The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-11-15
Al WORKING N HARMONY.
HeetheFn Pacific, Great kortheRn
nnh O. n. 4 n. All Controlled IN
Conmon-Tshe &. N. anA q. r. Hay

The process OF liquidation and reorkarixa-
.tsr, through which the railroads Of the
Pacific Northwest have been paastng a. q
consequence OF the prolonged period Of de-
prerason which closed with the advent Of
the Mckinley administration. IL now almost
completed and has brought about some rad
zeal changes In the relations OF the several
roads with one another. Harmony .sas
taken the place OF cnt-fnrost competition
Ard rigid economy has succeeded to the
exfavagaEce or unwise extension which
landed all the roads except the Great
Northern in bankruptcy Formerly some
roads were used to boom townsites by the
corstruction OF branches through stretches
81 country which produced little or no traf-
&c. Now every railroad company and rail-
rad official Is attending strictly to the
rafiroad business. The lessons of the panic
have been burned into the minds Of railroad
men AZ .fhers. by hard experience.
The most important change wrought by
yeo,. ArlxatIon Is the community Of inter-
ess established among the three great
frarscontinental lines which traverse
Washington. and the harmony Of manage
nasut which has arisen therefrom. Before
the panic. the Oregon Short Line and the
o. N. eor3pany's road were practically
absorbed IL the Union Pacific system,
msinlaining their separate corporate ex-
btenec only In name; the Great Northern
had just been extended ia the Sound and
begun q war to the death for supremacy
nxainst the Northern Pacific: the latter
road was lettering into bankruptcy, bur-
dened with q large debt at q high rate OF
interest, much of which had been incurred
a tie construction of branch lines through
sparssIy settled country to almost unIn-
habited townsiten
One result of reorganization has been
common TO the Northern Pacific, Union
Pacific o. X. d. n. Company and Oregon
0forf Line The Old stock has been wiped
out and the old bond issues have been re-
placed by new ones less In amount and at
such reduced rates OF interest as to place
the fixed charges within the reasonable
earning capacity of the roads and leave
the stockholders some hope OF dividends
The ownership OF the roads has passed
into hands strong enough financially to
maintain and operate them efficiently and
make such improvements and extensions
- the development Of the country may de-
mand. The management has been 50
changed that II may be expected that they
Will be operated tc serve the public and
Is railroads. earn interest for the bond
holders and dividends for the stockholders
without being prostituted to the promotion
- ss$SssAD SthSAeSS At Wif-ii lktlT OFFICIALS
are interested.
The most startling fact which has coma
&c hgnt IN the course OF the period Of re-
organization Is the community of interest
Wnicn exists among the owners of the ma.
sorisy OF the stock and bonds OF the three
main Washington rai,rnads-the Northern
, Pacific. Great Northern and o. n q n
The herman syndicate which holds the
son'solling interest In the Great Northern
mas secured II not the control. nj ieas,
90 large an interest In the Northern PACT
nc securities as 10 be able TO assert a
claim to representation among the on
eia's Of the latter road, and Il Is under
$1,000 that the appointment OF Col. u. 8
Lamont as vice president was made as a
concession to this interest The resuf. .s
perfect harmony between the manage
menfs OF the two roads. President Hill. OF
the Great Northern. attempted 10 secure
ccn'roi OF the Northern Pacific. but was
ceIea'ed IN the Minnesota courts. the law
o. taat state forbidding the purchase by a
iahfoad company OF a competing line He
mas practically attained the same end in a
diuerent way. and now each road Is run
Independently. but without any apparent
competition with the other.
Inc dissolution Of the Union Pacific sys-
tem bf tie appointment OF a receiver for
Tue main iine and of distinct receivers for
.ne several roads which had been con-
uoiied or 1t. has had equally far-reach-
rs eHee's. having afforded the Great
HeaIhefn an opportunity TO secure a con-
ifoHing influence In the management ~
vac y. x. & n. Formerly the Union Pa
cue held the controlling interest I'm the
pfe&on Short Lac. which In turn con-
uoiiea TIE .. X. a. N. line. and thus they
became absorbed I'm the Union Pacific sys-
Nm. Not long after the opening of the
Nceivership era the Great Northern made
uamc contract with the o. r. & N re-
ee'Ses. by which II secured an entrance
from spokane to Portland. This int,icat-
s ga close sympathy with the hondhoid-
sfs. who probably dictated the policy OF
sne receiver, and since the reorganization
~ the " X. & n. IL has been officially an
Huanced that the Great Northern has pur-
chssed a large block OF the preferred
sock, IN fact. II Is understood that a ma
!orl.y or the preferred stock OF the .. n.
n is owned or controlled BY the same
1esnian syndicate which has a large, and
passiely controlling. Interest, in the
uNat Northern and Northern Pacific.
ender the terms Of the Q. r. a ~. re-
assimilation agreement, the preferred
s'aex controls the operation of the COM
Fshy until dividends aggregating 20 per
cent have been paid 20 the preferred
stockholders, the original proposition be-
''iS W pay pc! cent. per anHun for I'VE
years When such dividends have been
PAD the common stockholders are to have
IN equal voice In the management The
control CT the common stock is held BY
the oregon Short Line. which could. there
fore. at any time by advancing the % per
cent. or dividends or such portion as re-
manned unpaid, obtain control OF the prop
cry. As 10 vino now holds the controli-
ing interest In the Oregon Short Line, II Is
impossible 70 tell. The control formerly
rested with the Union Pacific people. but
whether II viii finally reach the new COM
tany formed by the reorganization com
mittee of that read IL as Yet an unsoived
problem. II the Union Pacific. as reor-
CANNED should be found 10 coutrol the
Short Line. the O. r. & y. will fall under
us management. for the new financial
heads Of the Union Pacific are amply able
70 advance the required % per cent divt-
dends whenever business reasons warrant
them In 80 doing
But, IN view OF the large interest held
ny the Great Northern and by the Ger
man syndicate. which holds such large
interest In that road. the Northern Pa
ellie ard the - x & n. IL ia reasonable
70 expect that the Union Pacific would
meet strong competition from that quar-
yer In using its voice IN Oregon Sheri
lane affairs to REGAIN control OF the -
- y. Since tree separation OF these
western connections from its system the
Union Pacific has had no more rights
over them than sny other connecting
-