New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-05-22

"a. :, necessary, TO prevent the same ..,.oSs
Sh,o' 49,, in this letter Mr. Adams mus sa .I"S
In ..~n.rtv of the oregon Railway ana Ns, Is.a0t
tho rbich as lessee he is bouha " P,sa,
",sstates. as believe, It's earnings, az I,ne Com
miss ,h.t the Union Pacific aud Short Lino 20.
10 en- IN ,on forces with the Northern CO.
panios ,edpction OF the per cent ren'S eu~,
=" vs. oon the stock OF the oregon haii""'
,,tsatlon Company. d Trans
Hse ,dsw of the fact that the Oregon anu ,nar
~, Company is the owner Of iiloro ' Ia
" 400 900 of the stock Of the oregon n =, moro
SS.,scatou Company, and receives To, ,Ln vital
han $4,000 a year from that so, ,,,, thc short
,rrnortance TO the company OF CO." -. ohserve the
I,n. and Union Pacific Companies 10 ',,on ., tho
Llno % No,r lease and 10 prevent rcduc'o' -
s.,,sI reseryed In the lease, Is Sppa'"
pEpuDIATING THE CHARGES
.,ur % tho allegations of the amenucu I'm. I'm
hoU"re W 49,, have any intention "H".eo
1850 any sale or disposition OF '"o - 40 an
- p.u,pav and Navigation ComP""', .oIo nv
o.,o or couDtenauce, or permit "D' o,oDce With
a,oostion of said stock, except 40 10, 90 the Oregon
ar r1an ~ issuing preferred s' hv the pIedge
- gr.DscontinentaI Company socut' s,reoar ont
=. ,s N.vIOaion stock, which NO. Z, that nIan
49, IN nv first affidavit In th ~. stockholdcrs OF
ma rost with the approval o' .no on the 18th
shouia moO =, &c annual meeting oh 'no
alton
tho coinp"ns 4, no possible fonnaa''oh u. Guy
OF june =, chat have ever done VI hio0 "
S0 VI a., h.vo been made upon il0 III ' - q,
go as believe, more Una" ""' ,,,o.t a. hear,
0,u,ttv as the one "ho " -, CO..,
ms 80 ~ the oregon ana IraUe0O,'N ,,,,,
'io od % tho oregon Railway anu ,,""o,.o
-nn.rv am the founder oil pun" ""a ,rnI,h do
80 one else possibly can' the uuS N. ~
then any -. IN this emergency, 10 project d"
VoNos w. W., I,terests against the attacks OF Ine'
oeiehu INV, have already stated, the oregon anu
o"oui''' ..,,.,,sI Company has large hoauhS III.
.S."sns.s mart of which IS in the form VI uoN'ouN
-. ,ocured BY the pledge OF us hopilhss VI 80
s,,.r.y and Navigation stock ana other Se
-. r "a are made upon the usuat tefms' i04"''S
- ,ba value of the securities depoSued s'o"i"
tnA. s,cced bv a certain Margin at their market
,.,,ons the amount Of the loan. This hugaooh
"a The disclosed intentions of Elijah smith ana MS
.a'',aa.,.tos the president Of the Short Line anu
,,tor pac,sc Companies aud Others, to attempt W
1911 the annroaching elections OF the oregon anu
rr.nsrontnental and Oregon Railway and Navigation
CompaDies and 10 cut down the rental Reserves :"
N. lease have had depressing effect upon 'he ma "'
value Of the Oregon Railway and Navigation |oih
nany,s stock which makes 1t necessary that 'no
oroson and Transconiinental Company should be at
lh.rtv either to change It's demand loans or 10 maze
t,her deposits Of IS Navigation stock to preserve
.hn rsuaI MARI. difference between the
securities and amo,. the loan. 1t IS not true Is
~. r,a,r,,gs vrorI. inferred from their versions
of certain convers, gi,h Gardiner NJ. Lane that
the cash resources OF The Oregon and TranSconiheha
Coup,nv Arc adeouate to provide for It's floating In
debtndness without using Its Navigation stock'
therefore ask that the injunction hereih' IL ho'
altogether be modified In so far as II prevents tno
officers Of the company from protecting us crel. W
tho n,edge OF the Oregon Railway and Navigation
stock TO secure temporarily its floating IN
aah,sdness In view Of the attacks which have been
made uuon me in this action feel 1t my auy 10
disclose and emphasize the real purpose OF the COM
bnation which has been formed against the interests
- tho majority stockholders OF the Oregon and Trans
continental Company and Of the motives which uhoer
lie It -.
,as IN this ctOu have disclosed sent by = H. Wiley
tie secretary and comptroller OF the oregon Railway
rd NAVIGATION Company TO Elijah Smith and Charles
FRANCIS Adams dated the 10th and 18th days OF May
$50 show that Elijah Smith and Mr.. Charles Francis
Adams and Others associated In desperate attempt
IN cain control Of the Oregon and Transcontlhoh'ai
cempany and the Oregon Railway and Navigation
at the approaching annual elections and
arc now actually contemplating the bring
ing of suit in Portland for the appoint
ment ~ receiver OF the Oregon and Transcontnentai
Comp.ny with the idea OF having the " right man
appon ted 10 vote its holdings Of the oregon Railway
and Navigation Companys stock at the meeting OF the
last named company, and thus 10 control its eectloh
AS to the motives which se influencing Mr. Smith In
his action, refer TO the records on file In ms COURT
which show that proceeding for contempt OF this court
IN the suit already referred TO- Instituted by the Oregon
md Tran sentimental Company and others against
himself and his associates directors Of tho Oregon
Railway and Navigation Company for fraudulent
breaches of trust In musng the funds Of the company
ave been begun. That action was brought TO restrain
lin, and his associates from using the proceeds OF the
,onds Of the Oregon Railway and Navigation Company
n the reckless building Of competitive lines in Wash
gon and Idaho Territories at the instigatlon Of the
Union Pacific and short Line companies in violation
II the contract obligations of his company.
NO OTHER COMMENT NEEDED
No other comment need be made upon the manner In
shich he and his confederates are performing their
iutes directors OF the Oregon Railway and Navga
don Company than Is contained In tho conclusion "
he opinion rendered by Mr. Justice Patterson In that
,ase In December last in which, after long review Of
he facts in granting continuance OF tho preliminary
injunction issued by Presiding Justice Van Brunb he
ssys:
What immediate prospective advantage IS 10 DO |
derived by tho Oregon Railway and Navigation Com
psny by building the bridge and branches has not been
maze apparent but II is clear that millions OF dollars
OF that eompanys money would DO spent and what is
"orSo' ePoht III what Mr. Adams has termed war 1
Of construction, which be has charac terized AZ tv
almost amounting 10 crime It is not a sufficient
answer to this TO say that the Shareholders get ALI
they are entitled TO- namely the rental of per cent
upon their shares and therefore they are not injured
Tho lease may be terminated by default OF the lessee
and 10 is plain that the guarantee Of the Union Pacific
Company is precarious security. especially in view
,f its relation 10 the Government of the United States
md provision is made in the Short Line ease for the
Of the invady Of that guarantee being
ieclaredD
With this decision Of Judge Patterson against him
threatened In that suit with personal liability for Ali
he money Of the Oregon Railway and Navigation |
'ompany which he has unlawfully expended and with
for contempt of court impending over |
i'm, Mr. Smith has Joined with Mr. Adams and the |
Inon Pacific Company and Others in the attempt, by |
gal proceedings otherwise TO Obstrct the elections
directors, both OF the Oregon Railway and Navga
lon Company and OF the Oregon and Transcont |