arrears with work, 2567,2568. A tpresent rateone hundred and sixty years will be required to examine selections already made, 2568. Uselessness of further selec?tions, 2568, 2569. Contested cases before the Department; recent amendments to the law, 2569, Conclusionthe land-grant mortgage, 2569,257Q. Statement of ANALYTICAL INDEX. 5491 Stanford, Leland, testimony ofContinued. J. C. Stubbs, general manager, relative to,differentials, pools, etc., dated 26 July, 1887; 2570-2575. Kates charged, 2570. Physical location of road and traffic done, 2570, 2571. Comparison of passenger rates with those of other roads, 2571, 2572. Through rates regulated by competition; rates in California approved by State board, 2572. Board of railroad commissioners approve management, 2572, 2573. Central Pacific interest in pools, 2573. Pacific Mail agreements, 2573, 2574. Pools are productive of reasonable rates and are beneficial, 2574. *4 Dis criminations '* and "differentials," 2574,2575. Discrimination between indi viduals, 2575. Statement of L. M. Clement, civil engineer, relative to cost of construction, dated July 21, 1887; 2576-2578. Statement of William Hood, chief engineer, relative to cost of construction, dated July 23, 1887; 2579, 2580. Statement of J. H. Strobridge, superintendent of construction, relative to cost of construction, 2580, 2581. Statement of Arthur Brown, superintendent of bridges and buildings, relative to cost of construction, dated July 25, 1887; 2581, 2582. Statement showing from official records saving to United States in transportation of mails, troops, munitions of war, supplies' etc., by construc tion of Central-Union Pacific railroad, dated 20th July, 1887 (by E. H. Miller, jr., secretary), 2583-2598. United States freight; army transportation prior to railroad, 2583. War Department reports as to rates, 2583, 2584. High freight rates prior to railroad; higher rates west of Salt Lake, 2584. Lowest rate taken for these calculations, 2584, 2585. Average rate per ton per mile charged on all freight transported on Central and Union Pacific railroads dur ing 1870-1885; 2585. Kates charged United States, 2585, 2586. Statement showing charges to United States for transportation of freight, and cost of same service at rates paid before construction of railroads, 2586. Summary showing saving to Unitexl States in frei-ht-ra-portation, sixteen years, from 1870 to 1885, incluirfve73&86, 2587. fovh-fo Government in freight charges, $55,-420,554 -/saying estimated byunited States engineer; United States troops and pas&efigers, 2587. Cost of military transportation prior to railroad, 2587, 2588. United States wagon trains; saving in supplies for the Army, 2588. General Grant's views, 2588, 2589. Kelative saving in transporting troops greater than with freight; statement showing charges to United States for trans portation of troops and passengers, and the cost of same service at rates paid before construction of railroads, 2599. Freight and passengers; ending of Indian wars; Indian wars, former cost; $100,000,000 a year saved on freight and troops, 2590; United States mails; former average weignt of mails; weight increased twenty times, 2591. Statement showing weighty; rates, and amounts for trans portation of United States mails on overland route from July 1,1869, to Decem-ber31,1885 (as taken from the reports of Postmaster-General for the several years), 2592. Saving in mail transportation, $40,000,000; 2593. Improvement in the service, 2593,2594. Summary showing saving to Government of nearly $140,-000,000 on freights, troops, and mails to January, 1886; 2594. Views of General Sherman, 2594, 2595. Statement of account with Government to January 1, 1886,showing balance accrued on debt to date (due in 1898) $86,685,907.86; sav ing by United States three times the cash value of the debt and interest; comple-tion of the railroad in less time than allowed by law, 2595. Cost of road in-creased by early completion, 2596. Arti&imt saved to Government by use of v m road for seven years ending June 3(/187(k $26,240,904 in excess of the cash / " value of the debt and interest to date/2506. Debt and interest at maturity / compared with saving in transportationVharges to same date, 2596, 2597. Bal- ance on debt at maturity, $104,397,370; saving to Government in transporta tion charges to maturity, $259,040,430; 2597. Statement relative to compet ing roads aided by Congress by J. C. Stubbs, general traffic manager, 2599-2611. Comparative statement showing freight tonnage and charges on through traffic and percentage of same done by each of the nine transcontinental railroad lines for periods as noted, 2599, 2601. Comparative statement showing freight ton nage and charges on through traffic by each of said routes for periods as noted; also percentage of said traffic done by each of said routes (charges east of Ogden, via Denver and Iiio Grande, shown separately), 2602, 2603. Statement show ing tonnage and charges lost to Central and Union Pacific lines (including Cen tral Pacific tonnage and charges via Denver and Iiio Grande) on through-freight traffic for periods noted, on account of the opening of new lines, 2604-2606. Comparative statement showing number of passengers carried by each of said routes on through traffic, and the earnings accruing west of Ogden, Mojave, Deming, and El Paso, for periods as noted; also percentage of earnings by each of said routes, 2606-2608. Statement showing number of passengers (through) and P B VOL IX-------7 5492 U. S. PACIFIC RAILWAY COMMISSION. Stafford, Leland, testimony ofContinued. revenue lost to Central Pacific road on account of opening of new lines; also show ing average rate per passenger earned and loss annually for the periods as noted, 2609, 2610. Recapitulation showing combination of passenger and freight traffic lost to the Central and Union Pacific line for the period April 1,1881, to December 31,1886; 2610,2611. Statementof E. H. Miller, jr., secretary, relative to amounts due from the United States *br transportation on non-aided roads, 2612-261"). Amount due for mail service in cash, 2612. Cash due fojr all transportation serv ice, 2612,2613. Central Pacific Railroad and leased linesdetailed statement of earnings from mail transportation from January, 1882, to March, 1885, in clusive, and settlement thereof by the United States, 2613. Southern Pacific Companydetailed statement of earnings from mail transportation on lines for merly operated by the Central Pacific from April 1, 1885, to December 31, 1886, and settlement thereof by the United States, 2614. Statement showing amounts due from Government in cash to December 31, 1886, for transporta tion on non-aided and leased lines, showing balance" due and unpaid to Decem ber 31, 1886, $1,853,323. lSjSjfiliL- Willingness to give information, 2615,2616. Early business connectioTS?p5t)TiclLfe, 2616. First acquaintance with Crocker, Huntington, and Hoplpns, 2616, ,2617. Inception of Central Pacific Railroad enterprise, 2617. Original suryfey made by T. D. Judah, 2617, 2618. Com pany formed in 18615*qd_roujtex selected; prospective business from silver mines, 2618. Government aid/lJSl8, 2619. Methods employed in obtaining it; the issue of $100,000 full-paid stock in obtaining it; passage of bill by Congress, 2619. Subscription of Placer County to stock, $200,000; difficulty of obtaining stock subscriptions, 2619, 2620. Construction in 1863 by local contractors; ob-staclesjkniebvercome, 2620- Contract with Charles Crocker & Co., 2620,2621. Obje-nuis-to mnjji oftqMrfirH; advantages of contract with Crocker. 2621. Crcfo&er's resignation as director, 2621, 2622. Reason for hisjemgnatioji; terms of hi-conjiifect, 262-2623.1 The stock of little value;.-eh*wplogicaMnstory of construction, 2623;: Extent of work done by Crocker; the Contraband Finance Company a financial necessity; failure to interest capit-ists)-2624. Road com pleted to Stati line, 2024, 2625. Cost of con8truction7"2625. Necessity for company to contcoLflontractors, 2625, 2626. Amount paid to Crocker & Co. for construction between sections 31 and 141 over $21,000,000, or over $200,000 a mile; magnitude of the work, 2626, 2627. Geography of the country; diffi culties in crossing the Sierra Nevada, 2627. JPreviou-ix-estyationSj, 2627.2628- Basis of raising money to pay contractor; witness-and a-s$ciaifee-6OTroIfelLfctte enterprise, 2628. Who would have got the profits on Crocker contract; rela tions of contractors with the company; individual knowledge of expenses, 2629. Disappearance of contractors' books; general belief of community as to cause of Central Pacific's weakness, 2630. The stock)ypk*gb&8s when issued, 2630,2G31. Means exhausted upon completion of road; dissolution of Contract and Finance Company; its dividends, 2631. Money paid towocker, 2631, 2632. Present stockholders have no interest in any early contracts; whereabouts of account . books of Charles Crocker & Co., 2632. Materials purchased in name of Central Pacific, 2632, 2633. Price of rails and engines; cost of transportation via Pan ama, 2633. Explanation of estimates, 2633, 2634. Why the company con trolled supervision of work; gross earnings from 1862 to 1867; 2634. Finan cial results from Crocker's contract; the stock a net profit, 2635. No expecta tion of profits from stock, 2635, 2636. Not entitled to share in profits of Crocker contract; never received any; prices at which stock was taken in Crocker settlements; inception of Contract and Finance Company, 2636, 2637. Original stockholders; capital stock, $5,000,000; amount held by the Crockers, 2637. Other stockholders B. R. Crocker, Mr. Milliken, and others; how they obtained the stock, 2638. Crocker president of Contract and Finance Com pany, 2638, 2639. Scope and' object of the company; headquarters of company, 2639. Plan ior disposing of stock, 2639, 2640. Custody of the books; a call for the books, 2640, 2641. Suits against tjie company, 2641. The profits of witness and associates on the stock of no interest to any one but themselves; present stockholders and Government not interested, 2641. Why the capital stock was increased. 2641, 2642. Dividends; whereabouts of Mr. John Mil ler; witness has no books showing transactions with Contract Company, 2642. Central Pacific stocks were divided between witness and associates, but no bonds or money, 2642, 2643. Value of the stocks when this division took place; development of the country; everything bright until 1881, then came competition and great falling off in Nevada business; witness knew about how much Central Pacific stock was owned by Contract Company, 2643, 2644. Was ANALYTICAL INDEX. 5493 Stanfobd, Leland, testimony ofContinued. . -"-VN the contract written or verbal; terms of contract, 2644. JKd not kno-con tract was missing, 2644, 2645. Knew books of Contraction/ pany weyemiss-ing; extract from Huntington's testimony, 2645. Contractor tojjave all the assets, 2645, 2646. An "exhaustive con tract;" value of raitfornTstock at com pletion, 2646. Excessive prices paid for stock io settle suits, 2646, 2647. Whereabouts of report dated May 9,1865, on line east of New Castle; difficulty of the construction, 2647. Terms of the Crocker contract, being extract from minutes of June 6, 1865; extract from minutes of May 2,1866; resolution that three-eighths be paid in cash or in stock at 30 cents, 2648. Putting stock into the Contract and Finance Company, 2649, 2650. Crocker did the same; sold 200 Placer County bonds at 70; 300 Sacramento at 65, and 400 San Francisco at about 70; aid from State; State paid the interest on certain bonds, 2649. Amount of stock passed over by Crocker to Contract and Finance Company; contract with that company, 2650 (being an extract from minutes of December 3,1867). Difficulties of construction eastward from State line, 2650, 2651. Ex orbitant prices for supplies; time covered by contract of Contract and Finance Company, about eighteen months; policy of company in regard to stock, 2651. Real object in the issuance of stock, 2651, 2652. Method of payment to Con tract Company; witness' recollection of the specifications; of weight of rails, 2652. Of number of locomotives; of their cost; length of line from eastern boundary of State, 2653. Aggregate number of locomotives at completion of road; manner of payments under the contracts; amounts paid Contract and Finance Company for the 6C0fra4teLabout $20,000,000; 2654. Consolidated lines, 2654, 2655. Dissolution of/CDwact and Finance Company; division of its stock, 2655. Witness' ahardjpi Central Pacific stock after consolidation over $13,000,000; 2655, 2656. How this stock was acquired; buying up out side stock; stock put on the market about 1880 or 1881; 2656. Five millions sold to a New York syndicate, 2656, 2657. Witness' present interest $3,200,-000 at par; date of dissolution of Contract and Finance Company, 2Q5|f ffotes given in payment of its stock, 2657, 2658. No cash payments; the yrester-Tte-velopment Company; stockholders the same, with addition of Mr. gojfcm; wit ness' share of the stock, 2658. What work the Western Development Com pany did, 2658, 2659. Who constructed the California and Oregon from Rose-ville to Redding, and when; California and Oregon contract with Contract and Finance Company (from minutes of April 2, 1868), 2659. How the construc tion proceeded, 2659, 2660. Purchase of Oregon and California; rate of prog ress, 2660. Location of Marysville, 2660, 2661. Construction from Tehama to Delta; from Delta, to State boundary; work done by Pacific Improvement Company; date of Pacific Improvement Company contract; stockholders in that company, 2661. Stock of Pacific Improvement Company, 2661, 2662. Terms of the contract for construction from Delta to boundary; completion of work from Delta to State line, 2662. Account of Pacific Improvement Com pany with Central Pacific, dated December 31, 1886; 2662, 2663. Account showing bonds due June 1, 1887; 2663. Consideration for construction to Delta, the control of Oregon and California; how obtained; terms of the contract and the compensation allowed Pacific Improvement Company determined by men who were principal stockholders in both companies, 2664, 2665. The price paid; a very good trade for Central Pacific; actual cost of construction; bonds issued to Pacific Improvement Company, 2665. Loan from sinking fund to that company, 2605, 2666. Offer to pay back the loan; $16,000,000 mortgage of October, 1886; probable effect of its foreclosure, 2666, 2667. Would leave road from Sacramento to Ogden without terminal facilities; lines consolidated with the Central Pacific, 2B()7, 2668. Interest of officers in the short Iine3 be fore consolidation; by whom they were constructed, 2668. Loan of portion of % sinking fund to Western Development Company, 2668, 2669. What was paid for construction from Sacramento to Ogden; condition of Contract and Finance Company at final settlement, 2669. Owed several millions at time of comple tion of road, 2669, 2670. Created for purpose of better constructing the road; witness and associates received about $50,000,000 profits; personal liability of stockholders, 2670. Effect of the law on investors, 2670, 2671. Relation of Central Pacific to Government, 2729, 2730. United States vs. Union Pacific, to compel an accounting as to disposition of United States bonds; Court of Claims case, with like purpose, 2730. Central and Western Pacific Railroads; memo randum of receipts from all sources (except original contributions by promoters) to December 31, 1869; total, $47,889,000; Central Pacific never handled West ern Pacific bonds, 2731. Counties authorized to subscribe aid to railroads, 5494 U. S. PACIFIC RAILWAY COMMISSION. Stanfobd, Leland, testimony ofContinued. 2731-2733. 4 id given to roads prior to consolidation; the $600,000 subscrip tion of San Francisco County, 2732. County aid to Central Pacific, 2732, 2733. Aid for roads that never were built, 2733. Subscriptions of other counties to railroads, 2733, 2734. Construction of road frorn San Jose" to Ogden, at cost, roundly, of $55,600 per mile; various estimates of cost per mile; Government only interested to extent of its grants, 2734. Company authorized to use the entire grant if necessary, and eutitled to any unexpended balance, 2734, 2735. Position assumed for sake of argument: If company must account, as agent, to Government, and pay overall receipts in excess of reasonable cost of construction, the proceeds of United States and first-mortgage bonds were less than such cost; position taken by company: Government aid granted on condition that the road be constructed, and, on completion of work, Government not entitled to an ac counting; ifcompacy bound toaccount to Government as agent, United States aid was insufficient, and Government should make good the deficit, 2735. Relations of the company and the Government as viewed by the commission, 2735,2736. When aid was given, compensation for service was estimated to he-sufficient to pay debt, 2736. Condition of road at passage of Thurman act and subsequently; important competing lines built, and businessfell off on Central Pacific; per centage on through business now jtfnnt rV jpTT)cr(WTt ; advantage of control of Southern Pacificj2Z7. Terms ofiHease of Central to Southern Pacific, 2737, 2738. Constro-nSnif Oregon and California-/advantage of small roads to main line; SoutJieGfPaciJic to pay interest on Cejiwal's Government indebtedness and payments unaer-Tnurman act, 2738:"Commissioner Anderson's statement of public impressumas to real cause of inability of Central Pacific to meet obliga tions, 2738, 2739. Necessity for Commission to examine the books; money all expended in construction; amountLpf stock not necessarily related to cost of construction, 2739. Company's books open for examination by Commission; necessity of haste in construction of Central Pacific; not desired to throw the books open to the public, 2740. Books of the construction companies, 2740, 2741. Objections raised to leases to GftTtr&l Pacific; protest by chairman of Commission against private examination- tne books, 2741. Not i expose company's affairs to rivals, 2741, 2732. Commission boan- public all evidence bearing on the issn/2j-2. Publicity of examination de manded by Commission, 2742,. 2743. Extent of examination permitted by com-, pany; witness to consult counsel, 2743. Commission to decide -n pertinencjr of evidence, 2743, 2744. Commission claim right to publish emminatipjr'of books, etc., 2744. Books will show no diversion of funds, 2744, 275r5r-fo se crets in them; position of the company that of plaintiffs, 2745. Commission not governed by rules of evidence, 2745, 2746. Question of permitting exam ination of books postponed, 2746, 2747. Witness excused for purposes of con sultation with counsel, 2747. Expenditures from 1840 to 1869 for Government transportation exceeded $8,000,000 per annum. Transportation rates at that time, 2750. Reasons for supposing same rates were to be paid company, 2750, 2751. Rates fixed arbitrarily by Government; decision in case of Union Pa cific as to rates fixed by Post-Office Department, 2751. Grant to'Northern Pa cific in 1864 unj ust to Central Pacific and Union Pacific, 2751, 2752. Greater aid extended to other roads; grant to Northern Pacific in 1864; Central Pacific should be compensated for injury done by assisting other roads, 2752, 2753. A case of benefits to the Government; values created by construction of road, 2753. Com panies to be dealt with in a spiritof justice and liberality, 2753,2754. Completion of road in advance of limit anticipated by Government; self-protection the com pany Js object in hastening completion, 2754, 2755. Another object in view sug gestedincrease of earnings, 2754. Company's first mortgage could have built the road; Government aided portion of Central Pacific not the only source of the profits distributed in dividends from 1870 to 1876; anotherreason for expedition the securing of the land grant; business from the Comstock lode, 2755. Value of Government land grants, per report of company's land agent, 2755, 2756. Largely depreciated by failure of Comstock lode and Government delay in giv ing title; benefits conferred in development of country; diversion of business by act of Government, 2756. The company willing to surrender the lands at a Government valuation, 2756, 2757. Central Pacific a pioneer railroad; willing to let Government have road on certain conditions, 2757. Government has no claim on directors, 2757, 2758. Disposition of Government bonds; road mort gaged ahead of construction, 2758. What the bonds sold for in gold, 2758, 2759. How their value is estimated; bonds all sold after completion of load; borrowing on bonds, 2759. Bonds not kept a week, through pressure for money, ANALYTICAL INDEX. 5495 Stanford, Leland, testimony ofContinued. 2759,2760. Millions of bonds pledged in advance; individual notes given, se cured by collateral; high prices for labor and material, 2760. Price of ties, 2760, 2761. Rails, all American; how transported; rate on large shipments, 2761, Filling and grading done by Contract and Finance Company, 2761, 2762. Ox-teams hauling ties over mountains; roads kept clear during storms by mov ing teams, 2762. Tunneling duriug the winter, 2762, 2763. Other difficulties ' in going over the mountains; large fills originally covered with wooden trestles; Government aid increased from $16,000 to $40,000 a mile, at a point 7 miles east ot Sacramento; character of country between seventh and twenty-first miles, 2763. Fixing the base of the Sierras, 2763, 2764. Comparative cost of first 7 and second 7 miles; the base of the mountain, extra aid given on portion com mencing at, 2764. Discussing as to where it commenced, 2764,2765. All the officers who made geological examination agreed on point of commence ment; the base properly fixed geographically and geologically, 2765. Cost of construction from Sacramento to Ogden, 2765, 2766. All the money used up in construction; actual cost to Ogden more than $48,000,000; 2766. Proceeds of in dividual notes used, 2766,2767. Interest on individual notes repaid by companies; method of conducting Western Development Company, 2767. Not the same with regard to Contract Company; separate accounts with Central Pacific and Contract and Finance Companies; no more interest charged than paid; further testimony to be submitted by company, 2768. Method of ascertaining proceeds of Government bonds and other aid, 2769. Signing testimony by witnesses, 2769,2770. Improve ment of road after completion, 2770. Done by Contract Company, 2770, 2771. Cost of construction at completion in May, 1869, estimated by witness at about $47,880,000; as to statement of profit and loss..-rTflTia-v 1, 1870, 2771. Inter est account of 1870 and 1871 compared, 27J2J72772. Issuance in October, 1870, of land-grant bonds amounting to $9(l/)3r0001l how/tlisposed of, 2772. The books will show, 2772. "Driving the last spike;" through business at com pletion of road, 2773. Bonds on which interest warpaid for 1869, 2773, 2774. Net earnings for 1869, $2,677,290.66; was V-otraad then able to meet all its fixed charges, 2774. Deductions to be made from gross earnings, 2774, 2775. Value of the stock in 1869; in 1871 bought some at 13 cents on the dollar; buy ing up the old stock before completion of road at as low as 10 cents on the dol lar, 2775. Purchases of stock to settle blackmail suits, 2775, 2776. Purchase of Stewart's stock at par, 2776. Other purchases for various reasons without reference to intrinsic value of stock, 2776, 2777. Profits arising from construc tion of road; method of dividing stock, 2777. Stock unsalable at time of di vision, 2777, 2778. Reiteration of witness's statement that stock had no in trinsic value at time these purchases were made; faith in the success of the road, 2778. Unable to sell stock for 20 cents in 1873; 2778, 2779. fcuits against the company; complaint in the Brannan suit, 2779. Reason for paying $400 to $500 a share to settle so-called blackmail suits, 2779, 2780. Suits scattered through a series of years; character not damaged by scurrilous allegations; San Joaquin bonds issued to Western Pacific prior to consolidation with Central Pacific, 2780. Attorneys in the suits by the county for return of the stock or its value, 2780, 2781. Other suits against Central Pacific; Mr. Chittenden, the attoroy~tn; theHginand Winchester suit; reason for questions as to suits, 2781. -gotiatttraiftosell; Huntington and Hopkins willing to sell at 20; acqui sition of San Francigcjuund San Jose"; disappointed with regard to Asiatic busi ness; effect ot protective tariff on cost to company of coal and iron, 2782. Manner of consolidation and reason therefor; witness president of various roads; general terms regarding interchange of stock, 2783. Consolidation stock equaled issued stock of consti tuent companies, 2783, 2784. Article 5 of consolidation agreement, provisions of; witness a large stockholder of constituent compauies, 2784. Can not tell what consideration was paid to constituent companies for stock, 2784,2785. Or what arrangements were made with contractor; contract for construction of Western Pacific Company sublet; exAwk-t from Western Pacific Company's min utes, recording request for rescission of contract, 2785. Method of payment for construction of Central Pacific, 2786. Made1 negotiations which gained for Central Pacific control of Western PactncTbut cannxrt recall details of contract, 2786,2787. All stock put into Contract and Finance Company; when assets distributed stockholders paid the dWj-2787., Central Pacific construction subsequent to consolidation, 2787, 278S7rto-nc-imr'6f all contracts made with construction companies required by commission, 2788, 2789. No contract had which was not legal and proper; pecuniary interest of directors, 2789. Acted in interest of each of the companies, 2789, 2790. Contract with Development Company on 5496 U. S. PACIFIC RAILWAY COMMISSION. Stanford, Leland, testimony ofContinued. , basis of cost and 10 per cent, added, 2790. Directions to purchasing agent that a/ company should have benefit of open competition, 2790, 279J. Construction by Western Development Company and rental of leased lines,* 2791, 2792. Proportionate interests of witness and associates in Development Company, 2791. Terms of construction contract between Development Company and Northern Kwy.; dual relations in regard to rentals, 2791, 2792. Does not know either bonded indebtedness or cost of construction of Northern Kwy., 2792. Leases made to benefit Central Pacific, 2792. Leases provide for five-/ year periods, 2792, 2793. Ownership of stock and bonds ofSanJP-blo and f Tulare; does not remember basis on which rental fixed; a-TTnqmsitio- rather j than an investigation, 2793. Amador Branch built to reltdiJtosevJDal mine; lone coal used to regulate the market; rental, by whom fixed, 2794. Extract from Western Development Company's minutes; text of agreement entered . into on March 11, 1875, between company and W. S. Bailey & Co., 2795. -LWitness and associates bought controlling interest in California Pacific; its /j lease to Central Pacific; competition between the two lines from San Francisco - to Sacramento, 2795, 2796. The road not a paying investment; advantages of jits acquisition; the lease now assured by the Southern Pacific; the management extends for ninety-nine years from April 1, 1885; Southern Pacific controls {whole railroad system, 2796. If relations with Southern Pacific severed, Cen tral Pacific would have no access to tide-water, 2796; 2797. Benefits to Central Pacific of the lease, 2797. Bond issue to Central Pacific commences in Sac ramento; what it covers, 2797. Title to terminal facilities at Sacramento is in Central Pacific, 2797. Benefits of the lease again, 2797, 2798. Sinking funds, t 2798. Construction done by Pacific Improvement Company; history of con- struction of California and Oregon from Roseville north, 2798, 2799. The work done by Contract and Finance Company; control of Oregon and Cali fornia by Southern Pacific, 2799. Provisions of the contract, 2799, 2800. Benefits to the Central Pacific; cost of construction, 2800. Fair consideration received by Central Pacific, 2800, 2801. Consideration paid before completion of road; security for completion of Oregon and California contract, 2801. Con tract provided for control of Oregon and California, 2801, 2802. Is the equip ment complete? relations between Central Pacific and Southern Pacific; de scription of line of true Southern Pacific, 2802, 2803. Control of the South ern Pacific acquired by Central Pacific; the Atlantic and Pacific, 2803. Local business prospects of "Sunset" route, 2803, 2804. Continuation of road to New Orleans; the contractors; date of commencing construction south of Gosheri, 2804. As to bonded obligation of Southern Pacific, 2804, 2805. The coast line as a military road; operation of Southern Pacific during construction; terms of leases of Southern Pacific to Central Pacific; leased roads; how profita ble to Central Pacific, 2805. Were leases profitable to Central Pacific between 1874 and 1880? 2805, 2806. Loss shown by report of 1884; 2806. The losses apparent rather than real, 2806, 2807. Benefit of branch lines to the trunk lines; development of the country by construction of San Joaquin road, 2807. Fruit route to Eastern markets. 2807, 2808. Chicago the center; growth of Los Angeles, 2808. Reasons for change of relations between Central Pacific and Southern Pacific, 2808, 2809. Southern Pacific, why chartered in Kentucky; / Ihow its obligations could be enforced; the consolidation to form Southern Pa-1 I cine; office in Kentucky, 2809. As to decision of Comptroller Maynard as to f 'powers of Kentucky corporations, 2809,2810. State laws regarding foreign cor porations; organizations of the companies maintained; foreign and domestic cor?porations have same rights in California, 2810. Terms of present lease, 2810, 2811. Liabilities and obligations assumed by Southern Pacific; extract from opinion of Comptroller Maynard; consolidation an advantage to the public, 2811. Basis upon which rental was computed; diversion of traffic by Union Pacific to Oregon Short Line; earnings of Central Pacific; profit to stockholders from harmonious operation, 2812. Amount of rental fixed at $1,200,000; clause limiting increase of earnings, 2813. Provision as to sinking funds; relation of this sinking fund to Thurman act fund, 2814. Net earnings of Central Pacific for 1886 between $1,300,000 and $1,400,000; 2814, 2815. Fierceness of compe tition of late years; how the sinking fund is invested; intrinsic value and pres ent market value of bonds of Southern Pacific, 2815. When they were put on the market; value for construction purposes; the different series; had legal opinion as to power of Central Pacific to make the lease, 2816. Basis of account / of earnings, in adjustment with Government, 2816,2817. Consent of Congress ' not asked as to lease; extent of jurisdiction of California corporation, 2817. ANALYTICAL INDEX. 5497 Stanfobd, Leland, testimony ofContinued. Date of issuing Southern Pacific bonds; effect of Southern Pacific upon Central Pacific, 2818. Diversion of through traffic, 2818, 2819. Comparison of rates; efforts to secure through freight; no change in marking of rolling stock, 2819. Mileage rates allowed, 2819, 2820. Agreement to keep rolling stock in good order, 2820. Separate agents for each road, 2820, 2821. Methods of obtain ing business; business differences with Union Pacific, 2821. Character of freight under dispute, 2821, 2822. Interest of Central Pacific in the freight; important articles of transcontinental freight, 2822. Competition for busi ness of Oregon and Washington Territory, 2822, 2823. Oregon Short Line an injury to Central Pacific; reduced earnings last year not attributable to lesoliciting agents, 2823. Central Pacific and "Sunset" routes not compors, 2823, 2824. Managers have larger financial interest in Southern Pac ease; , )etit- / cific; | activity of agents of competing lines, 2824. Route generally designated by shipper, 2824, 2825. The two roads work harmoniously; between themselves they never cut rates, 2825. Their interests identical, 2825, 2826. Comparative cost of transportation over both lines; Southern Pacific the cheapest, 2726. Re-ponsible to stockholders for management, 2826, 2827. Separate management not advisable; Government not entitled to make inquiries, because no default has yet been made, 2827. Object of creation of Commission, 2827, 2828. To look into contract between the Government and the company; hoping for good results from the investigation, 2828. A friendly interview between debtor and creditor, 2828. The Government and the people benefited; an interesting fact; rates on wheat prior and subsequent to Southern Pacific; effect of Southern Pa cific upon Union Pacific, 2829. Percentage of traffic diverted, 2829, 2830. No diversion of Central Pacific funds to construct Southern Pacific; the short lines not self-sustaining, 2830. No money borrowed of Central Pacific to construct Southern Pacific, 2830, 2831. No individual obligations; extract from minutes of Development Company as to individual loans; millions borrowed on individual paper for Central Pacific, 2831. No recollection of transaction mentioned in minutes; money loaned temporarily from sinking fund to Pacific Improvement Company; Southern Pacific depended on its own resources, 2832. Bonds hypothecated, 2832, 2833. Note of Western Development Company for $1,796,714.41, to Central Pacific,2833. No recollection of the transaction, 2833, 2834. Southern Pacific not aided by Central Pacific; no advantage taken of friendly relations, 2834. Were Southern Pacific bonds hypothecated with Cen tral Pacific in Southern Pacific construction? no diversion of Central Pacific funds, 2835. Financial relations conducted on business principles, 2835, 2836. The books will show the relations of the companies; cause of heavy indebted ness, 2836. Letter of Southern Pacific, dated June 6, 1884, to Improvement Company, demanding $234,211.83, for account Central Pacific, for loss through delay in construction, 2836, 2837. Cause of loss on lease, 2837. Companies in which witness is interested, 2917. No interest in water-front property and ferries, 2917, 2918. Oakland Water-Front Company; has no connection with Central Pacific, 2918. Colorado Steam Navigation Company; does not know proportions of freight paid to Navigation Company and to Southern Pacific, 2919. What would be an equitable division? 2919, 2920. Bridge across Colorado River. 2920. Cost of the bridge, 2920, 2921. Bridge leased through Southern Pacific to Central Pacific; express business of Wells, Fargo & Co., 2921. Wells, Fargo & Co.'s capital increased, 2921, 2922. Stock issued to witness and others for a consideration; interest acquired through another company, 2922. Complaint in the Robinson suit; allegation as to contract be tween Central Pacific and Wells, Fargo & Co., 2923. Obj ects to questions based on complaints in blackmail suits, 2923, 2924. Atlanifeand Pacific Express I Company; Occidental and Oriental Steamship Compaify, 2024. The chief stock- I holders, 2924, 2925. Rates for prorating interchanged through freight, 2925. I Percentages determined by the officers of the two conipafliJSs, 2925, 2926. Rates / on material used in construction of Sou them -Pactfic, 2926. No favoritism to/ detriment of Central Pacific, 2926, 2927./r-Diitch Flat wagon road, 2927. (W not charged to Central Pacific; Centril Pacific dyr not get the tolls, 2928. Called all sorts of names by demagoguea-md new-apers; Pacific Mail Steam ship Company; but for subsidy Pacific Mjfctt-efrtud not have lasted long, 2930. Freights which go by rail in preference to steamer; no agreement now between Pacific Mail and Central and Union Pacific, 2930. Pacific Mail has cut rates since cessation of subsidy, 2930, 2931. During existence of railroad pool, competition of Steamship Company undesirable: during fierce railroad compe tition steamship competition of little importance. 