The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1881-05-25
The Northern Pacific Railroad and
Its New Relations.

The Northern Pacific Railroad, which has
been hidden for two months under course
OF legal proceedings, came to the surface
again last week, no longer an independent
corporation, but part of one of the most gi
gantic monopolies in this count con-
troll of its future having passyds,.: to the
hands Of the Dragon Railway ahd Naviga-
ton Company, which itself but lately sprung
into position as a controller of the trans
portation business of the Pacific coast, and
had become monopoly such as2had hardly
before been attempted in this country.
The magnitude of the Northern Pacific
Railroad enterprise, its history and
its possibilities as great devel-
loping agent of broad belt of our
Western country, and the disappointment
that many will feel at its present phase of
existence, makes the history of the cor
test between the two powers interesting
The Oregon Railway and Navigation
Company is composed of two prosperous
factors-the Oregon Steamship Company,
owning line of steam ships from San
Francisco to Portland, Oregon, and the Ore
gon Steam Navigation Company, controlling
the traffic of the Columbia River by mixed
system OF steamers and short railroads
around the unnavigable parts of the stream,
united some two years ago under the Presi-
dency of Henry Willard, who originally be-
came connected with the enterprise as the
representative of German interests. The
consolidated corporation grew rich rapidly;
1t pushed its lines north aud east, and was
fast developing the agricultural and miner
al wealth of Eastern Oregon and Washing
ton Territory; its securities commanded
great premium and its credit was almost uI-
limited; it was thorough monopoly.
Now, about this time Mr.. Wizards enter
prise was inaugurated, the Northern Pacific
Railroad, which had lain dormant for about
six years, began to show wonderful activity
under the energetic management of Presi-
dent Billings. The charter of the North
ern Pacific, provides for the construction
of two lines through Washington Territory,
one over the Cascade mountains to Puget
sound and one down the Columbia river to
Portland. The Pend d'Oreille division ex-
tending from the eastern boundary of Wash
ington Territory southwest to the Columbia
river, is now nearly built, and it some time
aro became apparent that in the natural
course of events the Northern Pacific would
soon be connecting this division with Port
land by means of road on the north bank
of the Columbia, which would obviously in
,:t1, II, - Al.
company, owning road on the south bank
and the river steamers. The interests of the
latter company were also in measure
threatened by a projected branch of the
Union Pacific from Ogden, northwest
through northern Nevada Idaho and Ore
gon to the sea, in a line which will without
doubt ultimately be built.
Failing in his efforts to dissuade the
Northern Pacific from building down the
Columbia river or to bring about an equita-
lard conceived the bold project OF obtaining
a controlling part of the Northern Pacific
stock by purchase. To enable him to do
this he invited his directors and stockhold-
ers to provide him with SS,000,O00 for a
scheme not to be divulged until future
date; and so great was their confidence in
his financial skill and ability that he soon
found himself in possession of more means
than he had asked for With so much of
this great sum as was necessary for the pur-
pose he secured S25,0Oo,O0O, or what ap-
peared to be controlling interest of North
ern Pacific stock. But Mr. Willard was ig-
norant of one fact. When the Northern Pa
cific was re-organized in 1875 an issue of
$49,000,000 of common stock was authorized
to be issued to the stockholders of the old
company. S31, 100000 of which was at once
taken up by the shareholders. The rapid
progress of construction, the increase of
traffic and the rising value of the company's
securities in the market brought the remain
early the present season. Mr.. Willard
claimed that this issue was illegal and in
tended solely to retain the control of The
road in the hands of the present manage
ment; whereupon he procured temporary
injunction against the issue and began suit
on the 23d of March in New York to make
the injunction perpetual. Last week it was
announced that 'compromise" had been
made by the Contending parties and the suit
withdrawn. AS this ''compr omise" makes
a new board Of directors necessary, a major
ity of whom are to be Oregon Navigation
men, it is easy to guess that the Northern
Pacific stock, which has been active in the
market for two months has been largely alb
sorbed in its rivals interest and President
Billings has been forced out. And it is sus-
pected that the real control of the Oregon
Navigation Company is in Eastern hands. If
this is the case the future movements of the
Northern Pacific will be more important
than ever.
AT the late meeting of the directors of the
Northern Pacific the following statement re-
garding the construction of the road was
made: Materials have been purchased suf-
ficient for the laying of over 800 miles of
steel rail track this season. Thirty-six new
locomotives have been ordered, 1890 new
freight and stock cars and 16 passenger cars.
Construction is going on at both ends of the
line, and of the existing gap of 600 miles
contracts have already been made for the
construction of 25O miles this season. Con-
tracts have been made for the construction
of road east from the present terminus at
the head of Lake Superior, so as to connect
with the Wisconsin Central The Detroit,
Mackinaw and Marquette road, extending
across the northern portion of Michigan,
will be finished this year. The Michigan
Central will extend its line northward to
connect with the above road, which is being
built in the interest of the Northern Pacific
road, and will become a portion of its line
by the construction of short connecting
link. BY means of short branch, the Mar
quette road will connect with the Canadian
Pacific road, now within 200 miles of that
point. These branches will bring the
Northern Pacific into direct connection with
Chicago, with the Vanderbilt roads, and the
Canadian road, while it will have terminal
stations at the heads of Lakes Michigan and
Huron, in addition to its present terminus