The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-02-12
NOT ALL PEACEFUL.
EAEAT NORTHERN BRINGS SUIT
AGAINST NORTHERN PACIFIC.
m Jsserestfng Case I'm st. Paul Ia
yofvfng a much Disputed Lease
There In An Important Deal on
Between the same Two Roads

Il spite OF .he olive branches ard bot
essss taat fse pres.dents Of tie sortnsrn
TacsAc ard Great %o-raera are alleged 20
have EXCHANGED rs.Affve 70 re co-oser4-
fioa with re Union PactEc - re saAlss
Of Use Oregon EaslwaT e. Savag4ttca, TIA
tao rozas are a. ioggsrheses on a. gen
era gEDDcxsE 4ons cD1nSrE41s f1eAr OWL D1s-
fsess, Asla they are ncw e. s hammer and
toaEx n g. Pau. Last Friday sur Tss
co1u1neE1eE II Ire district c9arE o. Ramsey
county ~ tie s. PAU. Ninaea polls *
MANITOBA AMI TIE Great %orfaeTn roads
szs..zsG ne NortaeTa PaciHc Company %
enforce ne provisions q the leases under
which the Northern Pacific Railway Com
paay made use % tracks and facilities OF
fae Manitoba between 81. Paul and Mime
a2ol.s ard ire Minneapolis Cnlan Railway
Company. Tne complaint IN substance a.
IeEss that the Northern Pacific Railway
Company has succeeded 70 and bscoms
heurd BY az tho terms and obligations 81
fae Northern Pacific Railroad Company
lease
The lease was executed October !, i%2
and runs for twenty-five years. and me
rent. according 70 the complaint, Is 20 Dc
paid whether use II made under the lease
OF the tracks or not. The Northern Pacifie
Railroad Company was bound 10 run It's
srzins over the ieazeS tracks by the terms
OF the lease. Tho complaint charges that
the contract covere! many matters outside
sracksge rights in s.. Paul. Minneapolis
ord the Minneapolis Tsien: that the
Northern Pacific Railway Company has
adopted the lease IN part. ard mas thus
become bound 10 recognize IL as an en-
trety.
After reorganization tire Northern Pa
efnc Railway Company gave notice 20 the
Manitoba and the Minnes polls Union that
It Was not bound by the leases, and there
upon made an arrangement 70 use the
tracks and depot OF tho Chicago. Mlwa8-
tee a ST. Paul into M!nnss polls. and run
Its trains over It's own tracks between s..
Paul and Minneapolis. General Counsel
Grover. OF the Great Northern. conpisfed
his documents In the case. and the action
began with the fling % the papers IN the
district court last Friday. II is under
stood that the Northern Pacific has ar
ranged TO make strong fight. having been
aware from the first that the Grsa, North
srn would try 20 enforce the terms OF the
old leases. The Northern Pacific VIII try
90 show that Il ik not bound BY contracts
The old company made and the case viii
be very interesting 20 iegs talent and rail-
road officials generally al over the coun-
cry. as a test case which Will 20 far 70 ss-
tsblish an important precedent. The
Northern Pacific. while abrogatlng q con-
tract II made for the use o. Great North
ern tracks. sought 70 compel the 500 line
90 comply with the terms OF g contract FOR
the use OF Northern Pacific tracks. This
fact. however. has no legal bearing on the
texue between the Great Northern and
Northern Pacific.
Following up the matter published in
yesterdays Post-Intelligencer regarding
the railroad situation as applied TO local
interests review OF the situation. as
considered from speculative standpoint
HiH not prove tina propros, The New York
Times treats the sublect as follows:
"The recent activity in Northern Pacific
stock and bonds has given rise 70 many
Tumors regarding the pending deal IN
vnlYlng the newly reorganized property.
Much % the buying has been done b.
houses who have many times been con
Hpicuous operators for Mr. ]. J. Hlll.
president 81 the Great Northern road.
This fact las been tire basis for many
stories telling Of coming tranic agree
Tnents between the Northern Pacific and
the Great Northern, and OF thR future
harmonious relations between the Two
systems
"in connection with tals rossip a prom
trent Wall street man. who rgs been
closely Identified with the Northern Pa
cinc road far many years. said yesterday.
Z" You may he assured that there Is an
importe nt deal pending between two OF
fhe ErsAt railroad systems % The North
west The activity n Northern Pacific
stock was rot without rs meaning
have good grounds for stating that with
IT AHE next ANFtNi&Hk ~ All HtEENf VIII be
surprised with news regarding this nat
Ter thar viii tcu Of n combination %
powerful interests
" I an not al liberty vet TO dlvulge any
particulars. but there are ore or Two facts
80 be considered that VIII give some clue
20 the nature 81 coming events The Nor
gan syndicate IN Northern Pacific IS about
90 be wound up. on February I the Sc
eurities held VIII either be disposed OF or
divided among the syndicate members
There are now In the syndicates treas
ury $4,000 shares OF Northern Pacific
common. The syndicate originally hold
about 2ts.ooo shares OF the common stock
and al bout ~ 000 shares or preferred The
latter. think. has all been disposed OF
and a small block ~ the common has
been sold. In It's years existence. the
syndicate has paid 20 its mem hers about
per cent interest on the money ad-
vanced. and about per cent IN commits
sions.
:" According to wsn street runner the
syndicate Is negotiating Vita a Western
road 20 take of is hands a block % Sc
curities now held. The Great Northern Is
named IS the probable purchaser Tho
stock so bought would not give the pur-
chasing company control 81 the Northern
racldc. hut would put u IN a condition
whore II could make most advantageous
traffic arrangements and lessen the dan
ger OF competition.
q" Suppose the Great Northern should
take from the syndicate its holdings at
say. SIS share issuing Per cent bonds
Tor The money necessary for the purchase
AAc tNfsfNat on fNF%@ N1fslN would amount
70 less than Sao0 40 year The eonner-
ton So made would he worth a rreat deal
more than that 20 The bGycr. These are
only random figures. but they give some
idea OF the advantages Of such a pur-
chase.
." The truth ~ the matter viii not he
inag In coming cat. According 20 ms IN
formation. the deal is almost closed and
fun particulars VIII 20 published within
the next two weeks"
The mere fact that the unnamed Wall
street man allowed him8sif 90 be quoted
a. very Mise and very secretlve Sc sure
evidence az an ignorance ~ NE situation
He teid aothl1s that has not been sent out
from g Pan az coming arst from Nv
York. TIE reference 10 the Great North
eyn's purchase % stocks T. upaouhte4tv q
reference - thc tclnt requirement % con-
trol hv that road Ire Uncn a0d IA
Northern Paci1c - the oregon Railway
& Navigation. L "a rot necessary % so
a. New York for news fAat haz thrre enf
a stock market Interest. wh-o the great
Wess Is the gamer ~ ioser hv pooling
az issues There - ne hing "a indicate
any f,fut arrangement between tNe taa
Y1fHs etser tAsa already p4s,.ssed in the
Posi- ntel.ixrrecv.
Railroad RHd industrial Notes.