2931. No agreement now 5498 U. S. PACIFIC RAILWAY COMMISSION. Stanford, Leland, testimony ofContinued. between Pacific Mail and railroads, 2931, 2932. The future of transcontinental business, 2932. Local business increases faster than through business, 2932, 2933. Central Pacific's earning power dependent on local business; permission to Canadian Pacific to carry teas through in bond; most important feeders of Central Pacific, 2933. Local business between Sacramento and Eastern State Line, 2933, 2934. Most valuable portion of land grant; policy of company in disposing of its lands, 2934. No salespf lands for account of stockholders, 2934, 2935. Witness bought some rajlrtSailand, 2935. Land sold to Charles Crocker or his son, 2935, 2936. Ijfae CoaTaUd Iron Company, 2936. Not much business between lone Coal Company apd Central Pacific, 2936, 2937. Rocky Mountain Coal and Iron Compan--rtfw controlled by "our people,'* 2937. liates paid for coal, 2937, 2938. Rocky Mountain Coal Company paid fair dividends; Carbon Hill Coal Company; sells to Central Pacific, 2933. Berkeley Branch Railroad, 2938,2939. Local transfer business at San Francisc), Kennedy, Long & Co., 2939. Organized into the San Francisco Co., 2939, 2940. Its successors, Coleman & Smith; trouble between Central Pacific and Kennedy; Senator Gwin's son-in-law, Coleman, 2940; stipulation of Senator Gwin as to transfer business, 2940, 2941. Senator Gwin in Washington; nature of his busi ness, 2941. No stipulation as to services in Washington, 2941, f of witness over vouchers, 2942. Mr. Haymond's control of le&l expense ac count, 2942, 2943. Former heafl*e(Jfigal department- Judge SaWggponJ 2943. His predecessor, Judge Rojuiotigk; oth&tTllt6rn)jWtn-gffra-0%cn vouchers, 2943. Legal expense'TT-herspaWrjrlti-- 2943,-944/ How such vouchers were sometimes made up, 2944, 2945. Who can explain the vouchers ? General expense as distinguished from legal expense vouchers, / Theophilus French; as to his report on the legal expense and general expense accounts; employed for one of the companies, 2946. Character of his employ ment, 2946, 2947. Huntington regarded French as a valuable man; publica tion by French concerning Central Pacific, 2947, 2948; purpose of French's visit to Huntington, 2948. Thought French tried to blackmail Huntington, 2948, 2949. - R. Franchot;' character of Franchot's duties at Washington, i favor of Franchot, 2949. Payment of $10,000 in 1869 1-2949, 2950; most of the prominent lawyers of the Conkling's conduct not impugned, 2950, 2951. An illogical ? the Supreme Court; call for vouchers, 2951. Where was the he mountains; agreement on what should be the base, 2958. -showing payment to witness of $ 171,781.89; 3160, 3161. No rec-llec- ' the items, 3161. Purposes of expenditures by witness, 3161, 3162. / legislation; the Mission Bay grant, the only affirmative legislation ever requested; the voucher explained to the company, 3162. Had special agents in 1875; 3162. 3163. Overdrawing on Bank of California, 3163. How witness's accounts against company were made out, 3163, 3164. Was any part of the $171,000 used to influence legislation ? No difference to Government what com pany did with the money; company willing to account to Government for its proportion of unexplained vouchers, 3164. How bill attached to voucher was made up, 3164, 3165. Sorting the checks, 3165. Checks drawn on Bank of California 3165, 3166. Method of keeping witness's bank book;pass-book, check book, and checks destroyed, 3166. The last time witness destnfred checks and stuba; 316rSl67. Where witness spent the wintfor of 1875-13p; 3167. Pro poser-hostile legislation, 3167, 3168. Refusal to istate-wTHTrepresented the company at Sacramento-cotfrpahy willing to account for certain vouchers as money on hand, 3168--Expenditu?fekentirely in interest of company; no ille gitimate influence. /Declines to answer, under advice of counsel, 3169. What sort of ?" general expanses " included; 3169, 3170. Witness never corrupted a member of the legislature; neverjp6it to Wajjiijjtften to influence legislation, 3170. Could have had GoatrfSland for $l(f;000; 3170. Why the bill was de?feated, 3170, 3171. No corruption of Agirials-Sni. Voucher, dated Sep tember 7, 1876, $50,000 to witness for expenses and disbursements, 3171. An explanation of it, 3171, 3172. The money not used to influence legislation, 3172. Object of placing on record each'question and refusal to answer, 3173. Voucher for $83,418.09 paid to witness's account, legal and other expenses; may be made up of small sums; another voucher, $52,500 for expenses, Decem ber 27, 1877; 3174. Voucher for $91,276.69, legal and other expenses, from October 1, 1879, to May 4, 1880; 3174, 3175 Voucher for $4,000 for expenses, paid November 9, 1870; this had some connection with expenses of a survey irom Virginia City to Truckee River; other vouchers; $12,000 for expenses, paid ANALYTICAL INDEX. 5499 Stanford, Leland, testimony ofContinued. September 3/1878; $1,500 paid Charles E. McLane for salary, seven and one-half mouths, December 21, 18S0; 3176. Employment of McLane, 3176, 3177. $8,911.53, December 31,1875, various items credited witness, 3177. $15,117.33, to witness, legal expeuses to December 31, 1875; 3177, 3178. $8,773.05, paid to witness, December 31, 1875, account rents, leases, etc., Oakland wharf; explana tion of this voucher, 3178. How this charge was made up, 3178, 3179. $20,-000 paid witness, February 8, 1876, general expenses, 3179. $50,000 to West ern Development Company, paid September 22, 1876, charged to expenses, 3179, 3180. Relation of Central Pacific to Development Company, 3180. $26,000 paid Development Company February 6, 1877; charged to expenses, 3180, 3181. $29,974.13 paid Development Company September 22, 1876, legal expenses, 3181. $10,000 to witness for expenses, paid February 14,1878; $13,000 to witness for expenses, paid June 7, 1878; 3182. $46,816.94 to witness for ex penses, paid November 12, 1878; 3182, 3183. $38,156.03 to witness for legal expenses from November 25,1878, to September 27,1879; 3183. $500 ta witness for expenses, paid July 23,1879; a missing voucher dated June 28,1878, to witness, amount $111,431.25; 3184. Vouchers frequentl-e*Mjned by courts and com?mittees, 3184, 3185. Witness declines to state-Hre-bexJany portion of money-" covered by foregoing vouchers were givent-T T. Gage for use in conriectio/ with legislation, 3185, 3186. Witness neverga-s-jnjraey to Henry Vroomanjj* influence legislation; no money paid by witness to Franchot, 3186. Fra4rtJfiot employed by Huntington to represent company at Washington, 3186, 3187. No money paid by witness to Sherrill, 3187. Witness declines to answer ques tions a3 to payments to various other individuals, 3187, 3188. Other vouchers put in evidence; $171,781.89 general expenses allowed witness February 7, 1876; 3188. $1,000 paid D. D. Colton for expeuses August 30, 1876; $5,000 paid Mark Hopkins for expenses October 26, 1877; $7,500 paid D. D. Colton November 2, 1876, for expenses, 3189. $789.50 paid witness for expenses on August 2, 1879 (bill attached, dated April 22, 1873); $3,000 to S. T. Gage for expenses, paid September 24, 1878; 3190. $3,290 to D. D. Colton for expenses, paid October 4,1878; 3190,3191. $40,745.25 to Western Development Company, credited June 29, 1878 (for services James H. Bell); $1,200 to D. D. Colton for ., ' expenses, paid September 23,1878; 3191. $5,000 paid to C. Crocker for expenses on March 6,1879; 3191, 3192. $200 paid to Charles Crocker for expenses, paid Marchll, 1879; $40,000 toC. Crocker for expenses, paid May 1,1879; $40,000 paid to C. Crocker for expenses, paid May 6, 1879; 3192. $700 to S. T. Gage for ex penses, paid April 2, 1879; $3,100 to C. Crocker for expenses, paid March 28, 1879; $800 to S. T. Gage for expenses, paid March 28, 1879; 3193. $3,460 to D. D. Colton for expenses, paid October 1, 1878; 3193, 3194. $800 to S. T. Gage for expenses, paid April 1, 1879; $26,452.68 to C. Crocker for expenses, paid March 25, 1879; $5,000 to D. D. Colton for expenses, paid November 3, 1876; 3194. $7,000 to C. Crocker for expenses, paid January 26,1870; $4,145.20 to L. Stanford for expenses, paid October 6, 1879; the "S. H.H. & C." books, 3195. Contract and Finance Co. books to be produced, 3195, 3196. What the "S. H. H. & C." booksshow, 3196. When they were opened, 3196, 3197. Wit ness has no books showing dividends of Contract and Finance Company; divi dends in stockno money, 3197. Acquisition of Wells, Fargo Companv stock, 3197, 3198. Central Pacific's stock in express company, 3198. The $166,666 not charged to Central Pacific; statement of C. P. Huntingtou, dated February, 1870; 3198. Explanation of item apparently charged to Central Pacific; Hun-tington's method of keeping accounts; no expenditure by company on account of individuals, 3199. Resolutions at stockholders' meeting in February, 1885, waiving vouchers for certain payments and authorizing releases. 3199, 3200. The vouchers explained to the stockholders; witness declines to state whether any of the payments were made to influence legislation, 3200. No arrangement as to division of profits of C. Crocker & Co., 3607, 3608. What was required by the *l common necessities of the situation,'' 3608. No dividends except of cash; all assets used in construction of road; expectation as to future receipts, 3609. Prices not anticipated to be measured by Eastern standard, 3609, 3610. Former charges for Government transportation; subsidies to competing lines not antici?pated, 3610. Effect of delay in issuing San Francisco bonds, 3610, 3611. Crip pled condition of road at completion, the result of building in one-half the con tract time under adverse conditions, 3611, 3612. Comparative cost of construc tion over the mountains; effect on Ceutral Pacific business if Union Pacific had reached Sierra Nevadas, 3612. Could not have sustained operation of the road, 3612, 3613. Necessity for reaching Oakland explained; absolutely necessary to 5500 U. S. PACIFIC RAILWAY COMMISSION, Stanford, Leland, testimony ofContinued. control California Pacific, 3613. Reasons for building feeders, 3613, 3614. Gave value to aided lines; policy of consolidating the unaided roads; necessity for controlling Southern Pacific, 3614. Construction companies paid m bonds and stock; which, at time of construction, could not be sold lor money enough to build the road; dividend of Western Development Company instigated byD. D. Col ton, 3515. Ought not to have been made, 3615, 3616. Object of leasing Central Pacific, 3616. Steps taken to secure route in Nevada, 3616, 3617. No diversion of funds to build other roads; assets of Contract and Finance Com pany insufficient to pay its debt, 3617. No desire to disregard governmental rights, 3617, 3618. If Government had performed its obligations, the company would have done so also, 3618. Copy resolution, of date January 30, 1878, to establish a sinking fund, 3618, 3619. Effect of resolution suspended until valid ity or otherwise of Thurman act ascertained, 3619. Contract and Finance Com pany's indebtedness of $5,700,000 to Central Pacific, 3619,3620. Copy telegram suggesting appointment of court to consider equities between Government and Central Pacific R. R., 4088. Stevens, Richard F., testimony of: Expert accountant: character of accountant work done by witness, 3501. Cost of construction of Central Pacific; copy statement (by sections 1 to 138), show ing payments made to Charles Crocker & Co. upon contracts for construct ing the Central Pacific R. R. in 1863 to 1868, inclusive, 3502-3508. Copy statement (by years) showing payments as above, 3508, 3509. Copy recapitulation of statements~of payments, by sections and by years, and of sundry explanatory statements, 3509. Copy statements showing capital stock issued to Charles Crocker in payments on his contracts by the Central Pacific R. R. Co. at 50 cents on the dollar, at 30 cents on the dollar, and at par; materials furnished Charles Crocker by Central Pacific? R. R., 3510. Amount allowed Charles Crocker for extra work on his contracts, Central Pacific R. R., 3510. Copy statement showing amount paid Charles Crocker in gross, on each contract, Central Pacific R. R. Co.; recapitulation, 3511. Total cash payment, $8,536,015.46; total shares of stock, par value, $14,801,710.22; amount of bonds issued, $100,000 worth; net amount of stock issued, $14,701,710.22, at par, 3511. Construction accounts, section 138 to Promonotory Point; total payments, $16,904,- 854.76; 3511, 3512. Overpayment to Contract and Finance Company, $175,029.85; copy account current of the Contract and Finance Company with the Central Pacific of Califor nia to December 31, 1868; 3512-3514. Copy notes on Contract and Finance Company's account, 3514. Statement of material furnished, 3515, 3516. Copy account current of the Contract and Finance Company with the Central Pa cific of California for the year 1869; 3515-3517. Charges to construction in 1868 and 1869; copy statement showing main features of construction account of the Central Pacific of California for 1868 and 1869; 3517, 3518. Accounts current between the companies; copy account current of the Contract and Finance Company with the Central Pacific of California for the year 1870: 3519, 3520. Same for year 1871; 3520. Payment to Union Pacific on work from Promontory Point to point near Ogden, $800,000 in cash and $1,338,000 in Government bonds; payments to West ern Development Company for work on Northern Rwy., 3521. Actual cost of the road, $8,058,500; 3521, 3522. Copy statement of the Northern Rwy. Co.; cost of construction under contract, 3522. Total issue of the stock and bonds of the Northern Rwy. and Berkeley Branch; cost of construction of San Pablo and Tulare R. R., 3523. Cost of construction of Amador Branch; cost of construction of Southern Pacific of California, 3524. 3525. Cost of construction of Southern Pacific of Arizona, 3525, 3526. Cost of construction of Southern Pacific of New Mexico, 3526, 3527. Cost of construction of Colorado River Bridge; bridge destroyed by fire and flood, 3527, 3528. Cost of construction of California and Oregon road from Delta to State line, 3528, 3529. Cost of construction of Anaheim Branch, 3529, 3530. ANALYTICAL INDEX. 5501 Stevens, Richard F., testimony ofContinued. Errors of a book-keeper of this branch, 3529. Detailed statement showing cost of construction and the consideration paid for the various roads, 3530, 3531. Account of sales of land-grant mortgage bonds for $10,000,000 of October 1, 1870; 3532. Has received every facility in making examination; no effort at concealment on part of Central Pacific, 3532, 3533. Comparison of Central Pacific book-keeping with that of other roads; interest charged to construction, 3533. Compliment to witness: testimony refers solely to the book-keeping work, as per formed by employed, and not to the quality of the acts of the executives, 3534. Production of books and vouchers up to 1870, incomplete; Contract and Finance books missing, 3534, 3535. Vouchers in disorder and unreceipted, 3535. Resolutions authorizing payment of certain annual salaries; "back salary" of $18,000 paid to Charles Crocker, without authority and without receipt, 3535, 3536. Cash vouchers and journal vouchers; no attempt ever made to divert, moneys, 3536. His report, dated October 8,1887, on the accounts of the Central Pacific and Western Pacific R. R. Companies, 4509-4525. Earnings of the aided roads; copy statement prepared by G. L. Lansing, assistant secretary Central Pacific R.R., showing method of ascertaining, 4513-4516. Constructive mileage, diversion of earnings by, 4516,4517; copy Mr. Lansing's letter thereon, 4517. Annexed statements: Copies Central Pacific balance sheets for years 1863-1870; 4526-4559. Copies Western Pacific balance sheets for years 1862June 30, 1870; 4568- 4573. Western Pacific, its early construction, accountants' notes as to; contracts with McLaughlin and Houston, and with Contract and Finance Company; the merger of San Francisco Bay Company, 4573-4581. Balance sheets, Central Pacific Co. for years 1871-1886; 4582-4651. Balance sheets, Central Pacific R. R. Co., table of, from 1863-1886; 4653-4657. Gross earnings, operating expenses, and net earnings of Central Pacific R. R. Co. from 186:1-1886, inclusive; table of, 4658-4660. Balance sheets, Central Pacific R. R. Co., from 1865-1886, additional notes by accountant as to, 4660-4663. Cost of construction of Northern Rwy.; of San Pablo and Tulare; of Southern Pacific R. R.; of Colorado River Bridge; of California and Oregon; of Anaheim Branch; of Los Angeles and San Diego, 4663-4668. Construction of Central Pacific; detailed statementof payments made to Charles Crocker & Co., from 1863-'68, inclusive, 4668-4678. Leased lines; statement of amounts paid to, by the Central Pacific, from 1873 March 31, 1885; 4679-4682. Subsidy; statement of United States 6 percent, currency bonds issued to Cen tral Pacific R. R., 4682, 4683. Legal expense account of Central Pacific R. R., from December 31, 1864, to December 31, 1886; 4683-4747. Road east of Promontory Point; note by accountant as to amount paid Union Pacific for, 4748. Southern Pacific system; mileage and dates of opening of the various roads comprising it, 4748-4751. Division of earnings and expenses, forms showing method of, 4751-4756. Gross and net earnings of aided portion of Central Pacific R. R. for month of June, 1886, statement showing, 4756, 4757. Constructive mileage statements, 4757-4762. . Act of May 7, 1878; statement of the requirement of the United States under same, for the year 1884; 4762. Taxes paid on aided line, statement of, for year 1884; 4763. Rebates and overcharges paid by Central Pacific and Southern Pacific Compa?nies from 1865-1886, inclusive, statement of, 4764. Sinking funds of Central Pacific, statement of, 4764, 4765. Directors and officers of Central Pacific, from 1861; 4765-4768. [Same] of Southern Pacific (while leased to Central Pacific), 4769. [Same] of Southern Pacific of New Mexico, 4770. 5502 ,U. S, PACIFIC HAILWAY COMMISSION, Stevens, Kichakh F,, testimony ofContinued. Annexed statementsContinued. Directors and officers of Southern Pacific of Arizona, 4770. |Same 'Same' of California Pacific, 4770, 4771. of Berkeley Branch, 4771, 4772. of Stockton and Copperopolis, 4772. Same 'Same ol San Pablo and Tulare, 4773, 4774. of Amador Branch, 4775. | of Loa Angeles ami Him Diego during its lease to Central Pacilic, 4770, Same] of Loa Angeles and Independence, 4776, 4777. .Sanits] of Western Development Company, 47T7. Same] of Pacific Improvement Company, 4777. ;Saine] of Northern Rwy., 4777, 4778. Copy articles of consolidation between Central Pacific R. R., California and Oregon, San Francisco, Onklaud aud Alatneda, an(l the Sun Juaquin Val ley, dated August 20, 1870; 4778-4183. Salaries of $5,000, or more, annually; statement of, and of all bonuses, dona' tions, etc, paid by Central Pacific, 47H3, 4~y/S. Insufficient vouchers, list of amounts of cash, stock, bonds, etc., which have been expended by Central Pacilic on, 47831798. Stevens, Sidney, testimony of: Character of shipments 2219, '2230. Complaints as to facilities; competitors in busi ness, 3220. Complaints as to rate1*, 323(1, 2321. Union Pacific preference for Salt LakeCity, 2221. Freight, rates to Salt Lake City and farther points, 2321, 2232, DUcrimination ajjmnst Ugden in favor o( Suit Ijnke City, 2222. Utuh Central officers largely interested in Salt Lake, 3233, 2323, Stilling, Edward, testimony of: Leavenworth complaint, 1575. Aid granted by tlie comity to Kansas Pacific, $250,000 bonds, 1575, 1576. Complaints of the "plug" and "mixed" trains; merchants go to Kansas City because ufdiscrituinati on against Lertvenvrortb, 1576. The Kansas Central "scalped." 1576, 1577. Diversion of traffic, 1577. Con tribution of Leaven worth to Kansas Central road $350,000 stock Leavenworth road, 1577, 157S. Rates; transfer of Kansas Central to Union Pacific, 1579. __ Extension built by Garrison, 1.178, 1579. Transfer of Garrison's interest to Jay Gould, 157/, Stone, Tames C, testimony of: Inception of Leaven worth, Pawnee aud Western, 1595. Enlargement of thescheme, 1595, 1506. Capital stock; issueof the stock, 1506. Congress/ouallegialation, 15/Mi, 1597. ListsliowingdiKpusitinn of stock, 1597, 1598. Statementof assets and liabilities, dated April 13, 1863; 15US. Schedule of Delaware lands, 1598. Of Poltawatomie lands, lbi/&, 15/W. Of Government lauds disposed of, 1599. Authenticity of the statement; its origin, 151)/), ltiOO. Stock given for services, 1600. Shares given to E. W. Chase, lliO(), 1601. The work he did; shares given to Henry Bennett, HS01. Douatious to Congressmen discountenanced, 1B01, 1002. "Usher and Bennett ri-ht; let Smith iiud Thotupson slide," 1602. Hallett and Fremont in control of the enterprise, 1U02, 1603. Can not identify the transfers, IGOIJ. -GrupluymeDtof O. W.WeaUin, 16113,1IJ04. IssuetoHenry Bennett; witness kuows nothing of Jlar-jtlt; eraplovment of J. M. Shacklefbrd, 1604. ToC. W. Cha.w, 1604, 1005. Stock controiledby Haliettand Fremont, 1605. Witntsssconsulted with Bennett, 1605,1606. .Employmentof S-Keynolds; of T. L. Price; J. F. Cowan, 1606. "SupposedtobeTLinddensStephens," 160H, 1007. Memoranda.astoThaddensStephens's stock, 1607. Employment of Mars-ton,Lathrop, King, and Brown, 1607,1008. " Mrs. WallKot'New York Herald," 41)0 shares, 1608. Shares to other people, 1608, 1608. ToC. A. Trow bridge; to E, Judah; toBrigges; to-Wilson, of New York Times, lfjiW. ToN. J. Parrott, 160H, 1610. To Simpson, of Knusiw; power of Hallett and Fremont to render stock worthless; employment of It. S. Stevens, 1610. General J. Cooper, ltillt, IS I L ToS. W. JollDSon; toB, F. Camp and others; to J. P. Usher, 1611. C. Kabcock, 1611, 1613. Valne of stock depended on Hallett and Fremont; employment of F. P. Sti/nton,1612. Cheever, of Washington. D.C.: KJ12,1613. R. W. Latham; H, F. Bennett, ltillt. Whitely, of New York Herald, 1613, 16H. Martin, Frauuhot, and Cutts; Hon. ,). S. ItolHns; C. Adams; 1614. Ross, Fletcher, Hollidny, andStinson, of Topcka, Knns.. 1014. 1615. Fielding Johnson, W. W. , Bathos, and J, H. Lane; .1. Moron, ,/osinh Miller, and Cheater Howard, 1615. Statement as to additional stwk, 1U15, KIKJ. AsseU and liabilities; liabilities; J. F. Cowan, $1,000; ti, G. Corwin, SIO.OUO: 1610, K, W. Thompson, $5,000; 1616,1617, Coutrovei-sy with Thompson, 1617. Entries marked "all right;" be- ANALYTICAL INDEX. 5503 Stone, James C, testimony ofContinued. ing payments to Whitely, Cooper, and Delehay, 1517,1518. Statement of lands contracted to be conveyed by road; S. A. Simpson, 320 acres; Thomas G. Glad ding, 21,500 acres, 1618, W. P. Dole, 1,200 acres; 1618, 1619. R. W. Latham; Pottawatomie lands; F. P. Stanton; C. E. Mix, Indian Office; Ash White; 1619; t;Marston," of New Hampshire; Brown and Cheever, of Washington; witness subscribed for stock; land grant committee, 1620. Executive Committee ap pointed, 1620, 1621. Thomas Ewing, jr., an additional member of committee; authorizing issuance of certificates of stock, 1621. Appointment of a general agent, 1621, 1622. Nothing paid to influence members of Congress, 1622. Stow, William W., testimony of: Chiefly engaged in mining; legislation hostile to Central Pacific; a matter of dis cussion with Governor Stanford; concerning influencing legislation, 3410. Wit ness declines to answer questions; making a record for the court, 3410, 3411. Counsel requests a copy of petition of Commission to circuit court, 3411. Strobridge, J. H., testimony of: Sworn statement relative to cost of construction of Central Pacific, 2580, 2581. Kail road builder; connected with California and Oregon; former connection with Central Pacific, 3103,3104. Paid by Contract and Finance Co. and Crocker & Co., from 1864 to 1869; 3104. Duties as superintendent; subcontractors; monthly report to Mr. Crocker, 3105. What it contained, 3105, 3106. Price of labor, 3106. Commencing at Sacramento, 3106, 3107. Work prosecuted to Promontory Point; prices paid for labor; number of Chinamen employed in 1866 and 1867 about 11,000; 3107. Number of Chinamen in 1868 and 1869 about 5,000; number of white men employed not remembered; tied were con?tracted for by Crocker, 3108. Redwood timber used for ties; cost* of grading in 1864; 3109. Price of rails, 3109, 3110. What goes into construction of a railroad, 3110. Names of subcontractors connected with the work, 3110, 3111. Subcontractors paid in gold coin, 3111. Can not give cost of construction, 3139. Average number of Chinese employed in 1864-'69, and their wages, 3139, 3140. Average number of white laborers in 1864-'69, and their wages, 3140, 3141. Average number of. mechanics and their wages; average cost of ties, and where produced, 3141. Cost of clearing road-bed; average width of road-bed, 3142. Cost of grading road-bed, 3142, 3143. Kails cost three times what they do now; comparative cost of grading then and now, 3143. Prices 30 per cent, higher then than now,.3143, 3144. Approximate estimates of cost of construction by S. S. Montague of sections 32 to 63, and from Dutch Flat to State line, 3144-3146. Mr. Montague's reputation; one of his estimates not half large enough; character of the country, 3146. Probable cost of clearing road-bed between Col fax and Dutch Flat; 40 to 45 cents a fair price for excavations at that time; classes of excavation, 3147. Difference in cost of excavating, 3147, -3148. Cost of excavating solid rock; classes of masonry; character of country em?braced in sections 44 to 50; 3148. Probable cost per mile of sections 32 to 43; 3148, 3149. Cost of clearing from Dutch Flat to State line; transportation on the eastern slope, 3149. Summary of estimate for Crocker's contract, sections 32 to 138, $10,493,381.10; 3149, 3150. General history of difficulties encoun tered, 3150, 3151. Reference to witness's statement annexed to Leland Stan ford's testimony; cost of construction recited therein, 3151. Answer qualified as to present cost being 30 per cent, less, 3151. Did not mean to cover cost of rails ami track materials; cost five years before and five years after completion, 3152. Estimate of cost five years after completion, 3152, 3153. Five years later it could have been built without forcing tor 30 per cent, of its actual cost; cost affected by differences in the seasons, 3153. Mr. Montague's qualifications; why contracts with different independent contractors were unsatisfactory, 3164, 3155. Necessity of controlling the work in advance; hauling water for laborers and engines; transportation of rails, tools, and supplies; small contractors would have delayed the work, 3155. Immense cost of surmounting the mountains; sacrifices made to obtain speed; economy never considered, 3156. The super vision of the work, 3156. The work might just as well have been done for the Central Pacific direct, 3156, 3157. The route followed from Dutch Flat to State line; conditions of contracts, 3157. Witness now constructing the California and Oregon from Delta north, 3157. Details of work, 3157, 3158. Prices for ex cavations, bridge masonry, and ties; method of payment, 3158. Delivery of rolling stock; acceptance of road vrtien completed; does not know who reports delivery of rolling stock, 3159. Character of country compared with the Sierra Nevadas, 3159, 3160. Cost of labor; as to bids by others for the construction of this road, 3160. 55( U. 8. PACIFIC RAILWAY COMMISSION, , Daniel W,, testimony of: Otie of original trustees of Central Pacific; effort to divert emigrant travel across the plains; original survey, 28H*. Interests Mr. Judah; articles of association; California Central, 283[). Canvassing for subscriptions to stock, 2HH9, SiH-lU. No NUccesa in San Francisco; interests Hnutington, Hopkins, Stanford, and Crocker, 3840, Who tookbalauceof stock; meeting of stockholders; who were present, 2811. Proposing names for directors, '2841, 2342. First bonrd of di-lectors; nomination ol' officers, 2S42. Mr. Huntingtou wanted the presidency, 2842, 2843. A preliminary survey; report of engineer, 2843. The working survey in March, IStiQ; 2cS43, '2844, Preparations towards racing innds from conn lies; general manure me ut of finances; subscriptions by counties; Placer County stock, 2644. Change of organization; directors visit the line of road: right of way across Nevada, 2845. Financial otitlookofcompanyinl862; 2845, 2846. Change in board of directors; disagreement in the board; five to four, 2846. Causes of dissatisfaction, '284(1, 2847. Disagreement as to county sub-script ions; death of Chief Engineer Judah, 3847. Witness's application Air stock, 2847, 2848. Not allowed to inspect stock-book; offered 50 shares of "watered" stock; no money uonsideration received. 2848, Advisedtoiuatitute legal proceedings, 2848, 2840. Hnymond & H Ira t ton employed as attorneys; results in defeat; Raymond's subsequent employment as Southern Pacific at-torney, 2849. Witness's letter to the Commission, 284M, 2850. Correspondence produced; Mr. Haytttosd's explanation; his connection wilh the Central Pacific:; the application on behalf of Mr, Strong, 2."jO. Final result, defeat; nosuit witb-out Attorney-General's consent; refusal of Attorney-Gen etui to bring suit; aper~ aonal vindication, 2851. Amount witness paid on Htock, 2351,2852. Law re-ganling issue of stock; the 10-percent, provision, 285'X Incorporation of Central Pacific; his subscription for stock, 28.313. Paid 8U percent, iu tuoueyor itseqniva-lent, 285IJ, 2854. No money paid to secretary on stock; offered to pay balance / dne; wanted 50D shares of the watered stock; what he means by watered stock, 1 2854. Made no charge for original surveys; date of services rendered to company; ' county elections concerning subscriptions, 29Tm. Original capital stock of Cen-' 1 teal Pacific, 2355, 2856. Increase in 18G4 and iu 1869; did not object to the vo-i rions increases; wereassets increased correspondingly, 2856, Purposeof original , articles of association, 2850, 2H57. Opinions versus facts; secret meetings of board, 2857. Proposition to buy or sell stock, 2857, 2853. Witness never knew : of ninth assessment; no legal measures taken to compel issue of witness' stock, 3858. .Receipts turned over to O. D. Lambard, 2H5e/, 2859. Alleged pur-chase of simitar stock by D. O. Mills at $1,000 a a liar e, 2859. Belief based on newspaper reports, 2859, 2rtG0. Expenses of witness's attendance on commission, 28t)U. Conversations regarding giving of testimony, 2H61), 2)Vil. Declined to sign affidavit as to where foothills commence; contents of affidavit, 28fil. Date of consultation with Jmlah about affiduvit, 28()), 2S(T2. Change iit name of station; who the original contractors were who were "broken up," 2302. Obstacles in their way, 2H62, liHti'i. Source of information, 2dti& delations of company with contractors, 'iSG'i, 2804. Crocker & Co. as contractors; Mr. Crocker as director; source of information, 286-1. Change in attitude of com-munity toward company, 28B4, 2865. Mr. Crocker's stock; membership ot Crocker & Co.; witness did not denoanco Crocker contract, 28H5. What the contract covered; quality of witness's charges; basis of information as to charge in regard to tolls on Dutch Flat wagon road, 28ti(j, 28t)7. Information as to cost of wagon road being charged up to construction of railrond, -iH(j7. Object in writing letter; the basis for the charges; financial condition of Stun ford, Huntingtou & Co. when they suInscribed, 2dfi8. No Bxed salary paid by Cen-tral Pacific to witness, 2868, 236D. Invoking Government aid; tirst-mortgage bonds, 2869. Union Pacific was preparing to commence at Humholdt Wells, 28ti9, 2870. Financial effect of act of Congress; amount of money raised in 1861, 2870. Valne of evidence of witness, 2870, 2871. Suggested limit to cross-examination, 2871, 287'i, Commissioners remonstrate, 2872. The coiu-pany's liberty to examine witness, 2872, 2873. Central Pacific account with witness; no recollection of the recorded payments to him; differences as to amount due to witness, 2873, No ret*olle(*tion of issue of stock in September, 1804; 2873, 2874. Assignment of interest to Ljtmtmrd; ;i tll for balance of 'witness's papers, 2874. Did Lamhard lirinj; suit on witness's claims, 2874, 2875. Identification of lettere, 2910, 21)17. Preliminary nrvey across the Sierra Nevada Mouatains, '2ttr)H. Copy suliscription paper for funds to carry on Borvey, 2959, 2960. Copy letter from T. D. Judah, dated November ID, 1860; ii I ANALYTICAL INDEX. 5505 Stbong, Daniel W., testimony ofContinued. 