New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-02-22
TWO GREAT ROADS LEASE A THIRD.
THE UNION AND NORTHERN PACIFIC LINES

THE ONlON AMI A'CAAANhN fASlAAN AA-'-F
MAKE AN "ARBITRAT1oN CONTRACT"
The directors Of the Northern Pacific RaRroad Com
many. at their regular monthly meeting yesterday,
approved an "arbitratlon conract' with tho Union
Pacific Railway which VIII result practically in a
Joint lease of the Oregon Railway and Navigation
Company's property. The Union Pacific leased tho
Oregon line IN April 1887, the basis Of per cent
yearly dividends on the stock Negotiations TO admit
the Northern Pacific TO Joint control have been con-
tinued from that time, but legal and other objections
have prevented successful accomplishment In
functions IN Oregon and fears Of adverse action by
Congress have been serious obstacles. The present
arrangement avoids these questions and makes the
joint lease assured success.
The arbitration contract provides for a board OF
five arbitrators; two each for the Union ard tho
Northern Pacific companies, and fifth arbitrator
agreeable TO both sides. II is understood
that the presidents of the two companies
VIII be members of the board by virtue OF
their positions. X. Suydam Grant and Charles Mer-
riam have been selected temporarily for two other
places, but the fifth arbitrator, who VIII be the con.
trolling power, has not been named. The contract
provides for an equal division OF expenses and profits
in the management OF transportation lines in dis
trict embracing Oregon and parts of Washington and
Idaho.
The Northern Pacific turns I'm its Spokane and
Palouse, Spokane Falls and Idaho and Occur d'Alene
Idaho and Oregon extensions lines. The stocks OF
these companies or an absolute majority Of tnem arc
TO DO placed in the hands Of the arbItrators who Will
vote the stocks according TO instructions from the
Union and Northern Pacific companies. In OF
dispute the arbitrator will settle IT.. The purpose
of the agreement Is 10 absolute imparanty In
the building and working Of branch lines in the ter
rltory IL covers In furherance Of the project tho
Union Pacific agrees TO transfer rs lease Of the oregon
nsIl.r NaVQatlOn stocks the branch
lines previously named to trust company 10 be So
ected while the Northern Pacific agrees TO share the
expenses and profits Of the lease Of the oregon Navi.
CATION property.
The only important condition is that control of the
stock OF this company shall be lodged In the hands OF
the arbitration board. This viii be accomplished by
the transfer Of the stock held by the Oregon and
Transcontipcnta Company to the arbItraiors, who
win issue some kind OF negotiable certificates for II.
The voting power, however, VIII be reserved by tho
arbitrators meeting OF the executive committee
OF the Oregon TranscOntnental Company has been
called for Monday authorize the sale As the com
mittee IS composed OF directors OF the Union ana
Northern Pacific companies who have ALREADY voted
for the arrangement there can be reasonable doubt
about tho result.
OF the thirteen directors OF the North
ern Pacific only three were absent from
the meeting OF these President Cakes and FredereK
Billings had signied their approval but the pos'uou
Of Colgate Hoyt not clearly defined The Only
vote against the plan was thrown by John u BiooA
man. who IS said TO have opposed the JOINT ies A.
| ffou the earliest suggestion. a DIRECTOR Vi N'o
| Northern Pacific said after the meeting: .
The Importance Of this acton can haIuS De re
| problem OF the Joint lease IN way that he's Deen
| approved by the counsel OF both cOmk ahies ins
/ s.rtrtIsment will insure harmony IN the extreme
Northwest for many years and end the rehless build.
| 1ng ~ branch lines. The agreement has not beeh
sisned ~ course and consequently nothing has been
| done but the letter from President Adams, OF inc
| Irnion Pacific and the nearly complete unanimlly
- our vote are plain signs that the proposed arrange
| mcnt VIII be carried through