The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1898-11-02
THE RAILROAD SITUATION.


cation to the business manager
THE RAILROAD SITUATION.
Events are Fastening. For two weeks
past tho dispatches have been fore
shadoving the consolidation Of the old
u. p. lines west OF salt Lake under one
management to be operated from Port
land. The statement was that this was
10 be done at the forthcoming meeting
stthe new board OF directors Of the Union
Pacihe That meeting was held last
Thursday in New York. when President
Burt and the old U. p. ofieers were re-
elected. On Friday the annual meeting
Of the Short Line was held also In New
York. The new board OF directors. by
an infusion OF L. p. directors. was prae-
ticAEy absorbed into the Union Paeihe
system. But Mr., W. d. Cornish was
elected president OF the short Line in
place Of Mr. Carr. indicating purpose
Of distinct operation. though under con-
troll Of the Union Pacific 1t is known
tho latter road is In the hands OF the
Yanderbilts, Al the same time President
Hartman Of the Illinois Central is chair
man OF the L. P. board OF control. lndi-
eating mos, powerful and harmonious
railroad combination and revealing the
"hne Italian hand" Of Pierpont Nor
Ean.
The dispatches from Chicago. evidently
az cathedra. say the vanderbIts will
leave the ogden gateway open to the
southwestern roads. recognizing that
those railway magnates have at las,
achieved the great object OF their ambi-
Ton and have now an ocean to ocean
route The absorption OF the o. r. &
n, prehgured in the dispatches, has not
As yet been announced 1t. too. will no
doubt take place very shortly. The
power to make that absorption is in the
hands OF the vanderbilts and there is no
reason for delay. The common stock
u the o. r. & n. Company is s2i.OOO 900
and It's preferred stock Is sli,WOOOo. IN
der the plan Of reorganization in 1855
or the common stock. the Short Line
owns about fourteen and a quarter mil
Hon dollars worth. OF the preferred
stock. the L. P. owns some three and a
half millions. so that the two are in prac-
teal control OF the o. r. & n.
Under that plan OF reorganisa-
ton. a voting trust was created
whereby the preferred stock was
given control Of the o. r. &
N. until 1896 for the purpose OF securing
their annual interest. amounting to t440.-
900. BY the terms Of that plan. also, the
majority owners Of the stock have the
right to dissolve that trust and take the
road into their own control by guaran-
teelng that annual interest. Upon dis
solution OF the trust. the preferred stock
only votes as common stock. It thus
appears that the vanderbllts have it in
their power to take control Of the o. r.
& Non what terms as to notice and
time does not at present appear The
tenor Of the dispatches. though. is that
# may be done at any time when the
prescribed guaranty shall be furnished.
The selection Of Mr.. Cornish as president
Of the Short Line in place OF Mr.. Carr
would indicate that he will also uispiace
President Mohler OF the o. r. & ". and
become the single chief executive Of the
consolidated road west Of Salt Lake. to
be operated from Portland in nominal
independence. but under actual control,
Of the Union Pacific.
The point Of deepest interest to Astori-
ans is whether or not the A. & C. Will
also be absorbed and become part of the
Vanderbilts ocean to ocean route. There
IS every indication that such will be the
ease. It is now believed that Mr.. A. B.
Hammond and his four associates Cn-
cluding Mr.. H. f. Huntingdon built the
road for the Vanderbilts as a part Of
thel- projected ocean to ocean route. 1t
IS one OF the most substantial roads in
the United States It was built under
the approval and with the concert Of
Mr. C. P. Huntington and Of the mana
gers of the Northern Pacific, of whom
Pierpont Morgan, the finance minister
OF the vanderbilts, was the chief, as the
umpire Of the voting trust Of that road.
The A. & C. r. r. was doubtless built
as part Of the great combination of
American transconhnental railways