2960, 2961. Copy notice of a meeting of subscribers, 2961. Copy notice to ap- pear in Sacramento, 2961, 2962. Copy notice from Huntington to commence the survey, 2962. Copy letter of C. Crocker, dated April 18, 1862; 2962, 2963. Copy notice to attend celebration of the " first throwing of dirt," 2963. Copy letter from C. Crocker, inclosing circulars for distribution on the railroad ques tion, 2963, 2964. Copy letter from Judah concerning election of Stanford as governor, etc., 2964. Same concerning disagreements, 2964, 2965. Same as to allowance of $2,500 for witness' services; the wagon road, 2965, 2966. Last letter received from T. D. Judah, 2966, 2967. Copy letter from Stanford con cerning witness's resignation as director, 2967, 2968. Telegram from Durant as to Chinese labor; copy letters from "O. D. L." on same subject, 2968, 2969. Complaint from Lambard that communications are not answered, 2969. As to letters on extraneous subjects; objection to their reception, 2970. A request that the stenographer shall make a full report of counsel's arguments, 2970, 2971. Claimed as a right, 2971, 2972. Survey over Sierra Nevadas for a wagon road; letters offered in evidence by Central Pacific, 2972. Copy letter from S. S. Montague, 2972. Purchase of shares for Lambard, 2972, 2973. ' Wise in not taking the stock," 2973. Letter from Lambard's partner, 2973, 2974. Matters getting interesting at Salt Lake; "the fight waxes warm,'1 2974. Copy letter relating to matters between Union and Central Pacific; " won't buy any more stock," 2975, 2976. Copy notice of meeting of directors and stockholders, 2976. Copv letter as to buying Marsh's Central Pacific shares, 2976, 2977. Stubbs, John C, testimony of: General traffic manager of Southern Pacific; sworn statement relative to differen tials, pools, etc., 2570-2575. Sworn statement relative to competing roads aided by Congress, 2598-2611. Positions occupied by witness, 3288. General super vision of traffic on Central Pacific, 3288, 3289. Daily conferences with mana ger; reports to manager; outline of duties, 3289. The purchasing department, 3289, 3290. Method of fixing freight rates; method of making through tariffs, 3290. Final decision as to rates, 3290, 3291. Method of publishing rates; tariff file not complete; books and printed sheets at disposal of Commission, 3291. Full sets of rates filed in Washington; the rates charged to the Government, 3292. Changes in rates quickly made, 3292. How communicated to the pub lic, 3292, 3293. Special rates defined; special rates under written agreement, 3293. Rebates, 3293, 3294. Allowed for overcharges; to whom application for overcharges is made, 3294. Requests for lower rates generally refused; Hnntington, Hopkins & Co. not specially favored, 3294. Overcharges on through business; very few errors under present management; regularity with which errors may occur, 3295. No discrimination in favor of Huntington, Hop kins & Co., 3295, 3296. Contract rates in the past; contract rates explained, 3296. Hardware firms who held written contracts, 3296, 3297. Plan of ar ranging contract rates, 3297. With whom the idea originated, 3297. Contract rates in writing; conditioned upon amount and character of business; open rate to all shipping exclusively bv rail, 3298. A large percentage of merchants ac cepted these terms, 3298. Other shippers paid open rate, 3298, 3299. Freight billed at full rates and refund made in contract cases; " overcharges " and " re bates" interchangeable terms; an illustration, 3299. Overcharges by error and deliberate overcharges, 3299, 3300. Total refunds for 1884, $1,060,275.92; 3300. Represents entire amount paid for account of all overland lines, 3300, 3301. Through and local freight refunds, 3301. Arrangements with Standard Oil Company, 3301, 3302. Contract made in 1876; conditions regarding tank-cars, 3302. Alleged diversion of freight from Central to Southern Pacific, 3302,3303. Cut rates originated with northern lines, 3303. Comparative mileage rates, 3303,3304. Merchants could testify as to rates; proportion of through business on Central and Union as compared with Southern Pacific, 3304. The Southern Pacific as a competitor, 3304, 3cO5. Trunk lines object to differential through rates, 3305. Freight traffic via New Orleans, 3305, 3306. Diversion of traffic by " Sunset;" route; reference to Governor Stanford's testimony, 3306. Cana dian Pacific and connections; Northern Pacific and connections, 3307. The Oregon Short Line and its connections, 3307, 3308. Central Pacific, Union Pacific, Iowa, and other connections: Central Pacific, Denver and Rio Grande and connections; Atlantic and Pacific and connections; Central Pacific, South ern Pacific of California, and Itchison. Topeka and Santa F6, 3308. Central and Southern Pacific and conn ections, 3308,3309. The great u Sunset'' route; Pacific Mail Steam-ship line-tfr? route by sail via Cape Horn is the controll- 5506 U S. PACIFIC RAILWAY COMMISSION. Stubbs, John C, testimony ofContinued. ing factor in rates, 3309. The shortest line, 3309, 3310. Central Pacific and Union Pacific can compete with others; not the most economical route, 3310. Did not the Government always pay the open public tariff rate, 3310, 3311. Amount of Government freight; meaning of ''rebate," 3311. Overcharges are rebates, 3311, 3312. Rebates are deducted from gross earnings; largest proportion of overcharges is on through freight, 3312. Charges against earn ings account, 3312, 3313. Returns made to the general auditor; special rates to Contract and Finance Company; Western Development Company's rate, 3313. Southern Development Company's rate; Pacific Improvement Com pany's-rate; orders as to rates issued by comptroller or general manager, 3314. Transactions with Sisson, Wallace & Co., 3314, 3315. No contract with Sisson, Crocker & Co., 3315. Overcharge voucher Pacific Improvement Company's ac count, 3315, 3316. No special rate to Balfour, Guthrie & Co.; " loss and damage" vouchers, 5, 6. and 7; 3316. Entries made for damages, 3316, 3317. Contract -with Hawley Brothers' Hardware Company; '' overcharges by way of error'' not distinguishable in book; distinguishable on vouchers, 3317. Contract with J. W. Doane & Co., 3317, 3318. Arrangements as to tea traffic explained, 3318, 3319. Ready to give the same contract to others; arrangement with California sugar refinery, 3319. History of the sugar traffic, 3319, 3320. Overcharges on sugar explained, 3320. Growth of sugar traffic from nothing up to 59,000,000 pounds, 3320, 3321. At loggerheads with Union Pacific on Utah business; used Denver and Rio Grande to force down rates; rebates granted to secure business, 3321. Contract with Boca Brewing Company; paid less than the open tariff rate; could compete with local brewers, 3322. No contract with W. H. Perry, L. & M. Co., 3322, 3323. Refunds to that company on the books, 3323. .Writ ten contract with Redington & Co., 3323, 3324. System of charges to druggists; special contract rates made general; no arrangement with Wells, Fargo & Co., 3324. Explanation of a payment to them on coke, 3324, 3325. Standard Oil Company's shipments; deferred to the judgment of Union Pacific as to west bound business, 3325. No special arrangement with Grayson, Harold & Co., 3325, 3326. Shipments of cattle, 3326. Special rates on stock cattle, 3326, 3327. Rate made at time of application; was there a special contract with Cali fornia Wool Company, 3327. Rates on wool, 3327," 3328. Explanation of vouchers 1195 and 1196. California Wool Company, 3328. Pool business in charge of witness, 3328, 3329. Object of a pool; its effect on community; competition not destroyed by pools; carrier and merchant equally concerned in reducing rates when necessary, 3329. How the pool rate is reduced; pools rarely maintained, 3330. Merchants want stability of rates, 3330, 3331. The pooling system the best system, 3331. Pooling contracts should be legalized, 3331,3332. Interests of railroads and communities identical; effect of pools on merchants, 3332. Contracts on through business not affected by amount of shipments; pe tition to adopt rates based on amount of tonnage, 3333. Effect of contract plan to equalize rates, 3333, 3334. Freight rates on merchandise and on staples, 3334. Mutuality of interests of carrier and public, 3334, 3335. The heresy that railroads are public property; railroad pools; the case of Leadville, 3335, 3336. Constant downward tendency in rates, 3336. Would have to examine each individual voucher to determine whether for an overcharge or for a rebate, 3337, 3338. Was the rebate account balanced during six teen years, 3338. Five or six thousand claims a month, 3338, 3339. The company only concerned in the net results, 3339. The vouchers for February, 1884, called for, 3339-3341. No objection to submitting vouch ers, 3341. Call for a statement of total amounts of rebates and overcharges, yearly, from commencement to end of last fiscal year, 3341, 3342. Book of instructions as to freight rates, 3342. Freight circular of Central Pacific, 3342, 3343. Manner of handling business, 3343. Passes to shippers, 3343,3344. Cut rates; tickets charged to freight account; contract with Western Union, 3344. Hotel business connected with the Central Pacific, 3344, 3345. Trans continental traffic increasing in volume and in dollars, 3345. The traffic in 1886; 3345, 3346. Business of Central and Union Pacific since 1882; effect of competing lines, 3346. Anticipated competition, 3346, 3347. The Chicago and . Northwestern extension; suggested extensions of Chicago, Burlington and Quincy, of Atchison, Topeka and Santa Fe, and of Colorado Midland, 3347. Prospect good for local traffic, 3347, 3348. Condition of region east of Sacra mento; transportation of mineral products an unimportant factor, 3348. Irrigation introduced at Lovelocks Station, 3348, 3349. Humboldt Valley in need of a market; reduced mining resources of Nevada; poor prospects for road be-* ANALYTICAL INDEX. 5507 Stubbs, John C, testimony ofContinued. tween Sacramento and Ogden, 3349. Pacific Mail Company's subsidy a wise thing, 3349, 3350. No future for Central Pacific east of Reno; condition of country east of Reno; population of Nevada decreasing, 3350. Appointment of traffic agents, 3350, 3351. Attended legislatures to prevent hostile legislation; Mr. Cohen's charge that $300,000 was spent to defeat the Archer bill; witness simply stated facts to the committees, 3351. Was elected school director, 3(551, 3352. Took no part in politics; hostile legislation which passed; defeat of Freeman bill and other hostile bills, 3352, 3353. Defines '' hostile legislation;'' sentiment of the people of California and Nevada on this question; antagonism due to *4 want of information," 3353. Extract from argument of A. A. Cohen, 3353, 3354. Effect of completion of competing lines upon receipts, 3354, 3355. Basis of claim of company as to diverted traffic, 3355, 3356. Object of the road in making the claim; impossible to furnish complete file of tariffs and rates, 3356. Exhibit 7, with President Stanford's testimony, illustrates rates of fare; Uuntington, Hopkins & Co. complain of ill treatment; the general con tract plan, 3357. Basis of plan, 3357, 3358. The plan approved by merchants; advantages of the rail over water routes, 3358. The privilege extended to all merchants, 3358, 3359. Jobbers objected to open rates; membership of Hun-tington, Hopkins & Co; were Huntington and Hopkins interested; were over charges allowed to President Stanford, 3359. Obj ect of system of special contracts; no discrimination against small dealers, 3360. Union Pacific and Central Pa cific have a joint agent in New York, 3360, 3361. Action of Union Pacific as to shipment of California products to the Territories; refusal of Union Pacific to prorate on Idaho and Montana business, 3361. Effect on Central Pacific of completion of Oregon Short Line, 3361,3362. Reason of preference for'' Sunset'' Line, 3362. Delay of freight in Chicago, 3362,3363. Effect of jointownership of Central and Southern Pacific, 3363. The aided lines less inj ured than if owner?ship were different, 3363,3364. The Colorado River steam-boats; division of rates between steamers and railroads; division of earnings on interchanged traffic made by auditor, 3364. Terms of divisions; diversion of traffic to California Pa cific, 3365. Longer in miles, but shorter as to economy and transportation, 3365, 3366. Factors of the prorate; effect of an arbitrary factor, 3366. Relative cost of carrying freight via California Pacific and via Western Pacific, 3366, 3367. Cause of complaint against the Government, 3367. California Pacific necessary to Cen tral Pacific, 3367, 3368. San Pablo and Tulare and Northern Rwys. as feeders, 3368. Rocky Mountain Coal and Iron Company a benefit to the Central Pacific, 3368, 3369. The Archer bill; its enactment would have been disastrous, 3369. Effect on Central Pacific of interstate-commerce law, 3369, 3370. How to keep traffic from Canadian Pacific, 3370. Concerning overcharges paid on account of entire line, 3370, 3371. Rebates to Rocky Mountain Coal and Iron Company, 3371. Explanation of them, 3371, 3372. With whom the contract was made; relation of coal and iron company to Central Pacific, 3372. Explanation of a . rebate of $799.97; 3372, 3373. The bill only shows amount of refund, 3373. Overcharge and rebate vouchers; how distinguished, 3373,3374. A special con tract with Huntington, Hopkins & Co.; who made contract; how made, 3374. A duplicate voucher; definition of a duplicate voucher, 3375. Original and duplicate vouchers, 3375, 3376. Meaning of the letters "S. C." on voucher; special contract not rebates; rebates imply a special contract, 3376. " Relief vouchers," 3376, 3377. Rates fixed by special contracts became regular rates; special contracts necessary to secure business, 3377. Special contract rates understood, 3377, 3378. Special rates to Boca Brewing Com pany; voucher should indicate difference between rebates and overcharges; voucher No. 935; 3378. An overcharge not a rebate; how determined; any railroad accountant can distinguish; voucher No. 926; 3379, 3380. Difference in rebate on coal, 3380; Monthly average of rebate vouchers of Central Pacific; how the percentages of rebates were fixed on through business, 3381; and by whom, 3382. Who fixed the divisions; how cut rates were fixed, 3382. Every merchant visited, 3382,3383. Small merchants getting special contract rates unknowingly; special contracts open to everybody, 3383. Deduction from gross earnings, 3383, 3384. Overcharges or rebates never a part of earnings; what constitutes gross earnings on through business, 3384. An illustration, 3384, 3385. Definition ot the term * * rebate,'' 3385. A rebate is not a special contract, 3385, 3386. Pool ing arrangements have increased gross earnings; diversion of business; reference to his statement annexed to Stanford's testimony, 3386. Company will never be able to pay any part of its debt to Government, 3387. Will require all its re sources to pay first-mortgage interest and operating expenses, 3387, 3388. Only P B YOL IX-------S 5508 U. S. PACIFIC RAILWAY COMMISSION. Stubbs, John C, testimony ofContinued. first-mortgage interest and operating expenses could be paid under Government management, 3388. Advantages of a tunnel from Soda Springs to Cold Stream, 3388, 3389. Mutual advantages of lease of Central by Southern Pacific; effect of competition of Southern Pacific under hostile management, 3389. Gross earnings and gross receipts. 3389, 3390. Benefit to Central Pacific of control of Rocky Mountain Coal and Iron Company, 3390. Arrangement with Rocky Mountain Coal Company prevents excessive charges, 3390, 3391. For many years no com petition in coal production, 3391. First receipts by company of Rocky Moun tain coal in 1870; rates charged on material for branches of Southern Pacific, 3392, 3393. Copy letter from witness to Commission, dated August 17, 1887, as to rates on traffic interchanged by Southern Pacific with Colorado Steam Navigation Company, 3393. Copy exhibit of rates and divisions on merchandise between San Francisco and points on Colorado River, with comparison of Colorado Steam Navigation Company's share of said rates with its local rates from Yuma, 3394. Copy memorandum of agreement made 18th day of September, 1884, between Atlantic and Pacific R. R. and Central and Southern Pacific R. R., 3394, 3395. Copy notice terminating said agreement, 3395. Tebbetts, J. S., testimony of: Assistant general freight agent of Union Pacific, Kansas Division; his duties; the Kansas Division, 1G39. Leaveuworth accommodations, 1639, 1640. Unwar ranted complaints of Leaven worth people; special rates to Kansas Pacific ship pers; pools and "arrangements," 1640. The distinction, 1640, 1641. Special rates allowed; to secure business, 1641. Approaching a shipper, 1641, 1642. Each line %( trying to cheat the other;" passes, 1642. Given to cattlemen and railroad employe's, 1642, 1643. Union Pacific people not interested in any business enterprise along the line; competitors of the Union Pacific, 1643. Route of Missouri Pacific, 1643, 1644. Purchase of supplies, 1644. Amount of freight business for the current year, 1644, 1645. Nature of traffic changed; relation of branches to main line of Kansas Pacific; the most active branch lines, 1645. Number of freight trains, 1645,1646. Complaints at Leavenworth; Leavenworth inadvertently left out of freight tariff; no discrimination against that place, 1646, 1647. Freight on main and branch lines; an illustration, 1647. Cigars and drinks to secure business, 1647, 1648. Carriage for Commis sioner of Railroads, 1648. Teller, Henry M., testimony of: United States Senator; alleged railroad pool to influence Senatorial election; no truth in charge, 1840. No influence exerted by Union Pacific, 1840, 1841. Time spent in Denver during session, 1841. Incidents of the canvass, 1841, Ib42. The caucus not controlling; no conference with railroad people; the "special train" incident, 1842. Favored State control of railroads, 1842, 1843. Fa vored debt adjustment; opposed to Government control of railroads; charges of improper use of money, 1843. The investigation committee, 1843,1844. Sub stance of letter of Senator Hill to Secretary of State; his denial that he made the charges; witness notified not to appear, 1844. Personnel of committee, 1844, 1845. No agency in selection of committee; ignorance of alleged corrup?tion fund; political methods in Colorado as pare as elsewhere, 1845. Instance of interference by railroad people, 1845, 1846. Cost of Senatorial campaign, 1846. Originally one of the promoters of Colorado Central, 1847. Connection with same as attorney; fees. etc.; no compensation from Union Pacific since 1882; 1847. Transfer of Colorado Central to Union Pacific; no improper use of Colorado Central funds; lease of Colorado Central, 1818. Gould anxious to ob tain possession, 1848, 1849. Power of Congress to secure payment, 1877,1878. A fixed annual payment preferable to a percentage of net earnings, 1878. Mem bership of investigation committee, 1879. How Senators voted on Senatorial contest; political composition of committee, 1880. Copy of the committee's report, 1880-1883. Details of the Senatorial election, 1883, 1884. The fullest investigation courted, 1884. The lease of the Colorado Central to Union Pa cific, 1892. Reply to Mr. Hill's charge that a railroad pool secured witness's election, 1977. A thorough investigation due to Union Pacific, 1977, 1978. The names produced by Mr. Hill, 1978. Union Pacific lobby not on the scene, 1979. Teller, Willaed, testimony of: A local attorney for Union Pacific; suit of Given & Abbott, 1929. Marshall Coal Mining Company's suit; suit for an injunction; judgment recovered in the Given & Abbott suit, 1930. Settlement with the Marshall company, 1931. Copy con tract between the Union Pacific Rwy. and the-Marshall Consolidated Coal Min- ANALYTICAL INDEX. 5509 Teller, wtllaed, testimony ofContinued. ing Company of Colorado, dated October 13,1885; 1931-1933. Copy of bond of Marshall Consolidated Coal Mining Company, 1933,1934. Question of priority of lien between Marshall Coal Company and Given & Abbott, 1934. Denver and South Park mortgage, 1935. Supplemental mortgage, 1935. Surrender of right of trackage, 1935, 1936. New contract as to trackage, 1936. Lien of " judgment in Given & Abbott snit subsequent to lien in suit of Marshall Min ing Company, 2004, 2005. Tevis, Lloyd, testimony of: President of Wells, Fargo & Co., 3114. Names of directors of Wells, Fargo & Co.; Wells, Fargo & Co's. contract with Central Pacific; a prior contract dated in 1870; 3115. Business conducted formerly by stages, wagons, and individuals, 3115, 3116. Pacific Express Company; its consolidation with Wells, Fargo & Co. in 1869; gentlemen who then had controlling interest in Wells, Fargo & Co., 3116. Character of the adjustment, 3116, 3117. Pacific Express formally organized, but never did business, 3117. Terms on which Pacific Express re tired, 3117, 3118. Some money was paid by Pacific Express as its share of a banking fund; the arrangement stated in figures, 3118. Wells, Fargo & Co. not therefore prosperous, 3118. 3119. How the Pacific Ex press Company origi nated, 3119, 3120. Copy agreement between the Pacific Express Company and Wells, Fargo & Co., 3120, 3121. Terms of a proposed contract between the Pacific Express Company and the Central Pacific, 3121, 3122. Copy agreement dated December 9, 1869, between the Central Pacific and Wells, Fargo & Co., 3122, 3123. Copy agreement dated October 4, 1878, between the Central Pa cific, Southern Pacific, and Wells, Fargo & Co., 3123-3125. What occurred as to increases of stock; to whom the last issue of $1,250,000 new stock was issued, 3125. The great consideration, the agreement of Central Pacific not to engage in express business, 3125, 3126. Qualifying clause in section 9 as to rates; in crease of business and dividends, 3126. The cash assessment of $500,000 used forthebank, 3126, 3127. First dividend in 1870; who got the $1,666,666.66 issued to Pacific Express Company; nothing paid to the Central Pacific, 3127. A monopoly of the express business on Central and Southern Pacific, 3127, 3128. Concerning the execution of agreement dated October 4, 1878} who was presi dent of the Southern Pacific; what the promoters of Pacific Express Company paid and received, 3128. Banking business of Wells, Fargo & Co., 3128, 3129. Character of organization after consolidation, 3129, 3130. Central Pacific Com pany not a controlling power, 3130. Number of stockholders in Wells-Fargo; never had personal interest in Central Pacific, 3130, 3131. Appointed a Gov ernment commissioner; reasons for declining an interest in Contract and Fi nance Company, 3131. Stockholders' liabilities under the law, 3131, 3132. Crocker & Co. and Contract and Finance Company constant borrowers; current rates of interest in 1862-'69; 3132. Central Pacific stock unsaleable during con?struction, 3132, 3133. A syndicate in New York to put Central Pacific on market; difficulties of construction; difficulty of negotiating securities, 3133. Financial condition of Contract and Finance Company in 1869. 3133, 3134. Ef fect of indebtedness of Central Pacific upon its stock, 3134. Effect of liability of stockholders on values of its stock, 3134, 3135. Immense benefits to Cal ifornia from construction of road; rate of transportation before completion of road; no value to the stock before payment of dividend, 3135. Congressmen selling Pacific stocks short, 3135, 3136. Why Central Pacific stock was worthless in 1869; witness's opinion not based on definite knowledge, 3136. Ground floor terras in Central Pacific and in Contract Company offered but declined, 3136,3137. The Contract and Finance Company a separate organization; the stockholders, 3137. Large floating debt affected value of JDentrai Pacific stock, 3138. Tiiurston, John M. Assistant attorney of Union Pacific since July 1, 1877; his duties; salary, $3,000, 3824. Vouchers, 3824, 3825. Increase of salary in 1879; increased pay on sep arate vouchers; first attendance on Nebraska legislature in'1879; 3825. The Crounse pro-rate bill, 3825, 3826. It was in 1877; methods used to influence legislation; services in 1875, in defeating grant of Merrick County bonds to Burlington and Missouri, 3826. Voucher for these services; railway legislation in Nebraska in 1879; 3827. Many hostile bills introduced, 3827, 3828. As to sentiment in State of Nebraska; at Lincoln, witness was chiefly engaged in court, 3828. Just what he did towards influencing legislation, 3828, 3829. Was a member in 1875; who his assistants were, 3829. Employment of Mr. Crawford; witness objects to giving names, 3830. Mr. Lee was in Lincoln as a witness, 3830, 3831. As to Mr, Hanlon and Mr. Gurley, 3831, Duties of the 5510 U. S. PACIFIC RAILWAY COMMISSION. Thubstox, John M., testimony ofContinued. representatives of Union Pacific at Lincoln, 3831, 3832. Special abilities of employes; explanation of voucher for $6,262.35; for services in defeating bonds-to Elkhorn Valley and Midland Pacific, 3832, 3833. Included services and ex penses of others also, 3833. Explanation of personal receipts; witness did not expend more than one-half of the money covered by the voucher, 3834. How county bonds were issued, 3834, 3835. None of the money used to buy votes; voucher for $336, incurred in the voting of Hall County bonds to Union Pacific, 3835. Voucher for $500; probably no detailed account rendered, 3836. Sub mitted memoranda, 3836, 3837. One thousand eight hundred dollars spent at Lincoln in 1881; character of work, 3837. Passes to legislators and State of ficials; authority of his subordinates to issue passes, 3838. Items of miscella neous expenses; what they covered, 3838, 3839. Five hundred and ninety-five dollars in 1881; the special business referred to, 3839. Voucher for salary stated to be for special services, 3839, 3840. As to "disbursements and ex penses; " another salary voucher, 3840. Three hundred and eighty dollars for services in connection with Boone County bonds, 3840, 3841. Bond election in Nance County; other bond elections, 3841. Precinct bonds, 3841, 3842. A bill of $600 for board at Lincoln, 3842. One thousand dollars for special serv ices, covered employment of certain persons at Lincoln in 1885; 3842, 3843. Five thousand five hundred dollars; $2,500 of it used to pay parties and expenses at legislature in 1886; as to special directions from President Adams, 3843. Six hundred and sixty dollars in procuring aid for branch lines, 3843, 3844. No money expended to secure votes; as to market value of votes, 3844. As to his willingness to testify, 3845. Todd, W. M., testimony of: Wholesale grocer, 1585. Freights delayed on Lawrence Branch; insufficient train and inconvenient hours, 1586. Private conveyances preferred, 1586. Improper charges against operating expenses; special rates, 1587. Petitions to Board of Trade to secure better accommodations, 1587, 1588. Freight transportation on Kansas Central " simply outrageous," 1588. '. Townb, Alban N., testimony of: Statement relative to diversion of business from Central Pacific to non-aided lines, 2542-2546. General manager of Central Pacific since May, 1882; 3401, 3402. Was lettering on rolling stock changed subsequent to lease? who would have charge of the lettering? 3402. Appointment of soliciting agents, 3402, 3403. Directions to such agents, 3403. General soliciting agent in San Francisco, 3403, 3404. Decrease of gross receipts since lease; advantages of lease, 3404. The Southern Pacific not interested in keeping down earnings of Central Pa cific; the falling off in receipts a mere matter of book-keeping; future prospects of Central Pacific depend wholly on Congressional action, 3405. Plan of settle ment, 3405, 3406. Company's ability to pay debt; effect of construction of other transcontinental lines, 3406. Comparative cost of road, then and now; ability of company to pay its debt in certain contingencies; probable effect of a hostile management of Southern Pacific; Southern used as defense to Central Pacific, 3407. If debt is $60,000,000, liquidation not possible in a hundred years; reduction of expenses in crossing Sierra Nevadas might enable company to pay debt, 3408. Competing lines, 3408, 3409. Effect of payment of $33,-000,000 of dividends; benefits to Government from road; diversion, competition, and feeders, and their effect on financial standing of Central Pacific, 3584-3588. Copy letter from witness, dated July 5, 1887, in relation thereto; diversions to the lines of other companies, 3584, 3585. Diversions to non-aided lines 3/)85-3587. For the sake of public convenience and economical operation, 3586-3587. Effect of lease of Central by Southern Pacific, 3587, 3588. No undue diversion of traffic from aided to non-aided lines; most profitable and economical route between San Jos6 and Sacramento, 3588. Method of constructing road, 3588, 3589. Military importance of road from Portland, Oregon, to New Orleans, 3589. Copy statement, dated August 18, 1887, by witness suggesting plan of settle ment, 3589-3591. As to pools and rebates; manner of allowing constructive mileage, 3591. Rate paid to Rocky Mountain Coal Company, 3591, 3592. Ushkb, John P., testimony of: Hia connection with the Leavenworth, Pawnee and Western in 1865; Secretary of the Interior under Lincoln, 1672. Inception of scheme to build the Kansas Pacific, 1672, 1673. Negotiations for lands of Indian tribes; location of land; its quantity, 1673. Finally sold by the Government, 1673, 1674. Form of plan for building the road; the "potential" promoters; the survey made, 1674. The Delaware treaty, 1674, 1675. The Delaware reservation; proposition tQ ANALYTICAL INDEX. 5511 Usher, John P., testimony ofContinued. build the Union Pacific, 1675. Its terminal fixed at Omaha, 1675, 1676. Op position; three branches built; extension of Mannibal and Saint Joseph, 1676. The one-hundredth meridian, 1676, 1677. Route of road; Henry Bennett's connection with the scheme, 1677. Thought the Union Pacific would get all the traffic, 1677, 1678. Passage of the bill in Congress, 1678. Its friends, 1678, 1679. Stock of the Leaven worth, Pawnee, and Western; its first issue; J. C. Stone's subscription, 1679. Sham stock, 1679,1680. Connection of wit ness with the company; helping the scheme along, 1680. Bennett's 20,000 shares, 1680,1681. The sale to Fremont andHallett; protest against the sale; Stone's connection with the transaction, 1681,1682. Consideration to Bennett; his certificates; lawsuits about certificates, 1682. Stone's memoranda, 1682, 1683. The promised certificate for $500,000 worth of stock, 1683. Witness wanted a controlling interest, 1683, 1684. No compensation received by wit ness; subsequent receipt of stock in new road, 1684. R. M. Shoemaker & Co., 1684, 1685. Interests of Perry, Greely, and others; witness's interest in the scheme; the cash payments; form of organization, 1685. Hallett's stock; '' land scrip;" money pid in by John D. Perry, 1686. Sham stock had nothing to do with construction of road; talk about spurious stock; Thomas L. Price, 1687. Mr. Rollins, 1687, 1688. No certificates of stock offered to influence members of Congress; difficulty in deciding where to build, 1688. The Saint Louis, Cincinnati, and other parties, 1688, 1689. Suit by Ben Lewis; subscribers to stock, 1689. Shoemaker & Co.'s "exhaustive contract;" its effect; failure to get outsiders to subscribe for stock; value of Government bonds, about 97; work done by Shoemaker & Co.; decision to build road by way of Smoky Hill; the worst way; the contract with Shoemaker, Miller & Co., 1691. Character of the country; what became of the underlying first-mortgage bonds; construction from the three hundred and ninety-fourth mile-post to Denver, 1692. Cost of " Denver Extension," 1692, 1693. Witness as counsel for the road; its finan cial condition; always " hard up," 1693. Mortgages, 1693,1694. The$6,000,-000 mortgage; the company in default; appointment of a receiver; suit against the Union Pacific, 1694. Declination of Judge Dillon to make decision, 1694. 1695. Finally bought out by Jay Gould, 1695. Price paid for stock 12J cents, 1695, 1696. Time of sale to Gould; rapid rise in stock after sale to Gould; pool agreement gotten up by Artemus Holmes, 1697; the consolidated mortgage, 1696, 1697. Who drew it up; Gould and Sage trustees of mortgage; a funding mortgage, 1697. Gould's interest in the Denver Pacific; fixing commutatibn rates, 1698. Special securities, 1698, 1699. Fixing the price of bonds; pro viding general rates, 1699. Instructions in regard to preparation of mortgage, 1699, 1700. Talking to Gould from time to time; Gould, Villard, and Dillon held the " jack-pot," 1700. $3,400,000 for certain securities, 1700, 1701. No special advantage obtained; more than $2,000,000 of the unstamped bonds owned by Gould, 1701. Effect of consolidation on appreciation of Kansas Pa cific stock, 1701, 1702. Gould's Western visit in November, 1879; circum stances connected with consolidation, 1702. Fear of an injunction, 1702, 1703. Claims of the people of Leavenworth, 1703. A struggle for certain stock, 1703, 1704. Has been attorney for Kansas Pacific since June, 1865; attorneys to look after the legislature; legal expenses, 1705. Entertaining members of the legislature, 1705, 1706. Legal-expense voucher of E. W. Dennis, jr.; of Henry Beard; of W. E. Chandler, 1tO6. Not considered strictly law business; voucher of J. B. Henderson, 1707. Controversy relating to lands, 1707, 1708. Hen derson's bill for services; voucher of E. C. Ingersoll, 1708. Of C. S. Greely, 1708, 1709. Voucher of John Hutchings; suit at Lawrence, Kans., decided against company, 1709. Voucher of R. M. Shoemaker; kow the company's legal affairs were managed; voucher of Horace White, 1701. Mr. White's speech before the Congressional committee, 1710,1711. Voucher of J. P. Usher, 1711, 1712. Procurement of inexpensive legal services; mail transportation diverted, 1712. Troops and stores sent over other roads, 1712, 1713. Plan of settlement; conversion of all securities into preferred stock at 2} per cent., 1713. Would result in cheap transportation, 1713, 1714. Benefit to people of proposed plan of settlement, 1714, 1715. Impecunious, although dividends of $28,000,000 were declared; squatters on right of way, 1715. Claims as to odd sections in diminished Delaware Reservation, 1715, 1716. XJTT, John E., testimony of: Commissioner of freight bureau and secretary of Board of Trade, Lincoln, Nebr.; nature of freight bureau, 1535. Class of complaints; private rates; effect of pools on communities, 1536. Efforts to reduce freight rates, 1536,1537. Com parison of volume of traffic on Rock Island and on main line, 1537, 5512 U. S. PACIFIC RAILWAY COMMISSION. Villaed, Henby, testimony of: Appointed receiver of Kansas Pacific, November 4, 1876; remained as such until late in 1878; 427. Its financial condition at that time, 427, 428. The pooling agreement; witness a member of the committee in charge of the plan of set tlement; had no personal interest in the pool, 428. Why resorted to; its original object; effect of consolidation of 1880 exactly the reverse, 429. Accre tions to pool stock; ceased when market price got above pool price, 430. The withdrawal of the Kansas Pacific stock; its delivery to Gould, Ames and Dillon; authority for such action, 431. Value of Kansas Pacific and Denver Pacific; - its condition when receivers took it, 432. Their management; efforts to get a share of the through business, 433. The question of lease to the Union Pacific; consolidation advantageous to the Kansas Pacific, 434. Did it benefit Union Pacific? 434, 436. General revival of railroad earnings in 1879. Object of ' the consolidated mortgage, 435. How consolidation may have benefited Union Pacific; guaranty of interest on the stock issued; motive for making it, 436. Wallace, Geoege Y., testimony of: A multiform business man, 2177. Names of companies: nature of business of Utah Forwarding Company; controlling interests, 2178. Arrangements as to rates, 2178, 2179. Rebates and special rates, 2179. Territory covered by Forward ing Company, 2179, 2180. Impossibility for others to compete without equal rates, 2180. Character of arrangements as to rates, 2180, 2181. Transportation of coke; the commission allowed by Union Pacific, 2181. Ferguson, Towle & Co., 2181, 2182. Basis of allowance of commission, 2182. Little competition, 2182, 2183. Commission on salt, 2183. Amount of commissions, 2183, 2184. Interested in the coal business; are agents for Union Pacific at Butte, 2184. Amount of coal sales and selling price, 2184, 2185. No refund, rebate, nor com missions on salt or coal, 2185. A dollar a ton margin on coal, 2185, 2186. The salt business, 2186. Rates on grain, 2186, 2187. The Tintic Iron Com pany ; received a refund, 2187. The limestone business; refunds of overcharges; no attempt to influence elections, 2188, 2189. Interest of Bishop Sharp in Tin* tic Iron Company and in salt company, 2189. Walsh, John H., testimony of: Failure to subpoena J. M. Thurston; also W. A. Paxton; also G. M. Dodge, 1187, 1188. George M. Crawford, 1208. W. H. Price; E. O. Walcott; Mr. Rich, 1941. C. S. Morey; F. S. Strube, 1942. W. E. Brown, 2452. As to John I. Blair, 3956. Waeben, Fbancis E., testimony of: Governor of Wyoming in 1885 and 1886; lines of railroad coming into Cheyenne, 2066. Facilities afforded by Union Pacific, good of la.te years; complaint of high rates and that through business was favored; freight and passenger rates; no general complaint of special rates; character of traffic at Cheyenne, 2067. The Union Cattle Company, 2067, 2068. Union Pacific people not interested in shipping or business enterprises; no recent attempt to influence legislative elec tions; hostile legislation, 2068. No influence exerted by railroads on last Wyo ming legislature; Union Pacific in Wyoming; Northwestern R. R.; branch lines advocated, 2069. Burlington and Missouri; its distance from Union Pacific; ad?vantage of construction of branch lines to Union Pacific; where branches should be built, 2070. Resources of country along proposed routes; Wyoming depend ent on irrigation; petroleum, gold, silver, and iron, 2071. Effect of failure of Union Pacific to build branches; character of Union Pacific section of Wyo ming; Union Pacific should be allowed to build branch lines; relation of branches to main line; former and present condition of road, 2072. Branch lines have notdepleted the Union Pacific; constructive mileage; effect on main line; branch line necessary to reach resources of the Territory, 2073, 2074. Character of country in which branch lines are suggested; plan of settlement; payments should be as large as road can pay; favors extending time of payment; its effect, 2074. Effect of competing lines, 2074,2075. Necessity for construction of branch lines by Union Pacific; products of Northern Wyoming, 2075. Where its traffic goes; the Cheyenne Northern; rates on cattle shipments, 2076. Witness got a rebate on wool; public sentiment favorable to construction of branch lines, 2077. To what extent Government should assist Union Pacific; temporary decrease of payments to the Government as a result of branch-line construction; $23,000,-000 in dividends; competition, 2078. The " Eveners' Association," 2079. Coal for electric-light company; price paid for Rock Springs coal; carbon coal, 2090. Wattebson, Henby D., testimony of: Merchant at Marysville, Kans.; complaints as to charges; discriminations, 1544.; Complaints among farmers, 1544,1645. ANALYTICAL INDEX. 