The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1889-05-24
THE RAILWAY WAR.
The Union and Northern Pacific
Draw Swords and Throw
Away the Scabbards.

New YoRK, special Telegram, May 15.-
II appears from the sworn answer Of the de-
PENDANTS In the suit Of Eliza Smith and E r.
Bell aga,nst the Oregon 4 Transconttnental
railroad and Henry Willard and others, which
Will be used IN court tomorrow. that no Ia
sue OF preferred stock before the elec-
tton was ever intended, and that not
single step OF any kind or character look
ing to such au Issue was taken, except the
passage Of resolution comforting prelim-
tnary authority upon the executive COM
mfttee Of the oompany TO take necessary
steps for the issuance OF such stocka It
was fntended, % the answer says, to submit
the matter. as required BY the laws Of Orc
gon. to tie stockholders' mectiug to be held
on tho 18th of June, and the resolution was
passel in order that the preliminary steps
might be taken and the xapcrs prepared for
that pWpose. Tbe prs3ent iniuncllou suit,
brought BY El)A Hnith 10 restr,in
this .-issns, has, however. been fruitful
In disclosing many thinga He was
obliged to mention the sources Of bis
information and belief in order to get an in
junction and In doing 40 he disclosed the
fact that he and Mr.. Adams are In co,nmunl-
cation With the secretary and counsel Of the
Oregon Railway aud Navigation company at
Portland aud that the latter suggested the
appointment OF II receiver of tho Oregon l.
lranscontinental company to vote on its
stock of the Oregon Railway and Navigation
company ut the election OF tho latter COM
pany. In the sworn copy Of a telegram used
nv Mr. Smith to obtain tis injunction, Mr.
Wiley, secretary OF the Oregon Railway and
Navigation company, telegraphed to Mr.
Adams In reference to the appointment of e.
receiver Of the Oregon 4 Iranscontinental
company. Sin the latter case the right man
being appointed, he would vote tho proper
ties held BY the Oregon 4 Transcontinental
If they can be voted" Here is tho other side
Of the story as told by the Smith-Uniop
Pacific faction:
President Eliza Smith. of the Oregon Railway
aud Navigation company, who has been ralyius
all his friends to secure hts reinst atement in the
management Of the OREGON & Transconti-
Mr.. Willard year ago. is receiving the coneral-
ulattons OF hts friends and hackers to-day over
the rcsivnHtion m %. Of Sidney Dillon Gardiner n.
rectors of the Oregon 4 Transconttnental Uom-
pany. TLis action is directly in consequence, az
stated IN their letter OF resignation. Of President
reconstruction OF the executive committee bv
which they wore dropped from that boly, and in
obtaining also secretly from the OREGON &
an authorization OF an issue Of $40 .OOt 900 pre-.
ferred stock TO be guaranteed BY the company's
holdings OF Oregon Railway and Navigation
stock. Mr. Bull was one OF the mon who were
made defendants with President Willard in tho
suit brought by President Smith. Instead Of
his standing shoulder to shoulder with those
with whom he was associated a. defendants in
the action Tie han chosen TO let 1t be understood
that he has no part with them.
Mr. Bull sailed for Europe this morning.
and consequently his side of the story could
not be obtained. He SAID before no went.
however, that he had no knowledge of Mr..
Wizards acts The board of directors COM
prises seventeen membera 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 binding on the other. The men,
bers Of the board of directors constitute a
quorum. IL 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. Mr.. Wizards private
secretary, Mr.. Spofford, said this morning
that IT should be clearly understood that the
three members VINO had left the Oregon 4
Transcontinental directory were not removed
by MIR. Willard.
"Mr. Willard" Mr. sponord said. merely saw
mt to Obtain reorgsnixattOn OF the executive
committee. and leftout the men who have since
resigned from thediroctory. Their designations
were entirely voluntary.
The sigpiticant aspect of the dropping out
OF MeEsra Dillon and Lane 10 Sha fact that
they are both lss ctors in TIL; o;sSst tiSn Pacific.
IL is made more clear that the contest over
the Oregon 4 TranoontinentsT IL really be-
tween the Union Pacific and Northern Pacific
companies Mr.. Willard 70 identified with the
Northern Pacific almost as closely now as
when lie Mns the company's president He
accuses President Smith of seeking to con-
trcl tho coming election Of tho Oregon l.
1ranscOntinental, for the purpose of pav;nc
into the hands OF the Union Pacific. by Oh
tanning for them q modification of the terms
OF ITS contract with the Oregon hallway and
Navigation company.