Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1883-10-18
TEE vlLLAgD PROPERTIES AND
SYSTEMS.
Isl. PAUL Pioneer Pres.

Isl. Paul Pioneer Press.
The serene indifference Mr.. Willard
shows TO the attacks made on the stocks
bearing his name in the language OF
Wall street has done not a little toward
Pacific. The careful examination made
by New York authority of high stand
ing points out with great clearness the
reasons why Mr.. Willard may have con-
fideuce in his systems of traffic. The
strongest of theni-the Oregon Hallway
and Navigation Company-was his owA
conception, carried to q successful issue
under his own personal direction Of
the several lines navigating Puget
Sound, the Columbia, Willamette and
Snake Rivers and the Pacific Ocean.
Mr.. Willard organized a traffic company
that pays good dividends without undue
strain upon the shipping interests that
patrenize It. This company has raised
money when necessary by selling new
stock, thus avoiding debt, and pursuing
the safer course of letting an new part
uers in the business. This Is a situation
which enables the company to defy the
aIarmists and hammerers of the stock
market. Tbs case with the Northern
Pacific is not 80 invuinerabie, but there
is nothing in the condition of its finan-
ces to build the faintest panic upon.
The net earnings Of the road IN It's IN
completed stage last year wee $500
900. With the through traffic of Oregon
and Washington Territory added, net
earnings the csming year are expected
to be nearly trebled. Sales of land last
year were enough 70 pay interest on the
bonded debt. The master stroke of
Mr.. Wizards financial genius was the
Oregon Iranscont'nental Company,
which is simply credit concern, similar
to the Credit Mobilier-and, like it, as
thoroughly misunderstood by the coun-
try at large as it could well be. The
Transcontinentai holds the controlling
proportion of stock In the Oregon Rail
way and Navigation Company and the
Northern Pacific, and has lease of the
Oregon and California Railroad. 1t
has nothing TO do with the practical
operation of the Navigation Company
or the Northern Pacific. 1t is the proper
agent of Mr.. Willard to attend to the
finances of the subordinate companies.
Its function 10 that OF q trustee COM
pany, responsible for the financial
health and strength of the whole sys-
TEN. Il is apparent that il the North
err Pacific Is to be broken down, the
Transcontinental is the citadel that first
must be stormed. As long as Mr.. Vii
lard and the stockholders of the latter
oompany--wh0 are known to be more or
less identical with the members of the
famous blind pool which enabled Mr..
Willard to obtain control of the North
ern Paoific-can maintain supremacy in
that company, they can snap their i'm
gers at the stock market. The con-
trolling stock of the Navigation Com
pany and Of the Northern Pacific is not
in the market, to be affected by the
fluctuations. II is locked up in the
vaults of q corporation that is not a
stock Spectator.
As the system becomes more thor
oughly understood, people will be struck
with admiration at Mr.. Wizards inee-
NOUS and thorough going precauti0n
against just such vioissitudes as those
of the past two months in Wall street.
He has not only brought two great traf-
| fic systems to completion and is success
fully building third, bat he has pro-
vided the delicate machinery by which
all may operate as parts of a greater
system. without friction, and with the
utmost nicely Of relations. The plan
Is one which has its intrinsic, as well as
the extrinsio advantages enjoyed over
Wall street. The separate systems can
be operated with better results than if
one system. The duties of the execu-
tive Of railroad are of the two-fold
kind necessary to maintaining financial
credit and operating a traffic system.
BY separating the financial from the
operating functions of the executive, he
has been able to place at the respon-
sible head Of the Navigation Company
and the Northern Pacific, men who are
best fitted for the places, and at the
same time perfectly unembara ssea
by concern for the reputation
of their capital and bonds in the stock
market. The fact that there is such a
skillful and finely wrought organization
controlling the destiny of the Northern
Pacific ought of itself to defend it from
the transparent efforts Of the last few
weeks to traduce its capabilities and
endanRer its life. The marvellous nat
ural resources of the country tributary
to the road; the possession of land
grant larger than any ever enjoyed by
any road; the unshrinking, machine
like faith OF syndicate of stockholders
perfectly insulated from the shocks of
the stock market, and the force of a
centrifugal organization which has no
equal in the history of railroads. to
gether with the firm and precisely con-
fident guidance of Mr.. Willard, are
enough to answer once and forever the
question whether the Northern Pacific
and Its combining systems are secure 10
the present management.