New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-19
.,cpTHERN PACIFIC SCORED.
ovr OF THE INVESTIGATING COM.
MI1TEE.
Asked FOR TO OPPOSE TIE PRESENT
x.GEMENT-ATTACKs on PAST
FINANCIAL TRANSACTIONS.

o. the ,re fnlv into the conduct Of the business
rA '~o,rs of the company The committee making
sna - q composed of Henry Clews, OF Henry Clews
" e Brayton Ives, president OF the western
,..a, Bank and Jay Cooke. IT, OF Philadelphia
Nsu' O. stringent IN It's criticisms q thc manage
u" =, the Northern Pacific. as was foreShad"wed In
mem ~. NJ Friday and there Is clearly Indicated
TIE .,ont movement to attempt TO retire Henry
ID i and possibly other directors from the control
Nl.u onsnv The report is issued in pamphlet
sr. In lis distribution 10 Stockholders VIII be
%I' circular of the date of yesterday, in which
Ep'.raI criticism is passed upon the Northern Pacific
saa'"V" ,.rt In this circular the determination OF
psD' the large holders of preferred stock 10 en-
~ 10 effect revolution Ill inc management Is
- by a request for proxies
,bis circular the investigating committee asserts
=. ,bs delay in the issue of the report was due to
9 ~ .c,ion of the company In first asking as con
~ ~, for furnishing list of stockholders to whom
.nort was TO be distributed, the right of It's
:, revise tho report and 10 issue a reply stimuli
rslv with its publication. The committee re-
"a consent 10 any such terms, and the company
H.ri.b.d the list OF stockholders. The circular
.-,cecls 10 criticlsc the wisdom of the step by
x., .xcept in o. extreme necessity. the
,b.rn Pacific should part with its st. Paul and
49,, Pacific stock according to the plan
'A IN The Tribune Of Friday. The circular
ays:
=, ,hs s,.t pace IL { not by any means clear that
wise step except OF extreme necessity.
90, yorheru Pacific Company 10 part with It's It.
!" .oa NothcyA Pacific stock. 1t has been the
.,r.ous opinion of it, directors for years that tn
-, ,o,a should under the complete and und>puted
- AZ the Northern Pacific and oIe of the objects
,,s ,.sue of consolidated bonds was the possession
s,. .,ock Yet no sooner has II been arquhc1 than
80. Z. contlived for Us disposal. Granting all that
~, ~ said in favor Of the PAN and assuming That
m BE- hsdged about with many safeguards 1t cannot Do
800 thai, other tlngs being equal 1t vii! be Tor the
,.st At the No thcTn Pacific ~ retain this st'cH II '
- Furthermore IL Is evident that the
s..,les Of the require such action at this tine.
, ,b. exception 300 900 all OF the Heating d'bt Is
,oxsi on tine loans, none Of which mature before the
,s, mart Of July aud the bulk OF them in ep;,meer'
Consequently " cannot oe ''"''"'N ''"'
justfable. -, ~.
Again the sale of this stock will take from the North
An Pacific treasury most important remaining asset
=, will also set free the bonds which are now pledged
~ he floating debt and them at the disposal OF the
,.o, financial management. There is no reason to be-
.rs that they will not used others have been. 10
pronoe schemes which will involve loss to the Northn
Pacific Company.
In other words BY this sac the present management
ran continue their previous course and incur fresh ab
%. a that At the expiration of their term Of Office they
can urn over 70 their successors road with an en-
hrrnssd treasury and weighed down with additional
pnn,oatbe leases. We believe that a careful realin9
A. The ,ncosed report will convince stockholders that the
record OF the present managers lie not such as to justify
An ex,snsou much less Increase, OF confidence AZ
aha same time are aware Of the danger OF giving them
1ua reason saying that their EFFORTS In behalf OF the
.oupsoy have been unwisey hampered. Thcefore. for
q. nornse OF gaining an expression OF opinion from the
sekhooers as 10 the existing state Of affairs. and TO
acquire authority By which suitable guarantees OF con-
vstive hereafter be demanded from the board
TIA committee have decided the stockholders 70 sign
he inosd Proxy and return IL TO either OF the undef
tgna.
