New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-05-22
AGREEMENT OF Tur THREE rREslDENTs.
HISTORY OF TIE NEGOTIATIONS.

For some months negotiations looking 10 settle
rsnt ~ all the difference, and questions relating tn
the copstrctioa ard operation Of tho railway "i inc
Northern Pacific Union lAclAc short Line ana 'o
gop Railway and Navigation Companies In "ashihs
ton and Idaho Territories north and cast OF the shAho
River and in the territory north OF tho IoiuhoA
River N IN. town OF alAma on tho Pacific Division
OF the Northern Pacific Railroad were pending between
the several companies Interested and tho OnEon ahd
Transcontinental Company, which resulted some Tine
prtor 10 April last In the substantial approval OF
what Is known as the Arbitration Contract 10y
which Il was provided that five managers should 10
APPOINTED IN the interests Of tho short Limo, Union
Pacific and Northern Pacific Companies who should
have power 10 determine all questions a. l" Tho
operation or management OF tho property, or The
traffic or business thereof arising under the Navigation
Company's lease and I'm relation Ia the business oi
any OF tho roads within the territory mentioned ana
In relation 10 the freight passenger tarlc from OF
% points common competitive to the systems ot
tbs Union Pacific and Northern Pacific Companies,
AMI 10 determine all differences OF every nature ana
description between the Northern Pacific Short Line
and Union Pacific Companies, relating to tho
abstraction OF all roads promoted by either OF tho
companies mentioned within the territory referred TO-
Provision was made for tho cxorcir" OF The voting
power upon the stocks OF the branch DnIs IN
the territory referred TO by the managers undcT tho
Arbitration Contract
Executive Committees Of the Short Line ana
Union Pacific Companies and by tho Executive
Committee Of tho Northern ParInc Company, subject
10 the prOviso that the Oregon AMI iranSc"h'h'''a'
Company should place 49, stock In tho Oregon Halfway
and Navigation Company Ia tho hands 81 irl'io'' Ia
a manner to provide for tho exercise oil The N"uhS
power thereon during the continuance Of the Arbi
ration Contract by the managers under that contract
Thoreupon the Executive Committee Of N" Oregon
and TranscOntincntal Company devised plan which
has been called tho Financial lhAh connected WIN
the Arbitration Contract which provided Tor oondl
tOnal sale by the Oregon and Transconncnal Company
of tho az 900 800 OF stock Of the Oregon Halfway ami
Navigation Company, held by tho Oregon and Trans
continental Company, Ia the Northern and Union
Pacific Companies equally a. those companies dd
not have means 90 pay for this stock In cash tho plan
further provided that deposit should be made OF tho
stock with a Trust Company IN Scw-iorh, and that
tho Oregon aud TranscOntlncnia Company shouH b'un
It's five per cent collateral trust mortgage bonds against
such deposit issuing ono bond for ~ 900 against each
ten shares Of stock deposited, and that the northern
and Union Pacific Companies should guarantee the
dcposlt I'm tho Trust Company quarterly OF sum
sufficient 70 provide for the payment OF quarterly
dividends at tho rao Of six per cent per annnm upon
IN, stock Of tho Navigation Company 80 deposited
Il was then provided that tho Trust Company
ont Of this money, should pay iho interest
nm the five per cent collateral trust mortgage
and should use the balance 0f ono per cent a.
s,rr,ry fund for the redemption Of the said bonds.
The practical operation OF this plan would have deem
ri, tba, the Oregon and TranscOniincntal Company
,r,ub have been sure "a realize tho par value OF us
ho,d,rps 81 Oregon Railway and Navigation Company
,nck while the sinking fund would have operated IN
.,o,, forty wears 10 eXtingush the collateral trust
hords and then tho title 10 the stock would have
vosted in the Northern Pacific and Union Pacific
equally In the meantime the success Oi
,no Astration Contract would have been ASSURED by
r,cans OF the vesting Of tho voting power on tho
X vigatlon Companys stock In the hands OF tho
Ave maDagers and thor sucC"ssors appointed under
The terms OF tho Arbitration Contract
SUBMITTED ron APPROVAL.
After tbs ocaIed financial plan had been perfected
b., ,bs executive Committee Of the Oregon and Trans
continental Company r. was submitted to the president
81 Executive Committees Of tho Short Line and
Union Pacific Companies, and their approval was OBJ
famed All Of tho necessary papers 10 carry out the
,Ian ycre prepared in April last, including the |
Collateral Trust Mortgage, to DO executed by tho
,,,.uon and Transcontlnonta Company and the Con.
rart OF Guaranty to b. entered into by the |
yor,bern Pacific Union Pacific short Lane and Oregon
md Trapscontfnontal companies and some trust com
,,,v m be selected. The assent OF tho Northern |
,aciGe Company 10 tho plan perfected, was sub. |
taDtisy secured and the only obstacle In the way Of
arriving tho plan into eeot Immediately IN April last
o In. altitude Of opposition assumed by Elijah Smith
md some OF his fellow directors OF the Oregon Railway
md Navigation Company they declined either tn d.
ist In this plan Of settlement or To resign their posi-
ions in tho Navigation Company and To permit others
n succeed them with whom II would have been pos
ibte to hesitate IL therefore perceived by the
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