5513 Wells, Chaeles, testimony of: Did business with Union Pacific in 1876; 1169. Transfer of freight from road to road and from car to car by contract, 1169, 1170. At 22J cents per ton; what the contract with company required; how freight was transferred, 1170. No public letting of the contract; total receipts, about $6,000 a month; contract closed in 1883; succeeded by the company itself; his partner, Dr. Miller, 1171. No money paid as a bonus to any employ6 of the Union Pacific; witness em ployed for one month by company, as a grain-buyer; received 1 cent a bushel, 1172. Explanation of certain rebate vouchers; the company's cqutract with witness, 1173, 1174. Wkntz, I. C. testimony of: Grain buyer at Marysville, Kans., facilities offered; rates, 1545. Rebates to Hinel-baugh & Merriam, 1545, 1546. Complaints of stock shippers; combinations of farmers, 1546. Freight rates, 1546. Grain prices; interference in elections; cut ting of rates, 1547. West, Joseph A., testimony of: Utah Salt Company the lowest bidder on salt for Union Pacific's Montana Mills, 2227, 2228. Did not get the contract; acceptance of bid required building a switch, 2228. Cast of switch, 2228, 2229. Assurances that the railroad com pany would build switch; Lyman & Wallace; company still operating, 2229. Application for rates, 2229, 2230. Prepared to fulfill terms of bid; the coal business, 2230. Price of coal, 2230, 2231. Wheeler, Charles, testimony of: Auditor of Denver and South Park Construction and Land Co., 1732. Officials of that company and of Denver and South Park Railroad, 1732, 1733. Construc tion of Denver and South Park; begun in 1872-'73; the books kept by both companies; construction company wound up in 1881; further construction, 1733. How the work was done; issues of stocks and bonds; Mr. Gould inter ested in the construction company in 1878; Union Pacific a purchaser,' 1734. The negotiations explained; purchase by Gould of Denver and South Park stock to amount of $2,300,000, 1735. How $571,000 worth of stock came to be in Gould's name, and $300,000 to be held in trust for Kansas Pacific, 1735, 1736. Denver and SouMi Park books in possession of Union Pacific; provisions of construction contract, $20,000 a mile.in stock and $12,000 a mile in bonds, 1736. The supplemental mortgage, and what it covered, 1736, 1737. The con solidated mortgage, 1737. Still another construction company organized in 1880; 1737. The road the consideration paid for bonds, 1738. Interest not regularly paid; bonds worth about 60 cents; earnings of the road, 1738. Sale of pool stock to Gould; Kansas Pacific to forbear discrimination against Denver and South Park, 1739. Copy Denver, South Park and Pacific Railroad balance-sheet December 31, 1880; 1780. Road built by proceeds of bonds; stock clear gain, 1781. Copy of first mortgage, 1781-1790. Denver Railway Association, 1790. Its contract with the Denver, South Park and Pacific, dated May 8, 1875; 1790, 1791. Necessary to issue stock in advance of construction, 1791. Mortgage to be issued when necessary, 1791, 1792. Denver and San Juan Con?struction Company, 1792. Contract between Denver, South Park and Pacific and Denver Railway Association; copy of provision as to payment, 1792, 1793. Denver Construction and Land Company; issues of bonds and stocks to con struction companies, 1793. Agreements to adjust interests of individual stock holders in the Enterprise and San Juan Companies, 1793, 1794. Cost to stock holders in Construction and Land Company; sale of $1,400,000 bonds through Winslow, Lanier & Co.; road between Buena Vista and Leadville; the key to Leadville business, 1794. Financial statement of Denver and South Park, July 1, 1880, to January 1, 1881; 1795. White, Hoeace, testimony of: A voucher explained; witness presented no bill for his services, 3856. Asked as to expenses, he stated the amount, 3856, 3857. Evidence that the bill is not for services; a letter to Judge Usher, 3857. Letters and documents accompanying Mr. White's communication, 3857-3860. Wilder, Edward, testimony of: Treasurer of Atchison, Topeka and Santa Fc; contribution of road to Pacific Mail subsidy, 1566. Benefits to road, 1567. Willard, William A., testimony of: Discharged by Union Pacific: clerks paid for services not render?;/, 1831. Coal transactions at Greeley, 1864, 1865. Equal rates to all dealers/ 18P5. Wilson, James H.: Copy his reply to President Adams, regarding profit to maia liaq from branch-line 5514 U. S. PACIFIC ftAILWA* Woods, De Witt S., testimony of: Secretary and manager of Jackson Coal Company, 1963. Relations of Jackson Coal Company with the Union Pacific, 1963, 1964. No rebate; rebate to com petitor; decrease in business due to new tariff, 1964. Rebates to competitor, if continued, will wipe out' all other companies: effect of discriminations on individuals and communities, 1965. Cost of producing coal, 1965, 1966. Cap ital of Jackson Company, $40,000,1966. Wright, Edward C, testimony of: General auditor Central Pacific road. Duties; as to earnings and operating ex penses, 2429. As to construction accounts, 2429, 2430. Vouchers for general expense sent to secretary; distribution of accounts, 2430. Construction bills audited by Pacific Improvement Company, 2430, 2431. Method of payments to them and on other contracts, 2431. Earnings of leased lines, how made up, 2431, 2432. No constructive mileage now; rates of constructive mileage, 2432. Constructive mileage objected to by Auditor French, 2432,2433. Net earnings prior and subsequent to lease to Southern Pacific; returns made to secretary; rentals; request for statement of net earnings, 2433. Effect of Central Pacific lease, 2433,2434. List of books kept in auditor's office; method of auditing re bates, 2434, 2435. Committee on allowance; rebate vouchers allowed by this committee, 2435. Form of payment to shippers, 2435, 2436. Reports of earnings derived from pools; responsibility for correctness of pool vouchers; other sources of revenue, 2436. Express business, 2436; 2437. Oriental and Occidental Steamship Company; request for comparative statement of ordinary business and pool balances, 2437. Amount of business pooled, 2437, 2438. How pool accounts are kept, 2438, 2439. Cost of construction of California and Oregon Line; responsibility for accuracy of vouchers; extent of construction done di rectly by Central Pacific, 2439. Gross receipts as distinguished from gross earnings; rebate contracts kept in general freight office; annual allowances for rebates, etc., 2440. Items included in gross receipts and in gross earnings, 2440, 2441. How the gross earnings are ascertained, 2441, 2442. Gross re ceipts as distinguished from gross earnings; auditor's office an operating office, 2442, 2443. Reference to Construction Company for construction accounts; items deducted from gross receipts to get gross earnings, 2443. Letter from witness, dated San Francisco, August 9, 1887; 2443,2444. Leases held by com pany, excess of rent over earnings derived: statement of gross receipts. Cen tral Pacific and leased lines from 1864 to 1885, inclusive; statement of freight and passenger earnings from pools and from ordinary business, for 1884; 2444. Copy statement, dated August 9, 1887, of gross receipts of Central Pacific and leased lines, from 1864 to 1885, inclusive, 3605, 3606. Apparent falling oft of gross receipts explained; total profits derived from leases held by Central Pa cific prior to April 1, 1885, over $10,000,000; 3606. Yost, Daniel Z., testimony of: United States appraiser; formerly private secretary of Mr. Stanford; books kept by witness, 2711. The Contract and Finance Company, Governor Stanford's account with, 2711, 2712. Books of thatcompany; their loss, 2712. Last seen by witness in 1873; being packed up by Mark Hopkins, 2712, 2713. Relation of witness to Governor Stanford personal, not official as connected with roads, 2713, 2714. Witness's lack of memory as to transactions with Contract and Finance Company,. 2714. Witness's business with other companies, 2714, 2715. The " S. H. H. & Co.," set of books; what they contained; the receipt of thirteen million Central Pacific stock, 2715, 2716. Believes such accounts were kept in Central Pacific books; how bonds would stand in the company's books: books of Contract and Finance Company, placed in boxes by Mark Hopkins, 2716,2717. Resigns his position with Governor Stanford, 2717, 2718. Request for memoranda made while private secretary; disbursements of money while secretary, 2718. No efforts to influence legislation, 2718, 2719. Visits to the legislature with Governor Stan ford generally; attendances before legislative investigating committees; by Stanford and other officers of Central Pacific, 2719. Who attended to legisla tive matters; legal representatives; no money for influencing legislation, 2720. No interest in elections as railroad men, 2720,2721. To whom passes were issued; personal acquaintance with members,2721. Discussion of bills with members, 2721, 2722. Object of discussion, to secure legislation favorable to company; dining members at personal expense; members were not stockholders, 2722. Never attended sessions of Congress as Stanford's secretary, 2722, 2723. Attend ance at other State legislatures; attendance of Steven T. Gage; his friendly acquaintance with members, 2723. Search for memoranda in store of A. 8. Crocker & Co.; where there had been a fire which had consumed the : ANALYTICAL INDEX. 5515 Vost, I)ANIEL Z., testimony ofContinued. randa. 3412. Has never had any memorandum concerning the use of money in influencing legislation, 3112, 3113. A request by company's counsel for let ters received by the Commission, 3413; the height of impertinence, 3413, 3414. Young, Ebastus, testimony of : Auditor of Union Pacific; has charge of operating accountstraffic and expenditures at Omaha; names of chiefs ot departments, 1027, 1028. Has discretion as to approval of accounts; rebate accounts; their approval by freight auditor, final as to amount, 1028. The record book of vouchers paid for rebates; only the St. Joseph and Grand Island and Oregon Short Line operated under contracts, 1029, 1030. The register of li Freight Earnings Refunded;" method of keep ing these accounts, 1030. Objections to exposing business methods to compet itors, 1031, 1032. Exposure of private business of shippers objected to, 1032, 1033. Acquiescence of company in thorough investigation; vouchers do not show whether paid for overcharge or rebate, 1033-1035. Why papers filed separately and not with voucher; filed in office of the freight claim agent; the officers of the Pool Association, 1036. His duties as general auditor; how ac counts are received, 1208. How the books are kept; gross earnings and gross receipts, 1209. Deductions from gross receipts, 1210. Gross receipts as dis tinguished from gross earnings, 1210,1211. How gross earnings are ascertained, 1212. Cash receipts cut no figure in determining earnings, 1212, 1213. De duction of pool balances, rebates and overcharges; no comparison of gross earn ings with gross receipts, 1213,1214. Annual balance sheet; where do the sums deducted from gross receipts appear, 1214. Car service account, 1214,1215. Car service balance included in gross earnings; the pool balances; how accounts kept, 1215. Ordinary business ar*d pool traffic accounts not separated, 1215, 1216. Relative profits from pool system and ordinary system; not exactly determined, 1216. What determines whether a pool is successful, 1216,1217. Gross receipts and gross earnings; illustrations of the receipt of money not earned; through freight, 1217,1218. Coupon tickets; receipt of other moneys not earned, 1218. No vouchers for unlawful expenditures, 1219. No *'india-rubber" account, 1219, 1220. The land accounts; supervised by witness; branch road con struction accounts; the construction of branch lines, 1223. Paid for out of gross cash receipts, 1223, 1224. No connection with gross earnings whatever; an illustration; amount paid for construction simply the amount borrowed out of net earnings, 1225. Drawing on the Boston office; branch lines actually built by Union Pacific; no illegitimate profits made by officials of company, 1225. Union Pacific people not interested in contracts; statement of gross cash receipts of Kansas Pacific from November 23,1876, to .Tune 18,1880; amount, $18,978,-949.27; statement of gross cash receipts of Union Pacific Railroad from 1868 to January, 1880; amount, $168,578,271.59, 1433. Statement of gross cash re ceipts of Union Pacific Railway from February 1, 1880, to June 23, 1887; amount, $295,789,370.32: gross receipts and gross cash receipts; full statement of all receipts demanded, 1434. Statement of gross receipts and gross earnings of the Union Pacific system for the year 1886; other statements submitted, 1435. land department; legal expenses; gross receipts, 1457, 1458. As distinguished from gross earnings, 1458. Large discrepancies between gross receipts and gross earnings, 1458, 1459. TOPICAL I3STDEX OP TESTIMONY, REPORTS OF ACCOUNTANTS AND ENGINEER, AND OF THE COMMISSIONERS, ARRANGED ACCORDING TO THE ALPHABETICAL ORDER OP THE SUBJECTS INDEXED. Compiled by EDWAED 0. MANHEKS, New York. 5517 TOPICAL INDEX. Accounts : Of Central Pacific and Western Pacific (See witness index; title, Stevens, R. F.) Of Central Branch, Union Pacific. (See witness index; title, Perrenond, G. F.) Of Union Pacific, Kansas Pacific, and Denver Pacific. (See witness index; title, Calhoun, William.) Of Union Pacific books and accounts at Omaha. (See witness index;- title, McDowell, Alexander J.) Of Sioux City and Pacific. (See witness index; title, Anderson, H. J.) Assets: Of Central Pacific : Statement of assets of Central Pacific, July 1, 1887; 2486-2488. Government lien does not apply to Central Pacific improvement at Oakland Point, 27. Nor to the Mission Bay property, 28. To shops and machinery, 29. Lien of Government on equipment, 30. Of Central Pacific, not covered by Government lien, 2522. As to present value of Central Pacific line, with rolling stock, shops, etc., 3012, 3013. Of Sioux City and Pacific: Of Sioux City and Pacific, 2261-2263, 2303, 2304. Table of, on 30th June, 1887; total, $267,7b8.63; 2303. Of Union Pacific: Total securities in bonds or stock held by*the Union Pacific Rw. Co., face value, $74,509,599.12; how made up; their market value, 934, 935. Invest ments in feeders produce 11 per cent, 934. Amounts pledged in various trusts on December 31, 1886; 935. Production of certificates of stock in various companies owned by Union Pacific, 952-955. Letter of Oliver W. Mink to Commission, dated June 14,1887, detailing the stocks and bonds owned by Union Pacific; total face value, $78,684,149.12; 955-960. As to market value of Union Pacific securities, 994. Statement of stocks and bonds owned by Union Pacific Rwy. Co., held in the consolidated mortgage trust. December 31, 1882; 695. Statement of stocks and bonds owned by Union Pacific Rwy. Co., December 31,1882; 695. Statement of miscellaneous stocks and bonds owned by Union Pacific Rwy. Co., December 31, 1802; 696. Statement of stocks and bonds of the company owned by the Union Pacific Rwy. Co., December 31, 1882; 696. Claim that Government lien covers all assets, 1003,1004. Claim that the lien covers branch lines, 1005. Statement of the property, assets and expenditures, liabilities and receipts, on January 24, 1880, of the Union Pacific R. R., 4813, 4816. [Same] as to Kausas Pacific Co., 4616-4618,4820. [Same] as to Denver Pacific Railway and Telegraph Co., 4819,4820. Auxiliaky Lines: 1. Those now operated as part of the Union Pacific system : Cheyenne aud Northern: Now constructing; freight carried75 miles; exten sion desirable, 2076, 2105. Four hundred thousand dollars county aid bonds voted, 2092. And partly issued, 2093. Colorado Central: A very good property; Union Pacific owns nearly all bonds; character of business, 70. Its branches, 71. History of its con struction, 1740. Competition with Denver Pacific, 1740, 1741. Rates cut down one-half by Colorado Central, 1741, 2064, 2065. Lease to Kansas Pa?cific, 1741,1848,1892. Canceling this lease, 374,375. Miles'of road included in the system, about 300; 1747. The only valuable feeder of Union Pacific in Colorado, 1747, 1748, 1955. Its rates too high, 1953, Has paid small dividends, 888, 889. 5519 5520 U. S. PACIFIC RAILWAY COMMISSION. Auxiliary LinesCon tinned. 1. Those now operated as a part of the Union Pacific systemContinued. Colorado Central of Wyoming: When and why built, 71. Discontinued about 1883; 2091. Effect of discontinuance, 2091,2096. Alleged reason, 2091,2092. Should be re-opened, 2096, 2105. Denver, Marshall and Boulder: 30 miles long; acquired by President Adams; bonds purchased at 35; 59. Denver, South Park and Pacific: Location and character of the road, 676,677; Details of construction, 51, 52, 1733-1737, 1781, 1791-1794, 1849, 1850. Its transfer by Governor Evans to Mr. Gould, 47, 535-537, 572-574, 675, 676, 1734, 1735, 1739, 1852-1856. When acquired, 69 ), 697. Details of the in?vestments by Union Pacific in its stock and bonds, 902-906. Chief revenue cut off when collapse came in mining business, 47,48. A case of the illusory values of that time, 48. Union Pacifip was offered half a million bonus for the bargain, 48, 697. Earnings from 1880 to 1884; 572, 1738. Deficit last year $60,000; 48. A detriment to Union Pacific, 723, 743, 1000, 1747, 1954. Its future not hopeless, 48, 49. Consideration given for it in money, not in Union Pacific stock, 49. Union Pacific interest in its stock and bonds, 50. Its branches, 51, 1860. Question of its retention, 52, 680,1075. Union Pa cific has ceased to pay interest on a portion of its bonds, 677, 678. Why interest still paid on a portion, 679, 680. Why treated as a local road, 1078. facilities afforded by, 2029. Criticism of its management, 1985-1987. Joint trackage contract with Denver and Rio Grande, 1850,1851. This coutract canceled, 1859. Surrender of right of trackage, 1935, 1936. New contract made, 1936. Pool agreement with Denver and Rio Grande, 1860,1861,2001, 2002, 2013, 2014, 2016, 2017, 2020, 2022-2027. Copy Gould's account con cerning its construction and his purchases and sales of stock, 591, 592. Balance sheet, December 31, 1880; 1780. Copy first mortgage, 1781-1790. Supplemental mortgage, 1736, 1737, 1935. Consolidated mortgage, 1737. Contract witji Denver Railway Association, 1790-1793. Sale of $1,400,000 bonds through Winslow, Lanier & Co.; financial statement, July I, 1860, to January 1, 1881; 1795. Echo and Park City: A siding to the Ontario mine, 72. Should be retained, 73. Georgetown, Breckenridge and Leadville: The "loop line" an engineering curiosity ; an extension of Colorado Central; mineral business, 73. Built by Union Pacific construction department; an advantage, though whole traffic only $7,000 a year, 74. Greeley, Salt Lake and Pacific: From Greeley, on Colorado Central, to stone quarries at Stout, 54 miles; a constant deficit; a very valuable feeder, 75. A " paying branch," 1748. Complaint that road was not built to Salt Lake, as promised; lawsuit about right of way, 065. Junction City and Fort Kearney : An agricultural feeder of Kansas Pacific; pays operating expenses, but docs not quite meet its fixed charges; a val uable property, 76. Kansas Central: Runs due west from Leavenworth, 76,241. Narrow gauge; a poor property, 76. Constructed by L.T. Smith ; details of construction and cost, 1719, 1720. Foreclosed and bought in by Garrison, Smith, and associates, 1589. Extension from Onaga t() Garrison, 1578,1579. Con struction cost $400,000 to April, 1879; 35 miles built between April and November, 1879, at from $20,000 to $25,000 a mile, 1591,1592,171*4. Cor rection; at about $18,000 a mile, 1594. Aid by Leaveuworth County for extension to Holton, 1575-1577, 1581, 1582, i70:$, 1704,1721. Sale of Garrison's interest In Kansas Central and iu Missouri Pacific to Gould for $3,800,000 ; 580, 1579, 1590, 1722. Four million shares lrom Garrison for $3,000,000; 529. Statement of Gould's purchase of bonds and stock of, 522, 523. Knew nothing of its earnings at that time, 523. Conditional offer by Gould to Kansas Pacific to sell stock and bonds of Kansas Central, 386, 529. Its acceptance, 386. Why he was paid iu Union Pacific stock instead of bonds, 529-532. Acquisition of Kansas Central by Union Pacific, 1591. Did Gould pass it over to Uniou Pacific at cost? 580, 1593. Gould knew nothing of its condition, 523. Director Baker had no knowledge of Kansas Central at consolidation, 741. Director Sage ditto, 386, 387. Lease to Missouri Pacific a part of consolidation agreement, 527, 663, 664. Agreement between Central Branch, Missouri Pacific and Kansas Central, 691.. Copy agreement made December 6,1880; 692, 693. A new lease made a year ago, 692. Complaints of its management; facts cited in petition fora receiver, 1574, 1575. Passenger service, 1568, 1569, 1570. Freights delayed on Lawrence Branch, 1570, 1571,1581,1580,1589,1594, 1640,1646. Diver- TOPICAL INDEX. 5521 Auxiliary LinksContinued. 1. Those now operated as part of the Union Pacific systemContinued. Kansas CentralContinued. sion of trade at Clay Centre and Blue River to maiu line, 15(59, 1570, 1572, 1577, 1580, 1584, 1583, 1588. Charge that Union Pacific has 'scalped" the road, 1570, 1577. Result, business diverted to Kansas City instead of Leavenworth, 151511, 1571, 1580. Leavenworth com?plaints, 1583, 1640, 1703, 1704. Brought before State railroad commis sion ; not remedied, 1584. Decision of railroad commission, 1585. Ex planation of freight agent; Leavenworth " inadvertently left out " of freight tariff, 1646. Merchants leave because of discrimination against Leavenworth, 1576. Improper charges against operating expenses, 17 Union Pacific owns $1,162,000 of the bonds and almost all stock, 77. Its bonds never had any value whatever, 254. Interest paid until this year, 77. Why Union Pacific still pays interest on $186,000 of its bonds, 681. Is a loss to Union Pacific, 744. Its poor prospects, 681, 682. A reorganization pending, 77. A *' bad egg " for Kansas Pacific, 1704. Gould will take Kansas Central and Central Branch back now at cost if Union Pacific will account for Saint Joseph and Western, 581. Laramie, North Park and Pacific: Union Pacific owns all stock; Lawence and Emporia: 25 miles from Lawrence to Carbondalo; mines worked out; road running at loss, 77. Why operated, 77,78; its deficit, 78. Manhattan and Blue Valley: A very important link, 62. Its route, 62, 63. 40 miles long, Manhattan to Garrison; completed by Union Pacific; enor mous tonnage; through and local; indispensable, 63. Marysville and Blue Valley: Connecting link between Union and Kansas Divisions, 80. Montana Railway: Branch to Anaconda Smelting Works; very profitable; no bonds; Union Pacific owns all stock; change of gauge necessary, 78. Omaha, Niobrara and Black Hills: An agricultural road; now part of Omaha and Republican Valley, 89. Profitable in connection with Union Pacific, 90. Omaha and Republican Valley: System of branch lines in Nebraska; about 750 miles in all, 79. Built under Union Pacific construction department, 79. The subsidy from Saundors County, $140,000, in bonds; method and cost of construction, 127. Union Pacific owns nearly all bonds, 79. Pres ent condition good, 127. Largo increase in earnings; agricultural business; a good future, 79. Very valuable feeder, 80. Oregon Short Line: From Granger to Huntington, connecting with Oregon Railway and Navigation Company, 90. Its organization and construc tion, 91, 92. Details of construction, 1291. 610 miles; character- of country, 92, 1291. Cosfc, $20,000 to $25,000 a mile, 92, 1290, 1291. Could be built now for 30 per cent, less, 95. Stocked and bonded at $50,000 a mile, 92. At $40,000 a mile, 1230. Value to Union Pacific, 93, 94, 98, 99. Guar anty by Union Pacific of interest on its bonds, 95,218. Advised that consent of Congress unnecessary, 95,90. Failure to earn the interest, 96, 97. Lease of Oregon Navigation Company, 99. Amount of rental, 99,100. Future of this consolidation; possible results to Union Pacific, 100. Thirteen mill ions of its stock now in Union Pacific treasury, 93, 218. As an outlet for through traffic, 725. Copy contract dated June 11,1884, between J. M. Eddy and Utah Contract Company, for grading Wood River Branch, 1283-1286. Copy contract between road and John M. Eddv, dated June 5, 1884, for constructing and equiping road from Hailey to Ketchum, 1286-1288. Copy contract between C. F. Adams, president, and J. M. Eddy, dated June 5, 1884, for cash advances to Eddy, in construction of Hailey-Ketchuni road, 1288. Telegram and letters in rolation thereto, 1289. What Eddy did un der his contract, 1290. Eddy's compensation and method of supervision, 1292. Plan by which Union Pacific acquired control, 1292, 1293. In con nection with Utah Northern a competitor of Central Pacific to Ogden. Fu ture business promising, 2151, 2152. Character of traffic, 94, 2152. Pre ponderance of traffic fluctuates as to direction, 2152. Diversion of traffic by Union Pacific to, 2182. The road an injury to Central Paoific, 2823, 3361, 3362. Complaints of rates on, 2197, 2198. Salina and Southwestern: 25 miles from Salina to McPherson; agricultural; more than paid operating expenses; belongs to Kansas Pacific; should be retained, 101. Salt Lake and Western: From Lehi Junction on Utah Central to mines at Tintec; under " Bishop " Sharp's management, 101. Organization and con?struction , 2194-2196. Further details of i ts construction, 2198, 2199. Cost, about $16,000 a mile, 2200, 2201. Union Pacific owns all its securities; its apparent deficit, 637. 5522 U. S. PACIFIC RAILWAY COMMISSION. Auxiliary LinesContinued. 1. Those now operated as part of the Union*Pacific systemContinued. Salt Lake and WesternContinued. Solomon Railroad: A branch of Kansas Pacific; a desirable feeder, 102. Utah and Northern: From Ogden to Garrison; 466 miles in all; its route, 102. Its history, 103. Character of country, 103,104. Built by Joseph Richard son, 442. Sale of stock to Gould, 443. Bought and extended by Gould; turned over to Union Pacific, 537. Circumstances of its acquisition, 571, 572, 2173. Has paid small dividends, 888. 2. Those outside the system, in which Union Pacific has a proprietary interest. Atchison, Colorado and Pacific: Consolidated extensions of Central Branch, 802. Early history, 801, 802. Oliver Ames's interest in, 804. Ames's agree ment to turn over to Gould majority of stock of, 809, 810. Issue of bonds, 57. Construction; cost, $8,000 a mile; leased to Central Branch; terms of lease, 803. Atchison, Jewell and Western: Extension of Central Branch, Waterville to Burr Oak, 802. Ames's agreement to turn over to Gould majority of stock of, 809, 810. Central Branch: Early history of, 801,802. Oliver Ames's purchase of stock of, 804. His negotiations to sell to Gould, 804-807. Copy agreement be tween Ames and Gould, 807. Ames did not know Gould's object, 808, 809. * Copy Gould's options to Ames, 808-810. How Pomeroy "f&oled" Gould, 811. Certain interests retained by Ames, 811. Bought by Gould for ac count Union Pacific, 55. Date of Gould's purchases of stock, 578, 579. Motive for purchase, to protect Kansas Pacific, 579. Sellers had no con nection with Union Pacific, 56. Bond issue on extensions, 57. Purchase of 7,616 shares by Union Pacific from Gould, 3S2, 383. Was $239 a share too high a price ? 383-386, 580,723,724, 741, 758. Its financial condition then and since, 383, 384. Sage's motion approving the purchase, 384. Discus sion in the board meeting, 384, 385. What Director Atkins knew of the road when he signed for its purchase, 758, 759. Additional statement of Union Pacific purchases of stock of, 812. Its present condition, character of buildings, etc., 1563, 1564. Its traffic, 1560, 1561, 1565. "Routing" of business in favor of Missouri Pacific, 1638. Its rates higher than on Atchi son and Topeka, 1561. The first 100 miles subsidized by Government, 55. Owned now by Union Pacific; agricultural business; very profitable; lease to Missouri Pacifio has twenty-three years to run ; its terms, 56, 691, 692. Copy lease made December 6,1880; 692, 693. New lease made a year ago, 692. Gould's offer to take back Central Branch and Kansas Central at cost and pay cash if Union Pacific will account for Saint Joseph and Western, 581. Has paid two dividends, total $150,(J80, 888, 89. Statement of net earnings and yearly income of main and leased lands, 5310-5314. (See also, witness in dex, title, Perrenound, G. F.) Council Bluffs Street Rwy: A mile long; connects depot with town; a good future ; "a good thing to sell"; why purchased, 58. Leaven worm, Topeka and Southwestern: Bought in 1882; why, 59. Agricult ural business; profitable; has paid expenses, 60. " Forced" upon Union Pacific; controlled jointly with Atchison people, 60. Guaranty of its bonds, 60, 61. Its possession of no importance now to Union Pacific, 61. Manhattan, Alma and Burlingamo: Fifty-six miles; owned jointly with Atch ison people, 61. Pays operating expenses, but not interest on bonds, 62. An important connection, 61,62. How constructed and paid for, 62. Saint Joseph and Grand Island: Formed by consolidation of Saint Joseph and Western, Saint Joseph Bridge, and Hastings and Grand Island, 238, 260. Its history, 238. Seventy-five thousand dollars 6 per cent, county aid bonds, 1489. Value of the stock in 1880; 239. Enhancement of land values along the line between 1878 and 1884; 253,254. Guaranty of interest on $7,000,000 bonds by Union Pacific, 109, 317, 318, 744, 768. Consideration for the guar anty, 318. Saint Joseph and Grand Island and Oregon Short Line only lines operated by Union Pacifio under written contract, 1029, 1030. Compara tive rates on Central Branch and on Saint Joseph and Grand Island, 1626, 1627. Why Saint Joseph and Grand Island shippers send freight over Cen tral Branch, 1627, 1628. Road uuaffected by "short-haul" clause, 1629. Rates on east-bound grain and live-stock over, 1634, 1635.' An "under stood" agreement with Missouri Pacific as to rates, 1624, 1625. Saint Joseph and Denver: In receiver's hands in 1874-'79; reorganized in 1877; 258. Into Saint Joseph and Pacific and Kansas and Nebraska; these roads consolidated about January, 1880, into Saint Joseph and Western, 259. Which were leased to Union Pacific, 259, 260. Fore-plosed and reorganized in l8:*--'84 into Saint Joseph and Grand Island, TOPICAL INDEX. 5523 Auxiliary LinesContinued. 2. Those outside the system, in which Union Pacific has a proprietary interest Continued. Saint Joseph and Grand IslandContinued. taking in Hastings and Grand Island and Saint Joseph Bridge, 260. De scription of road and of its branches, 260, 261. Its condition in 1879; 404. No interest paid until after reorganization as Saint Joseph and Grand Island, 262. Receiver's certificates: Value of, in 1879; 408,414. Copy letter dated June 8, 1887, C. W. Hassler to Commission, as to receiver's certifi cates, 423, 424. Copy court order, authorizing certificates, 425. Its modification, 426. Statement: Monthly earnings and expenses, October 1, 1873, to Oc tober 31,1875; 420. Earnings in 1875-79; 409, 410. The earnings above operating expenses in 1875 expended in betterments, etc., 261. Bonds: Total issue of, on these roads, 237, 259. Bonds, prices of, during 1875-'77; 411, 412. Placed in 1871, defaulted in 1873; fore closure in 1875, receiver, consolidation, 415. Advance in prices in 1879; 416, 417. The reason for it, 416, 575. Was "pegging up" resorted to, 417, 418, 576. Gould purchased road to protect Union Pacific from Iowa pool lines, 576, 577, 690. Gould's purchases of bonds in 1879; 575. Copy Gould's account, showing purchases and sales during 1879 of Saint Joseph and Denver bonds, stock, and receiver's certificates, 466-469. The stock went with bonds as "trimmings," 471. Mr. Gould's interest, from whom acquired, and the price paid, 262, 263. Sales of, to Gould by Hassler, in 1879; 419,420. Explanation of apparently increased holdings by Gould, as shown in Mr. Mink's letter, 521, 522. Market value of Saint Joseph and Pacific and Kansas and Nebraska securities in 1878-'8O; 251,262,266,267. Copy agreement of consolidation between Saint Joseph and Pacific and Kansas and Nebraska, 420, 421. Copy let ter dated December 18, 1876, C. W. Hassler to Saint Joseph bond holders, as to proposed consolidation, 422, 423. Saint Joseph and Western: How acquired by Union Pacific, 64, 65. Agri cultural business; road has paid, 65. Future value.problematical; earns surplus over interest and charges; no dividends on stock, 66. Its earnings for 1878; 409, 410. Quotations for securities published in 1879, no guide to value, 413. Issues of stock and bonds, 418. Sales of/ these securities to Gould in 1879, by Hassler, 411, 412, 419. Not worth more than 40 or 50 at end of 1879; 413. Gould purchased the road to protect it, 661. Gould's purchase of road made with understanding that, if consolidation went through, the road was to be included, 661, 662. Was agreement to buy the road from Gould made public, 665. Bought at 40; sold at par, 666. Sago interested in 1878; 342. Interest of Director Dexter in, in 1879, acquired from Gould, 701, 730. Interest of Director Baker in, in 1879; 739. Baker had no knowledge of the road at consolidation, 741. Very likely Gould fixed price for it, 742. Interest of Director Atkins in, in 1879 and 1880; had no definite knowl edge in regard to the road, 759. Controversy with Saint Joseph Bridge concerning rates of toll, 1389,1399. C. W. Hassler's official connection with road in 1875-79; 409. Saint Joseph Bridge: And its incumbrances, 263. Its bonds, 239, 251. Copy Mr. Gould's account, purchases, and sales, in 1879; 466-469. De tails of his purchases, 472. Value of the bonds in 1879 and 1880; 252, 408, 413. Their value, if consolidation had not taken place, 574, 575. Hastings and Grand Island: Built in 1879; its stock and bonds, 240,264, 265. Fair cost of building such a road at that time perhaps $10,000 to $12,000; 265. Built by Gould, who thus became owner of certificates, stock, and bonds, 472. Details of construction, 472, 473. Amount of bonds and stock issued to him, and their cost to him, 473, 474. Cepy Gould's Hastings and Grand Island account, 470. Kansas Pacific minutes as to purchase of Saint Joseph securities, name of seller omitted, 295, 296, 311, 315-317, 378-382. The released Denver Pacific stock applied to their purchase, 268, 269, 275, 276. Copy letter of Oliver W. Mink to the commission, as to exchange of these securities for Union Pacific Rwy. stock, 305-311. Salina, Lincoln and Western: Forty or 50 miles long, along Salin a River; built by Union Pacific construction department; cost about $14,000 a mile; Kan sas Pacific supplies equipment, 66, Missouri Pacific was, ready to I?uil4 jn, this territory, 1663-16(55, p $ yoi, jx**9 5524 U. S. PACIFIC RAILWAY COMMISSION. Auxiliary LinesContinued. 