The report OF the committee states that the physical
renditon Of the property was found to be excel
lent the equipment was found TO be an good
condition and full measure Of justice IS done to the
development possibilities Of the country tributary 20
It's belief that stockholders need feel no appre..
ssnssn as {! the competition s Of on the anasfy
3. anc ,sas ''{ the assapso DEBT ; sa;2Isd
Of u gseh only ,S S ON IS
stated. the company is paying per interest and
. commission Of . per cent. loan Of 1873 600 due
newed for one year at per cent and comm...n Of
per cent Perhaps no more expressive or o
the Northern Pacific Company than Is lurhsh ''' ny
this transaction A the time i was made m19 S y wfs
fer demand loans was per cent. and millions %ere
eHsrd time a, from per cent 10 per ,nn
led in such condition of Affairs in eNacting per CEN
from the company. and that ne hnahcT hn,i tn the
eIacton shows both the low state Of ne cSnpanH,
credit and perhaps the process by which tha' S'a'e
The commttee's report In considering the er"nc o,
lines Of the company that ,weve in in ,b
earn interest on their bonds; e seven roads ony
show q surplus over and above n2eo oma ~
Soss oao Tbe committeer report criticsc, the
Northern Pacific and Manitoba Railroad as conspl ,be
Gus nsanee q the P' rcpor states that the price
per mile-S2O. OOO--at which this property was az
CURED excessive as hsIe o, no rI,o hat part
o, IN. country viz. $4,000 or al most SD, ~ pr
mile The report says: The r.coroN S,o~ ," nv
Mr. Henry Willard" .a..,;oo
The committee figures out loss on M 0prIa opera
Of this branch last year Of @3O52j3 WIN rts'Iu a.
he seattle ako shore and Eastern Railroad thc com
mttee's report says: The acquisition OF unS PoP
sizing AZ The time seems 10 have been an act 81 SUI
1endous and Incredible folly" A large par ot ~, w.,
ps Of The rePg Scb the Pacific TIC
lines Of the Wisconsin Central COMPANY, an az tbe nj
s ss ,pS Soherb f Fvfn o1 The
loxmuch a. the present dcporsbe financial condition
Of the Northern Pacf, Company duo more than 70 any
one cause Us assumption OF the ouruehs o '
Wisconsin Central system It is only proper ust the ia
should be clearly stated especially a. thoY iufn',"
Instructive and startling chapter in tn" history Of ran
rad MANAGEMENT The first eN0t to bring t"2eMef u''
two systems was made more than ten EeAr' ago N''
the Oregon and Trans ontinent1l COMPANY oouen' m
thousand ,h1res Of Wisconsin Central conino" S'oh
disasters which overlook the Oregon and Ir'nscon'uen'S'
Connnv and Tho yorthcrn Pacific DELAYED the con
summation Of the plan. hut the scheme was "a'h re-
vvd under leadership OF the former COMPANY Oh 'n
rstuyn n office IN 1855 Of Us original president A.
eecesary step those in control Of the WILSON,
s.n Central obtained places in the Northern Pachc oofl
puring ire wear, that had passed this party had spent
hfge OF money in buying ri"piY III '"'V"Ho
he, although they were backed by e1ornou, cipitl'
heir investment had become - extensive t"t II wa
eseata for them 10 find purchaser or guaiSh'of ~"
frmer was ROY 20 be had but the ia'p'f ""s 'o
the Northern Pacific Company By the pu'," "
uany utions ., 10, stock through the O. 4 I. &C. con
sN Of the Northern Pacific secured Ill 1851 anu
lev months later the threatening burden oil Wisconsin
Central lifted from shoulders The ccspea" CON
won Of Wisconsin Central affairs = shown bY th' u'
Neatly MILAN Of dollars in it, opeIa.CA since I'll
*se made and this loss has been Incurred ~ spite
aN the business the Northern Pacific could throw over
hs and all the benefit its influence could give.
iaee Is another feature Of the situation oil snch u'
oN natsre that the committee would not rcfel 70 "