The sun. [volume] (Morris, Stevens County, Minn.) 1882-1895, 1889-05-23
THE RAILWAY WAR.
The Union and Northern Pacific
Draw Swords and Throw
AWaV the Scabbards.

New YORK, Special Telegram, May To-
II appears from the sworn answer OF the de-
PENDANTS in the suit of Eliza Smith ana T. H.
Bell against the Oregon & Transcontlnental
railroad and Henry Willard and others, ~hlch
will be used in court tomorrow, that no If
sue of preferred stock before the eiec-
ion was ever intended, and that not
single step of any kind or character look
ing to such an issue was taken, except the
passage of resolution comforting preilln-
mary authority upon the executive COM
mittee of the company to take necessary
steps for the issuance of such stocks IL
was intended, so the answer says, TO submit
the matter. as required by the laws or Ore
gon to the stockholders meeting TO be held
on the 18th of June, and the. resolution was
pasSe in order that the preliminary steps
might be taken and the papers prepared for
that purpose. The present Injunction suit,
broughU by Ehja Smith TO restrain
this issue, has, however, been fruitful
in disclosing many things. He was
obliged to mention the sources OF his
information and belief in order to get an in
junction and in doing so he disclosed the
fact that he and Mr.. Adams are in communi-
cation with the secretary and counsel Of the
Oregon Railway and Navigation company at
Portland and that the latter suggested the
appointment of receiver of the Oregon i
IransContinental company to vote on its
stock of the Oregon Railway and Navigation
company at the election of the latter COM
panv. In the sworn copy of telegram used
by Mr.. Smith to obtain lis injunction, MIR.
Wiley, secretary OF the Oregon Railway and
Navigation company, telegraphed to Mr.
Adams in reference to the appointment of 2.
receiver of the Oregon Il Transcontinental
company, Sin the latter case the right man
being appointed, he would vote the proper
ties held by the Oregon Il Transcontinental
if they can be voted" Here is the other side
of the story as told by the Smith Union
Pacific faction:
President Eliza Smith, of the Oregon Railway
and Navigation company, who has been rallying
all his friends secure his reinstatement in the
management of the OREGON IL Transconti-
mental company, from which he Ousted by
Mr. Willard year ago, is receiving the COngrat-
ulations OF his friends and hackers to-day over
the resignation of Sidney Dillon, Gardiner NJ.
Lane and William L. Bull from the board of di-
rectors of the Oregon IL Transcontinent COM
pany. This action is directly in consequence. as
stated in their letter of resignation, of President
Wizards action in obtaining, unknown to them,
! a reconstruction OF the executive com nitCee by
which they were dropped from that body and in
obtaining also secretly from the OreyOn &
IranscOntinental directors resident in Oregon
|
ferred stock to be guaranteed by tae company s
holdings of Oregon Railway and Navigation
stock. Mr., Bull was one of the men who were
made defendants with President Willard in the
suit brought by President Smith. Instead of
his standing shoulder to shoulder with those
with whom he was associated as defendants in
the action he has chosen o let it be understood
! that he has no part with them.
Mr. Bull sailed for Europe this morning.
and consequently his side of the story could
net be obtained. He SAID before he went
| however, that he had no knowledge of Mr.
Wizards acts The board of directors com
prises seventeen members. A majority OF
nine reside in Oregon. The remaining eight
members, who live in the East, constitute an
exclusive committee Each body has GER
| tnin powers independent of the other, and
| its acts are b nd1ng on the other. The mem
bers of the board of directors constitute Il
! quorum l5 is this last provision that Mr.
| Willard is said to have aVaIled himself of in
directing the action OF the Oregon directors
for his own purpose. MIR. Wizards private
secretary, Mr. Spofford said this morning
| that it should be clearly understood that the
three members who had left the Oregon /
TranscOntnental directory were notremoveC
by Mr.. Willard.
"Mr. Willard" Mr.. Spofford said merely saw
fit to obtain reorganization of the executive
committee, and left out the men who have since
resigned from the directory. Their resignation!
were entirely voluntary.
The significant aspect of the dropping ou
of Mesgrs. Dillon and Lane is the fact tha
they are both directors in the Union Pacific
1t is made more clear that the contest ovel
the Oregon & Trancontinental is really be
tween the Union Pacific and Northern Pacific
companies Mr.. Willard is identified with the
Northern Pacific almost as closely now al
when he was the company's president H
accuses President Smi;k of seeking to con
trcl the coming election Of the Oregon &
Transconlineutal. for the purpose of playing
into the hands of the Union Pacific, bv Oh
tanning for them a modification of the term
OF It's contract with the Oregon Railway ant
Navigation company.