2. Those outside the system, in which Union Pacific has a i)roprietary interests- Continued. South Park and Leadville Short Line: A branch of Denver and South Park to London mines; how acquired, 67. Utah and Nevada: Salt Lake via Garfield to Stockton; quite remunerative, 67. Union Pacific interest; pays dividends, 68, 889. Should be retained, 68. Utah Central: Ogden to Frisco; 280 miles, 68. Falling off of earnings due to failure Horn Silver Mines and competition of Denver and Rio Grande, 68, 69. About pays operating expenses and interest charges, 69. 'Varied busi- . ness; will not*be a burden; all through traffic; now managed by " Bishop " Sharp, 69, 2154. Its construction, 2154. Transfer to Union Pacific- 2154, 2155. Purchase by Union Pacific of 5,000 shares at $50; its extension by Union Pacific ; its bonded debt, 2155. Money for Utah Southern furnished by stockholders, 2155, 2156. Cost of Utah Southern; consolidated with Utah Central; payment of floating debt, 2157. Character of traffic, 2157. Rates to companies in which Sharp was interested, 2157-2163. Its exten sion desirable, 2169. Proposed route and cost, 2171, 2172. 3. Those formerly operated by Union Pacific. Golden, Boulder and Caribou : Discontinued; cost, $120,000; 74. Nevada Central: Thrown overboard, 52. Acquired in 1882; 52,53. Owed Union Pacific about $565,000; 53. Other details, 54. Omaha Belt: How controlling management acquired by Union Pacific; alleged fraudulent dealings of Clark and Eddy, 1278. Suit of Union Pacific to ac quire control; history of lino, 1279. Arbitration of differences between Clark and Union Pacific ; relations of Union Pacific to line, 1280. History of dispute, 1281. Why Union Pacific did not construct the road, 1282. Now part of Missouri Pacific ; the litigation with that company, 64. Wasatch and Jordan Valley: Has been wound up, 70. 4. Those now or recently a part of the Central Pacific system : Amador Branch : Why built; rental, 2794. Mem. of lease to Central Pacific, 3444. Earnings and expenses, 3451. Cost of construction, 3524. Berkeley Branch : Location, 2693, 2938, 2939. Mem. of lease to Central Par-cific, 3444. Stock and bond issue, 35*23. California Pacific: Guaranty of its bonds by Central Pacific, 2492. Location, 2681. Purchase of controlling interest by Stanford and associates, 2795, 2796. Its control absolutely necessary, 3367, 3368, 3613. Its purchase bene?ficial, 3628. Its local business, 3628,"3629. Proposed extension to Ogden, 3629. Mem. of lease to Central Pacific assigned to Southern Pacific, 3445. Northern Railway: Location, 2681. Construction, 2681, 2706. Terms of con struction contract, 2791, 2792. Lease of, by Central Pacific, iff 1878; 2684, 276, 3079, 3080. Stock owned by Western Development Company, 2686. Bonded debt, $4,000,000, 2687. Value as a feeder, 3368. Mem. of lease to Central Pacific assigned to Southern Pacific, 3445, 3446. A profitable ar rangement, 3451. Payments to Development Company, 3521. Cost, $8,058,500; 3521,3522. Issue of stock and bonds, 35*3. Dividends by, 2691. Sau Pablo and Tulare: Route, 2689. Construction and payment, 2690. Cost, 3523. Built as a feeder, 336S. Leased by Northern Rwy, 2691. Mem. of lease to Central Pacific, 3445; Lease profitable (to Central Pacific, 3451. Earnings and expenses, 3452. Dividends by, 2691. Stockton and Copperopolis : Earnings and expenses, 3452. Sacramento and Placerville: Lease profitable to Central Pacific, 3451. Earn ings and expenses, 3453. Los Angeles and Independence: Leased by Central Pacific, 2700. Mem. of lease, 3444. Shows a loss to Central PacKie, 3451. Earnings and expenses,3452. Los Angeles and San Diego: Lease to Central Pacific through Southern Pa cific, 2693. Mem. of lease, 3444. A loss to Central Pacific, 3451. Earnings and expenses, 3452. Southern Pacific of Arizona : Built by Pacific Improvement Company, 2697. Construction, 2707. Stock hold by Pacific Improvement Comoany, 2709. 2710. Rented to Central Pacific, 2709, 3081, 3082. Mem. of lease, 3443. Earnings and expenses, 3453. Cost, 3525. Southern Pacific of California: Earnings and expenses, 3453. Cost of con struction, 3525. Southern Pacific of Now Mexico: Mem. of lease to Central Pacific, 3443. Bonds of, a good investment, 3460. Cost of construction, 3526. California and Oregon: Mortgage by, 2372. Construction, 17-19, 28, 2353. 2659-2664, 2798, 2799, 3005-3007, 3157-3160. Now completing, 2702. Cost, 2439, 2665, 3528, 3529. Consolidated with Central Pacific in 1870, 2393-2396. Interest on its bonds, 3008, 3009. Land grant, 2415, 2416. Value of land grant, 2421, 2422. TOPICAL INDEX. 5525 Auxiliary LinesContinued. 4. Those now or recently a part of the tJniou Pacific systemContinued. Oregon and California: Construction, 17-19,2738. Pacific Improvement Com pany, building to Ashland, 2701. Purchase of, 2660. Cost, 2800. Security for completion of contract, 2801. Control of, 2799, 2800, 2802. Western Pacific: Route, 2337, 2689. San Francisco Bay Railroad: Construction, 2337. Issue of stock, 3083. San Francisco, Oakland, and Alameda: Mortgage, 2377. Stock, 2377, 2378. Formed by consolidation of San Francisco and Oakland, and San Francisco and Alameda; particulars of this consolidation, 2391-2393. Consolidated with Central Pacific August 22,1870; 2393-2396. San Joaquin Valley: Mortgage, October 1, 1870; 2375. Consolidated with Central Pacific in 1870; 2393-2396. Bonds issued to Western Pacific prior to consolidation, 2780. Development of country by its construction, 2807. Their construction: Method of, 693, 694. No improper profits to directors or officers, 694. Why they can not be left to independent development, 98. Embarrassment of Union Pacific because of no charter power to build branches, 577. Union Pacific investments in, from net earnings, several millions a year, 81. Over ten millions Union Pacific stock issued in 1881, realized cash; bulk of pro ceeds applied to construction of 285.4 miles, and grading 150 miles, 885, 886. No moral right to build branches out of earnings, 1772. By Union Pacific paid for out of gross cash receipts, 1223, 1224. Amount borrowed out of net earnings, 1225. Letter of President Dillon to W. H. Armstrong, railroad commissioner, dated December 5, 1882; subject, collateral trust bonds and the policy and purpose of construction of branch lines, 193, 194. Wisdom of policy of constructing; letter of T. F. Oakes, dated Feb ruary 7,1883; 3985-3986. References to this policy in reports of Govern ment directors for years 18/7-1881, inclusive, 3987-3991. Union Pacific policy since 1875 as to branch lines a good one, 723. Their construction by Gould, 578. Statement of expenditures by Union Pacific Rwy. for construction of new lines during years 1877-1886 ; 3970, 3971. Details of construction of, years 1877-1886, inclusive, with comments and explanations by accountant, copies of letters, vouchers, etc., 5277-5295. Expenditures for construction and equipment of operated lines, 1880-1886; 5296. Statement showing amount advanced by Union Pacific Rwy. Co., account construction auxiliary lines during 1880,1881, and 1882, and bonds and stock received on account construction during same period, 4297,4298. Statement, December 31, 1886, of expenditures of Union Pacific Rwy. Co. on account construction of other railroads, or on account of the stock and bonds of other corporations, and the investments therein, 4828-4832. By Central Pacific, reasons for, 3613-3614. Notes by R. F. Stevens, accountant, as to early construction of Western Pa cific ; the conti acts with McLaughlin and Houston, and with Contract and Finance Company; merger with San Francisco Bay Company, 457.**-4581. Statement by R. F. Stevens, accountant, of cost of construction of certain lines auxiliary to Central Pacific R. R. Co., 4663-4668. Statement of amounts paid to leased lines by Central Pacific R. R. Co., from 1873 to March 31,1885; 4679-4682. Mileage and dates of opening of the various roads comprising the Southern Pacific system, 4748-4751. Value of auxiliary lines to main line: The actual salvation of Union Pacific, 852. Built to support it, 212. They now sustain it, 1076. Have not depleted it, 2073. A bankrupt with out them, 761, 1074. Bulk of them a detriment, 1006,1007. Effect of sev ering them, 578. Without branches Government's 25 per cent, would be reduced one-half, 99. Present and future benefits to main line, 1075, 1076. Their business the most profitable done by main line, 640, 642. Copy cir cular letter of President Adams to Messrs. E. P. Alexander, J. H. Wilson, and Isaac Hinckley as to profit of Union Pacific main line from through traffic coming from branches, and copies of their replies thereto, 4302-4308. Increase of net earnings of aided portioo of Union Pacific through branches, 99. In 1886 Union Pacific earned $5,500,000 on branch-line busi ness, after allowance of constructive mileage, 616, 626. Estimate of net earnings of Union Pacific from branch-line hystem in 1885, over three mil lions, 847, 848. Entire system worth five millions a year to Union Pacific, apart from accounts of branch lines themselves, 82. Earnings of Union Pacific on investments in bonds and stock of, in 1886, paid about 11 5526 U. S. PACIFIC RAILWAY COMMISSION. Auxiliary LinesContinued. Value of auxiliary lines to main lineContinued. per cent., 619-623. Detailed statement showing net income of auxiliary lines of Union Pacific, estimated net earnings of parent company from in terchanged traffic, and the interest on the bonds now afloat, 899. Report of William Calhoan as to, 4839, 4840. The most valuable feeders of Central Pacific, 3010, 3011. Effect on Cen tral Pacific aided lines, 3011. Leases to Central Pacific profitable, 3418; 3419. Were they profitable between 1874-1880? 2805-2807. Why earnings of some lines leased by Central Pacific are less than rental, 2444. Earn ings of Central Pacific leased lines, how made up, 2431, 2432. Statement regarding Central Pacific leased lines, 3449-3451. Detailed statement earnings and expenses of Central Pacific leased lines; statement showing profit to Central Pacific from leased lines in 1880-1886; 3451. Total profitsy derived from leases held by Central Pacific prior to April 1, 1885, over tei- million dollars, 3606. ( How properly estimated, 81. Illustrated by Echo and Park City, and Oregok-Short Line, 976-979. How a branch whose whole traffic is less than operating expenses may be an advantage, 74. Apparent-deficit on interest more than made up by profits to Union Pacific on derived business, 96. Bonds and stocks of: Bond issues on Central Branch, 57. why Union Pacific does not issue its own securities against branch lines, 81. Detailed state ments of stocks and bonds of, owned (including those in the con sol. mortgage trust) by Union Pacific Rwy., December 31, Ic82; 695. Amounts of Central Pacific stock issued to branch lines under consolidation, 2783-2785, 3458, 3459. Branch lines securities in Central Pacific sinking funds, 3461, 3462. Contract and Finauce Company, a large holder of Central Pacific branch-line stock, 3459. Bonds, guaranty of : Statement of bonds of leased lines guarantied by Central Pacific, 3470,3471. By Union Pacific of interest on bouds of Oregon Short Line, 95, 218. Con sideration for guaranty, 318. Form of guarauty, 840. Legal power to guaranty, 840. Advised that consent of Congress unnecessary, 95. By Union Pacific of Saint Joseph and Grand Island bonds, 109, 317, 744, 76/*. By Union Pacific of collateral trust bonds of 1879; 109. These guaranties by Union Pacific, a violation of act of 1873; 1004, 1005. Letter of President Dillon to W. H. Armstrong, commissioner of railroads, on this subject, 193, 194. Copy opinions of Union Pacific counsel as to validity of the collateral trust bonds, 191, 192. New lines and extensions proposed: In Wyoming, Idaho, and Colorado, 852, 990, 991. From Norfolk to Sioux City, 1388. From Cheyenne north, 2070-2078, 2092. 2093, 2105. Extension of Utah Central, 2169. Proposed route and cost, 2171, 2172. Where they should be built In Wyoming, 2070-2074. In Nevada, 2203,2204. Extension of Union Pacific system to Los Angeles. 2204. A shorter through-line; route; this extension absolutely necessary, 2205, 2207. Extension of Union Pa cific to Puget Sound, 220*6. Construction of new branches a necessity, 770, 858, 859,1359,1445,1663,1862, 2069, 2075, 2080, 2098, 2104, 2105. Public sentiment favors their construction, 2077. Desirableness suggested in Director Alexander's report to Government, 853, 854. Resolution of Omaha Board of Trade urging construction, 1446. As additional security to the Government, 770, 1359. Miscellaneous: Development of branch-line system begun in 1871-1872; 1076. Mr. Dillon's offer to buy the branch roads now at cost, 214. Branch lines at west end of Union Pacific more important than those at east end, 73. Branch lines only profitable in connection with main line, 99. Neither discrimination in rates nor diversion of earnings in favor of, 108. Claim that branch lines are subject to Government lien, 1000, 1003-1007. Government control of main line would bankrupt branches, 1428, 1429. Local business on main and branch lines compared, 1475, 1500, 1515, 1060, 1956. Comparative cost of traffic, 1066. Population as a factor in fixing rates, 1066, 1067. Comparison of rates, 1476,1501. Why branch-line tariff the higher, 1059, 1060. Cost of operation nearly 50 per cent, greater, 1407. Improvement in main and branch lines since 1880 about the same, 1063. 1064. Dividends declared by. 888, 889. $18,000,000 in dividends distributed by-Central Pacific between 1870-1876, derived partly from leaqecl lines. 8754, 3755, f TOPICAL INDEX. 5527 Bondsguaranty ofContiuued. MiscellaneousContinued. Union Pacific lias no agreements with, affecting net earnings, other than con structive mileage and pool arrangements, 031. Accounts, how kept, 792. Practice as to interest account with subsidiary roads. 76. Detailed statement of amouuts due from United States to Central Pacific for transportation on non-aided roads, showing amount due December 31, 1886, $1,653,323.15; 2(512-2615. Refusal of United States to pay for trans-portation on leased lines, 25158, 2531), 3567. Amount due Union Pacific from United States for branch-line transportation to December 31, 1882, set off in settlement of suit between them, b33, 834. Rental of leased lines by Central Pacific. Dual relations of parties inter ested, 2791, 2792. List'of leases, 2498.* The consolidation of leased lines with Central Pacific in August, 1870; 2393-2396, 2667, 2668, 2497, 2498. Copy articles of consolidation, rlated August 20,1870; 4778-4782. Only Sau Francisco and Oakland stock valuable at consolidation, 2394. No market value to Central Pacific stock until after resumption of specie payments, 2394. As to the San Francisco Bay road, 2395. Central Pacific stock more valuable after consolidation, 239), 239(6. Why, 23136. The policy of consolidating non-aided lines, 3614. List of consolidations, 2497, 2498. Amounts of Central Pacific stock issued to branch lines under consolidation, 2783-278-r), 3458, 3459. Statement of earnings and expenses of branch lines of Union Pacific for years 1880-18-6, inclusive, together with expenditures for additional construc tion and equipment for same period, 4279-4282. Net earnings of operated lines of Union Pacific Rwy., statement of, for years 1880-1886, inclusive, 4804, 4805. Total earnings, mileage, etc., of Union Pacific branch lines, Mr. Calhoun's statement, 5241. Circuit Court of thm United States: Northern district of California, proceedings in, 4164-4250; a petition in applica tion to compel Leland Stanford to answer certain interrogatories, 4164-4168; answer of Leland Stanford, 4169-4176; brief for the Commission, 4177-4191; briefs for Leland Stanford, 4192-4203 ; argument of L. D. McKisick, 4203-4214; opinion of Mr. Justice Field, 4215-4230; concurring opinion of Judge Sawyer, 4230-4237; concurring opinion of Judge Sabin, 4238, 4239; dissenting opinion- of Judge Ogden Hoffman, 4240-4250. _~-J----------------------.___ Colton-Huntingtox Letters, the, 3702-3766, 3773. Constructive Mileage : First introduced into Pacific system in 1879 or 1880; 1060. Definitions of, 1061, 1440. Mr. Adams's explanation of, 104. Governor Stanford's explanation of, 2473. How it differs from an "arbitrary" rate, 1077, 1078. A universal rule, 109, 3591. Not universal, but a very common practice, 861, 862. Not a new principle, 10i)6. A true principle for the proper conduct of a railroad, 638, 639. Propriety and equity of the principle, 1444, 1445. Object of, 980. How it could become au abuse, 850, 851. Companies with which there was an arbi trary rate, 1077, 1078. Allowance of, by Union Pacific to branch roads. 105. Approved by Government directors, 105, 106, 861. Effect on Government's 25 per cent., 105, 612, 613, 851, &59, 860, 980, 2481. Never intended to diminish payments under Thurmau act, 615, 851, 862. How it might defeat Thurman Act, 642. Effect of, under Thurman act, 612. Not a diversion of earnings in their favor, 108. A legiti mate compensation, 1065, 1066. Gives them a fair share of earnings, 1670. Only a legitimate division of the through rate, 1080. Brauch lines entitled to higher rates per mile than main lines, 1066, 1080, 1444, 1445, 2073. Union Pacific pays to auxiliary lines about $166,000 a year (estimated), 1068. Effect on main line, 2073, 2074. Benefit to main line, 1067, 2480. Benefits to branch-lines and to main line, 106, 1067, 1075, 1076, 1429, 1430. Branch-line business, the most profitable business done by main line, 640, 642. Branches entitled to, and their allowances (from report of Government directors), 604. Reasonableness of these allowances, 851. To Echo and Park City, ridicu lously small, 859, 860. To Denver and South Park, should be higher, 860. To Utah Northern, not extraordinary, 861. Discussion of rate allowed Echo and Park City, and Omaha and Republican Valley, 1079. Table of allowances in 1880, or when branch line opened for business, 1061. Im provement in main and branch lines since 1880 about the same, 1063, 1064. Ratio of allowances has remained about the same since 1880; 1063, 1064. Detailed statement of constructive mileage allowances, October 11, 1886; 797. 5528 ' U. 8. PACIFIC RAILWAY COMMISSION. Constructive MileageContinued. Amount charged oil* to branches, prior to January 1,1887, no way of estimating, 611. How it might be approximated, 641. Since January 1, 1837, a system of computation in force, 610. Mr. McDowell's statement of allowances by Union Pacific to auxiliary roads, 5264. Statement of amounts of constructive mileage allowances by Union Pacific to auxiliary lines, and by lines east of Missouri River to Union Pacific and its auxiliary lines for month of January, 1887, 1068. "Constructive-mileage" ad vantages that are not included in the statement, 1072. As a rule the same allowances would be made if branch lines were independent corporations, 1069. Statements in relation to allowances for July and August, 1886, and January and February, 1887, with explanatory memorandums by Mr. Mink, 3958-3966. Memorandum in relation to constructive mileage allowances, January, 1887, shows estimated balance of profit under the constructive mileage rule in favor of the Union Pacific of $297,982.16 for the year 1887 ; 1072, 1073. Allowances, basis Of, 605, 609, 849, 850, 1064, 1065, 1066, 1077, 1078, 1079, 1637, 1638, 1670, 1671. No data showing relative cost of service on branch lines and on main line at time constructive mileage rates were fixed; cost of operation of branch lines nearly 50 per cent, greater than of main Hue; reference to page 22 of report of 1886; 1407. Length of road and volume of business, ele ments in arranging, 1078. Tables of population, in 1880, of counties through which trunk and branch lines run, 143&-1439. Population not a factor, 1671. Detailed explanation of the basis for dividing rates on Union Pacific system, 1444, 1445. The strict mileage basis would result disastrously, 1075. It equal mileage distribution of earnings is enforced no prudent man would invest a dollar in securities of proposed branches, 1445. Allowance of, by eastern roads, to Union Pacific, 105. Union Pacific has received millions at Omaha, paid out probably half as much, 610. Statement of amounts of constructive mileage allowances by Union Pacific to auxiliary lines and by lines east of Missouri River to Union Pacific and its auxiliary lines for month of January, 1887; 1068. " Constructive mileage" advantages that are not in cluded in the statement, 1072. Accounts, 900. At Omaha, 600, 611. How accounts made up, 1203, 1204. No total account for last year, 602. Relation of " Movement and distribution of freight earnings," book to, 1205. Monthly settlements, 1205, 1206. Detailed statement of settlements for Januarv, 1887; 1206, 1207. , Deductions for con structive mileage, rebate, etc., made before earnings made up, 1192, 1193. Allowance of, by Central Pacific to branch lines, between January 1, 1880, and February 23, 1883; 2432, 2477-2480. Illustrations: Amador Branch road, 2477, 2478; Los Angeles and Independence; Los Angeles and San Diego; San Pablo and Tulare, 2478; Southern Pacific, 2478, 2479; Stockton and Copperopolia, 2479, 2480; a double allowance to Nevada roads, 2480. Basis of allowance by Central Pacific, 2481. Report of R. F. Stevens, accountant, as to diversion of earnings on Central Pacific by constructive mileage, 4516, 4517. Copy letter of Mr. G. L. Lansing, assistant secretary Central Pacific R. R., as to constructive mileage, 4517. Constructive mileage statements in report of R. F. Stevens, ac countant, 4757-4762. No allowance now by Central Pacific. Allowance objected to by Auditor French. Why discontinued, 3566, 3567. Allowance, a benefit to Central Pacific, 2476, 2477. Illustrations of usual custom as to constructive mileage: Northern Cali fornia and Central Pacific roads, 2481, 2482; Carson and Colorado and Central Pacific roads; Eureka and Palisade and Central Pacific roads, 2482. Allowance of, to Central Pacific, by eastern roads, 2480, 2481. Aided lines al lowed constructive mileage by other roads, New York to San Francisco, 2482, 2483; through rates and divisions, 1880, between New York and San Francisco; rates and divisions as allowed; rates and divisions had no constructive mileage been allowed, 2483. Profit to Central Pacific aided roads by system of con structive mileage allowances, 2483. Allowance of, to Sioux City and Pacific by Chicago and Northwestern, 2250. Benefit to Sioux City road from, 2251. None in division between Sioux City road and the Chicago and Northwestern and other roads, 2302. Between Union Pacific and Denver and Rio Grande, 1069, 1070. Clause in agreement between Kansas Central, Central Brauch, and Missouri Pacific, 691. Diversion of Traffic: Union Pacific: Decrease of Union Pacific business by, 2149,2150,2829. From Union Pacific to Santa Fe" road, of 300 cars through freight, 1409, 1410. Diversions to and from Union Pacific, 1410-1412. By Union Pacific to Oregon Short Line instead of over Central Pacific, 2150, 2151,2812,2822,2823. TOPICAL INDEX. 5529 Diversion of TrafficContinued. Union PacificContinued. Of freight by pools, 1959. Of freight by pool between Denver and Rio Grande and Denver and South Park, 2013,2014,2016,2019,2020,2022-2027. Summary of earnings on freight diverted to and from Union Pacific, account of various pools during 182-'86, inclusive, showing not gain to Union Pa cific, account of diversions, $500,335.67; 1467. How made up, 1468. No diversion of freight prior to 1880; 1471. At Clay Centre and Blue River to Union Pacific main line, from Lawrence Branch,1569,1570,1572,1577,1580,1584,1586,1588. Used to make up differences in earnings in pool between Central Pacific,Union Pacific, and Denver and Rio Grande, 2123. . Sioux City and Pacific None on Sioux City and Pacific, 2302, 2303; division of freight between sub sidized and unsubsidized portions of road, fair and reasonable, 2303. Central Pacific: Loss to Central Pacific through Atchison, Topeka and Santa F6 and Atlantic and Pacific, and Canadian Pacific, 3024,3578. Effect of completion of competing roads on Central Pacific receipts, 3354-3356. Government aid to competing lines, a reason why extension of time should be granted, 3367,3368. By Central Pacific to Southern Pacific, 42,698,1773,2147-2150,2406,2818,2819. To lines of other companies (letter of A. N. Towne), 3584,3585. To non-aided lines (letter of A. N. Towne), 3585-3587. No undue diversion by Central Pacific to non-aided lines, 3588. Dividends : Union Pacific: Detailed statement of dividends paid by Union Pacific R. R. Co. and Union Pacific Rwy. Co. to April 1, 1884, as shown by company's books, 888. Mr. Calhoun's report of the dividends declared by Union Pacific, by years, from 1875 to 1834; 4810. By Colorado Central, small, 888. By Utah and Northern, small, 888. By Utah and Nevada, 889. By Central Branch, two, amounting to $150,000; 888, 889. By Montana Rwy. Co., 889. No dividends by Union Pacific, except out of net earnings, 776. Money never borrowed to pay dividends, 776. Claim that Union Pacific dividends since 1874 were illegal, 1000-1002. Decision of Chief-Justice Waite, 1002. Sioux City and Pacific: No dividends on common stock; has paid dividends on preferred interest-bearing stock, 2252, 2304. This latter is properly an interest charge, 2254, 2304. Mr. Anderson's report of dividends paid on preferred stock, 5393. Central Pacific: By Oakland R. R., before consolidation with Central Pacific, 2392. Central Pacific first dividend in 1873; 34. As to dividends of $18,000,000 by Central Pacific between 1877 and 1884 ; 2399. No dividends for last four years, 2405. None unlawfully declared, 2488, 2489. Average annual dividend, 2.65 per cent., 2489. They were all earned, 2489, 2490. Statement of E. H. Miller, jr., as to dividends paid, 2547. Statement showing surplus profits available for dividends from organization to December 31, 1884 ; 2548-2550. Dividend paid in 1884 out of surplus earnings, 3014. No money borrowed to pay dividends, 3015, 3016. What constitutes surplus earnings, 3015. What is equivalent to cash for dividend purposes, 3016. Not fair to exclude dividends on account of betterments, 3017. Cause of falling off in surplus earnings since 1884 ; 3017, 3018. Earnings : Distinction between general income and earnings, 113. As to gross receipts and gross cash receipts, 1434. Grossearnings and gross receipts, 1209. Distinguished, 1210,1211,2440, 2442. No comparison between them, 1213. Illustrations of the receipt of money not earned, 1217,1218. Deductions made from gross receipts, 1210,1213,1214, 3467. 5530 U. S. PACIFIC RAILWAY COMMISSION. EarningsContinued. What the Commission mean by gross receipts as distinguished from gross earn ings, 1457, 1458. Large discrepancies between gross receipts and gross earnings, 1458, 1459. What " gross earnings" means; published tariffs have no relation to expenses or gross earnings, 1193,1194. How gross earnings are ascertained, 1212, 2441-2443. Cash receipts cut no figure in determining earnings; illustrations, 1213. Car-service balance included in gross earnings, 1215. Deduction of land expenses from current income, 1220, 1221. Items deducted from gross earnings to get net earnings, 1222. What can be deducted before declaring net earnings, 832. Operating expenses and construction expenses; the line between them, 832. Pools, rebates, etc.; Mr. Mink says that nothing has been deducted on these accounts, because the "earnings" are made up of amounts remaining after making the deductions, 1192, 1193. Government's percentage computed on net earnings, 113. Not on net income, 114. Law defines net earnings, 114, 115. Net earnings, were they computed in different ways 765, 766. Net earnings, Mr. Atkins's definition of, 766. Disputes with Government as to net earniugs. reasons for, 735, 736. Litigations with the Government as to net earnings, 587, 736. Supreme Court decision as to net earnings, 829. Claim of the company as to net earnings, 829, 830. Supreme Court decision as to net earnings in favor of Union Pacific, 832. Reference to cases adjudicating disputes between Union Pacific and the Govern ment, 833. All questions adjudicated to December 31, 1882, in 117 U. S., p. 355 ; 833. The judgment paid promptly, 833. Court of Claims, suit now pending in, as to net earnings, 895. Kansas Pacific: Gross and net earnings for 1869; 782, 783. [Same] for 1870 ; 7&r). [Same] for years subsequent to 1870; 786-788. [Same] for 1883 to 1885 ; 790. [Same] for 1886; 791. Gross cash receipts from November 23, 1876, to June 18, 1880 ; 1433. Net earnings by years from 1867 to 1880, statement of, 4806. Denver Pacific: Net earnings of, by years from 1870 to 1880 ; 4806. Union Pacific: Earning capacity, present and future, of the Union Pacific system, discussed by Morgan, R. P., jr., inspecting engineer, 4451-4453. Earnings and expenses of Union Pacific Rwy., as shown by books at Omaha. (See witness index, title McDowell, A. J.) Gross and net earnings for 1870 ; 798, 799. [Same] for 1871 to 1886; 799-801. Earnings and expenses per mile of road, Union and Kansas divisions, table of, years 1879 to 1886; 972. Relative earnings of Union Pacific and Kansas Pacific divisions, from years 1879 to 1882, statements of, 897, 898. Gross cash receipts of Union Pacific R. R., from 1868 to 1879, and January, 1880; amount, $168,578,271.59; 1433. [Same] as to Union Pacific Rwy., from Febrnary 1, 1880, to June 23, 1887; 1434. Earnings of Union Pacific for 1883 and 1884 ; 397. Gross and net earnings Union Pacific, years 1878 to 1883 ; 560. Earnings of Union Pacific on traffic interchanged with branch lines during 1886; 616. Explanation thereof, 617, 618. Operated lines of Union Pacific Rwy., net earnings for years 1880 to 1886, in clusive, 4804, 4805. Gross earnings of Union Pacific in 1886; 624, 625. Miscellaneous earnings of Union Pacific system, from 1880 to 1886, inclusive, 3971. Investments in branch lines from net; earnings, several millions a year, 81. $16,000,000 paid for improvement or construction since June 17, 1884half from net earnings, half from sale of securities, 85. Surplus earnings of Union Pacific since 1884 ; 1957. Raising invoice prices on company's purchases by charging freight and hand ling, no effect on net earnings, 1470. Branch line system, net earnings from, 847, 848. Net income from auxiliary lines; estimated net earnings of parent company from interchanged traffic, etc., 899. Explanation of same, 900. TOPICAL INDEX. 5531 EarningsContinued. Union PacificContinued. Net earnings of Union Pacific, Kansas Pacific, and Denver Pacific Rwy. and Telegraph Co., from 1867 to 1886; 4802, 4803. Average earnings of Union Pacific, Kansas Pacific, and Denver Pacific, per mile for certain periods, 4988. Central Branch, Union Pacific R. R.: Earnings of subsidized portion from local traffic, 1564, 1505. Net earnings and yearly income of main and leased lines, statement of, 5310-5314. Central Pacific: Books so kept as to show net earnings, 2472, 2473. $17,000,000 net earnings from 1864 to 1872; 22. -59,276,387.54 net earnings from completion of road to December 31, 1886; 2473. Have been applied exclusively to the benefit of the company, 2484. Deductions by rebates, pools, etc., have always favored aided road, 2486. Impairment of, by Government aid to other linos, to amount of $37,000,000; 2538. Its earning capacity very much reduced, 2401. Government aid to competing lines, loss otraffic by, 2402, 2475. Thurman act, its effect on earning capacity, 2405. Lease to Southern Pacific, decrease of Central Pacific receipts since, 3404, * 3405; explanation, 3468,3570,3571,3606. Future net earnings of aided line can not exceed .$740,000 annually, 2475. Net earnings of Northern Rwy. and of San Pablo and Tularo, comparison of, with rental paid by Central Pacific, 2691. Was not Central Pacific able to meet its fixed charges in 1868 and 1069? 2774, 2775. Net earnings of the portion of Central Pacific leased to Southern Pacific be tween $1,30.),000 and $1,400,000 for 1886; 2814. No diversion of, to build other.roads, 3617. Gross earnings from completed portion, years 1864 to 1871; 2634. Earnings and expenses of Central Pacific aided line, from July 1, 1878, to December 31, 1886 (as ascertained under Thnrmau act), 2475, 2476. [Same] from November 6, 1869, to June 30, 1878 (as ascertained by United States Railroad Commissioner), 2474. Gross and net earnings for 1886; 2401, 2402. Leased lines, earnings of, how made up, 2431, 2432. Effect of leases on Central Pacific earnings, 2434. Excess of rent paid over earnings derived, 2444. Profit to Central Pacific from leased lines, years 1880 to 1886; 3451. Earnings and expenses of Central Pacific leased lines, detailed statement of, 3451-3453. Gross receipts of Central Pacific and leased lines, from 1864 to 1885, inclusive, 2444. Method of ascertaining earnings of aided road; copy of statement prepared by Mr. Lansing, assistant secretary Central Pacific R. R., 4513-4516. Gross earnings, operating expenses, and net earnings from 1-63 to 1886, iu- clusive, 4658-4660. Method of division of earnings and expenses, forms showing, 4751-4756. GroRs and net earnings of aided road for month of June, 1-86, statement of, 4756, 4757. Sioux City and Pacific: Have the books been kept so as to show net earnings? 2300, 2301. Method of computing net earnings, 2301. Net earnings of Sioux City and Pacific from 1871 to 1877, statement of, 2304, 2305. [Same] years 1870 to 1887; 5368. Missouri Valley branch, net earnings of, years 1871 to 1887; 5368. Fremont, Elkhoni and Missouri Valley *R. R.; statement of gross earnings, operating expecses and taxes, rental, and construction expenditures, Oct., 1872, to June, 1884 ; 5393. Earnings from 1884 to 1887 (Mr. Norris), 2287. Surplus earnings applied to deficiencies in Government payments in former years and for improvements, 2288. Net earnings, total amount of, from construction io close of fiscal year (1887), $410,003.57; 2288, 2302. The relation of pools to earnings: Freight and passenger earnings (Central Pacific) derived from ordinary business and from pool business, in 1884, amounts of, 2444. 