New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1889-05-22
THE RAILWAY WAR.
The Union and Northern Pacific
Draw Swords and Throw
Away the Scabbards.

New YORK, Special Telegram, May 15.-
1T appears from the sworn answer of the de-
PENDANTS in the suit of Eliza Smith and D. R.
Bell against the Oregon & Transcontinental
railroad and Henry Willard and others, which
will be used in court tomorrow, that nc is
sue of preferred stock before the cleo
ton was ever intended, and that not
single step of any kind or character look
ing to such All issue was taken. except the
passage of resolution comforting prelim-
mary authority upon the executive COM
mittee of the company to take necessary
steps for the issuance of such stocks. It
was intended, SO the answer says, to submit
the matter. as required by the laws of Ore
gon, to the stockholders meeting to be held
on the 18th of June, and the resolution was
passed in order that the preliminary steps
might be taken and the papers prepared for
THAT purpose. The present Injunction suit,
brought by Eliza Smith to restrain
this issue, has, however. been fruitful
in disclosing many things. He was
obliged to mention the sources of his
information and belief in order to get an in
Junction and in doing so he disclosed the
fact that he and Mr. Adams are in communi-
cation with the secretary and counsel Of the
Oregon Railway and Navigation company at
appointment of a receiver of the Oregon &
Iranscontipental company to vote On it's
stock of the Oregon Railway and Navigation
company at the election of the latter COM
pany In the sworn copy of a telegram used
by Mr.. Smith to obtain lis Injunction Mr..
Wiley, secretary OF the Oregon Railway and
Navigation company, telegraphed to Mr..
Adams in reference to the appointment Of 3
receiver OF the Oregon & Transcontinental
company, sin the latter the right man
being appointed, he would vote the proper
lies held by the Oregon & Transcontine entail
if they can be voted" Here is the other side
of the story as told by the Smith-Union
Pacific faction:
President Eliza Smith. of the Oregon Railway
and Navigation company, who has been rallying
management of the Oregon e. Transconti-
mental company, from which he was ousted by
Mr. Willard a year ago. is receiving the congrat-
rulatIons OF his friends and hackers to-day over
the resignation Of Sidney Dillon, Gardiner M
Lane and William L. Bull from the board of d.
Trectors of the Oregon e. Transcontinental com
pany. This action is directly in consequence as
stated in their letter of resgnation OF President
Wizards action in obtaining unknown to them
a reconstruction OF the executive committee by
which they were dropped from that body, and in
obtaining also secretly from the Oregon &
Iranscontinental directors resident in Oregon
AN authorization of an issue of SO, 600, 600 pre-
:ferred stock to be guaranteed by the company's
holdings of Oregon Railway and Navigation
stock. MIR. Bull was one Of the men VINO were
made defendants with President Willard in the
suit brought by President Smith. Instead of
his standing shoulder to shoulder with those
with whom ne was associated as defendants in
the action he has chosen to let it 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 he went.
however, that he had no knowledge of Mr.,
Wizards acts The board Of directors com
prlses seventeen members. A majority of
nine reside in Oregon. The remaining eight
members, who live in the East, constitute an
exclusive committee. Each body has GER
tnln powers independent of the other, and
its acts are binding on the other. The mem
bers of the board of directors constitute
quorum. 1t is this last provision that Mr.
Willard is said to have awaited himself of in
directing the action OF the Oregon directors
Ior his own purpose. MIR. Wizards private
secretary, Mr.. Spofford said this morning
that it should be clearly understood that the
three members who had left the Oregon &
Iranscontlnental directory were notremoved
10y Mr. Willard.
"Mr Willard" Mr.. Spofford said, merely saw
fit to obtain reorganization of the executive
committee, and left out the men who have since
resigned from the directory. Their designations
were entirely voluntary.
The significant aspect of the dropping out
of Messrs. Dillon and Lane is the fact that
they are both directors in the Union Pacific
1t is made more clear that the contest over
the Oregon & Trancontinental is really be-
tween the Union Pacific and Northern Pacific
companies. Mr.. Willard is identified with the
Northern Pacific almost as closely now as
when he was the company's president. He
accuses President Smith of seeking to con-
Htrcl the coming election Of the Oregon &
Transcontinental for the purpose of playing
into the hands of the Union Pacific, by OBJ
tanning for them modification of the terms
OF It's contract with the Oregon Railway and
Navigator company.