, 1896-08-18
THE !. P. owns IT
GETS POSSESSION OF THE SHORT
LINE IN A VERY QUIET
WAY.

Future of an Important Link in the
Transcontinental Chain Settled by
a Transaction of the Morgan Com
bination Last Week-Dhe Wander
bilt Interests.
A deal of immense proportions has
just been consumated in the railroad
world, says Uhe Denver News. 1t is
nothing less than the passing of the
Oregon Railway and Navigation com
pany from independent control into the
hands of gentlemen who are also inter-
ested in the reorganization of the Ore
gOn Short Line, and ipon the reorgan-
iZation of the latter line. which it is
now expected will take place early in
1897, the Short Line will take full pos
session of the Navigation company's
property. including the water lines.
This action was not expected in the
railroad world. Both properties were
formerly operated by the Union Pacific,
but have been under separate control
since that system was forced to the
wall.
The Naviga company was prior
20 its requirement by the Union Pa
cifc owned Jointly by the Union and
Northern Pacifics, and for the interests
Of boih. was operated Independently.
How the Union Pacific gained full con-
trOl is a matter of past history. But
ii has been a question for many months
whether the Union Pacific would be
sole to retain its hold on the o
lies when The reorganization was eff
fected. The Navigation company was
sold under foreclosure a short time ago
and as the old officers were placed in
control again, and it was known that
hey had been not altogether friendly
to the Union Pacific. the impression
was created that the Union Pacific had
lost its grip. and there has been talk
Of Great Northern control. receiver,
now president, Mcneil, having been
flirting with the Great Northern during
the receivership.
U. P. CONTROLS 1T.
The reports received in the past few
days dissipate all such ideas. and it can
be stated positively that the Naviga-
lion company is as completely under
the Union Pacific control as it ever
was, though of course there will be no
apparent change in the management Of
the property until the Oregon Short
Line emerges from its receivership.
The Short Line held a majority of the
stock before the reorganization and the
story now goes that an additional block
of securities was transferred but a few
days ago which firmly establishes the
Short Line in control, and when the
reorganization occurs the two proper
ties will be merged into one for operat-
ing purposes. Receiver Anderson, when
in Denver recently, intimated very
strongly to the News representative
that w. H. Bancroft would be made the
head of the Short Line and S. w. Ec-
cles the traffic head, and it is stated
that these gentlemen are also to be at
Inc head Of the Navigation company
before the birds come again. This Is
10 be expected from the attitude Of the
Navigation company officials during
The receiversnip, for, although they had
been closely allied with the Union Pa
d;Gc for several years and several Of
them were placed in their positions by
the latter company, no sooner was the
recefvership announced than almost
any old line was better than the Union
Pacific.
MORGAN COMMITTEE HOLDINGS.
The Morgan committee which is
moving in the direction of reorganiza-
don of the Short Line, already controls
more than a majority of the securities
necessary to effect the reorganization,
but there are many difficulties to be ov-
ercCme before their work can be per-
fected. These people are also inter-
ested in Union Pacific matters, so 1t
can be readily seen which way they
will lean after the work is done.
1t is believed they will be able to
bring about a reorganization Of the I'm.
ion Pacific, without aid from congress
and this they are not likely to receive.
1t is not, however. altogether certain
that they really care very much what
congress does or does o do. Seven
years ago the News, in discussing I'm
ion Pacific affairs. openly charged that
The officials Of hat line with planning
to cheat the government out of its just
dues. 1t was pointed out hat they were
getting the affairs OF all branch lines In
such shape that they would form a
pretty good system by themselves with
a few gaps filled up. and that IL the gov
eminent refused to extend the time of
the loan, they could tell the govern
ment to take their road-the govern
ment aided portion-and would have
left a great system built up out of I'm
ion Pacific earnings. This caused a
howl Of denial to go up from Omaha,
but n are proving the truth Of the
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