The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-03
HILLS PET AMBITION.
Old n. p. Stockholders Still
Hope to Disappoint 1t.
THE vanpERBlLTs MAY STEP IN.
Net Earnings Already Exceed Hiii' ;
Guarantee september VIII De-
eide Who Gets Control

rfuCHO5TErE may emu III - SSAANrA~ IT.
only between James J. Hi and the ola
Northern Pacific interests for control. but
between Mr.. FiIl and the Northwestern,
backed by the Eauderbilts. The dispztcn
saws that Mr.. Hi continues 20 tell MS
friends he is going 10 get controi OK thS
road in spite OF the Minnesota law iof-
bidding the consolidation Of parallel nnss'
buf the Northern Pacific people are
resting comfortable on the CONVICTION that
Mr. Hllfs game Is blocked. They have
fresh Information from New York TO the
effect that J. Pierpont Morgan now holds
rho key 10 the situation and tnat ne ~ hos
in accord with Mr. fIill az All.
The story Is that when Mr.. Hi and Mr.
Morgan came to discuss the details OF the
big consolidation scheme AT morgan
found that the great Northwestern ran
road king wanted for himself All there
was likely 10 come out OF the uea4 ~ tlS
way Of advantage ard profit. His propo-
eition for q consolidation or lease only
contemplated guarantee Of about BE-
900 IN the way OF net earnings from the
Northern Pacific system. In other words.
n he could control the system ne
was willing 20 agree that he would pay
the bondhoiders under his reorganization
scheme this amount Of money per annum
". u. Earnings Are Growing.
But tust about the time the details OF
his proposition became generally known.
the Northern Pacific people began - hg-
ure ny their net earnings for the past iis-
cal year. General Manager kendrick and
Comptroller John Scott were able 10 as
sure the receivers that at the close OF the
bad year ending June - tho old Northern
Pacific would IN spite OF the hard times,
be abie 20 show that i had earned net
close up 10 ss.009O00. OF course. Mr.. Hili
offer of s.. 225ls0 or $4,000 was good for
nothing IN view Of this earning statement
In fact IL became rather absurd when
. elaar
ken into account.
There ia a big wheat crop being harvest
ed In the Northwest. which rs going 20
make a great deal Of tonnage for the rail-
roads 10 haul. Then the mining industries
are becoming more and more active IN
Montana, the lumber and shingle business
Is looking up In Washington. the move
ment Of general merchandise IS increas-
ting with the Improvement OF the times.
and the passenger business on all roads
is great deal better than 1t was at this
time last year. So. when the Northern
Pacific officials assured the receivers that
tho net earnings would go UP TO s.. go Goo
during the next fiscal year. they appeared
10 be safely within the mark. No wonder
then that Mr.. Morgan suddenly aoured on
Mr.. Hills scheme. The last information
received here from New York is that tins
distinguished flnancier said few days
ago that he had other important matters
10 attend TO before he could seriously con-
slider any new plan for reorganizing the
Northern Pacific. but he would get at the
work within few weeks.
Mr.. Hi is believed 10 be working on
new project for realizing his old ambition
for getting control of the Northern Pa
cific. and thus become the dictator OF
railway policies and tariff In the North
western states. His first idea il lis cur
rentiy believed here, was to organize a
new company, which should acquire or
rA,.fI4 nfaA
Meeting at some points the main line of
TIM Great Northern with that Of the
Northern Pacific: then using this new
company as financial Instruments
company whose line would not parallel
that Of either OF the two great trans
ccatsasntal roadside would aimultan-
eou8iy purchase In the name OF that
company controlling interest In the Sc
curities or both those roads. The lawyers
however, ala not give him much en-
enlargement for this method Of getting
around the Minnesota statutes They
did not believe that the courts would
sanction the accomplishment by indirec-
ton OF a purpose positively prohibited
by tho law.
Origin OF tho Minnesota Law
There is q bit OF interesting history
connected with that Minnesota railroad
statute which has not yet been told I'm
print. The law was drawn many years
ago by ex-senator Spooner. OF wiscon-
sin. who is now special counsel for the
~eceivers or the Northern Pacific Spooncr
was then attorney for the Northwestern
The Northwestern had gotten possession
OF the old Winona & 81. Peter railroad
and wanted 20 consolidate IL legally with
Its own system. SO Spooner was sent TO
ST. Paul 10 procure the necessary legis-
lation lie drew bin I'm two sectiona
The first section permitted any railroad
To consolidate with amy other road which
was an extension OF It's own line In
order 20 get this through the legislature
without any trouble. Mr.. Spoencr added
the second section. prohibiting any road
from consolidating with any parallel or
competing road The bin went through
smoothly. and now, after twenty years
II turns up to block the way OF Mr. mrs
ambition.
II is believed that the plan which Mr..
HIN IS now working upon Is 10 get suf-
ncient amount Of the Northern Pacific
1unior bonds IN tho hands OF himself and
his friends 90 enable him to dictate a
plan OF reorganization. Then. with the
road once reorganlzed. he would place
Il in the hands 81 hts own loutenants.
keeping himself En- tho background but
debating its policy and management.
II now looks as though the old Northern
Pacific interests had become SO frightened
at Mr.. Hilrs threatened raid upon their
property THAI they will speedily get to-
petheF upon some new plan for saving
their interests. They have already stoned
auarrelinE among themselves and appear
10 be willing to accept the lead OF Mr.
Morsan. The present REORGANIZATION COM
fmittec Of which Ed Adams ia chairman.
Is a good deaf dlscreditea by its recent
willingness 10 play into the hands OF Mr.
Hili. IL has not vet been able to secure
majority Of the junior bonds Il is
nov threatening the bondholaers with a
SO fine on each bond not sent IN within
a specified time This IS q confession Of
Weakness. AIR, Adams is SAID 10 have al
ready secured majority of the third
MORTGAGE bonds. a small issue amounting
TO NAHs1Nao. hDi he falls long way short
- having "a majority 81 the bie Issue cr
Tho consolidated mortgage bonds. even
wish the backing or the Deutschr hank ~
eIlif. which rushed into che i'm CON
toldated scheme IN a starnnedo Of alarm
8r1 disgust ever the had earnings u tl.a
Tusf tNo wears All the Yovrfs nf trr
Adams eoBw'ttee come % On ers rbe
niitlie 90 neat September. So x nothing IS
accomplished hy mat time i, the Wv 80
reorganization the ncId will be amer, fo-
J. rierpont Murcan. who. as IS v,u
Known, Is the adviser 81 the Vanters,lt
iatcvtstS.
The Naudcrbjlts May Get II.
Nothing would BE- more natural fla,, s,-
III Nanderhilts % desire an extension az