Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1881-04-01
Rises to Explain.

Rises to Explain.
A letter from Mr.. Willard which SnAs.
Gates that Things are net quite ~
Satisfactory as they might be.
New York, March Is, 1881.
To THE EDITOR OF THE OREeoMAH:
You may publish the following
over my signature in your paper:
All you have said in the Oregoaias
regarding our obtaining control Of
the Northern Pacific is substantially
true. For this purpose q fund Of
1000, 900 was made up in Janu-
ary, of which the +" blind pool" a.
the newspapers have called it, con-
tributed $4,000, 900, the remaining
A,0OO,00O being provided by loans
to the pool. With $40, 900 900 Of
this money I acquired control of ST.
100000 of common and preferred
stock, buying common from 80 up
and preferred from 65 up. The out
standing common and preferred was
then $37 ,00O,00 Of preferred and
$31 500, 900 Of common, thus making
about $34, 500, 900 an absolute ma
jority. had, in addition, offers OF
irrevocable proxies from outside
stock to insure US an absolute ma
jority; but in order to conciliate ex-
isting interests I went to President
Billings, told him frankly what I
lad done and invited him and his
friends to come into the combination
with their holdings, or to sell ont
to me at their own prices. BE de-
clined to do either. Ther6upon i
gave him to understand that I would
have to make up an absolute ms
jority against him. He expressed
great anxiety to come to q harmon
ious understanding with our inter-
ests, saying among other things thAt
we ought to have an immediate
representation on the board. At the
request of some OF his directors i
prepared and printed q statement Of
our views rs to what the relations Of
the two companies should be, which
I will send you for publicAtie6, and
which will show that tho stAtemehts
that we are trying to prevent ~
construction Of . Cascade branch IL
an absolute falsehood ss "a & ;SEs5 IN
lANH HtiK0 80 lni i1 i1| |'|1 1|12|
The NorfnU fhF K9 lllS ISL 4 q L -
day, and . special committee 60
sisting of Potts, Ellis and Garrisoas "
was appointed to consider and MAKO
recommendations on the relations q
the two companies and our rspre-
sentation in the board. On Friday
last, however, after the adjournment
of the full board meeting, and the
departure OF most of the out-of-town
members, Billings called the remain
ing members Of the executive board
secretly together and prevailed on
them to pass resolutions directing
the immediate issue OF ever eighteen
millions of common stock still in
the hands of the company, the OBJ
ject being of course to maintain
Billings and friends in power, a. he
and they grabbed most of the addi-
tional issue under a pretended claim
growing out of the organization.
No notice whatever of the proposed
issue was given to the other direc-
tors, three of whom, including
Messrs. Ellis and Bullitt, the two
directors representing the syndicate
headed by Drexel, Morgan & Co.,
and Winslow, Lanier & Co., which
recently placed twenty millions Of
Northern Pacific bonds, have already
denounced this proceeding officially
as an outrage, which fact I am ar-
thorized to publish.
Having been advised by most
eminent counsel that the issue Of
stock is utterly illegal and in direct
violation of their trust, making the
guilty directors personally liable. I
have therefore instituted suit against
them, and this morning obtained
an Injunction in the Superior Court
inhibiting the sale, transfer and vot-
ing Of the stock. My counsel have
no doubt that the grabbers will b
compelled to restore every share 70
the company. Billings appropriated
to himself $4,000 shares, and his
confederates many thousands Of
shares each. You will receive full
particulars Of the case by mail.
81. WILLARD.