The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-06-16
NEUTRALITY-SUSPICIOUS.
Reorganization Plan OF the
Northern Pacific.
UNION WITH JIM HILLS LINE.
A Single svsten-seatfie Steamers Tor
the Orient wonid Take san
FrancIsco's Trade.

.,fs~-aw This c0loasal financial under
taking may result in that company ~
fug the first Of the great trunk lines th&t
defauEted in Is95 or thereabo1ts- 10 re-
sumo irs place among ire solvent. olNi-
aega paving enterprises OF the Tas4roal
,sarI9. In promoting the REORGANIZATION
the Adams committee has the ala OF
James J. IIlll. with whom he went 70
I<gaaon. ana they are understood 20 %
fully IN accord a. 70 the financial terms
embodied 81 what might b. eaaie1 me
Berlin agreement. This scheme, #Fas5ch
may be modified considerably. WITHOUT
altering Itg main features, r. devised 20
satisfy and eoncliiate all interests as Tar,
sf,tsareutIg a. they can be satisfied and
consolidated IN ans scheme for putting the
Northern Pacific on its fees flnarseiaily.
The Livingstone Committee.
while the Livingstone committee de-
votes It's attention solely 20 the aHs1rs of
the second mortgage holders. ~foSe men
amounts 10 $40 giE Cos Ar. Adams and his
associates hold the stronger position OF
rgrofessfng 20 act in the interest of All the
ognerN OF all the stocks and bonds. max
ing total sum. nominally. OF xZif.ysl- III
This committee asserted last spring that
n already held a majority in amount OF
all the stock and bonds. except the ssc-
oud mortgage bonds. Of which II hela Also
a great deal. II has striven 10 win over
Che support of ali the Second mortgage
hondhoIaers, but they are holding out Tor
better terms and may have 10 be got rid
Of in part by actual purchase or by
some changes IN the Berlin plan that VIII
convince them that nothing can be gained
BY further opposition.
The terms OF that scheme. as already
announced. may not be changed materi-
ally. They include the forming OF a now
company with 500 Csc p10 capital stock.
the issuing Of bonds limited IN amount 10
sso.ooo 30. bearing partly and partly va
per cent. interest
All the outstanding bonds are TO he
funded I'm this blanket mortgage. wherein
ss80a0.6o will be reserved 10 acquire IN
dependent branch roads and for eonstruc-
ton, a provision that will be good news
for places In Minnesota and the Pacific
Northwest that have been waiting Tor
improvements or extensions.
Jim Hin the Master.
The most important feature. perhaps. OF
the Berlin agreement. IL the guarantee by
the Great Northern Railway Company of
the principal and interest OF the new
bonds. that corporation receiving In re-
tnrn one-half the capital stock of the re-
qxganized Northern Paciac This arrange
Ment viii serve 10 bring the two oompa-
MES into close friendly relations and may
lead to actual consolidation. This pros
poet may amaze Minnesota pioneers who
recall the ''irrepresylble conflict" between
the two companies since ls39. when Mr.
liilt and his Canadian associates got con-
troll OF the ~. Paul & Pacific with ITS 800
and odd miles Of track that has since
grown under the stimulating influence OF
Minnesota enterprise into a transconu-
mental system, operating 4g57 miles OF
track But the Irresistible tendency OF
railroads Is now toward consolidation.
No one believes In IL more fully than Air.
Iiill. who has created his great system by
construction or purchase, and who dis
Germs that In combined management lies
the surest way 10 economy in operation.
which implies IN turn. ability 70 reduce
rates for freight and passengers.
Mr.. I'm knew evidently from the start
that he was master OF the situation He
has declared more than once that he had
no use for the Northern Pacific system.