5532 U. S. PACIFIC RAILWAY COMMISSION. EarningsContinued. The relation of pools to earningsContinued. As to statement of gross freight and passenger receipts and amounts pooled and not pooled, 3456-3458. Gross freight and passenger receipts, also amount of earnings protected by pools and amount not covered by pooling agreements for years 1877 to 1885, statement showing (Central Pacific), 3583. Pool settlements paid before reporting gross earnings, 113. Relation of pools to earnings, 1199, 1200, 2294. Amount derived from pool business not exactly determined, 1215-1217. Pool balances, Union Pacific's report of, on passenger business aud on freight business, from February 1, 1880, to December 31, 1886; 1381-1385. Diversion of freight by pools, effect of, on earnings of Union Pacific, 1959, 1960. Government Subsidy : Detailed statement showing to whom delivered, the date of issue, maturity, com mencement of interest, and amount of bonds issued to the several Pacific rail road companies, 4319, 4320. Statement of U. S. 6 per cent, currency bonds issued to Central Pacific R. R. and Western Pacific R. JR., 4682, 4683. Discount on Government bonds, amounts charged by Union Pacific and Kansas Pacific to, 4838. Government Transportation: As to cost of, prior to and since construction of Pacific roads: As to cost of transportation prior to construction of Union Pacific, 782. As to saving effected by Pacific roads in carriage of United States mails, mil itary supplies, etc.; in 1876 Union Pacific carried 15,000 pounds for one-third what it cost the Government in 1869 to carry 1,000 pounds, 982. Statement showing amount saved to Government through construction of Union Pacific, 982-985. Government transportation prior to Pacific Railroad cost over $8,000,000 a year, 2462, 2524; from what sources these figures taken, 2750. Saving to Government on transporcation over Central Union line to 1886, $139,347,741, 2524. Cost to United States since completion, one-tenth of former cost, 2524. As to cost of Government transportation prior to road, 2524, 2525, 2750. Reasons for supposing same rates were to be paid Central Pacific, 2750, 2751. Saving to Government in transportation alone, 2534. Amount saved to Government by early completionCentral Pacifies propor tion, $21,971,062. 2520. Statement showing, from official records, the saving to United States in, by construction of Pacific R. R., 2583-2598; army transportation prior to road, 2583, 2584; average freight rate on Central Pacific and Union Pacific from 1870-1885; 2585. Rates charged United States, 2585. Statement showing charges to United States for, and cost at rates prior to construction of railroad, 2586. Summary showing saving to the United States in freight transportation, 1870-1885, inclusive, 2586, 2587. Saving estimated by United States engineer, 2587. Relative saving in transporting troops, greater than in the case of freight, 2589. Statement showing charges to United States for transportation of troops and passengers, and cost of same service at rates paid before railroads, 2289, 2590. As to the saving on United States mail, 2591. Statement showing weights, rates, and amounts for transportation, United States mails on overland route, from July 1,18G9, to December 31,18K); 2592. Saving in mail transportation, $40,000,000, 2593. Summary: Saving in freight, troops, and mails, $140,000,000, 2594, 2595. Litigation with the Government: Sixth section, act of 1862, as modified by 5th section, act of 1864, with regard to, 822, 823. Litigation with the United States, 823. Copy sec. 9, act of 1871; 823. Extract from Supremo Court decision in the Interest case, 823. Copy sec. 2, act of 1873, and litigation thereon, 824. Failure of United States to pay the half-transportation money, 824; com pany's consent that such amounts be applied towards their payments under Thurman act, 824. TOPICAL INDEX. 5533 Government TransportationContinued. Litigation with the GovernmentContinue*/. Suits by company in Court of Claims to recover for transportation, 8*25; failure of the Departments to recognize the decision, 825; Comptroller Lawrence's decision, 825. Decision of Supreme Court, 826. Claim that act of 1878 is a violation of the Government's contract contained in sec. 6, act of 162 ; 826. As to the provisions of the Thurman act, 827. Supreme Court decision on Thurman act, 827,828. Decision of Supreme Court that sec. 6, act of 1862, was a contract, 830. Discrimination by Government against Union Pacific, as to, 831. Decision of Supreme Court against Union Pacific as to mail compensation, and in their favor as to net earnings, 831, 832. All questions adjudicated to Dec. 31, 1882, in 117 United States, p. 355; 833. The judgment paid promptly, 833. Suit involved only services on consolidated railway, though settlement in cluded claim for branch line service, 834. Diversion of mail service from Union Pacific, 866. Controversy with Government as to mail transportation, 587, 588. Letter from Union Pacific to Postmaster-General as to diversion of mail trans portation, 866, 867. Table showing credits for transportation to Union Pacific, the Central Branch, and Kansas Pacific, and amounts covered into Treasury to credit of sinking fund of Union Pacific Co. (to March 31, 1887), 962, 963 ; memo, as to Gov ernment transportation over Central Branch, Union Pacific R. E., 4283. Memorandum of earnings of the Union Division on (approximate); total to year 187, $16,303,441.94, 889; of Kansas Division to 1887, $3,790,334.93, 889, 890. Credits the Union Pacific is entitled to, 890-894. Gross aggregate charges for Government transportation over Union Pacific, to December 31, 1886, $26,000,000; $4,000,000 received in cash; balance should be to the company's credit, 896. Payment for service on Central Pacific leased Hues withheld, 3538, 2539. Cash due on this account, under Supreme Court decision, $1,853,323.15, 2520, 2539; present annual injury on this account, $560,000, 2539. Cash due Central Pacific for business over non-aided roads, $744,000, 33. Credits due Central Pacific for Government transportation (account dated in 1885) $9,251,000, 33. Statement relative to amounts due from United States for transportation on Central Pacific non-aided roads, 2612. Statement of earnings from mail transportation by Central Pacific and leased lines from January, 18ti2, to March, 1885, and settlement thereof by United States, 2613. ' . Statement of earnings from mail transportation on lines formerly operated by Central Pacific from April 1, 1885, to December 31,1886, and settlement thereof by United States, 2614. Statement Hhowing amounts due from United States in cash to December 31, 18&6, for transportation on non-aided and leased lines, 2615. Statement relative to United States transportation accounts, 3453-3456. Government does not pay fair, reasonable compensation, 3567. Central Pacific does not get all it expected, 3578, 3579. Central Pacific expected to receive same rates as those paid prior to road, 3609. What might have been expected, 3610. Transportation charges expected to pay the debt, 2463, 2533, 2736. Central Pacific has not received its proportion of, 2466. Diversion of, from Central Pacific aided road, 2484-2486, 2542-2544. Amount lost to Central Pacific by diversion of business to other lines $17,000,000, 2521. Statement showing combination of passenger and freight traffic lost to Central Pacific and Union Pacific for period April 1, 1881, to December 31, 1886, 2610, 2611. Diversions by Government from Central Pacific, 2397. Sioux City and Pacific, failure of United States to pay for mail service, 2320. Statement of amount due for mail service, 2320, 2321. Copy letter, dated November 5,1887, from Commission to Secretary of Treasury, inquiring as to application of compensation due bond-aided roads for trans portation, 4356, 4357. Copy of reply of Secretary of Treasury, 4358-4360. 5534 U. S. PACIFIC RAILWAY COMMISSION. Government TransportationContinued. Litigation with the GovernmentContinued. Copy letter from Third Auditor to Secretary of Treasury, as to, in answer to letter of Commission, 4360,4361. Copy Treasury circular, dated Juue 23,1887, entitled " Memoranda in regard to settlement of Pacific Railroad account," 436*2,4363. Copy Treasury circular, dated Septemher 11*, 1635, containing decision of Second Comptroller as to disposition to bo mado of earnings of Central Pacific R. R. Co. for Government transportation, and order of Secretary of Treasury thereon, 4363-4369. Copy letter dated November 5, 1887, from Commission to Secretary of War, as to alleged discriminations by that Department against roads, and as to cost of Government transportation before and sinco completion of roads, 4369, 4370. Copy reply of Secretary of War, and accompanying papers, 4370-4385. Detailed statements by Quartermaster-General of amount and cost of Gov ernment transportation, by years, from 1865-1887; 4378,4379. Statements of cost of military supplies and of transportation of soldiers be fore railroad communication, 43*S0. Copy letter of Commission to Secretary of Navy, 4385. Copy reply of Secretary of Navy and accompanying papers, 4386-4388. Copy letter of Commission to Postmaster-General, as to all jed discrimina tions by that Department against bond-aided roads, aud asking if roads have complied with obligations of section 6 of act of July 1,1862,4412,4413. Copy reply of Postmaster-General, and accompanying papers, 4413-4431. Mr. Calhoun's report of the cost per annum of Government transportation, for years 1867-1886; 4838. The Government, ledger; copy'ledger account of the United States with the Union Pacific Railroad, showing debits each year for interest paid by the United States and credits for cash paid or transportation or mail service, 4328-4332. Same] for Kansas Pacific, 4332-4336. Same] for Central Branch, Union Pacific R. R., 4336-4340. I Same] for Central Pacific, 4341-4345. Same] for Western Pacific, 4345-4349. [Same] for Sioux City and Pacific, 4349-4353. Influencing Legislation: General interference in politics, 1339,1508, 1509,1766. Not tolerated, 1839. Em ploye's generally voted pretty solid, 1504. Employe's free to vote, 1052. Droves of men taken from Omaha shops to vote, 1339. Attempted instruction to employe's, 1339, 1340. The Poppleton telegram, 1415, 1416, 1421, 1422, 1467. Complete subordination of employe's to railroad forces, 1341. Personal influence of offi cers used, 1050,1051. Inffuencing nominations and elections: In Colorado, defeating men they could not control, 1766, 1767. Officers and employe's active in primaries in Colorado, 1764. Alleged use of Colorado Central funds, 1866. . Election of county commissioner in Omaha, 1104, 1105. Nominations in Ne braska in 1872 and- Ih73; 1334. In primary elections in Nebraska, Union Pacific on both side's, 1499. 'The railroads "free lancjas," 1962. Controlled elections in Nebraska, 1498,1499. Train-loads of railroad strikers at State convention in Nebraska, 1480. At Republican State convention in Ne braska in 1876; 1335. Always on hand to elect a Senator in Nebraska, 1521, 1525. Alleged railway pool in Colorado and Nebraska, 1525, 1774, 1817, 1818. No interest in local elections in Leavenwdrth, 1571, 1572. Prior to 1882 tho railroads controlled politics in Kansas, 1557, 1558. No participation of Union Pacific in Kansas politics under Mr. Adams's management, 1661. No recent attempt in Wyoming, 2068. Election of United States Senator in Colorado in 1885; 1268, 1335, 1340, 1526. 1776, 1777, 1846, 1976. President Adams's direction not to interfere, 1994, 1995. Alleged railroad pool to elect Teller, 1911,1912. No truth in charge, 1840, 1841, 1948, 1949, 1977. Union Pacific's lobby not on the scene, 1979. A political, not a railroad, move, 1910. The Hill-Teller investigation committee, 1338, 1777, 1843, 1844, 1845, 1879, 1880. Personnel of tho committee, 1912,1970. Not appoiuted for purposes of whitewashing, 1969. Mr. Hill disclaimed the charges, 1844. Why Mr. Hill did not disclose his knowledge to the committee, 1777,177b. Sub stance of Hill's letter to Secretary of State, 1844. Copy committee's re port, 1880-1883. TOPICAL INDEX. 5535 Influencing LegislationContinued. Who the railroad agents were: In California: President Stanford, 2719, 2720. Company's counsel, 2720,3168,3283,3284,3427. Company's employe's, 2719, 2723. Mr. S. T. Gage, 3261-3288. Employes who were members, 3274. General, 3162, 3163. In Colorado: Company's counsel, 1765,1903,1972,1979,1980,1995. Company's employe's, 1895,1903,1910. In Nebraska: Employed by company's counsel, 1257. Company'8 counsel, 1309. C6mpany's employe's, 1046,1047,1272,1293.1303,1304,1336,1338,2140. Einpioyds who were members, 1338. Former members as railroad agents, 1263,1275, 2143. In Nevada: Company's employ6s, 3263. In Kansas: Company's counsel, 1705, 1706. Members as railroad agents, 1551. Their methods, 1050, 1334, 1335, 1336, 1525, 1526, 1766, 3276, 3077, 3-78, 3285. Argument, 37, 38, 1046, 1047, 1049, 1050, 1259, 1261, 1264, 1205-1294, 1295, 1309, 1310, 1911, 2142, 2721, 2722, 3277, 3351, 3628, 3629. Entertainment, 38,1273,1*74, l?06, -7,1309,1310,1705, 1706,1961,2722. Passes; to editors, 1045. To members and their friends, 1049, 1050, 1055, , , , 1901, 2314,2720. V) W Money, use of, 1774. 'Use of, not authorized, 1049. Use of, a subject of general discussion, 3276. Use of, charged by papers, 1308. Denial of use of, 746, 1045, 1259, 1274, 1296, 1307, 1308, 3170-3172, 3275, 3286, 3351. Denial of purchase of votes, 1901. No knowledge of use of, 725, 1047,1260, 1267, 1268, 3428. Votes undoubtedly purchased in Col orado, 19-0. " Oil rooms," 1259, 1267,1268,1295,1296,1336,1337. Per sonal expenditure of money by agent, 1051. Liberal payments of, 1765. Alleged offer of $5,000 by Union Pacific to chairman R. R. committee* house of representatives of Nebraska, 1338. . /S '- Promises to remedy grievances; as to re-opening part of Colorado Cen tral, 1899, 1900. Lowering rate on grain, 1904. By supplying coal to Gilpin and Clear Creek Connties at less than former rate, 1904. No cases of votes changed on this account, 2144. Threats against communities: Gould's threat to remo've shops from Omaha, if county contributed to construction of Omaha and Republican Valley under private subscrip tion, 1272,1342, 1343. Writing for press, 1044, 1045. Rebates and special privileges, 1345, 1481. Denial of allowance of, 1051. Their duties, 1338. To ascertain how members stood, 1273-1275. To oppose bills fixing rates, and for a commission, 1304. To explain to% members facts relating to measures pending, 1048. To look out for hostile legislation, 1294. To keep track of the standing of legislators on railroad questions, and report to Union Pacific officers, 1897, 2725. To look after the company's interests, and to note what bills were in?troduced, 3263, 3427. To try to prevent hostile legislation by stating facts, 3351. Their compensation (see also " Legal Expenses"): Expenses not itemized and vouched, 1296, 1299, 1318,1319,1320, 1321, 2995, 3077, 3078. Memoranda of expenses destroyed, 1321, 1324, 1325. Over $2,000,000 of unexplainpd vouchers on Central Pacific records, 3286* Hostile legislation: Defined, 3353. Generally, 1307, 2534, 2535, 3167, 3284. None in Colorado, 1818, 1913. None in Utah, 2188. Representatives in Colorado in favor of; senate opposed, 1914, 1973, Plank in Democratic platform in Colorado, in 18S6, ag to, 1948$ Ja Colorado, defeated by railway pool, 1963, 5536 U. S. PACIFIC RAILWAY COMMISSION. Influencing LegislationContinued. Hostile legislationContinued. Purpose of: Not generally pressed in good faith, 1297, 1298. Dne to "want of in format ion,n 3353. Of an entirely destructive tendency, 3162. Central Pacific antagonized from the first by conflicting interests, 2535. Character of: Bills in favor of other roads: Defeat of bond proposition in Douglas County, for Nebraska Cen tral, 1334, 1342. Bill in city council of Grand Island to give Bur lington and Missouri right of way, 1494, 1499, 1500. In Nebraska, bill for commission and establishing rates, 1294, 1295, 1298, 1304. Establishing rates and regulating telegraph and tele phone, 1514. In Nebraska and Kansas, high taxes and land grants to competing lines, 88. Provision Nebraska State constitution of 1875 as to right of eminent domain, 1053, 1054, 1341. In Nebraska, in 1882, horizontal reduction of 20 per cent, on ireight rates, 2140, 2441. Defeated in house, 2145. In Wyoming, damages in casualty cases, 2068. Bill in Colorado, in 1886-W, for commission, with power to fix rates, 1898, 1899. Bill for appeal from railroad commissioner to courts, 1913. Provisions of Colorado commission bill passed in 1885 ; 1949, 1974. In California, changing freight and passenger rates and appointing com miysion, 3352. Archer bill an absurdity; would, if passed, have made impossible all further construction or development of roads in State of California, 3369. Effect of enactments: Sometimes beneficial to company, 2141. Of provision as to eminent domain in Nebraska, in State constitution (f 1875 j 1054,1055. Loss and embarrassment in changing termini, 1055. Of arbitrary cutting down of rates in Kansas and Nebraska, 1055. Of high taxes and land-grants to competing lines, 88. In Wyoming and Nebraska, laying out school districts in such manner as to increase taxation of road, 1241. Public sentiment as to: Fluctuates with the crops, 2141. During granger excitement, 2536. In Nebraska, inimical to railroad, 1310. Divided as to Union Pacific, 1312. In Colorado, merchants opposed to commission bill, 1909. Favorable to commission bill, 1914, 1915,1962, 1963, 1973. "Manufactured" sentiment. 1913, 1914. Opposed to Union Pacific, 1945. Bills introduced, no fair representation of popular sentiment through out California and Nevada, 3353, 3428. Investments. Of Central Pacific: Invested assets of Central Pacific; detailed statement of extent and character of, 2496, 2497. Of Union Pacific: Total securities in bonds or stock held by the Union Pacific Rwy. Co., face value, $74,509,099.12; how made up; their market value, 934, 935. Invest ments in feeders produce 11 per cent., 934. Amounts pledged in various trusts on December 31, 1886; 935. Production of certificates of stock in various companies owned by Union Pacific, 952-955. Letter of Oliver W. Mink to Commission, dated June 14,1887, detailing the stocks and bonds owned by Union Pacific, total face value, $78,684,149.12, 955-960. As to market value of Union Pacific securities, 994. Statement of stocks and bonds owned by Union Pacific Rwy. Co. held in the con solidated mortgage trust, December 31, 1882; 695. Statement of stocks and bonds owned by Union Pacific Rwy. Co., December 31, 1882; t)95. Statement of miscellaneous stocks and bonds owned by Union Pacific Rwy. Co. December 31, 1882 ; 696. Statement of stocks and bonds of the company owned by the Union Pacific Rwy. Co., December 31, 1882 ; 696. Mem. as to Union Pac fie investments in branch lines, showing net income of about 11 per cent., 619, 623. TOPICAL INDEX. 5537 InvestmentsContinued. In other companies, 619, 620. In branch lines, 1007. Construction of branch lines paid for out of gross cash receipts,* 1223, 1224. 2,000 miles branch lines built between 1877 and 1864 and paid for chiefly out of earnings, 1957. Kansas Pacific Consolidation: The Commission directed to investigate the facts, 5. Copy of the articles of consolidation, 307-311. Suggested as early as 1875; 448-450. Extract from agreement of April 22,1875; 450. Which was never consummated, 450. Efforts of Kansas Pacific to prorate through from Chevenne to Ogden, 132, 197, 210, 211, 216, 450, 660. War of rates in 1872-1874, between Kansas Pacific and Union Pacific, 132. Hostile relations between them from 1873 to 1877; 135, 699, 700. Their controversies in court and Congress, 137, V38, 142. Agreement in April, 1875, looking to adjustment of difficulties between them, 450, 451. The difficulties which culminated in the pool agreement, 142, 143, 270, 271, 452, 453, 585, 738, 753. The Kansas Pacific Pool Agreement of April 24, 1878; 451, 1696. Copy of same, 162-166. Its object, 178. To reduce amount of outstanding indebtedness, 429. Effect of con solidation exactly the reverse, 429. Its original purpose, to retire at a scaled rate all liens subsequent to first mort gage and Government lien, and substitute an issue of stock, 453. Statement of the persons interested, 143, 646, 647. And the securities covered, 143. Sage not interested until it was to be closed up, 345, 347. Mr. Villard not personally interested, 428. F. L. Aines paid in $100,000, and got consols with Kansas Pacific stock thrown in, 686. E. H. Baker had $15,000 interest in the pool; what he got for it. 738. Elisha Atkins' interest in Kansas Pacific in 1879; acquired through pool, 754. How the prices in the pool agreement were fixed, 172-174; 454. Rates for income bonds, 458. Gould fixed the price at what he considered a fair figure, 45*. Had over $2,000,000 of them himself, 458. As to his purchase of stamped income bonds, 463. Why he bought them; what they covered; other holders of stamped incomes, 464. The names of the pool committee, 198. Dillon, Villard, and Sage were the pool trustees, 347,348,350,428,459. The reorganization certificates, 225,362, 460-462,502,503,647. "Reorganization bonds" in Mr. Sage's account probably meant reorganization certificates, 462, 463. Accretions to the pool, 430. Ceased when market price got above pool price, 430. Pool accounts, 199,272,648. Kept by James M. Ham, 221. The securities in a trust company, 222; Delivered to Gould and Sage, trustees. Kansas Pacific con solidated bonds received in exchange, 223. How holders of certificates could get bonds, 226,4i27. Purchase by Gould and associates of the interest of Saint Louis parties in the pool, 144,199,200,460,1695,1696. Change in Kansas Pacific board of directors, a part of the purchase, 145. The price paid, $1,200,000; 460,461. List of the securities, 461. The negotiation with the Saint Louis people, 461. Did Gould pay 12 cents for the 43,110 shares stock, or was it thrown in? 462,502,503,686. Paid 12 cents, 1695. Purchase by Sage from Gould of one-sixth of the securities, formerly represent ing the Saint Louis interest, for $200,250; 361-363,461,502,503. Another purchase by Sage from Gould of Kansas Pacific stock and bonds, 363-365. The withdrawal of the Kansas Pacific stock from the pool, 168,169,1:1,224,272, 431,432,460,654,655. Valued in the pool at 12$ cents, 171. Delivered to Gould, Ames, and Dillon; authority for such action, 431. x Through the pool Gould and associates acquired large interests in Kansas Pacific stock and bonds and Arkansas Valley and Leaven worth bonds, 175. Pool profits to the individuals interested, 217-219,686. JktT. Gould's proiit on Kansas Pacific stock in consolidation, $3,500,000; 686. Copy Gould's account of Kansas Pacific pool, 497, Copy his journal entries concern* ing same, 497-501. 5538 U. S. PACIFIC RAILWAY COMMISSION. Kansas Pacific ConsolidationContinued. Summary of tbo original pooling scheme; $17,000,000 of bonded debt to be funded into $4,855,3U0 in stock, 455. This plan abandoned and the consolidated mortgage made, 454, 455. Consolidated mortgage: Drawn by Judge Usher, 144, 455, 1G97. Gould's connection therewith, 1696, 1697. Submitted to Artemas II. Holmes, 144. Gould and Sage were the trustees, 345. Its object, 435. General statement of its provisions, 569, 570. Method of scaling securities in consolidation,456, 457. Who fixed the rates of exchange, 161, 162, 346, 350, 1698. The committee fixed the rates for branch-line securities with the owners, 350. Mr. Sage's duty as trustee under the mortgage, 349-350. His duty as a mem ber of the pool committee, 350. The persons prominently interested, 162. Rate for Arkansas Valley bonds, 167. Kates not the same as those in the pool agreement, 459. An explanation asked for the difference between the amount of pool securities at commutation rates and amount which mortgage states was to be given for them, 532-534, 561,565,650,651. An apparent preference of $933,000; 534, 565. Mr. Gould says that the holders of pool securities got no preference, 534. Gould never knew of the discrepancy, 533. Thinks it probably arose from advances made by him io pay interest on Denver extension bonds, 533,534. This theory untenable, 534. Perhaps the lawyers got the difference, 533. Judge Usher thinks there was no special advantage obtained, 1701. How the agreement to give $3,400,000, consols, for the pool securities was arrived at, 651,652,1698-1700. Judge Usher got instructions only from Gould, 1700. Mr. Sage's recollection of the disposition of the $3,400,000 bonds issued to Dillon, Villard, and himself in payment for pool securities, 348,349. Exchange of old securities for consolidated bonds, 351,352. Copy article 22 of consolidated mortgage, 161,547. Mr. Gould's understanding of its provision, 570. No bonds issued uuder it except those provided for by -3,400,000 contract, at other rates than those specified in article 23. Provisions of article 23 for issue of $2,000,000 to Gould, to repay advances, 548, 549, 653. Explanation of various issues of bonds One hundred aud three bonds to Maxwell and Graves, for $75,000 first land-grant bonds, 549,550. One hundred and thirty bonds to Oliver Ames, for 755 shares Central Branch's stock, 550. One hundred and seventeen bonds to R. Sage, for $112,315, coupon certifi cates. Did not the prohibition of article 22, as to issuance of bonds to Kansas Pacific, apply as well to the successor company (Union Pacific Rwy.), 551. Of issue of 160 bonds to Gould and Sage, trustees, for certain branch-line bonds ; why at different rates from that in mortgage, 552. Of other issues to Gould and Sage, 553. Did not Gould receive rates different from the mortgage rate, 553. Of issue of 1771 bonds to Gould, for bonds of Denver Pacific and of Denver and Boulder Valley, 565. Article 24, as to different rates for brauches east aud west of the meridian of Denver, 168, 565, 566. Issue of 2,000 bonds to Gould at 75; who fixed the rate, 566, 567,595,653,777-780. Mr. Sage not interested, 569. Issue of 927 bonds to Gould in payment of Central Branch and Denver Pacific stock, 567. Three million four hundred thousand dollars bonds to holders of pool securities under market rate, 778, 779. Explanation of other issues of bonds at other than mortgage rates, 567, 568. No overissue of bonds, 568, 570. Class of credits given Union Pacific in bond account, 568, 569. Article 4, as to proceeds of land sales applicable to interest, 568. Explanation by Mr. Calef of entries in trustees'journal, 592-594. Why Mr. Lejghton received different rates from those in the mortgage, 594. Copy agreement between Gould and Leighton, 594. Account of trustees with Union Pacific; item of $927,000 consols charged tQ Union pacific and 4elivored to Gould, 595, {$ TOPICAL INDEX. 5539 Kansas Pacific ConsolidationContinued. Some of the securities (for which the commutation rates were 30 and 50) have since been purchased at nearly par, 973. The prohibition forbidding commutation except at mortgage rates evidently disregarded, 973, 974. Statement of stocks and bonds owned by Union Pacific Rwy Co. held in the consolidated mortgage trust, December 31, 1882; 695. In 1879 Gould anxious to consolidate Union Pacific and Kansas Pacific, but wanted better terms for Kansas Pacific, 660. 661. Mr. Dexter thought his terms unreasonable, 702-704, 739, 740. Gould's purchase of Missouri Pacific, 505, 659, 1579, 1580, 1590, 159L Paid Gar rison $3,000,000 for 4,000 shares, 528, 529. Object, to protect Kansas Pacific; Garrison paralleling Kansas Pacific, bought out by Gould, 508. Gould's idea of another through road to Ogden, 505,756. The true line across the continent, 505. The proposed extension of Missouri Pacific would have destroyed Union Pacific, 509. And wiped out security of United States 510. Though tempted, Gould did not yield, 509, 510. Effect of disclosure of fact of purchase, 506, 507. Alarm of Union Pacific people, 659, 660, 740, 760,813. Interviews with other directors, 506, 50/'. Consultations with Gould on his change of front, 662-664. Gould forced to carry consolidation through, 483. Would have paid $1,000,000 rather than do so, 483. He felt " committed " to the consolidation, 509. Names of men who urged Gould, 485, 486. Thev had much larger interests in Union Pacific than in Kansas Pacific, 586, 587. The meeting at Gould's house, January 14, 1880; 664, 704, 705. Who were present, 664, 689. A. protracted discussion of terms, 665. The concessions made by Gould, 705. The preliminary paper agreeing to consolidation, 665, 706. Substance of same, 46, 487, 507,508. In Mr. Dexter's handwriting, 667, 668 Explanation of the signature "R. S.," 668. Copy of agreement, 668. Errors therein, 668, 669, 706, 707. Mr. Atkins signed, it in Boston; was not present at the meeting, 757, 776, 777. The paper recently found, 670, 708. The Government not informed of the details, 708. Mr. Baker's recollection of what took place, 740-742. The situation of affairs in 1880; 690. Possible results if consolidation had not taken place, 690. In acceding to terms of consolidation, directors were controlled by fact that Gould had them " cornered," 685. Mr. Atkins does not think they were bulldozed, 759. Gould in a position to dictate the terms of consolidation between Kansas Pacific and Union Pacific, 558. Did Gould dictate the terms, 777. When consolidation was substantially agreed on, according to Mr. Sage, 357,358. Preparation of articles of consolidation, drawn by Judge Dillon, 157, 183, 184. Gould's connection therewith, 484, 485. Judge Usher's recollection of their preparation, 1702. Foars of an inj unction, 1703. With whom Dillon conferred, 184. He had no personal knowledge of the value of the Kansas Pacific or Denver Pacific stock at the time, 184, 185. Drew third article according to instructions, 185. Knew that Gould and associates were interested in both properties, 185, 186, Copy articles of consolidation, 307-310. The letter to Humphreys & Dodge : Copy thereof, 318. What they were asked to do, 371, 476, 477,704. The persons who signQd it, 371, 657. Gould's connection therewith, 479. Gould did not confer with John F. Dillon as to, 483, 484. P R VOL IX------10 5540 U. *S. PACIFIC RAILWAY COMMISSION. Kansas Pacific ConsolidationContinued. Why they were selected; what Mr. Atkins recollects about it, 754, 755. Mr. Sage's acquaintance with them, 370, 371. Gould has no knowledge that they made a careful examination of the question. 477,478. What considerations they should have gone into, 478, 479, C57, 658. Their report, 372, 479. Did they merely copy a form prepared for them, 479, 480. Their suggestion as to the capital stock of the new company, the same that Gould had thought of, 479. Copy of their report, 318, 319. Sage did not know its tenor prior to the meeting, 372. When did the directors know of its conclusions, 65b, 659. Wheu Gould received their report, he was not in favor of consolidation, 482, 657. Gould never saw the report, 583. Did not influence them, 583. Submitted to John F. Dillon at or about the day of the consolidation, 373. Suit to release the Denver Pacific stock : Artemas H. Holmes requested by Sidney Dillon to bring the suit, 146, 205. His conversation with Judge Dillon, 147. With Jay Gould, 487. Gould had decided to put Denver Pacific stock into consolidation, his own $1,000,000 at 10 cents and the $3,000,000 trust stock at a valuation of $500,000; 488, 504. By the terms of the consolidation Denver Pacific stock was to be exchanged at par; Gould knew that, if freed, it was worth as much as Union Pacific Rwy. stock, 488, 490. Gould did not think it his duty as trustee to state to Mr. Holmes that the stock, if freed, was to be exchanged for Union Pacific Rwy. stock, 490. The general object of the suit, 147, 186, 490, 505. What Mr. F. L. Ames knew of the suit, 671. Mr. Dillon's letter to Gould and Sage, trustees, on January 17, 1880, and their reply on same day, 488, 489. Summons dated January 17, 1880 ; 147, 148. Mr. Dillon wanted the suit expedited, 148, 243, 244. Knew that, if freed, the stock would be worth as much as Union Pacific Rwy. stock, 206,207. Mr. Sage does not think the suit was hurried through, 354, 355. The complaint; its preparation, 489. Copy Mr. Calef s verification, 490. Verified and served January 20, 1880; 148. Substance of its allegations, 148-150. The answer: Mr. Goodwin's talk with Mr. Sago, 243, 244, 353, 354. The disclosures made by trustees to their counsel, Mr. Goodwin, as to value of the Denver Pacific stock, 244, 245. Sage knew that the Denver Pacific stock, if freed, was worth whatever Union Pacific was, 358. Counsel for trustees ignorant of the fact that consolidation was impending, 243. Verified by Gould on January 20, 1880, 489. Served the same day, 148. Substance of its provisions, 150. Horace M. Ruggles agreed on as referee, 150, 244. Justice Donohue refers the issues to Ruggles to try and determine; order dated January 20, 1880; 150. Taking of proofs begun January 21,1880 ; 151. The witnesses examined, 151. Testimony of Sidney Dillon, 180, 205, 207, 208. Denver Pacific stock worthless in the trust, but, if ireed, and used for certain purposes it might be worth $200,000 or $300,000 to Kansas Pacific, 180, 181. Attempt to reconcile Mr. Dil lon's statement as to value of Denver Pacific stock with the fact that the next day it was worth $3,000,000; 181. Mr. Dillon's explanation of bis statement, 20d, 209. Gould not informed of this testimony, 494. Erasures in Mr. Oalef's testimony as to Kansas Pacific earnings, 155, 293-295. The record as taken and as altered, 155,156, XJ94, 295. Is the original or the corrected answer the true one, 156, 157, 294, 295. The corrected answer true, 294, 295. Does not recollect on what he ba-sod his testimony as to earnings, 297, 298 Case closed on January 22 ; 151. Findings were drawn by the referiw, 151. Decree dated J anuary 23, I860,151, lf/2. No opx)osition by counsel for trustees, 152. Copy of decree, 152. Result of the deciee, 158. TOPICAL INDEX. 5541 Kansas Pacific ConsolidationContinued. Complaint of Albert S. Rosenbaum as to withdrawal of the Denver Pacific stock 247, 248, 256-258. The investigation, by the State assembly judiciary committee, into Justice Dono-hue's action, 154. Mr. Ham, the custodian of the Denver Pacific stock, after its release, 227. The stock in one certificate, 227. Details of its receipt by him, and of the circiim-Rtances connected with its subsequent conversion into Union Pacific stock, 228, 229. The Union Trust Company, the transfer agents, 229. The modus operandi of transfer; the new stock delivered next day; the largest certificate went to Gould, 231. Transfer at same time, of 10,000 shares to same parties; to whom the new certificates were delivered, 232. After paying parties interested for their securities, balance of stock retained in the Union Pacific treasury, 233. iToss of paper containing statement of the value of the securities to be paid for, 233. 234. Mr. Calefs recollection of the receipt by Kansas Pacific of the Denver Pacific stock and its transfer to Gould, 290, 291. Mr. Sage is not sure whether the Denver Pacific stock has been taken out of the trust or not, 352, 353. The stock went to Kansas Pacific as an asset, and was used by Kansas Pacific to pay for the branch roads purchased from Gould and his associates, 152-154, 234-237. The $3,000,000 stock went to Kansas Pacific, then to Union Pacific Rwy., in consoli dation; a portion ($3,464,168.48) used to pay Gould, 274, 275, 557. The ques tion of a trustee buying the trust securities, 355. Mr. Sage does not recollect that he was informed, at the time of the suit, that the Denver Pacific stock was to go to Gould, 355. x Mr. Dillon's statement that the Denver Pacific stock was exchanged for Union Pacific Rwy. stock, 202, 203. Union Pacific Rwy. could just as well have issued its own stock to pay Gould and other creditors, 557. Gould and his associates gave full value for the Denver Pacific stock, 180. Who arranged the terms of transfer ? 236, 315. Terms arranged between Gould and Kansas Pacific before consolidation, 315,316. Enumeration of the securities and their value, 236. Copy letter, Oliver W. Mink, to Commission as to exchange of Denver Pacific stock, 305-307. Mr. Mink states that Union Pacific Rwy. made a profit of $3,716,961.48 on the Denver Pacific stock, 314, 315. How Kansas Pacific obtained its title to its Denver Pacific stock, 179. By what authority did Kansas Pacific part with its title ? 