St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-06-23
IN SECRET SESSION.
Northern and Union Pacific officials Con-
fer on the Leasing Of the Ore
gon Navigation.
Arrangements Said to Be Practically Con.
summated to Take the Property
on August /.
Rates on Flour and Grain Advanced
2 La Cents to Washburn
and Duluth.
Resignation Of Assistant General
Freight Agent of the Northern
Pacific-.His Successor.

Freight Agent of the Northern
Pac1fic--H1s Successor.
Prospects for the Oregon Navigation
Lease.
President Robert Harris of the Northern
Pacific Railroad company, accompanied by
his wife, Mrs. d. j. Ely of New York and
Mr.. and Mrs. T.. d. Munger of North
Adams, Mass, arrived in st. Paul yester-
day afternoon and took quarters at the
Metropolitan hotel. Mr.. Harris spent the
afternoon in Vice President and General
Manager Cakes Office at the Northern
Pacific building, the two comforting with
President Adams and General Manager
Galloway of the Union Pacific
railway in regard to the leasing
OF the Oregon Navigation railway.
Though none OF these gentlemen admitted
that they came tn any understanding, it is
understood that the lease was practically
consummated, and will be officially an
nounced at the annual meeting of the
Northern Pacific directors July l, and the
property will be turned over to the lessees
Aug. /. When the Oregon Navigation is
leased its management will develope upon
the Northern and Union Pacific, and it is
IL
hands of joint committee created
from the directories OF these roads.
1t is also understood that the policy OF these
two roads, the lessees, will be a ''rail
policy" that is that the steamboat and
ocean divisions will be matters OF secondary
interest. That these gentlemen who were
in conference came to some understanding
is almost certain, as Mr.. Adams and Mr..
Galloway left last night for Omaha. Mr..
Harris and party will cont ne their trip
westward this afternoon.
For time it was generally supposed that
the Northern Pacific was not overly anxious
to enter into combination lease with the
UuiOn Pacific, but now it is thought
that any scruples it had have been over
come i'll view OF danger that is eminent from
a rupture in the TranScontinental aSSOcia-
ton. This organization has consented to
pool Pacific coast business up to the LIST of
September, when unless a new agreement
is made the association will fail to pieces.
tits questionable whether the pool will be
again reorganized, and if it is not the result
will be the South against the North. The
Union Pacific is
NOT VERY FRIENDLY
with the Central Pacific, and as the latter
holds the entrance to California it might ex-
clude the former from business to the West
and from the coast over its line. If this
happened the Union Pacific would require
another outlet, and the Oregon Navigation
would just suit it,. The Union and North
ern Pacific roads would form a
strong combination against the other
Southern transcontinental lines, and
they could fight them to advantage.
1t is stated that these two lines are already
preparing for an outbreak, and are becom-
ing very friendly with the Eastern trunk
lines. The presidents and general man
ayers of both the Northern and Union Pa
cific roads have discussed and thoroughly
understand the situation, and in leasing the
Oregon Navigation jointly they are only
preparing for the future, some of
the results of which they anticipate.
Whether it is wise move on the part of
the Northern Pacific, in joining hands with
the Union Pacific, is being freely discussed
in local railroad circles. The Northern
Pacific has opened up large territory to
settlement, and was just beginning to re-
ceive benefit when the Union Pacific
comes to the front to share the sweets with
it. The lease will prevent the Northern
Pacific from transporting wheat from
Oregon and Washington for water shipment
i
no water termination at it's east
ern end, will demand that the
wheat be shipped west by the mutual line,
and it will have the power to enforce its
demand. The proposition to ship wheat
from Oregon and Washington by way of
the lakes to Europe has baen popularity
talked of, and the scheme has always been
considered good one. 1t now costs IS
per ton to transport the grain from the in
land to Portland by rail, and SIS per ton by
ocean via Cape Horn to Llverpool-a total
Of $14 per ton from the point of production
to the final market. 1t has been demonstrated
that grain can be hauled with profit from
Portland to Duluth for IS per ton. The
average cost of shipment from Duluth via
Montreal to Liverpoolis 1851, which, added
to the Northern Pacific rate of So, makes
total charge of $13.61. Comparisons of the
above figures show difference of 80 cents
per ton in favor OF transcontinental ship
ment The Northern Pacific has recently
had an eye to this business, with
the idea of entering actively into
competition for it by making rate of IS to
Duluth, OF perhaps even a still lower rate.
The effect of the Oregon Navigation joint
lease will dismiss the scheme, chiefly be-
cause the Union Pacific will not allow the
business of the Oregon Navigation to be
taken by the Northern Pacific, and also
because it wants part of the business itself
to carry from the interior to Portland at
$6 per ton.
- UD