But he has always been able TO adapt him-
self 10 new circumstances. In this In
stance II was clear that no permanent set
Element OF the Northern Pacific affairs
could be made so long the policy OF the
Great Northern was in doubt. The easy
grades, the light fixed charges. the sound.
solvent condition OF the Great Northern
system. as well as the high financial credit
which the company enjoys AT home ana
abroad. combined 10 make MIR Hlli as for
midahle and as dangerous a rival to the
China. Moreover, Ii was not In Mr.. Uilps
interest that the Northern Pacific should
continue in the hands OF receivers. with
all the uncertainties which that condition
implies. Nor could II be for his benefit
that the Northern Pacific. which earned as
much as $50 $3.50 "a the year 1929.
should scale it's bonded Indebtedness. as II
might do IN the end. and enter the lists in
good lighting trim. prepared 10 become an
ffsFT hsa he a. wa ff~ ~
Minnesota and the through tranlo TO ana
from Puget sound.
Consolidation seems Certain.
Hence perhaps. may ~ dlscegnod IN
parg. tase reasons that av-tuas ~ Mr.. ItM
81 heiyanE - pun the Northern pacinc
o}t OF Is financial difficulties. Powerful
IA Is the Crea. NortAern system. X "a
uot In "a position 10 invade or provoke
a rate VAR on freicl1.s, az tslo Sl3.5-2,s 81
eVhh%h ihe ststegn earned in the year
1Nae-3 Sto, -. So6 came fraan that source
alone. The tn,f30az ions are clear that the
rev agreement n 81 is CARRIED into fttil
effss,t. must fepa3t fn q perfect u05sn.
Wi,h half t9av cANsal stock IN its hanks
sac Great Northern viii need itttle snore
20 exercise fun. pr9ctk,1 control. In un-
dertaAtuS 70 guarantee The TsrtuctTsl and
interest OF the new Northern Pacific
Bonds. fe1e Grcaf Northern VIII have %
exercise the closest interest in the wise.
sFfstent management NJ the other syS-
fcsa This must hlvHw about that con-
fcrsslafion such as has been already re-
tarrad 80. or a working aereencrt th2t
VIII amount 20 nearly the Same ching.
Tee expected union WI lay fhe foun-
cations " "a railroad system with 9.69
miles az track extending fTuu rt{e Twin
tsttes ant tale Great lakes 10 zAc 4A8cif3c
tseean where when . atfatus afuuier de-
vs,sopsuent in fAe near future. one arm
Win REACH into british Cssl,An3hia, while
second VIII extend - the Pacific ocean
~ AstcFSa ansa tf}ivf viii reach hy tAe
sav ~ Portland. she Oregon n1ctrossolis.
Into tan and C0lortsio. In tNe hands
81 this great system w-sG ~ tae mineral
traffic ~ Nouta~a. which IS aireasfv eN-
secsaVe: n'ae wheat ht&1aage o. The ex-
Naus,}sss fGs,asi f1uEpirs ami the grow
snx ,srcuSs. trsf1o between Seattle ard
the Fast.
steamer. 70 the Orient.
Tyss NIL 'ncl lie. ~ course. ths carry
ting % silks teas a0f other Oriental prv-
dlasf% v-aivh ne combined mails nv she
aSa ~ a stnaInSNip E0e yHsyv proia>te ~,
will ~crest ercrn san Francisco and tae
Southern Pac&ac. as We'll as soosn Va
torha ara she Canadian Paetsc.
Az era. o. rern1snerg tsr7 ~ssvrgncut ruay
he fairly expected - accompany <he uro-
posed settlement. \ 9'er~lo reut serec-
snent WI doubtless a. made ny re Great
Northern wirsi fAe Oreg~~a Railway 4
Navigation Conaoauv. uufier wsteg,s the
Creat Northern trasns WI c-.g1tassafa n ran
t~sc Portland over r1e Oregon cssrft .ea q \ q
traek 1Aea aha Northern 8'acsrs- yeay
AusA5 cr promote use seu8d.nE. os ,se p
a4s5}a ~ trsrk nScte8 70 come. &c ua tee
Coh-trata w<th Astoria. tass largest ttNU
nj s1a vroSt important Seaport 81 Eae
r,o2ufry wz.-snslt raGrOa8 coHlz&Sfa8-z -3oE