The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-08-19
RUMOREDO.R.&N.DEAL
Great Northern Said to Be
Reaching After 1t.
peNIALs COME FROM ALL SIDES.
Union Pacific Would Not Let Go, and
Hill Does Not Want It-Tachts-
mems Periious Trip.


SAN Francisco, Aug ia Chronicle
Chicago special says: The object of J. j.
Hills present visit to New York is to Sc
cure controlling interest in the Oregon
Railway e. Navigation Company's line,
consisting Of ] 900 miles or more OF track
between Spokane and Portland. The
property is under a ninoty-nine years lease
to the Oregon Short Line and Utah North
ern railway, controlling interest In
whose stock was owned by the Union Pa
ciiic Under the terms of the lease the
Union Pacific has guaranteed interest on
bonds. per cent. interest on stock and
the expense of reorganization.
There are but two ways in which Hill
can gain control of the Oregon Railway
d Navigation Company's line Either
the Oregon Short Line or Union Pacific
has so defaulted under the terms of the
lease as to make that instrument nugatory,
or Hill must own controlling interest IN
the $26 900, 600 of Oregon Short Line stock.
The Union Pacific at one time owned $l4,-
O0O, 600 of this stock, but it is very probable
that it may have sold enough to lose its
controlling interest In either case it
would be a comparatively easy matter for
Hill to secure control.
Such a conclusion would instantly make
Hill master OF the North Pacific coast rail-
road situation and of both the Union
Pacific and Northern Pacific coast term
inals. He could also dictate the rates to
be charged on Pacific coast traffic and the
annual contracts which now give the Union
Pacific almost monopoly on Portland
business. With the transfer of the Oregon
Railway Il Navigation Company would
60 line Of steamers plying to every ocean
and river port between San Francisco and
British Columbia, and river lines covering
nearly 1000 miles of territory.
PORTLAND, Aug. 1s.-The dispatch from
Chicago stating that J. J. Hill is endeavor-
ing to secure control Of the Oregon Rail-
way IL Navigation Company is generally
discredited in this city. ID. r. Thompson.
vice president of the Oregon Railway &
Navigation Company, said: ~ do not think
there is any foundation for the story. So
far as / know no transfers have been
made, and unquestionably the Union Pa
ciic Company still holds a majority of
the stock. The company has not forfeited
its lease, either. No; l feel certain there
is no truth in the story"
TACOMA, Aug. 1s.-[Special. ]-Regarding
the report Of Hills control of the Oregon
Short Line, Second Vice President Pres
colt of the Northern Pacific is quite sure
that there is no default in the payment Of
dividends. He knows nothing about the
alleged hvpothecation of stock. When the
lease was made, in 1856, when Prescott
was general manager of the Oregon Navi-
cation Company, he says the stock was
$24, 600 900. Even if Hill could carry out
the alleged scheme, it would not give him
control of the Portland terminus, because
the Union and Southern Pacific are Joint
owners of the terminals. If successful,
Hills plan. as outlined in the dispatches,
would simply admit him to the Portland
terminus on the same footing with the
Union Pacific.
A railroad man in this city who is
posted on the affairs of both the Great
Northern and Union Pacific roads says
that there is no probability of the truth of
this dispatch. The Great Northern could
not get the Oregon Railway e. Navigation
lines without securing control of the
Oregon Short Line, and for the Union Pa
cific to let go the latter road would be
suicidal. The Oregon Short Line and the
Oregon Railway & Navigation line are the
only means by which the Union Pacific
now reaches the Pacific coast, and with
out them it would be in the same condi-
ton as when the Central Pacific passed
under the control of the Southern Pacific,
having main line from Omaha west
ward, stopping short at Ogden instead of
running on to the Coast. If necessity
forced the Union Pacific to sacrifice any of
its properties. the Oregon Short Line is
considered the last of which it would let go.
Even if the Union Pacific were to lose
control of the Oregon Railway & Navi-
CATION Company and the Oregon Short
Line, il is considered doubtful whether
the Great Northern would take Them 1t
is not generally known, but it is fact, that
the Great Northern had an opportunity to
secure control of the Oregon Railway &
Navigation Company two years ago, but
did not take advantage of 1t. Since then
IL has built its own line to Spokane and
has nearly completed the line from that
city 10 Seattle. If it would not take the
road two years ago, before any work was
done on the Pacific coast extension, still
less would il do SO now, when many mil
lions of dollars have been spent on a new.
shorter and. rs Presiden: Hill thinks, bet
ter line. The new Great Northern line,
with an extension from this city, will be
shorter between st. Paul and Portland
than would be the Great Northern and
Oregon Railway Il Navigation, reaching
Portland by way of Spokane. SO that no
saving in distance could be effected
The gentleman i'll question said that the
prneipal inducement To secure control of
the Oregon Railway q Navigation Com
pany is the valuable terminals of that COM
rany ut Portland and Spokane. II the
stock could be secured at low price. the
value OF the terminals might outweigh the
objections tn the purchase, but it was not
likely. Altogether the weight of probable
titles was against the truth OF the report.
AN IMPORTANT IMPROVEMENT.
Ditch Into Black River to Drain Three
Thousand Acres.
The board of county commissioners have
decided on cutting drainage ditch from
the Black river to Kent, which will he of