The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1883-09-28
HAMMEKrso NORTHERN PACIFIC.

The raid on Northern Pacific stocks whicl
commenced some three weeks ago and sub
sided for . few days, has been resumed with
merciless vigor, and 1t last accounts they hat
touched panic prices. Northern Pacific
i. (cemmon) were forced TO 81 and fraction
and preferred TO 81 and fraction, while
Oregon q Transcontinentai, which reall,
, controls both thu others, has been ciswet
from so to less than So. These figures TO I
Montanian are. harmless and financially
uninteresting, but TO several thousand stock
holders they mean ruin or enormous losses
The Northern Pacific Is stocked at several
times the taxable value Of all property In the
Territory of Montana, all of which has been
absorbed In the construction Of the road,
while ugly rumors are current Of . floating
debt Of nearly twenty million dollars that
does not appear In the financial statement Of
the company, but which the company pro.
poses 10 take care Of In a new issue Of
$25.0O0,0 900 certificates Of Indebtedness, which
are liable, If hot likely, TO be issued In such
form as TO seriously shake the market value
of the bonds now out.
Northern Pacifcs and Oregon Transconti-
mental stocks ale wheel within wheel,
the latter appearing TO be the whale that
swallows the former, but just In what man.
ner no one outside OF that organization
appears to clearly understand. AT least II
they see that, the substantially Of the Ore
gon a. Transcontinental appears not well
assured nor invulnerable, for that Is the point
| Of attack on which the assault has had most
serious effect. There are two things that
depreciate stocks-the discovery of lack Of
intrinsic value in them or q concerted and
we'll planned attack on them by large opera
tors. While In this case IL Is the alleged
discovery Of a floating debt that impalrs the
intrinsic value, IL still looks that behind IL
all is q gigantic combination of pears with
the ulteror object in view of capturing
enough of the Northern Pacific stock to
obtain control Of 1t and conform It to the
purposes of other systems or obtain the
financial benefits resulting from 1t as q COM
pleted road. Jay Gould and Huntington,
representing respectively the Union Pacific
and Central Pacific, are accredited with hav-
Ing manipulated the present raid. As their
interests are hostile, rather than identical,
the inference might be that they find the
business Of the Northern Pacific In such con-
dition that there Is money In the mere acqui-
sition of the stock. and that 1t Is CLEARED"
for the purpose Of securing 1t with q good
margin on actual value. So apparently
confident are the Northern Pacific Di-
rectory of the intrinsic value of the stock
that in q recent issue of their official
paper, the following statement was made !:
'Northern Pacific preferred, now that the |
road is completed, will be an eight per cent. |
stock. Northern Pacific common will |
doubtless pay dividends after 1884. Oregon |
Railways Navigation now pays ten per
cent, and will SOON pay twelve. Oregon |
and Transcontinental is based on its owner |
ship Of controlling interest In the above |
stocks. 1t has recently made an advanta-
geous lease of the Oregon & California Rail-
road, and thus obtains control of the en-.
tire transportation system from the northern
boundary of California through Oregon,
Washington, Northern Idaho, Montana,
northern Dakota and northern Minnesota to
Duluth and St. Paul. 1t Is the strong bond
that binds all the Willard companies in
common interest. Besides, 1t holds the
branch lines of the Northern Pacific system
for reasonable and assured profit. 1t is
now paying six per cent. dividens,
These were brave and cheering words, but
they did not hold the stocks up to even the
depressed figures they had then reached;
and II seems that really underneath all stock |
jobbing operations there must be evidence
Of extravaganza and bad management in the
companies these stocks represent. If the
Of the Northern Pacific In Mon
tans Is an exemplifcation of 1t everywhere,
there is good cause for depreciation. The
Abandonment Of the original low grade line
uia Deer Lodge Pass, the consequent relin-
quishment of the tributary business and of
the lands reserved for 1t on that route, the
expensive and disastrous Mullan Tunnel
with its overhead line, terrific grades and
expensive operation was monumental folly
which every succeeding year will more fully
demonstrate. or the eventual splendid
earning qualities of the road, despite this
and like mistakes to date, there is no doubt,
but we believe the extravaganza that is said
10 have been prevalent on the Northern Pa
cifc before the panic Of 1873, was excelled
during the past two years, and that the pres
emit depreciation in stocks Is largely due to
Lbe publicity given to facts. -....-. 1
1t was thought for time that the raid was
for the purpose of forcing down stocks to
snable pool to secure q sufficient amount
10 control in the election of Directors and
force out President Willard; but, II we are
rightly informed, the Directors have already
been elected and other influences direct the
attack. II 10 . matter Of small concern to
Montana now, although one Of interest,
what may be the occasion of the depression.
The road Is completed and in operation, and
will continue to be forever. 1t cannot be
worse operated than II has been so far; It
cannot be under more unpopular manage
nent than that Of Mr.. Willard. Any change
hat might occur now would be for the bet
.er.