Chapters on the History of the Southern PacificDaggett, Stuart
History
Chapters on the History of the Southern Pacific
Daggett, Stuart
Pacific railroads -- History; Railroads -- California -- History; Southern Pacific Company
In one case where the salary to be paid a certain individual was under
consideration, Huntington wrote Colton frankly that it was important
that the man’s friends in Washington should be on the railroad’s side,
and that if this could be brought about a salary of $10,000 to $20,000
a year would be worth while. Huntington wanted the man to make a
proposition in writing, however, that he would control his friends for
a fixed sum.[319] When asked about the meaning of his correspondence,
Huntington denied that these expressions had any vicious significance.
He said he kept on high ground,[320] and even objected to the free use
of liquor and cigars.[321] Specifically, he gave instructions to his
people never to use money in any immoral or illegal sense. “Buying
votes in a legislature was bad policy,” said he, and his position
in these matters received the formal support of Stanford. But such
assertions are entitled to less weight than Huntington’s less guarded
phrases.
Heavy General and Legal Expenses
There is no question that the control exercised by the Central Pacific
management over the legal and miscellaneous expenses of the company
was informal to the last degree. Huntington had a great deal of
money to spend and he turned it over to trusted agents without too
many questions. He would pay $5,000 or $10,000 at a time to General
Franchot, for instance, without inquiring where it went or how it
was paid.[322] Checks were made out in all cases to I. E. Gates, Mr.
Huntington’s assistant in New York, and were indorsed by him either
to payee or in blank.[323] Vouchers covering such items were made
out simply to “Expense,” or to “Legal expense.”[324] In many cases
expenditures authorized by Stanford, Crocker, or Huntington were
represented by no vouchers at all,[325] the filing of vouchers being
subsequently waived at stockholders’ meetings.
All in all, the general and legal expenses of the Central Pacific
between the years 1875 and 1885 averaged over $500,000 annually. The
only reply to the government inquiry as to what this money had been
paid out for was Stanford’s statement already quoted that vouchers to
which there were objections would not be included in any settlement
with the United States, but that the moneys would be treated as still
in the treasury.[326] This was plainly an evasion of the point at issue.
Company in Politics
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account