New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-05-06
WISCONSIN CENTRAL DEAL.
BENEFITS TO NORTHERN PACIFIC,
IMPORTANCE OF THE AGREEMENTS JUST
ADoPTED-AN OFFICIAL STATEMENT.

IMPORTANCE OF THE AGREEMENTS JUoI
ADoPTED-AN OFFICIAL STATEMENT.
TIE approval by the directors ~ the Northern
Pacific Railroad Of the contractors for traffic agree
meut with the Wisconsin Central Company last week
consummaed negotiations that had boon pending for
several moths and It has been the principal topic OF
discussion in railway circles The relations of the
two properties have always been of close nature,
but the new arrangement seals them Tor hihety-hhe
years from July 1. The officers OF both companies
look to receiving mutual benefits from the union
The Northern Pacific obtains extensive terminal IA
cIltles IN Chicago, which practically now becomes It's
eastern terminus Besides incidental benefits OF de-
rail the Northern Pacific Is able to deal directly with
all tho Eastern and Southern roads centring In
Chicago and It doubtless will before long effect some
advantageous alliances 1t will be In position
better TO protect traffic which is diverted by other
west-bound roads from Chicago 10 Omaha or Kansas
City.
The Wisconsin Central docs not surrender the con
troll OF It's property, each system being managed and
operated Independently, but rates and operations, un
der appropriate agreements, will be adjusted and
harmonized to the advantage and satisfaction OF the
Northern Pacific. An official statement given out by
Edwin II. Abbot, vice-president OF tho wisconsin
Central Company and one Of the trustees IN posses
sion furnishes complete details Of the new al
lance than were first published. 1t IS as follows;
Tho contracts arc three In number: First con-
tract between the Wisconsin Central system OF roads
between Ashland St. Paul and Chicago, covering rail
connections from the Northern Pacific terminI at
Ashland on Lake Superior and the city OF st. Paul
10 the terminal system OF the Chicago and Great
Western Railroad Company in tho city OF Chicago +;
second the approval OF tho contract between the
Wisconsin Central Company and the Chicago and
Great Western Railroad Company for terminal accom-.
modatons in Chicago for the benefit OF tho Wisconsin
Central Company and its associate at rental ~
$3.50 900 per annum and proportion OF maintenance.
etc third, a contract between the Northern Pacific
Railroad Company and the Wisconsin Central Company.
declaring tho Northern Pacific Company % be its
associate and entitled to share In tho benefits OF It's
terminal contract with the Chicago and Great Western
Railroad Company.
In substance, the effect OF the Arrangement Is
this Tho Wisconsin Central receives at Ashland and
St Paul Northern Pacific business and delivers It
in Chicago, and receives IN Chicago business destined
for the Northern Pacific. The Wisconsin Central
divides It's gross earnings into two proportions
05 por cent and 80 per cent 1t retains 30 per
cent for It's own solo use, and sppropHa'es the 90
per cent to operating expenses and certain improve
menis tending 10 reduce operating EXPENSE 90
If the operating expenses src less than 80 per
cent the Northern Pacific receives sum equal l"
one-han OF tho difference In consideration OF ne
business which II gives to the Wisconsin Central
Wisconsin Central VIII pay not exceeding ? l.e per
cont out OF It's % per cent, ana Niu diNlde ou"
hair Of any excess OF operating expenses above
81 per cent Of the gross earnings equally between
the Wisconsin, Central and Northern Pacific oompanies
Tho Northern Pacific, however. i not bound 70 pay
rs one-han of such eNccss. excepting out OF future
profits received under contract with tho Wisconsin
Central. , =.
Northern PNcihc secures for tho business which II
thus serds to chicago and p1!nts be! ond; RON the
wisconsin Central system, tho benefits % the Chicago
and Great Western terminals, which already inolule
within the limits Of Chicago over l75 acres OF ground
I'm addition 10 It's great transfer yAri Of ls0 acres Ol
the outskirts Of Chicago. II also shares In thn net
profits Of tho terminal company received in excess
Of $4,000 per Annum, ADD will be enabled 20 con
meet directly through tho agency OF The Wisrons'n
Central with all Eastern limos cent1ng IN Chicago, ana
10 receive and deliver passenger and freight n no
passenger and freight stAtinna or the Choaso, aud
son at These buildings only ono hOok distant
from tho BOARD Of Trade Building, ana within hye
minutes walk % the Grand PAciho Hotel and the
p0stnre and arc situated east 81 the Che SVn River
so that passengers are not DELAYED in going 70 and
from trains By having 20 cross any Of the bridges