The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-03-02
from the board, the committee has decided to
AK the stOckholders 70 sign the inclo>ed proxy,
and return IL - either OF the undersigned.
"HESRY CLEws,
.r<S,a In.

from the board, the committee has decided to
AK the stockholders 70 sign the inclosed proxy,
and return 1t - either Of the undersigned.
CHENEY CLEwA
"BRAYroN IVES,
"JAY COOKE, JR"
II appears that this circular has been sent out
with copies Of the report to the stockholders oy
the same parties.
The conten:s Of this circular will. feel sure.
defeat its object without any specific refutasloo
or reply from the company.
As the circular is made the occasion, however,
Tor tue request for proxies in favor OF the tnree
eigners. deem IL my duty n president Of the
company TO recommend TO all stockton iers not
to act until they have received statement OF
the reasons for offering ut this time TO the
stockholders the company's holdings of the
ST. Paul Northern Pacific Railway Comp
stock. and until the board of directors shall
have had an opportunity to expose the astonish-
ing mistakes in facts and figures which the
committee has made. These mistakes might
have been avoided if the committee had &C
cepted the boards invitation TO verify these
facts and figures before publication.
T.. +. CAKES, President
The reply Of President Edwin H. Abbot, OF
the Wisconsin Central company, to the charges
made by the committee against the manage thent
in connection with the lease Of the Wisconsin
Central Is . very spirited documen: and 10 full
of figures TO show that the charges are baseess
and that the lease IL . good thing for both
parties. In the opening paragraph he says:
The authorship is ,hiniy disguised. Its tone
and style betray the hand of the member of the
committee who was formerly on the Northern
Pacific board aud failed in 1889 to keep his
place. He doubtless attributes his defeat to
Wisconsin Central influence and this belief
explains his inability to see anything in Wis
cousin Central, past, present and future. His
omission of important facts in this report IL -
remarkable a. its distortion OF Truth.
Mr.. Abbot then goes on to show that during
the year ending June 80, 1890, the Wisconsin
Central showed $7,3l964 earnings to the mile
OF main track, more than any other line be-
tween 81. Paul and Chicago. He gives detailed
figures 10 prove this. which show that the
Alton Is the only exception. He gives figures as
to the gross earnings of the road since 1886,
showing rapid and steady growth. which he
attributes TO the development OF the roads
local territory, and he gives figures to show
that at the most IS per cent. OF the earnings
could be attributed to the exchange Of bust.
ness with the Northern Pacific. This increase
since 1886 is stated to be 1897 per cent He gives
dgures 70 support the claim that in 1891 S. % per
cent. and in 1892 81 Sc per cent. OF the WiscOn-
sin Central tonnage in aud out OF Chicago
came from or went to its local territory: that the
increase in 1892 was 20 per cent: that of
this 20 per cent more than two-thirds accrued
from Wisconsin Central territory and less than
one-third from Northern Pacific territory; that
In 1892 the Northern Pacific tonnage in and out
Of Chicago increased over 80 per cent; that if
Pacific will soon make enough out Of the lease
te make its stock in he Chicago terminals one
OF its most valuable assets. He further charges
that the committee charges to the Wisconsin
Central items of expense for which 1t is not
countable in order 10 manufacture a deficit un-
der the lease, which docs not exist under
straight and honest accounting, and claims
that during the first year of the lease the North
ern Pacific made o small profit, aud in the year
1892 ii made profit of $l14,534 70 out of the Is
per cent of earnings allowed for operating ex-
penses.
Mr.. Abbot says that the Wisconsin Central
lease was rendered necessary TO the Northern
Pacific by the tact that other roads entering st
Paul had stronger inducements to turn over
business to the Union Pacific at Omaha or to
the santa fe at Kansas City than to the North
crn Pacific at 81. Paul. He also says that the
Northern Pacific stock in the Chicago terminals
is now worth $2,oOO,oOo cash, far more than it
has spent in improving them, and concludes by
saying that the result OF the lease il 1.-THE COM
pletion of a great investment property in
trunk line Of the Northern Pacific Railroad
Company. under lease SO just and fair in its
arrangements that lessor and lessee are both
making money under It and possess a property
which in the near future win be recognized as
among the soundest, safest and most profitable
railroad systems in the whole country