158-160, 268,269. Why the released stock was not exchanged with the trustees of the consoli dated mortgage, instead of with Kansas Pacific, 491. Why the proceeds of the released stock were not paid back to the trustees, 491, 492, 503-505. They could get $500,000 for it, or nothing, 492, 503. The trust received the benefit of $500,000, the mortgage being made for that much less, 556. Denver Pacific stock valueless in case of foreclosure of mortgage, 582. If decree had not been obtained, Denver Pacific would have been foreclosed, or the stock would have been put in at nominal price, 582. Gould sold his $1,000,000 Denver Pacific stock to Kansas Pacific for $100,000, though, by consolidation, it was worth about $1,000,000; 177, 583. By consolidation, Gould and associates got Union Pacific Rwy. stock for the Denver Pacific stock, which would not have been worth anything but for con solidation, 178. Kansas Pacific would not have been worth ten cents, and Denver Pacific would not have been worth anything, but for consolidation, 179. Meeting of directors of Union Pacific R. R., January 24,1880; 512, 513. Copy of the minutes, 307-311. Proceedings: Gould's resignation as director, 367, 368, 483, 519. Why Gould resigned, 370. Circumstances connected therewith, 513-516. Alarmed the other directors, 483. Reasons for it, 514, 518. Moved by Sage, 518. No deals made before resignation, 514, 515. The prices for securities not then fixed, 515. 5542 u. a pacific railway commission. Kansas Pacific ConsolidationContinued. Meeting of directors of Union Pacific R. R., January 24,1870Continued. ProceedingsContinued. Gould's resignation as directorContinued. Object of getting it on record on January 24, 1880; 516. What he then knew of the Humphreys-Dodge report, 516, 517. Canceling the Colorado Central lease, 374, 375, 516. Done because of law in Colorado prohibiting the consolidation of competing roads, 516. Filing the Humphreys-Dodge report, 375. Moving the consolidation. 375. The part taken by the Government directors, 709, 710. What Mr. Cammack remembers of what took place at the meeting, 279- 281. The interest of the United States not discussed, 282. Mr. Eckert's recollection of what took place, 283, 284. Made no*personal examination of the question, 283-2S5. Mr. Morosiui's recollection, 324, 325. Mr. Niles's recollection, 329-331. Why Mr. Niles voted for consolidation, 331-333. His report to the Government, 338,339. The Government uotified after consolidation, 194,195. Mr. Sage's recollection, 369. Tho interest of the United States not discussed, 282. The Government security preserved, 337. Mr. Sage signed ratification as owner of 15,000 shares, 360. Mr. Gould's course a violation of his duty as director, 734. Mr. Baker thinks dif ferently, 774. Meeting of Kansas Pacific directors, January 24, 1880; 512, 513. Copy of the minutes, 311-313. Who were present, 376. Proceedings: Gould's resignation as director, 376,518, 519. Copy of same, 377. The mo tive, 518,066,667. Reappointed a director within an hour, 368. Moved by Sage, 376,519. Gould had not previously told Sage of his intention, Minutes as to purchase of branch lines by Kansas Pacific from Gould,295,296, 378,520. Was agreement to buy Saint Joseph and Western made public ? 665, 666. Bought at forty, turned in at par, 666. Propriety of the directors' action in this respect, 759. Name of seller omitted from the record, 3/9, (565. Transaction had been discussed, 378, 380. Very likely Gould fixed the price fbr Saint Joseph and We8*ern ?42. Gould was to be paid one-half in Kansas Pacific bonds at par, and one-half in Union Pacific collateral trust bonds at par, 527, 529, 530; Why he was paid in Union Pacific Rwy. stock instead, 530-532. Table of securities delivered by Jay Gould to Union Pacific Rwy., 381. Includes tho securities purchased from him by Kansas Pacific, 381. Gould represented a large number of holders, 381. Mr. Calef has no recollection of the transactions recorded in the minutes. 295, 296. Minutes refer to agreement made at Gould's house, not to any binding cor porate action, 520. Mr. Miuk's explanation of the minutes, 315, 316. Minutes as to purchase of Central Branch stock, 296, 382. Its financial con dition in 1884; was $239 a share too high a price? 383-386, 580, 723, 724, 741, 758. Mr. Sage's motion ratifying the purchases, 296, 384. Mr. Sage's motion authorizing issue of 6,242 shares capital stock, 296, 388, 389, 529. Statement of securities embraced in this purchase, 295, 520, 521. Explanation of apparently increased holdings by Gould, 521, 522. - As to lease of Central Branch to Kansas Pacific; conditional offer, by Gould, to sell the company Kansas Central bonds and stock, 386, 529 (?) JSago knew nothing of the road, 386, 387. Articles of consolidation reported and signed; books closed, 388, 529. At consolidation, Gould voted on 79,414 shares Kansas Pacific, 169. Shares voted on by other Union Pacific people, 169. Gould's holdingH in Kansas Pacific nearly double those in Union Pacific,669. Mr. Calef s recollection of the proceedings, 2&ti. Who the directors were at tho time, 286. Their holdings of stock. Stock holders of Kansas Pacific at consolidation, 287, 288. TOPICAL INDEX. , 5543 Kansas Pacific ConsolidationContinued. Meeting of Kansas Pacific directors, January 24, 1880Continued. The certificate approving of consolidation, 288, 289. Mr. Morosini signed it as holder of 20,041- shares, 325, 32G. Owned them only nominally, 326. Had no personal knowledge of the affairs of the companies, 327. Mr. Sage signed as owner of 9,977 shares, 359. Wasiyir. Gould's offer to sell the branch lines securities for Denver Pacific stock discussed in the board / 291. 292. Meeting, Denver Pacific directors, January 24, 1880. Copy minutes, 313, 314. Meetings of the three boards on January 24, 1880; 160, 187. Who were present, 160, 187. Meeting, Union Pacific Rwy., January 20, 1880. Gould's motion ratifying consolidation, 518. At consolidation, Gould owned 27,000 shares Union Pacific and 40,300 shares Kan sas Pacific, 366, 3C7, 463. Union Pacific quoted at 93, Kansas Pacific at 98, 463. F. G. Dexter's interest in Kansas Pacific in 1879; 700. In Saint Joseph and Western, 701. In Union Pacific, 702. In Kansas Pacific and Saint Joseph at consolidation, 730. Relative values of his holdings in Kansas Pacific and Union Pacific, 732. Ezra H. Baker's interest in Union Pacific and Saint Joseph and Western at con solidation, 738, 739. His holdings on January 14, 1880; he represented Union Pacific, 745. Was glad to consolidate on the terms finally agreed upon, 745, 746. Elisha Atkins's interest in Union Pacific at consolidation, 753,754. In Kansas Pacific in 1879 ; 754. Mr. Sage's holdings of Union Pacific and Kansas Pacific and their branches at consolidation, 365, 366, 393. Detailed statement Sage's purchases Kansas Pacific first land-grant bonds and Denver Pacific first-mortgage bonds, 398-400. F. L. Ames's interest in Kansas Pacific and Union Pacific at consolidation, 687. Sidney Dillon's interest in Kansas Pacific at consolidation, 201. The advantages of consolidation To Union Pacific; stated by Mr. Holmes, 177; by Mr. Dillon, 215,216 ; by Mr. Niles, 331-333. By Mr. Sage, 393-396; by Mr. Dexter, 709,731; by Presi dent Adams, 973-975. Did it benefit Union Pacific? 434-436. To Kansas Pacific, 434. To the United States; position of Government improved, 585. The Government not injured, 731, 732. Government security enormously enhanced, 974, 975. Advantages of consolidation over an agreement, 586. Why the result attained by consolidation could not have been effected by a lease, 272-274. The financial condition of the constituent companies, report of William Calhoun, accountant, as to: Union Pacific, its construction and general management, 4949, 4952-4962. Assets and liabilities on December 31,1869 ; 4962, 4963. [Same] on Decem ber 31,1879; 4966-4968. Suspense account, 4950, 4970-4972, 5256, 5257. Kansas Pacific, its financial condition at consolidation, 4972-4985. Denver Pacific, its financial condition on December 31, 1879 ; 49854988. Miscellaneous: Results have justified the consolidation, 746,974. A benefit from every point of view, 975,976. Missouri Pacific suffered rather than Union Pacific, 975. Union Pacific fairly dealt with, 396,745. Mr. F. L. Ames thinks it was a very good trade for Union Pacific, 685. Effect on Union Pacific if consolidation had not taken place, 730. Did not foist upon Union Pacific a couple of worthless lines, 179,971. The men who urged it had much larger interests in Union Pacific than in Kansas Pacific, 586, 587. 5544 U. S. PACIFIC RAILWAY COMMISSION. Kansas Pacific ConsolidationContinued. NiscellaneousContinued. The good faith of the parties forming the consolidation, 689. At the rate at which it was put in, Kansas Pacific was as valuable as Union Pacific, 971, 972. Union Pacific's through business an uncertain quantity at that time, 180. Kansas Pacific was threatening both the through and local business of Union Pacific, 763. Consolidation unanimously approved, as shown by increased values of stock and bonds, 585. If the facilities contemplated by act of 1874 had been extended to Kansas Pacific and Denver Pacific, consolidation would probably never have taken place, 182. Why they consolidated instead of obeying act of 1874; 216, 217. The legal power to consolidate, 838. Chiefly under 16th section, act of 1864; suits by State of Kansas to annul consolidation, 838. Copy of section 16, act of 1864; 839. Increase of Kansas Pacific stock, 839. Land: Central Pacific/: Land account books, 2362. Trustees of land-grant mortgage, 2362. As to land-grant mortgage of October 1, 1870; 2371, 2372. As to land-grant mortgage of October 1, 1880; 2374, 2375. (See, also, witness index, testimony of W. H. Mills, Central Pacific land agent.) Duties of tax agent of Central Pacific, 2445. Amount of taxes paid upon lands since 1869 about $420,000; 2445. Detailed statement of taxes paid on lands by Central Pacific from 1868 to 1886, inclusive, 2446-2451. Detailed statement of amounts paid by Central Pacific in each year, for taxes on lands granted by Congress, the date of each payment, and the year for which such payment was made, 2511-2517. Central Pacific not derelict in taking out patents, 2517. Injury to company by inability to get patents, 2518. Interest lost by Central Pacific on money it would have received by sale of land, 2520. Statement relative to Central Pacific lands, by W. H. Mills, land agent, 2558- 2570. Tabulated statement of listings, number of acres patented, and number listed and unpatented, 2562. Dne diligence used to secure patents, 2563. The Government fails to survey the land, 2563, 2564. Discouraging and unreasonable requirements, 2564, 3601. Obstructive measures, 2564, 2565. Government unable to meet demands of company, 2565, 2566. Governmental policy, 2566. A summary of points, 2567. General Land Office hopelessly in arrears, 2567, 25GQ. The uselessness of further selections, 2568, 2569. Cases before the Departments, 2569. Recent amendments to the law, 2569. Conclusion; the land-grant mortgage, 2569, 2570. Value of Government land grant to Central Pacific, 2755,2756. Central Pacific willing to surrender the lands to Government at price to be fixed by Government agents, 2756, 2757. Issue of Central Pacific land-grant bonds; amount authorized, $10,000,000; amount issued, $9,153,000; how disposed of, 2772, 2773. The most valuable portion of Central Pacific land grant is in California, 2934. Policy of Central Pacific in disposing of lands, 2934. No sales of lands for account of stockholders, 2934, 2935. Purchase of, by Stanford, 2935, 3597, 3598. Purchase of, by Charles Crocker or his son, 2935, 2936, 3598-3600. Statement aa to the land-grant bonds, 3438. Resolution to sell or exchange land bonds, 3438, 3439. Statement of proceeds%pf saleof lands, 3440. Detailed statement of land-grant bonds sold and redeemed, 3440. Statement of land-grant bonds redeemed with proceeds of land sales, 3441. Statement of amount of property included in the land-grant mortgage which has been sold or disposed of, the amount of contracts outstanding, the ap plication made of the property sold, the number of bonds redeemed, and the number of bonds outstanding, 3441. TOPICAL INDEX. 5545 LandContinued. Central PacificContinued. Rate of interest on land-grant contracts, 3441. Expenses of land-grant department, 3442. Receipts and expenses of land department; rate of interest at time of exchange of bonds for notes, 3442. Value of land-grant bonds, 3443. Account of sales of land-grant mortgage bonds, 3G00, 3601. For $10,000,000 of October 1, 1870; 3532. Denver Pacific: The land grant, 131. The land-grant mortgage, 136. Statement by Mr. Calhoun of laud sales, 5244. Kansas Pacific: Land grant and bonds, 304. The land-grant trust, trial balance, June 30,1879; 4983, 4984. Mr. Calhoun's memorandum concerning laud grant, 4984. Land-grant accounts since 1880; 5243. Land sales, 5244. Leavenworth, Pawnee and Western : Land, 1673, 1675. Sioux City and Pacific : Lands sold, realized $330,050.98; 2257, 2307. No diversions to unlawful purposes, 2305. Statement of land grant, 2305, 2306. Statement of receipts from sales of land, 230G. Mr. Anderson's statement of receipts from land sales, 5393, 5394. Value aud location of lands, 2306. Statement of receipts from Iowa land grants, 2306, 2307. Statement of receipts from Nebraska land grants, 2307. Resolution to dispose of lands and issue land stock, 2325. Statement as to indebtedness of land department, 2329, 2330. Resolution to sell Nebraska lands, 2330. Uniou Pacific-Income from sales of Union Pacific land goes to trustees, 114. Why proceeds of Uuiou Pacific land free from Government lien, 114, 115. The Union Pacific land bonds, 115. Union Pacific land-grant mortgage: Mr. F. L. Ames, the present trustee, 936. Aggregate issue of bonds, $10,400,000. Acres included, 11,200,000; 936. Description of the lands, 936, 937. On April 30, 1887, lands unsold were 3,168,990 acres, valued at $2,386,140; 937. Statement of the Union Pacific R.R.Copland grant to December 31, 1886; 938, 939. Gross receipts for lands to December 31, 1886, $22,938,727.30. Explanation of deductions and commissions, 939, 940. Land-grant accounts since 1880 (Calhoun), 5243. Land contracts, 940. Land-grant bonds taken in payment of lands, 940, 941. Explanation oiMtem of accrued interest, 941. Statement of the condition of the assets of the land department, December 31, 1886; 941. Explanation of item " premium on bonds redeemed," 942. The investments of the fnnds, 942. Explanation of the item "loan account," and of other items, 942, 943. As io compensation of trustees, 943. Statement of the trustee under the land-grant mortgage, June 3, 1887; 943. As to issuance of bonds, 944. Outstanding land contracts all good, 944. Location of unsold lands, 944. As to disposition of surplus and the sinking-fund mortgage, 944, 945. Amount of sinking-fund bonds outstanding, $14,348,000. Estimate of surplus applicable to sinking-fund mortgage after closing up land-grant trust, 945, 946. Certificates as to deposits by trustee, 946, 947. The land grant to Union Pacific not a gift, but part of a business trans action, 984, 985. Claim that land proceeds are subject to Government lien, 1007, 1008. That land-grant mortgages made prior to act of 1878 are invalid, 1008, 1009. 5546 U. S. PACIFIC RAILWAY COMMISSION. LAND--Continued. Union Pacific land-grant mortgageContinued. (See, also, witness index, testimony of Benjamin McAllaster, laud commis sioner of Union Pacific.) As to communication to Commission from W. A. J. Sparks, Commissioner of General Land Office, 1038. General policy of Union Pacific as to lands, 1237. * (See, also, witness index, testimony of Leavitt Bnrnham, formerly land com- missioner of Union Pacific.) Proceeds fro-n sales of land remitted to Boston by cashier of loan depart ment, 1250, 1251. Rebates on land tickets, 1252. As to entries by Union Pacific on ungranted lands, the Dudymot claim; Secretary Schurz's order as to railroad lands subject to pre-emption; the fictitious Platt entry, 1415,1416,1418,1492. The test ejectment suit brought thereon by railroads, 1415, 1416, 1492. Decision of Supreme Court, 1415, 1416, 1495. History of the Platt matter, 1494, 1495. Pay of defendant's counsel, 1495. Case of August Arudt, involving right of railroad to ex clusive control of sale of unpatented part of land grant; his papers stolen ; question never tested, 1416, 1418. Union Pacific influence on Federal offi cers, 1416, 1417. Efforts by people to compel company to take out their land-grant patents, 1417. Anton Gsantner, the intermediary in purchases of land by Union Pacific, 1432, 1433. Union Pacific acquisition of coal lands, 1447, 1448. How far the line of agricultural land extends west of the Missouri, 1664. Taxes; statement of land taxes paid by Union Pacific Rwy., from 1865 to . 1886, inclusive, 4283. Taxes on lands of Kansas Division, statement of, from 1874 to 1886, inclusive, 42H3 Lands patented, selected, and unpatented, by the various Pacific roads, state ment of, in letter of Land Commissioner Sparks, dated May 31, 1887; 4250-4258. Copy letter dated November 28, 1887, from General Land Office to Secretary of Interior, in reply to inquiry of Commission, explaining statement of May 31, 1887; replying to complaints of Central Pacific R. R., and giving infor mation called for as to lands of Union Pacific and Sioux City and Pacific R. R., 4392-4412. Legal expenses: Central Branch Union Pacific R. R.: Notes from company's books as to legal and extraordinary expenses, 5321-5326. Amounts paid annually since 1868; 5326. Central Pacific: Detailed statement legal expense account, years 1865-1886, inclusive, 468$- 4747. Kansas Pacific: Summary legal expenses from 1867 to 1886, inclusive, 4310. Summary of, for land department, years 1868 to January 31,1880, 4310. [Same] for receiver Kansas Pacific Rwy. from Nov. 21,1876, to August 31,1879, 4310. Sioux City and Pacific: Detailed statement of payments made from 1871 to April 30, 1887; 5363-5367. Union Pacific: Summary legal expenses Union Pacific Rwy. from 1864 to January 31, 1880; total $1,122,415.57; 4311. [Same] from February 1,1880, to 1886; total, $561,329.32; 4309. (See also 4283.) [Same] for land department, 4310. Summary of, Union Pacific R. R. and Rwy. and Kansas Pacific Rwy., 1864- 1886; total, $2,349,554.80; 4311. Mr. Calhoun's report of annual amounts for Union Pacific R. R. and Rwy., for Denver Pacific Rwy. and Tel. Co., and Kansas Pacific Rwy., 4837. Pacific Mail Steamship Company : Statement of amounts paid it by Union Pacific, Central Pacific, and various other companies, on account of transcontinental business, from September 30, 1871, to March 31, 1886, 4275-4278. Plan op settlement: Extension of time: Favored, 1509,1521, 1573, 1583, 1956, 1957, 2074, 2169, 2236, 2237, 2400, 3013, 3406. Not favored, 1771. Condemned, 1349-1351, 1501, 1771. An extension favored, even if certain debt would not be paid, 1491. Extension naturally expected, 772, 844. A blanket mortgage for one hundred and twenty- TOPICAL INDEX. 5547 Plan op settlemkntContinued. five years, 214. At 3 per cent., company to bave right to pay money or take new bonds, 51)0, 591. For one bund red years at 3 per cent., 769. For one hun dred and fifty years preferable, 771. An extension on easy terms and additiouai security, 737. Exteusion, with power to take mortgage and pay off Government debt, 844, 845. Extension, with power to build branch lines, 1582, 16(53. Long small bonds, at low rates, with power to build extensions, 2203. Long bonds at low rates, payable by installments annually, 2206. Central Pacific debt should be wiped out or payment required of principal only, with long time, 3086. The public favor an equitable extension, 854, 1667, 2236, 2237, 2244. Public senti-meut divided ou this point, 1745. Fixed annual payment, 614, 736, 772, 995, 996. Uuiou Pacific could pay about $1,800,000 a year now, to be increased later, 856,857. A long bond paying an annual sum, with low rate of interest, 749, 1818. Union Pacific would cheer fully pay $1,600,000 a year, 612. Central Pacific could only pay $600,000 or $700,000 yearly, 3086. A gross payment rather than percentage of net earnings. 736,737,749,841,1818,1878. Compromise for cash, 995,996. The right to build brauches necessary, 770,773,1522,1663,2075. Effect on rates as favorable to community if territory opened by other companies, 2237,2238. Additional security, 737. On new branch lines, ample, 771. Deposit of securi ties of existing branch lines as collateral, 855. Building branch lines and put ting their securities in bscrow, 770. Road should be put in position to pay dividends, 820. Wreckers like a non-dividend stock, 820,821. Independence necessary, 213,845,858,995,996,1623. Dissolution of partnership with Government as soon as may be, 1355. Ability of the companies to pay, 734, 819, 2400,3406. Of Union Pacific, if given its independence, 213. "Of Central Pacific, depends on circumstances over which road has no control, 2521. Of Central Pacific in certain contingencies, 3407. Cen tral Pacific will never be able to pay, 1560, 1561, 3387. If Central Pacific debt is $60,000,000, liquidation not possible in one hundred years, 3408. Central Pa cific will need all its resources to pay first mortgage interest aud operating ex penses, 3387, 3388. Central Pacific, severe*from its feeders and from Southern Pacific, would not pay operating expenses and fixed charges, 3590. Southern Pacific bound to pay interest on Central Pacific's Government debt, 2738, 2811. Government can not get its money, 1989. How the Government could get its money back, 3025. Of Sioux City and Pacific, 2283, 2321. Effect of extension; junior lien holders could not complain, 845. Will continue extortionate rates, 1350, 1351. On communities, 2236, 2237,2244, 2274. Would debt be paid? 772, 773, 1521, 1522. Foreclosure favored, 1501,1517,1524,1533,1534,1922. Not favored, 1510. Of first first mortgage, 1352, 1431. What Union Pacific would bring under the hammer, 1354. Effect of, 1517, 1534, 1960, 1961. Would not materially affect community at large, 1958. How it would affect other roads, 1354. Wonld give Govern ment debt to the Western people, 1353. Would reduce capitalization to actual value, 1354. Would wipe out Government debt and stockholders' in terest, 1431. Another road might have to be built, 1666. Possession could be obtained by Government for default under Thurman act, 1767. First mortgage wouldhave to be assumed, 1767, 1768, 1770. Government control: Not au advantage, 1818. Not favored, 1862, 1874, 1922, 1956, 1957. Favored, 1501,1502, 1534. Would be free from partisanship, 1768, 1769. Would make a political machine of road, 1819. Would cheapen trans portation, stimulate enterprise, and hasten growth of communities, 1769. Road wonld earn more money, 1770. Much would depend on Government's action after taking possession, 2275. Only first mortgage interest and operating expenses could be paid, 3388. Operation of main line at simply operating expenses wonld bankrupt branch lines and demoralize freight traffic generally, 1428,1429. Bene ficial to community, 1502. Miscellaneous: A different basis for Central than that for Union Pacific. Government lien more secure on latter, 996. Debt should be settled for a sum equal to the value of road over first mort gage, 1518. Government should cancel debt, 1561. Should require payment of the interest only, at 2 or 2-J- per cent., and let prin cipal go, 1593, 1594. Should take up all securities and convert them into preferred stock at 2 per cent, and cut rates in two, 1713. 5548 U. S. PACIFIC RAILWAY- COMMISSION. Plan of settlementContinued. MiscellaneousContinued. Debt should have been paid before dividends declared, 1655, 1656. Ninety per cent, of Union Pacific stock said to be unpaid, should be collected from the stockholders and applied to liquidation of debt, 11550,1352. United States Supreme Court decision as to payment of balance on stock, 1352. This would enable reduction of 50 per cent in rates,' 1351. Union Pacific should have use of $7,000,000 in Government's hands to in vest in their own bonds, 769. Suggestions made by Director Alexander in his report to Government, 854, 855. As to Central Pacific, question of extension immaterial, if the equities claimed in favor of the road are allowed, as their amount exceeds the Gov ernment debt, 2521. Central Pacific debt and interest at maturity com pared with saving in transportation charges to same date, 2596, 2597. Mr. Gould's offer of $30,000,000 for the debt of Union Pacific, 510-512, 1517. Rates of fare and freight: Contracts, general and. special: , General contract plan on Central Pacific, 3296, 3297, 3357, 3358. Its effect to equalize rates, 3333. Special contracts formerly open to all hardware firms in California, 3296. Hardware firms who held written contracts, 3296. Conditioned upon amount and character of business, 3298. At first, contracts arranged with shippers individually; ultimately, a list of rates prepared, accessible to all who signed a contract, 3298, 3324, 3333, 33:54, 3359. Contracts on through business not affected by amonnt of shipments, 3333. Object of system of, to bring the roads more business, 3360. System inau gurated to meet competition, 3579, 3580. Special contracts necessary to secure business, 3377. Special contracts are not rebates, 3376. Special contract rates became regular rates, 3337. Better understood (be cause more discussed by shippers) than the regular tariff, 3377, 3378. In many cases allowed without the shippers' knowledge, 3383. Special contracts open to all, 3383. With sundry persons: Copy agreement between Grant Smelting Company and Union Pacific, 1798-1801. Contract still in force. Assured a continuance of same privileges when contemplating consolidation, 1801. No other written contract after consolidation, 1802. As to Marshall Mining Company's contract, 1877, 1993, 1994. Redington & Co., and all drug firms, contracts with, 3123, 3124. Arrangements with Standard Oil Company, 3301, 3302. Contract made in 1876; 3302, 3580, 3581. Did not cover free return of empty tank cars, 3325. Hawley Brothers & Co/s special contract ended December 31, 1884, 3317. J. W. Doaue & Co.'s special contract of years ago. 3317, 3318. Central Pacific ready to give same contract to others, 3319. W. H. Perry Lumber and Milling Company, no contract with, 3322, 3323. Was there a special contract with California Wool Company ? 3327. Special contract with Hun ting ton, Hopkins & Co.. made by Union Pacific and other companies east of Central Pacific, 3374. Special rates: Privately made, regarded as destructive to the best interests of any com munity, 1753. Have relation to amount of freight; inducements to large shippers not offered to small shippers, 2122. Cut rates adjusted by rebates, 2123. Purpose of, to control traffic, 2133. " Special," in respect that they are not printed in the tariff, but usually they are general in their application, 3293. Cut rates fixed by general freight agents of Union Pacific and Central Pacific, 338-i. Passenger rates: Union Pacific rates from 1880 to 1884; 1056. Not materially different from rates between 1871 and 1880; 1057; from 1880 to 1887; 1360, 1361. To excursion parties over Union Pacific, 1361. TOPICAL INDEX. 5549 Rates op fare and freightContinued. Contracts, general and specialContinued. Freight rates: (a)General items: Advocated by Grant, of Omaha & Grant Co., 1816, 1817. Special low tariffs, open to all, should be allowed in aid of latent in dustries, 2082. To special people, 2109, 2110. Average of net rates allowed by Union Pacific to special shippers, 1408. Universal granting of, by Union Pacific as against open rates, since three or four years prior to April 1, 1887; 1816. Union Pacific's equalization rate, also an open one, 1894. Explained, 1895. Statement to Denver Chamber of Commerce regarding it, 1894,1895. Dissatisfaction of Denver people resulting from dis cussion thereon; 1895. Made by Union Pacific agent at Laramie, 2108. (b) On goods: On ores, 1175, 1176. None made by Union Pacific on ore to Missouri River, 2134. On ore shipments, from Wood River to Salt Lake City, 2196,2197. On bullion, in 1883; 2010. Union Pacific special coal tariff, 1870.1871. On stone, open to all, 2060. The public rate, 2060,2061. On wool, to meet secret competition, 2137,2138. On stock cattle, 3326,3327. On oil in tank cars, by Union Pacific for Continental and Standard Oil Companies, years 1878-'86; other rates, 1439. Arrangements of Central Pacific as to tea traffic explained, 3319. (c) To Rundry persons: To Ogalalla Land and Cattle Co., once or twice, on large shipments of fencings, 1232,1233. Pacific Hotel Co. has suggested to Union Pacific that "to allay dis satisfaction along the line of road, freight be billed at full tariff, but bill against hotel company reudered at half tariff rates;" ex planation of this suggestion, 1253, 1254. Has free transportation over Union Pacific for goods and help, in consideration of reduced rates to railroad employe's, 1254, 1255. To Kansas shippers, 1640; allowed to secure business, 1641. Burlington and Missouri's offer to a Union Pacific shipper to " make nny rate you please" in consideration of a shipment of 10,000 tons, 1*06. To Rocky Mountain News have ceased, 1726. Noue to John H. Martin, of Denver, 1915; but given to competitors, and effect thereof, 1915, 1916. W. H. Root has never had special rates allowed him by Union Pacific, 2106. Copy of W. H. Root's release to Union Pacific, 2114, 2115. 11 Special" rate to Deseret Salt Company, wrongly so called, 2120,2121. To Utah Forwarding Company, 2179; character of arrangement. 2180, 2181; on grain, 2186. To Contract and Finance Company and Western Development Com pany, 3313; to Southern Development Company and Pacific Im provement Company, 3314. Sisson, Wallace & Co. and Sisson, Crocker & Co. had none, 3314, 3315. Balfour, Gnthrie & Co. had none, 3316. California Sugar Refinery, arrangement with, 3319. To Boca Brewing Co., 3378. Wells, Fargo & Co. had no special arrangement on freight rates, 3324. Grayson, Harold & Co., ditto, 3325. To construction companies, on material for Southern Pacific, 3392. 3393. (d) At certain points of shipment: Union Pacific's offer of lower rate from Columbus, Nebr., to San Fran cisco, via Omaha, than to San Francisco direct, 1483,1484. Leadvi lie: Uuion Pacific's concession to Leadville shippers alike to all, 1983. Reasons for concessions, 1984. Effect on other com?panies, 1984, 1985. 5550 U. S. PACIFIC RAILWAY COMMISSION. Rates of fare and freightContinued. Contracts, general and specialContinued. Freight ratesContinued. (d) At certain points of shipmentContinued. LeadvilleContinued. Leadville shippers' appeal for cut rate denied by company, 2012. No knowledge of concessions to Leadville shippers, 2023, 2024. . At Leadville, stopped without explanation, 2031, 2032. In aid of certain mineral industries in Wyoming, 2081. In Cheyenne, not generally complained of, 2067 ; not known of, 2096. On Central Branch Union Pacific, prior to April 1, 1887 ; 1826. In 1884, a general cutting of rates by roads in Kansas, 1659; its ex tent, 1659, 1660. None on Sioux City and Pacific, 2259. At Sioux City, open to all, 2270, 2271. Central Pacific: Method of publishing rates, 3291. Full sets of rates filed in Washington, 3292. As to rates charged to Government, 3292. Changes in rates made as soon as published tariff found to be non-productive of business, 3292. How changes published, 3293. Orders as to rates issued by comptroller to general manager, 3314. Method of fixing freight rates und of making through tariffs, 3290. Final decision as to rates with president, 3290, 3291. Freight rates, by whom fixed, 41. Mutual interest of carrier and shipper in reducing rates, when necessary, 33*29 3332,3334, 3335. Central Pacific railroading the cheapest in the world, considering all the circumstances, 2518. Average freight lower now than in 1878 and 1879; 2536, 2537. Comparison of passenger rates with those of other roads, 2571, 2572. Through rates between California and eastern points regulated by competi tion, 2572. Rates ia California, 2570. Approved by the State board of railroad com missioners, 2572. Shipments of cattle, 3326. Recommendation of shippers that road adopt system of rates based on amount of business, 3333. Open rates objected to by jobbers, 3359. As to rates paid by road for coal, 2937, 2938, 308*2. Rates on Rocky Mountain coal, 30H2, 3591, 3592. Reduction of Nevada and Utah through rates, 2537. Increase of local rates in Nevada and Utah would be required by Central Pacific to meet even the accruing interest on United States bonds. 2541. Average rate per ton per mile charged on all freight transported on Central and Union Pacific roads, during 1870 to 1885; 2585. Comparative mileage rates of Central Pacific and Southern Pacific on freight, 3303, 3304. Judgment of Union Pacific deferred to by Central Pacific as to west-bound business, 3325. Union Pacific: Voluntary reduction in rates, 1489. Arbitrary changes of rate, 2106. Freight rates fixed by published order, 2119. Veto on rate reductions, 2021. Rates governed by company's interests, 2133. Fluctuations in tariif rates injurious to community, 2202. Rates have a downward tendency as volume of traffic increases, 1518,1519. Reduction of rates throughout Kansas on recommendation of railroad com mission, 1662. Freight rate on branch lines higher than on main line, 1880-'84; 1057, 1059. Comparison of local and through traffic on main and branch liues, 1475. Rates on main line and branch lines, 1476 ; 1500,1501. Complaints of, on Union Pacific: Local rates from Columbus too high. Forced the packing business to Omaha, 1478. TOPICAL INDEX. 5551 Ratks of fauk and fkkightContinued. Union PacificContinued. Complaints of, on Union PacificCoutinued. High rates and favoring of through rates complained of in Cheyenne, 2067. Complaints have been made that high rates made high prices in Chey enne ; rates now reduced to some extent, 2079. Passenger rates in Wyoming formerly complained of, but now satisfac torily reduced, 2081. Union Pacific policy of " freezing out" competition in coal business, 2065 2060. Copy letter of general superintendent in defense of the company's coal rates, 1828,1829. Copy letter denying company's interest in the Mar shall Coal Company, 1829,1830. Union Pacific fixes price of coal in Cheyeune, 2084. Blair Brothers out of business because of repressive freight rates, 2084. Application for a stone rate to Cheyenne referred to Hamma, 2049. Re fused ; result, abandonment of quarries, 2061. To Union Pacific stone department, freight and cost of production almost equal the selling price, 2055; freight charges governed by competition East, 2055; lowering of freight rates would let in competition, 2055, 2056; freight charge fixed at difference between cost of production and selling price: freight charges to Omaha, $30 to $40 a car, 2056. Rates too high for packing-house business at Columbus, Nebr., 1476-1479. Excessive rates said to be charged on all goods, 1920 (Denver). Better rates wanted to Denver, 1921, 1922. Denver injured by rates, 1981. The open rates made by Denver and Southern Park and Denver and Rio Grande prouounced exorbitant, and, generally, of disastrous effect on business, 2017, 2018. Evasive answers to appeals against rates, 2018, 2019. Result,the Midland road started, 2019. Chicago capitalists deterred from buying Colorado stone by high rates, 2042, 2043. Manager Spring Cafion quarry could not get rates for flagging to enable competition with Union Pacific market, 2043. High rates on Colorado Central complained of, 1726, 1953. Rates on fuel keep half of the furnace stacks in Leadville idle, 2120. Rates to Leadville higher than elsewhere, 2032. At Lincoln, complaints as to high rates, 1519. Sugar business in Lincoln almost ruined by, 1529. Efforts of Lincoln people to reduce freight rates, 1536, 1537. Farmers near Marysville, Kans., complain about high rates, 1544. Freight rates at Marysville, 1547. Complaints in Marysville of high rates, 1552. Atchison andTopeka rates lower than Central Branch, 1561. Freight rates, to a large extent, exclude Wood River ores from market, 2174, 2176. Extravagant charge on bullion prevents disposal of Wood River ore in Salt Lake City, 2176. Explanation of rates on Wood River ores, 2177. Complaints of high rates on Kansas Pacific, 1651, 1652. Saint Joseph and Grand Island shippers send freight over Central Branch, 1627. Comparative rates on Central Branch, and Saint Joseph and Grand Isl and, 1626, 1027. Saint Joseph road unaffected by "short-haul" clause, 1629. The people taxed to pay interest and dividends, 1920, 1921. Why lower rates on ore shipments to Denver than to Pueblo, 1125. Omaha community complain only as to rate from Omaha to Cheyenne being same as from Kansas City to Cheyenne, 1234. Rates at sundry places and on certain classes of freight: No competition between Denver and South Park and Denver and Rio Grande, 2012. Reduction of rates at Denver, 1750. Tariff, at Denver, on different coals, 1871. In Colorado, local freight as low as ever, 1854. Rates much higher in Colorado than in other States, 1952. Rates in Colorado not higher than rates of other roads, 1953. Lower rates from Pacific poast to Missouri River than to Denver $ the reason, 1953. Rates on coke shipments to Leadville, "/983. Local rates at Leadville, 2030. 