The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-08-21
LOOKING FOR An OUTLET
The Great Northern 10 Making .
Determined Effort to Reach
the Sound.
President Hill Said to Be Trying to
Got Control Of the @. r. & N.
Railroad.
The Northern Pacific wan shorten Up it,
Time Between -. Paul md
Spokane.

The movements Of President j. j. Hill,
Of the Crest Northern railway, are being
more closely watched than those OF any other
Hill hoped when his western extension
reached Spokane to DO abls TO make q
traffic arrangement with the Union Pacific
10 hs could run his trains through from st.
Paul TO tho sound. The Union Pacific
would not agree. hewsver, and has forced
Nj. Hill TO make other arrangements II no
wants to reach Portland this year. A dis
patch from Chicago gives an idea Of the way
in which Mr.. Hill 10 trying to overcoms his
difficulties. II 10 to the effect that no In
now in New York. s~ndsavoring to secure
= controlling interest in the Oregon Rail-
way u Navigation compsny's line. consist
ing OF 1000 miles or more OF track between
spokane and Portland. The property ia
under a ninety nine years. lease TO the Or
egon Short Line d Utah Northern railway,
the controlling interest in whose
stock was owned by the Union Pnciic. I'm
der the terms of the lease the
Union Pacific guaranteed interest on the
bonds Of six per cent. including interest on
the stock and the expense of r%eorganiza-
ton. There are but two ways in which
Hill can gain control of the Oregon Rail-
way and Navigation c%ompany's lines.
Either the Oregon Short Line or Union has
to default under this terms OF the lease 50 az
to make that instrument nugatory or Hill
must own the controlling interest in &c.,
0OO.0 0 Of Oregon Short Line stock. The
Union Pacific at one time owned $14, 900.
600 Of this stock. but it is very possible that
it may have cold enough to lose its con-
trolling interest. In either case it would
be a comparatively easy matter for Hill to
secure control. Such q conclusion would
instantly make Hill master of the Northern
Pacific coast railroad situation and of both
the Union Pacific and Northern Pacific
coast terminals. He could also dictate
rates to be charged on Pacific coast traffic
and apnul contracts which now give the
Union Pacific almost q monopoly on Port
land business. With the transfer OF the
Oregon Railway d Navigation company
there would be a line Of steamers plying to
every ocean and river port between San
Francisco and British Columbia and river
lines covering nearly 1000 miles OF terri-
tory. a. ~.
G.. H. Prescott, of Tacoma, second vice
president Of the Northern Paolfc, referring
20 this reported move of the Great North
ern president, said he was quite sure there
had been no default in the payment of div.
idends, but Of the possible hypothecation
of stock he knows nothing. He said that
the stock Of the o. r. d N, when the lease
was made in 1886, was $24, COX. 600. that the
incomes since that time had been caused
BY the extension of Palouse branches made
by the Oregon Extension company. He
said that even if MIR. Hill could carry out
such q gigantic scheme it would not give
him CONTROL of the Portland terminal, fol
the Union Pacific, Northern Pacific and
Southern Pacific were joint owners of the
terminal. Mr.. Hills plan. if carried out.
would simply admit him to the Portland
terminal on the same terms as other roads
In Portland the idea that Hill 10 after the
control of the Oregon Railway g. Naviga-
ton is greatly discredited. d. r. Thomi-
son, vice-president and director of tho Ore.
gon Railway d Navigation company, said
II do not think there is any foundation fol
the story. So far as I know no transfers
have been made, and unquestionnbly the
company still holds the majority Of the
stock. The company has not forfeited it
lease, either. I feel certain there is ne
truth in the sto, y"
1t is more than probable that when Mr.
hill arranRes his sound connections he vii
force the Union Pacific either TO draw on
of Helena or to build into this city. As il
is now the Union Pacific has an equa
chance with the Great Northern for Helene
business. Hill was forced to this, becaus,
he needed the Union Pacific in tho west
When he can be independent and not lose
by 1t, he will be SO.