, 1885-09-26

the policy and management Of the
Northern Pacific railroad. The re-
suit of the election was both sur
prise and a defeat to them. 1t was
evident a combination had been
formed among those interested in
the Oregon Railway 4 Navigation
company line to undertake the heavy
task Of doing what Willard achieved
so brilliantly, namely, to seize con-
troll Of the Northern Pacific railroad
and use it so as to prohote the inter
est Of the Oregon Railway & Navlga-
tiOn company. It was said II they
were successful in the effort, 1t would
not matter a great deal whether they
made the lease or not, since they
could stop the further progress Of
construction on the Cascade division.
That this was one Of the principal
objects essential to their success, by
whatever course they pursued, there
can be no doubt. A document to
that effect, bearing the official sigma
ture Of Elijah Smith, has lately been
placed on the files in the Northern
Pacific office in this city. The gen.
tlemen included In the attempt to
follow the footsteps Of Willard were
Elijah Smith, president Of the Ore
gon and Franscontinental, John p.
Hall and N. P. Hallowell, Northern
Pacific directors representing the
Oregon and Transcontinental inter
est, Frederick Billings and Mr.. Roll
ston, OF the Farmers Loan and Trust
company, with the already Trans
continental representation in the
Northern Pacific board Of two men,
bers, besides through the friendship
Of Mr.. Billings, they had It ar
ranged to push aside three Of the old
board, including Charles B. Wright
and President Harris, and elect in
their stead three more representa-
tives Of the Willard interest to seats
In the board, giving that Interest
five staunch and active fighters
among the directors pledged and in
terested to oppose the completion Of
the Cascade division, and who, with !
the officers from the president down,
chosen by that interest, could be re-
lied on to dictate the policy Of the
company in reference TO that vitality
important matter. The last meeting
Of the old board was held on the
10th. Among other business brought
up was that Of preparing a ticket to
be offered to the stockholders on the
following day. 'The consideration OF
this matter was attended with con-
siderable skirmishing between the
old Northern Pacific interests, led by
Charles B. Wright and the Oregon
TransconIinental party. Mr.. Wright
favored the selection Of the old
board, not even seeking TO exclude
the representatives OF tho OIOGon
and & Transcontinental and the Ore
gon Railway and Navigation COM
pany. By this time, although the
Philadelphia interest, to which were
allied ]. Pierpont, Mogan and Bray
ton Ives, had not shown the strength
Of its hand, that strength became so
apparent n Messrs. Smith and Bill
ings, that supposlng themselves to
be on the road to inevitable defeat,
they suddenly abandoned their am
bilious project and gladly accepted
Mr.. Wrighps proposal as welcome
and favorable base Of compromise.
The reason why Messrs. Morgan and
Ives were strong factors In this cleo
tiOn was that they hold a large
amount of stock as trustees Of the
Oregon & Transcontinentul company,
being under the necessity Of raising
loan to help it out Of the serious
trouble in which Willard had left 1t,
there passed into their hands as
trustees, and for the security to the
lenders 10000 shares OF Northern
Pacific stock, together with the power
to vote the same. Mr.. Hallowell
sought to displace Mr.. Ives as such
trustee and have Elijah Smith chosen
in his stead. This accounts for the
fact that HOllowell was so heavily
scratched in the elec ction Of the 18th.
Previous to the meeting Of the stock
holders application was made by
Elijah Smith to two judges Tor an
injunction to prevent the voting Of
this 10000 shares, against the clear
ly expressed agreement Of the trust
authorizing the trustees 10 vote II;
and 1t was reported, though falsely,
that an Injunction had been granted.
According to the agreement all Of
the stock was voted for the old
board. Out Of a total vote OF l6O,OOO
shares, Messrs. J. Picrpont, Morgan,
BraytOn, Ives and Chas. b. Wright
and their friends, representing the
old Northern Pacific interests, cast a
vote Of 1856, 900 shares, a clear major
ity Of 5000.
Concerning the manifesto by Nor
gan in this contest-fOr contest II
was, and a severe one-it is explained
by the fact, that in addition TO his
large Individual interests, the bank
ing house Of DreXel, Morgan & Co.
took 5000, 900 Of the second mort
gage bonds Of the Northern Pacific
railroad, and he must therefore
stand for them. As showing the
in Mr.. Wright's mango
ment, the fact that he was individ-
ally entrusted with mortgages cover
ingOver2, 900, 900 shares, or nearly one
third Of the entire stock voted. On
account Of the false reports sent out
by the VillardIsts for the purpose Of