555 i U. S. PACIFIC RAILWAY COMMISSION. Rates of fare and freight-Continued. Union PacificContinued. Rates at sundry places and on certain classes of freightContinued. As to sugar freights,.inferred agreement between Union Pacific and the Burlington and Missouri, 1531. Rates on sugar to Omaha and Lincoln, 1528, 1529. Rates on ore from Leadville to Missouri River, 2028. Published rates on ore and bullion, 1175. Bullion rates to Missouri River, 2010. Shipments of ore to Omaha, controlled by Omaha offices, 1802. Bullion from Wood River shipped at open rates, 2007. Rates on ore from Salt Lake City to Missouri River, 2028, 2132, and to Denver. Also on bullion from Salt Lake City to Missouri River, 2132. Freight rates in general, 2159. Iron shipments and rates, 2163, 2164. Comparative rates from Omaha, west, 1361, 1362. Rates from California at different times, 1893. Rates on corn and wheat at Columbus, 1474. Shipping rates from Columbus to San Francisco about the same as from Omaha to San Francisco, 1485. Same rate from Omaha as from Grand Island, 1498. Local freight rates San Francisco to Omaha, and Omaha to Lincoln, 1529. Lincoln shippers claim same rates to California as the Omaho people get, 1530. * Rates to Missouri River points, 1634. Shipments from Saint Joseph, 1634, 1635. Rates at Atchison and Marysville, 1668. Length of haul, and rates on grain, from Fort Collins to Denver, 1889. Rates on stone shipments from Spring Canon, 2039. Cattle rates from Cheyenne to Chicago, 2076. Cattle rates in Cheyenne satisfactory, 2081, 2082. Freight rates to Cheyenne from points East, 2095. Iu some instances, cheaper to ship wool from Salt Lake City to Boston via San Francisco than by direct route, 2138. Salt freight rates made by superintendent of Utah Salt Company, 2161. Miscellaneous: Comparison, rail and water transportation, 111. Detailed statement of local passenger tariffs in 1880; 1058. Mileage rate from April, 1880, to July, 1887; 1046. Earnings made up after deducting rebates, 1192,1193. Gross earnings have nothing to do with the published tariff, 1193,1194. Utah Central transportation charges, 2167. Price of coal, f. o. b., 2167,2168. Price at various points, 2168. Rates from Bellevue, Idaho, to Ogden, Denver, and Salt Lake, 2197. Difference between local and through rates on the Sioux City, 2255. Effect of roads on population, 1480. Cheap rates induce growth of population, 1920. Effect of through rates on grain shipments, 1655. General low through rates, an advantage, 1655. Less rates where Central Branch crosses Union Pacific, 1632. Roads west of Missouri charge higher rates than those east of Missouri, 1653. Kansas Pacific freight on main and branch lines compared, 1847. Difference in Kansas Pacific rates, 1649. Two local rates on Kansas Pacific exceed through rate, 1650. Through rate higher than two locals, how rectified, 1654. Kansas railroad commission has no power to fix rates, 1552. Passes, 1363, 1642, 1643. Agreement to restrict issue of free or reduced transportation, adopted October 29, 1884, at a meeting of general managers, 1364, 1365. Orders of Union Pacific general superintendent concerning, dated De cember 23, 1886; instruction of same, as to taking up, dated April 4, 1887; 1366, 1367. Government rates, 2301, 2585, 2586,3292. Did not the Government always pay the open rate, 3292, 3310. Effect of interstate-commerce law: Has broken up rebating, cutting, andprivato arrangements, 107,1999,2000, To increase long-haul rates in Nebraska, 1509. By enforcement of fourth sec tion, a beneficial effect to community would be obtained, 1510. TOPICAL INDEX. 5553 Kates op fare and freightContinued. Effect of inter-state commerce lawContinued. As viewed by Omaha and Grant Company, 1814. Affects Union Pacific less than other roads, 2002. Unfavorable to Union Pacific, has lowered local and increased through rate. 2003. Has broken up pool system, 2003. No rebates by Sioux City now, 2256. Effect of competition on: Better rates secured for a time through competition, 1479. Rates the same on competitive roads, 1479. Competition no advantage, 1479. Two roads no advantage to a community, 1486. Union Pacific and Chicago, Burlington and Quincy, though competing, main tain rates, 1487,1494. Effect of multiplication of roads on freight rates, 1515, 1516. Competition in rates between roads, 1516. One line can do business cheaper than several, 1815. Comparison of present rates on the several lines into Lincoln with those of the time when but one lino was into Lincoln, 1533. Comparison of rates on Central Branch and Saint Joseph aud Grand Island, 1550, 1551. 'Mutual understanding" between Central Branch aud Saint Joseph and Grand Island, to maintain rates, 1624,1625,1634. Each line tries to cheat the other, in reference to low rates, 1(342. War of rates between Union Pacific and Central Pacific on advent of Den ver and Rio Grande, in April 1883; 2122. Effect, on Denver Pacific rates, of completion of Colorado Ccutrai, 1741. Railroad fights injurious to commerce, 1893, 1694. Agreement to maintain rates good for roads but bad for Leadvillo, 2024. Rebates: Definitions: Definition of, 1804. Defined as previously agreed reductions of charges billed at tariff rates, 3299, 3322. Difference in character of, 1099,1100. Difference between "rebate" and "special rate," 1233. "Rebates" and "overcharges," interchangeable terms, 3299. Not overcharges, 3379. " Rebate" or " preference" does not indicate advantage over others in same business, 1169. Difference between a rebate and a refund, 1762. " Rebate," a misnomer for the refunds made by Union Pacific and Central Pa cific, 3580. Application for, and on what principle granted: On Central Pacific: Granted by Central Pacific solely to secure business, never to favor par ticular shippers as against others, 3321. The cut rates of competitors have to be followed, 3344. Rates of, on Central Pacific, how fixed, 3381, 3382. May bo of an exclusive and individual character, or of an open charac ter, having relation to an agreed amount of freight, 3385. On Denver and Rio Grande: Allowed on application. Generally accorded to the heaviest shippers, 1723. On Missouri Pacific: Allowed by Missouri Pacific largely to shippers along the line, without preference to any particular class of shippers, 1632. To iufl uence trade, 1635. And that to the knowledge of other roads with which there was an agreement for maintaining rates, 1633. Missouri Pacific's method of granting; shippers notified personally, 1633. On Sioux City and Pacific: None since interstate-commerce law, 2256. At Sioux City, no complaints as to rebates, etc., 2269,2270. To whom granted, and on what principle, 2270. By Union Pacific: Applications for, how dealt with by Union Pacific, 627. Arrangements with shippers, how made, 642-644. 5554 U. S. PACIFIC RAILWAY COMMISSION. RebatesContinued. Application for, and on what principle grantedContinued. By Union PacificContinued. General policy as to, directed by President Adams, G44. Generally kept secret, 643. Mr. Adams believes in publicity as a feature of good railway management, but urable to apply the principle, 1999, 2000. The Rocky Mountain News rebates, and smelting rebates, secret, 1729. Payment of, generally understood; all shippers treated alike, 1369. 1370, 1371, 1377, 1378. Contractors for Indian supplies familar with rebate rates, 1377. Allowance of, usual in railway management, prior to interstate-com merce law, 1997. Allowance of, to smelting companies, 1997. Why applications for, by certain smelting companies were refused, 1997-1999. Not granted for the sole benefit of shippers, 2134, 2135. Failure to apply for rebate before shipment only remedied by applica tion of shipper afterward, 1371. Customary practice of Union Pacific to grant rebates, 1745. Reply to Senator Hill's application for, that Union Pacific was allowing none to anybody, 1754. On what basis allowed, 643, 1723. Made necessary by competition, 643. Allowed by Union Pacific, generally the result of, and varying with, com petition; usually considered private, 1123. Union Pacific's practice of allowing rebates, a necessity in competitive business, 1996, 1997. Loss of business to Union Pacific by not giving rebates, 1302, 1303. How applied in local and non-competitive territory, 1124, 1125. Made to prevent business from going to other lines, 1372. Special rebates in special cases, 1095. Considerations governing allowance of cattle rebates, 1128. Consideration for rebate to Marshall Coal Company, delivery to Union Pacific of coal at cost, 18fe7. Rebate on sulphate of copper shipments, given to enable sales in Helena, Mont., 1099, 1100. To Rocky Mountain News, an expression of good-will to proprietor for services to Union Pacific, 1742. Allowed while proprietor was a Union Pacific director, and after, 1743. For about live years, 1744. Reason for allowance of, on shipments to Denver, 1890. To Marshall Consolidated Coal Mining Company, by Union Pacific, No vember, 1885, to April, 1887; 1925. Allowed in consideration of with drawing claim for damages, 1927, 1928. Special allowance of, for absence of "double decker " accommodation for wool shipment from Cheyenne, 2076, 2077. None on Union Pacific system, save- in summer, and then to all alike, 1448. Explanation of summer allowance, 1448, 1449. Equal rebates and facilities suggested to Union Pacific by ao employ(5 of the company, 1836. Equalization rates extended to all by Union Pacific, 1924. Not allowed during pooling arrangement, 2241. Union Pacific allows like allowances to all under like circumstances, 2133. Private rebate given by Union Pacific to start a lumber yard, 1497. Allowances to shippers over Union Pacific, made at Omaha, 1836. Allowed only through Omaha office, 2103. Between Denver and Missouri River, made by Kimball, 1838. Union Pacific has no rebate contracts in writing, 1404, 1405. In the accounts: Central Pacific books of refunds, 2360. Rebates on separate vouchers, but not entered in a separate book, 2361. Method of auditing, 2434,2435. Rebate vouchers allowed by '* committee on allowance," 2435. Rebate contracts kept in general freight office, 2440. Book of annual allowances of rebates, etc., 2440. Allowed for overcharges, 3294. Rebate charges not segregated and balanced up during sixteen years, 3338. Rebate and overcharge vouchers readily distinguishable by a railroad man, 3338, 3373,3374. TOPICAL INDEX. 5555 RebatesContinued. In the accountsContinued. Original and duplicate vouchers explained, 3375,3376. Vouchers marked " as per contract," and vouchers in letter-book and marked " S. C." are " overcharges by way of rebate," 3376. Imply a special contract, 3376. " Relief voucher," a rebate without a contract, 3376. Rebate vouchers of Central Pacific, monthly average of, 2,500 to 3.000; 3381. As to Sioux City and Pacific's record of, 2295. Accounts of, at Omaha, 602. Union Pacific rebate vouchers, their approval by freight auditor final as to amount, 1028. Settlement made in cash, 643. Claims for, forwarded to Omaha, which remain unsatisfied, 1540. Claim papers marked " personal," because rebate acoounts mostly private and personal, 1176. Union Pacific record book of rebate vouchers, and register of " freight earn ings refunded;" how kept, 1030. The " refund of freight earnings" book, what it shows, 1195. Explanation of certain vouchers, 1173. Letter to freight claim agent, as to $40,000 allowed to Omaha and Grant Company, 1175. Omaha and Grant Company do not consider $250,000 in refunds by road, in one year, excessive; overcharges shown in vouchers, 1095. Copy statement of freight earnings refunded, April 16, 1885, to August 23, 1886, aggregating over $253,000; 1102, 1103. Explanation of a refund of $40,871.25; 1101, 1102. Rebate payments regarded as trust moneys while in company's hands, 1193. 1199. Rebates and overcharges never appear as part of gross earnings of Central Pacific, 3384. Total Union Pacific rebates during 1886, $879,338.14; 627;. Allowed as per statements sent to United States Commissioner at Washington, 627, 628. As to allowances on certain classes of freight and to -certain persons and firms: Firms reputed in the streets of Denver to be receiving rebates, 1950. By Union Pacific on Colorado shipments, 1811. ? $1,340 by Denver Pacific for a discrimination made against the Hine, 1966. Only obtained after putting claim in attorney's hands, Refund of Stuart M 1967. On ore, same to all shippers by Union Pacific, 1103. All equally informed as to rebates, 1103, 1104. Allowed by Union Pacific on ore or bullion only to smelters, dealers, or sam plers, 1125. Omaha and Grant Mining Company has same rates over other roads as over Union Pacific; benefit of lower rate goes to miner, 1090, 1091. Its competi tors, 1091-1094. All ship over Union Pacific, and at same rates, 1094. Omaha and Grant Company's freight bills average $1,400,000 a year, 1813. President of Omaha and Grant Smelting Company states that the total amount of rebates and overcharges paid to hit* company by Union Pacific, from September 1, 1883, to April 1, 1&S7, was $570,112.26; 1104. First rebate to Omaha and Grant Company in 1879; 1796. Their rates to be the same as those given competitors, 1797. Their contract made before Ames and Dillon acquired their interest, 1798. On ore, by Union Pacific, 1805, 1806. Greater over Burlington and Missouri. 1806. As to allowance on low-grade iron ore from Leadville, and KimbalTs ignor ance thereof, 1823. The Tate made by Shelby, 1823,1824. On ore, 2158, 2159. On sugar, 3320. None on flour shipments from Ogden; same on wheat and general meichan-dise, 2210, 2211. Was there a rebate on salt T Union Pacific.officers said there was none, 2216. None by Union Pacific on salt, 2234. None on salt freights to Butte, 2135, 2136. The salt "rebate" a misnomer, 2135, 2136. Refunds by Union Pacific on salt freights to Ogden always the same, 2136.2137. On " land tickets," 1252. P R VOL IX------11 5556 U. S. PACIFIC RAILWAY COMMISSION. RebatesContinued. As to allowances on certain classes of freight and to certain persons and firms Continued. On passengers, at Denver, paid on account Union Pacific; such rebates not general, 1836. Arrangement with Marshall Mining Company, 1990. Other mines to receive same terms under like circumstances, 1990, 1991. Allowance to Himebaugh & Merriam of 1 cent, for use of their storage plant, 1126. To Himebaugh & Merriam, net rates, 1300, 1301. No advantages accorded them other than rebates, nor any such advantages under another name; others not allowed to obtain advantages under name of firm, 1301. Complaints at Columbus, Nebr., 1473. Promises of, from Union Pacific, 1479. Allowed by Union Pacific from Norfolk to Columbus, 1485. Lincoln shippers got Omaha rate prior to interstate commerce law, but pri vately, by way of rebate, 15MG. Cornforth's denial of receipt of rebate, at any time, from Union Pacific, Cen tral Pacific, or Southern Pacific, 1923. But he did profit, to some extent, by railroad war between certain roads connecting with Union Pacific, 1923. Equalization rate to Cornforth & Co., 1918. Explained to be " an over charge," 1924,1925. Copy of the Studebaker rebate letter, 2114. Parties to whom rebates granted by Union Pacific, 2119, 2120. From 10th March last to 4th April last, 2120. On cattle shipments, Cheyenne to Missouri River, none received of late years; about 1875 or 1876, an allowance of $3 or $4 per car, 2097. None to Union Stock-yards of Omaha, 1131. Nor to Standard Oil Company, 1132. Allowance to Standard Oil Company, on account of car service, 1133,1134. Private rate to Standard, Consolidated Tank Line, and Continental Oil Com panies, 1134, 1135. Oil Company's car service not regarded as a rebate, 1136. Statement of Union Pacific rebates and overcharges paid Consolidated Tank Line Company during years 1882 to June, 1887, and gross earnings on same business; same as to Continental Oil Company for years 1881-1887; same as to Standard Oil Company 1880-1867; 1413. Charges refunded Standard Oil Company for empty tanks returned 1880-1886; same as to Continental Oil Company 1884-1836; 1414. Allowance for return of tank cars same to all with but few exceptions, 1401-1403. Omaha Elevator Company failed to get other than temporary allowances, ex cepting, at the transfer, a rebate (verbal, 1168) of 1 cent a hundred pounds, which is continuous, 1155, 1156. Annual aggregate of allowances perhaps $25,000 or $30,000; believed its competitors had same allowances, 1158, 1163. No preferences received by Omaha Elevator Company under any other name, 1165. Has the 1-cent arrangement with other roads as well as with the Union Pacific, 1168. As to allowances of, to sundry persons: Adams & Keisel, Eldon Coal Miuing Company, 1181. Anaconda Mining and Smelting Works, 1368,1369. Atlantic Coal and Mining Company, 1394. Bailey, C, 1394,1395. Biuford, Mr., Union Pacific agent at Denver, 1967. . Boston and Colorado Smelting and Refining Company, 1386, 1387, 1762. Bristol, A. W., 1397, 1398. Burlington and Missouri Railroad, 1391,1394. Central Pacific, 1378, 1389, 1390. Chicago and Northwestern Railroad, 1379. Chicago Lumber Company, 1178,1398. Clyde Mill Company, 1186. Collins & Co., C. W., 1182. Continental Oil Company, 1374, 1397. Continental Tank Line Company, 1396. Denver Mills, 1890. Denver and Rio Grande Railroad, 1389, 1392,1394. Hananer, A., 1374, 1375. Himebaugh & Merriam, 1126,1127,1390,1391,1392,1393,1395,1393,1545,1546. Horn Silver Mining Company, 1182, 1190, 1386, 2159, 2160. HoweU & Co., 1378. TOPICAL INDEX. 5557 RebatesContinued. As to allowances of, to sundry personsContinued. Ingles, John S., 1392. Jennings, J. A., 1370. Kansas Smelting Company, 1397. Keisel & Co., F. J., 1393, 1397. Knowland, F., 13U2. La Plate Mining and Smelling Company, 1181. Marshall Consolidated Coal Mining Company, 1870,1925,1928,1936,1937, "Mary Murphy" Mine, 1379, 1394, 1397. Montana Improvement Company, 1398. Murphy, Grant & Co., 1373. Northern Pacific Railroad, 1391, 1392. Omaha Elevator and Grain Company, 1126, 1127, 1154-1156, 1158, 1159, 1161- 1165, 1167, 1390, 1392, 1393, 1399, 1400. Omaha and Grant Smelting and Refining Company, 1369, 1371, 1372, 1380, 1389, 1390, 1393, 1395, 1396. Omaha Stock Yards Company, 1115, 1116. Pacific Hotel Company, 1392. Pacific Mail Steamship Company, 1372, 1391, 1393. Paxton & Gallagher, 1233, 1245, 1246, 1397. Pennsylvania Lead Company, 2006. Perry (W. H.) Lumber and Milling Company, 3323. Philadelphia Mining and Smelting Company, 1184, life, 1393. Railroad companies, various, 1394. Reynolds Brothers, 1398, 1399. Rocky Mountain Coal and Iron Company, 3371. Rocky Mountain News, 1185. Saint Joseph and Western Railway, 1389. Silva, V. M. C, 1397. Standard Oil Company, 1133, 1134, 1374, 1394. Studebakers, 2107. Swan Land and Cattle Company, 1184. Tintic Iron Company, 2187. Transcontinental Association, 1391. Union Cattle Company, 1246, 13tfO. Union Pacific Coal Department, 1183, 1184. Utah Central Railway, 1393. Utah Forwarding Company (same asN. W. Forwarding Company), 1180,1375. 1376, 1379, 1395, 2179, 2185, 2188. Van Tassell, R. S., 1376, 1389, 1390.1397. Various railroad companies, 1394. "Various stations, free transportation," 1183. Walts, George W., 1393, 1394, 1398. Wells, N. W., 1376, 1377. Wells & Neiman, 1177,1389, 1390. Whittier & Fuller, 137. Willow Springs Distilling Company, 1379. Amount of: Central Pacific and Southern Pacific Railroad Companies' statement (R. P. Stevens) of rebates and overcharges paid by, for years 1865-1886, inclu sive, 4764. Union Pacific aided line, statement of amount of overcharges, rebates, pools, subsidies, etc., on, 4808. Summary of, years 1868-1886, 5262. Overcharges: Difficulty of distinguishing overcharges and rebates, 1195. Overcharges and rebates interchangeable terms, 3299. Overcharges uby way of arrangements" are rebates, 3311. Applications for, generally refused, 3294. Distinguished as *' made by error " and ' made under instruction," 3299,3300. "By way of rebate" and " by way of error" distinguished only by the voucher, 3317. Vouchers readily distinguished by railroad men from rebate vouchers, 3338. 3373,3374. Iowa coal overcharged on bridge at Omaha, 1096, 1097; explanation, 1099. Other bridge overcharges on coal, 1097; on slag, 1098, 1099. Controversy between Saint Joseph and Western and the Saint Joseph Bridge Company as to toll rates. Explanation of overcharge settlement, 1399. 1400. . In L83 Senator Hill received from Union Pacific $95.80 for overcharges, 1761; overcharge on ore explaiued, 1761, 1762. 5558 U. S. PACIFIC RAILWAY COMMISSION. RebatesContinued. OverchargesContinued. Refund of, by Union Pacific to Omaha and Grant Smelting Company, 1804, 1810. Circular of Estabrook & Co.; effect on business: denial of knowledge thereof by Union Pacific agent in Denver, 1917. On through business, 3295. Total refunds for 1884 for account of all overland lines, 3300, 3301. Through and local freight refunds, 3301. Largest proportion of, on through freights, 3312. Overcharge voucher of Pacific Improvement Company's account, 3315, 3316. Were overcharges allowed Mr. Stanford, 3359. As to payments of, on accouut of entire line, 3371. Never appear as part of gross earnings, 3384. Union Pacific vouchers do not show whether paid for overcharge or rebate, 1033-1035. Each voucher must be" separately examined to determine whether for an overcharge or a rebate, 3337, 3338. Vouchers should indicate difference between rebates and overcharges, 3378. Differentials: Differential rates threatened by circular issued by Transcontinental lines to prevent ocean competition, 249, 250. Not in use on Central Pacific, 2574, 2575. Trunk lines object to differential through rate, 3305. Discriminations: Against communities, 107, 1380, 1381, 1387, 1475, 1484, 1498,1503,1507,1508, 1511, 1522, 1529, 1531, 1538, 1539,1646,1647,1755,1756,1764,2061-2064,2080, 2095,2098,2210,2222, 2276. By Union Pacific, between localities, almost universally complained of, 107. Against Columbus, in favor of Omaha, 1475,1484,1538. Against Graud Island, 1498. Complaints by Grand Island community as to, 1503. Against Lincoln, Nebr., on through freight from Pacific coast, 1511. Nebraska railway commission have received many complaints as to, 1511, 1512. Omaha and Kansas City favored by Union Pacific, to detriment of other points in the State, 1529. Against certain cities, 1531. Effect of, in California shipments at Lincoln, 1537; also effect in interior of Nebraska, 1537,1538. Attitude of Uuion Pacific detrimental to Lincoln, 1538,1539. Omaha built up at the expense of all other poiuts, 1539. Complaints of "Marysville stock-shippers as to, 1546. Not known of, as against Marysville, Io46. In favor of Kansas City as against Leaven worth disclaimed, 1646,1647. Effect of, on community of Kansas Citv; no action thereon by board of trade, 1650. Complaints as to, in Kansas City, since passage of interstate commerce law, 1651. Grain trade in Kausas City injured by, 1652. Alleged discrimination on the Junction City and Fort Kearney, 1657. Complaints to Railroad Commission against Central Branch, 1668. As to Denver local business, 1758, 1759. 11 Discriminating rates," more than high rates, complained of by Denver community, 1764. Against Leadville by Denver and South Park road, 2019. AtLeadvilln, on general merchandise, 2030. In Fort Collins, general complaints as to, 2061-2064. Fort Collins "side-tracked," 2062. Why coal delivered cheaper at Greeley than at Fort Collins, 2063, 2064. Against Cheyenne, since passage of interstate-commerce law; subsequently corrected by company, &0d0. In Cheyenne, formerly complained of, but not now, 2095. In tariff rates between Butte and Wood River, 2175. Against Ogden, in favor of other places, 2210. Against O-den, in favor of Salt Lake City, 2210, 2222. Explanation of alleged discrimination in favor of Salt Lake over Ogden, 2223. In favor of Omaha as against Sioux City, 2276. In favor of Kausas City as against Sioux City, 2279. TOPICAL INDEX. 5559 RebatesContinued. DiscriminationsContinued. Some legitimate, necessary, and judicious; none, on Central Pacific, that are unjust to communities or individuals (report of California Railroad Com mission), 2575. Against Government, 14*23, 2104. Against Government, on coal, through agency of Beckwith & Quinn, 1423. Against individuals, 110'J, 1320, 1330, 1345, 1346, 1403, 1404, 1423, 1496, 1497, 1507, 1523, 15-27, 1546, 1557, 1558, 1559, 1759, 1764, 1812, 1868, 1991, 2011, 2016, 2019, 2022, 2030, 2100, 2194, 2274. By Union Pacific in favor of rival traders, rarely complained of, 107. To Ogallalla Land and Cattle Company, complained of, 1228, 1229. Against Nicholas, 13*9, 1330. At Omaha, by Union Pacific, 1332, 1333. Against the Omaha Bee; stopped when Doane law passed, 1345, 1346. Against Sioux City shippers, 1380, 1381, 1387. None by Union Pacific against tank companies, 1403, 1404. Alleged preferences to Hiinebaugh & Merriam at present time, 1412. Oq coal, denied by Union Pacific, 1412, 1413. Business of coal miners destroyed by, 1422, 1423. Advantages extended by Union Pacific to friendly merchantspreferential ratefe, rebates, etc., 1461. By Union Pacific against individuals, in lumber, salt, and grain, 1496, 1497. By Kansas Pacific, in favor of certain grain buyers, 1650, 1651. Favors to Toledo grain firm of Reynolds Brothers, 1652. Alleged special facilities to certain smelting coinpauies, not granted to others, 1751, 1752. Matter of common notoriety in Denver, 1755. In favor of Omaha and Graut Company, reason for, 1758. / Direction of Mr. Ames that no favors be shown by Union Pacific because of his interest in Omaha and Grant Company, 1100, 1101, 1178. Also of Mr. Dillon, 1178. Against Omaha and Grant Company, with result that they can not compete with Pueblo Company over Santa Fe* road, 1812. Equitable rates from Union Pacific unobtainable by Marshall Coal Company, 1866, 1867. Against coal mining companies, 1868. Copies of letters from citizens in reference to, 1874-1877. None to dealers in wheat or exporters of flour throughout Colorado, 1891. In Denver, charges of, on coal, 1951. The Goodrich & Marfell case, 1951. The Patterson case, 1951. " Mileage and transit," 1951. By Union Pacific against John H. Martin, of Denver, for sixteen years, 1991. In favor of Omaha Smelting and Refilling Company, 2006. Rates to Pennsylvania Lead Company increased, 2007. Against Arkansas Valley Company, 2016. None in favor of Union Pacific stone department, enabling it to underbid, 2052. In rates for Rock Springs coal, 20*2. In favor of Rock Springs coal, 20d7,2088. Mr. Dunbar's complaint about rates given to Mr. Trabing, 2100. In favor of Mr. Ham ma, at Cheyenne, crowded out other dealers there in Rock Springs coal, 2103. In favor of Union Pacific employe's, 2103. Against Government, 2104. In favor of Mr. Trabing, 2107. In paper and cattle rates, 2112. In favor of Wyoming Stock Owners' Association, 2116. No preference given to Salt Lake aud Western Company, 2164. Utah Forwarding Company verbally assured of being allowed the lowest rate granted by Union Pacific, 2178, 2179. Competition with Utah Forwarding Company impossible without equal rates, 2180, 2182. In favor of certain shippers, 2210. By Union Pacific, in favor of Lyman & Wallace, 2213. With whom, conse quently, competition was impossible, 2213-2215. In the grain buniness, 2*217. None in favor of shippers along the line from Sioux City to Council Bluffs, 2256. 556Q U. S. PACIFIC RAILWAY COMMISSION. RebatesContinued. DiscriminationsContinued. At Sioux City, no complaints of, 2260. Among Sioux City jobbers, complaints of, in regard to shipments west, 2274. None between individuals, by Central Pacific, 2575. None in favor of Huutington, Hopkins & Co., 32915. Huntingdon, Hopkins & Co. had no advantage over others in the same line of business, 3357. None against small dealers on Central Pacific, 3360. Miscellaneous: None on Sioux City and Pacific, 2319. Effect on community detrimental, 2003. Effect of, on communities to increase cost of material and of provisions, 1530. Effect of, on individuals and on communities, 1695, 1316. Do not benefit the community at large, 1908. Effect of, to drive out small shippers, 643. In respect of long and short bauls, 2174. On sugar and other articles, effect of, 1534, 1535. Estimated cost of gettiug statement of rebates for Commission $15,000 to $l*,000; 1198. Rollins bill to prevent rebates and discriminations, 1974. * Salaries over $5,000: Kansas Pacific Rwy. Co.; statement of persons employed by, between January 1,. 1867, and February 1, 1880, whose compensation was $5,000 or more per annum, 4311, 5242. Union Pacific R. R. Co.; [same] 5242. Union Pacific Rwy. Co.; [ same] between February 1, 1880, aiid April 30, 1887; 5243. -Central Pacific R. R. Co.; statemeut of annual salaries of $5,000 or more, and of *"" i/l bonuses, donations, etc.. 47r2, 4783. Sinking Funds: Amounts covered into United States Treasury to credit of sinking fund Union Pacific R. R., under act of May 7,1878, statement by fiscal years of, 4317. [Same] as to Central Pacific R.R., 4318. Condition of sinking fund, Union Pacific R. R., statement of, dated May 3, 1887; 4317. [Same] as to Central Pacific R. R., 4318. Bonds purchased for sinking fund, Union Pacific R. R., statement of, by fiscal years, showing classes of bonds purchased, premium paid on same, and bonds redeemed, 4317. (See also 4323,4324.) [Same] as to Central Pacific R. R., 43in. (See also 4327.) Account of the " sinking fund, Uuion Pacific R. R. Co.," established in the Treas ury of the United States under section 3, act of May 7, 1878, statement dated June 9, 1887; 4321-4323. [Same J as to Central Pacific R. R., 4325-4327. Sinking funds of Central Pacific, statement by R. F. Stevens, accountant, as to, 4764,4765. Sioux City and Pacific Railroad Company: Copy articles of incorporation, and amendment thereto, 4289-4292. Copy agreement of consolidation with the Norihern Nebraska Air-Line R. R. Co., 4292,4293. Rental paid to Fremont, Elkhorn and Missouri Valley R. R. Co., statement of, 4293. Net rates per passenger per mile and per ton per mile, 4293. Stock: Of Central Pacific: Capital stock increased several times, as work progressed, 12. Total authorized issue, $100,000,000; total outstanding, $ 8,000,000; 2377. Last issue $8,000,000, in 1886 or 1887; 2378; to what applied, 2378. Of the constituent companies, only San Francisco and Oakland stock valu able at consolidation, 2394. No market value to Central Pacific stock till resumption of specie payments, 2394, 2395. Central Pacific stock worth more after consolidation, 2395,2396. Why f 2396* How Central Pacific stock was issued, 21, 2396. As to use of proceeds of $5,000,000 stock issued in 1880; 2456* 2457. The various increases in Central Pacific stock, 2499, 2500. List of stockholders, number of shares, consideration, and when and in what property paid, 2550-2558. TOPICAL INDEX. 5561 STOCKContinued. Of Central PacificContinued. As to original subscriptions to Central Pacific stock, 2619, 2620, 2632. Claim that Government and present stockholders are not interested in the early increases of stock of Central Pacific, 2641, 2642. Excessive prices paid for Central Pacific stock to settle suits, 2646. Consolidation stock equaled that of constituent companies, 2783. Statement showing amounts of Central Pacific stock issued, showing dispo sition of same, 3458, 3459. Of Denver Pacific Railroad and Telegraph Company: Letter of Oliver W. Mink to Commission as to original issue of $4,000,000 stock, 93o. Memorandum concerning stock issues of, 4981), 4990. Of Kansas Pacific Company: Detailed statement of original issue of stock, $10,000,000, date of issue, and to whom issued, 872, 873. Detailed statement of issue of 6,242 shares for interest on company's indebt edness, S74, 875. Increase of $10,000,000 in, paid for in cash, 839. Explanation of entries as to disposition of stock, 160CL-1616. As to subscriptions and issue of certificates, 1679-1634, 1686, 1687, 1689. Its share capital account, 4S45, 4846. Original issues of share capital of Union Pacific R. R. (Eastern Division), and Kansas Pacific Rwy. Co., 4849-4852. Issues to subscribers of land-grant mortgage bonds, 4856-4859. Mr. Calhoun's report on the facts concerning the issue of its share capital of ten millions, 4859-4864. Of Leaven worth, Pawnee and Western, 1596,1679. List showing disposition of stock with reference to the passage of act of 1862; 1597, 1598. Of Sioox City and Pacific : Its market value only nominal, 2254. No enlargement since completion, 2254. Northwestern holds controlling interest, 2254. M. L. Sykes, trustee, holds 18,838 shares for Chicago and Northwestern Rwy., 2280, 2281. Besides these there are 156 shares common stock outstanding, 2281. Of stock held in trust, 2316. Amount of, and names of trustees, 5362,5363. Of Union Pacific Railroad: Detailed statement of date of original issues of stock, by amount of each issue, and to whom issued, 875-b85; amount, $36,762,300; the considera tion paid, 885. Central Branch; stockholders, amount paid, and date when each became such, 5327-5330. Stock held in trust, 5333. Of Union Pacific Railway: Increase of stock of Union Pacific by consolidation, 57. Subsequent increase. 57. Capital stock of Union Pacific Rwy. on January 31, 1880; 493. Total stock of consolidated company fixed at $50,762,300, 885. Issue of -10,106,200 by Union Pacific Rwy. Co., in 1881, for cash, 885, 886. Copy opinion John F. Dillon, dated May 10,1*81, as to power of company to make a further issue of stock, 18-M90. Copy opinion Sidney Bartlett on same subject, 190, 191. Present capital of Union Pacific Rwy. Co., $60,868,500, 887. History of the issue of the Hhare capital of, 4833-4835. Fourteen millions of '* water," 4827. Transcontinental Association : Copy agreement, September 28, 1883 ; 4258, 4259. Copy agreement, November 8, 1883; 4260, 4261. Resolutions adopted November 7 and 8, 1883; 4262.