[209] United States Pacific Railway Commission, p. 2657, testimony Leland Stanford.
[210] United States v. Southern Pacific, pp. 615, 645, testimony George T. Klink.
[211] United States v. Southern Pacific, p. 666, testimony Timothy Hopkins.
[212] United States v. Southern Pacific, pp. 1688-1702, Defendant’s Exhibit No. 21.
[213] United States v. Southern Pacific, pp. 621-22, testimony George T. Klink. It has been suggested that Huntington had the charter of the Southern Pacific Company taken out in Kentucky, in order to enable the company to conduct its suits in California in the federal and not in the state courts.
[214] J. M. Bassett said of the action of Kentucky in granting a charter to the Southern Pacific Company, that it amounted to granting a letter of marque to that company on the condition that it make no reprisals in Kentucky. He argued that the lease of the Central Pacific was defective because its duration was to be greater than the life of the Central Pacific under its articles of incorporation, because the liability of Southern Pacific stockholders was not unlimited as in the case of California corporations, and because the rule of comity under which foreign corporations operated in California could not be expected to apply to a corporation which was forbidden to do business in the state of its nativity. None of these objections, however, proved to have any practical importance.
[215] United States Pacific Railway Commission, pp. 2812-13, testimony Leland Stanford.
[216] The following table shows the result of operation under the lease for each year from 1885 to 1893:
Net Profits and Rentals Central Pacific Railroad, 1885-93
| Period | Net Profits Central Pacific Railroad Company | Rental Paid to Central Pacific Railroad Company | Excess of Rental over Net Profit |
| April to December, 1885 | $1,482,033 | $1,482,033 | .......... |
| 1886 | 1,324,998 | 1,324,998 | .......... |
| 1887 | 1,086,733 | 1,200,000 | $113,267 |
| 1888 | 962,830 | 1,360,000 | 397,170 |
| 1889 | 1,035,418 | 1,360,000 | 324,582 |
| 1890 | 999,223 | 1,360,000 | 360,777 |
| 1891 | 2,144,425 | 2,144,425 | ........... |
| 1892 | 861,874 | 1,360,000 | 498,127 |
| 1893 | 784,717 | 1,360,000 | 575,283 |
| ————— | ————— | ————— | |
| Totals | $10,682,251 | $12,951,456 | $2,269,206 |
| ═══════ | ═══════ | ═══════ |