The sun., 1881-06-26
soRruEnx pA1r1o 1ERM1SL
WIZARDS Scheme TO Make the Road n Tender
IN hia AtrnmAhIp ComnnnY.

There stand upon the transfer books OF
the Northern Pacific Railroad Company. in the
names OF Mr.. Henry Willard and his friends.
100000 OF the 100000 capital shares Of tho COM
pnny. These are sufficient to give Mr.. Willard
absolute control of the management OF the prop
erty, ms the chances Of concentrating tho other
100000 shares against him arc small. AT tho
recent election only 3560O0 shares wcro voted
upon. Alrendy Mr.. Willard and two OF his as
sociates have been elected directors OF the COM
pany. and Mr.. Oskes. the manager OF the Oregon
Railway and Navigation Company. has been
chosen one OF tho Vice. Presidents. 1t is said
that the duties OF general manager OF the COM
pGny will be added to his Office. On the 9th
inst. Mr.. Frederick Billings resigned the Presi-
doncy Of the company. Mr.. Ashbel II. Barney
was chosen to Nil tho Office temporarily that 10.
until the annual meeting In September. whom
MIR. Willard will take that Office himsolf.
Mr. Willard having won the fight after a long
and hotly contested struggle. questions are
asked us to the nature Of his victory and what
will be its results.
The original plan OF the Northern Pacific
Railroad was that it's western terminus should
be some point on Puget Sound. Two years ago
this month Mr.. Willard organized tho Oregon
Railway and Navigation Company. as described
in these columns n short time ago. and In
march, lSSU. tDnt company ODthlneu pOsSeSelOn
OF n line Of steamships and n railroad running
up the Columbia River from Portland oregon.
This organization brought n new ally to tho
people OF Oregon. and OF Portland In particular.
in their fight to mako the Pacific coast terminus
OF the Northern Pacific at Portland.
From point about go miles inland from the
Pacific coast the projectors OF til" Northern Pa
cihc have proposed two routes to the coast One.
practically continuation OF its main line.
sound the other along the Columbia River to
Portland. Tho former brings the road to
harbor IN every way desirable; tho latter to q
by steamships such as great trunk line
shou ID be able to connect with closely. Tho
two Senators in Congress have endeavored to
compel the company to build only one limo TO
the Pacc coast and tant through etr State
| Territory. through their ono Delegate in Con-
| Gress have insisted that the Cascade branch
| pc buiit Inc company mas al along laX0rSd
| tho building OF the Cascade branch. While
affairs were in this condition the Oregon Rail-
way and Navigation Company came into ex-
istence and to tho MD OF tho Oregon party.
| Its intent was not ms much to benefit the State
prove disastrous. With the Cascade branch
| built shorter route than the Columbia River
| route and to n better harbor. it was evident
| that the navigation company would lose the
| hest pnrt Of its business. Moreover. II the
| Columbia River route were the only, one, built
| by the Northern Pacifc Company. Mr.. Willard
| could offer it. and possibly get 1t to accept
| his disconnected sections of railroads along
SOUND nso meant large S
| the business of tho ocean steamships
belonging to the Oregon Railway and Navga-
| ton Company. To that company II became q
necessity that the Northern Pacific should touch
the coast at one point only. and that Portland.
sessing assets of s3.50O.OOO md with capital
| Liabilities OF SIS ,OQOOUO; Mr.. Willard. its Pres
| ident. took tho bull by thchorns by resolving to
| obtain control OF the Northern Pacific. OF its
| $l0O,O00,O 600 GuthorlHed capital about 100000
! had been received by the. company in payment
There remained in the cor %comnany's treasury
slSOOQ;0oO leaving s73OOG.OO9 outstanding.
Nj. Willard and his friends sot ont to
resources may be estimated from the fact
| that they had watered the stock OF tho NavRa-
,ion Company to the amount Of Sl2OO 900; and
run lis shares up 5000 each. 1t is reported that
| they had purchased Northern Pacific took to the
amount OF about s27. 900 900. par value. when
| the Northern Pacific people decided to avail
| themselves OF their right to distribute among
themselves tho slS,0OOUO0 OF stock which was
| in the treasury. Before THIS move was made
| the purchase of 100 900 shares more would have
given Mr.. Willard absolute control. The aidi- M
| tiOnal issue made the purchase OF nearly 2OO.-
| 900 necessary 1t was ather discouraGinE; but
AIR. Willard was equal to tho emergency with an
Injunction restraining tho company from per;
on the iransier agent OF the company. the
| Farmers Loan and Trust Company. early
| ono morning. The Stock Exchange refused
| TO recognize tho new shares pending the htiGa-
tion. and the street became thoroughly con-
| party. among them Secretary indom. who had
| sold their new stock in advance. were obliged 10
| buy In the open market 10 make their do
| liveries The litigation promised to be pro-
| Dortionately long TO the amount involved. The
| hearings were postponed several times, and for
| various assigned reasons The real reason was
that Il iiaE Of truce had passed between the 2p-
| posing iactious. What occurred under that
flag the public may never know. MIR. Willard
| never talks OF the transactions.
Alter good many denlals that any neGotia-
tions for compromise were under way, it hap
| psned one day that two directors of the Oregon
| NAVIGATION COMPANY
| directors of the Northern Pacific Railroad Com
pany. Since then Other proof of his ownership
| of the road has been gwen. According to MI
| Willard the result was accomplished by two in
dependent actions. One OF them was persona
and consisted in his purchasing from Presl-
| dent Billings and his associates OF a large block
OF Northern Pacllc stock II Is said that the
,HG amount was about $1,000 Oo2 par value s md
| Billings and his friends. The price unld was
witnheld. After this transaction had been con
Guided Mr.. Willard Withdrew his suit contsstinG
| the issue Of the slS,00O.OO0 new stock. The dis
solution Of tho injunction lett tho Farmers
| Loan and Trust Company free to transfer tho
| new shares. and thercupOn the Stock Exchange
| formally recognized tho new issue.
MIR, Willard did not guarantee that no one else
| should bring similar action. Nobody did
| however and more or less Of the now stock has
BECOME the property OF the street.
| Tho other act. according to Mr.. Willard. was
the decision Of the Northern Pacific directors
| rs to the policy of tho company relative to tn,
building OF tho Cascade branch. AZ THO May
meeting OF tho Board OF Directors Mr.. Willard
argued that there was no necessity for an i'm
mediate aud absolute decision relative to thc
| building OF the Cascade branch, that there
would be ample time to settle the matter when
| the main line should be completed to the point
| whore 1t is proposed the road should diverga In
two branches TO the Pacific cJnst. lie expressed
| himself IN favor OF building the Cascade branch
whenever ii should appear tensible" After
| Mr. Willard had spoken. tho directors passed a
resolution 10 the effect that, as fast rs the ina
surveys OF sections OF the Cascade branch
should be completed. the company should ad,
vertise for contract bids. This was the point o
| policy involved and the manner in which II was
| settled. 1t was apparently decided in favor o
the Cascade branch. Whom the expression o.
! Mr. Willard and the resolution OF the directory
are examined. it will be found that they mean
simply that tho road will ba built shoud 1t zap,
pear feasible" to Mr.. Willard. the new owner o
the road and tho vigorous opponent OF tn,
proposed branch. Contracts for the work may
be advertised for. but tho company. now
controlled bv Mr.. Willard. will OF course resum,
the usual right to reject any or all bids IN,
matter. however. need not proceed even so fal
as tho advertising for contracts, for suhse