The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-10-11
NEWS OF RAILROADS
PRESIDENT AELLEN, OF THE
NORTHERN PACIFIC, SAYS
PROSPECTS ARE GOOD
LAST WINTER WAS UNUSUAL

lars Were Saved That Are Usual
1y Spent Keeping the Tracks
Clear of snow-Union Pacific
May Eventually Get CntroI of the
Oregon Short Line.
President Charles S. Mellen, Of the
Northern Pacific, returned from New
York yesterday. During his absence
the stockholders and directors cleo
tions have been held and the former
officers were all reelected. The only
change in the board of directors was
the substitution of George A. Baker
large stakeholder in the road, in
place Of Francis Lynde Stetson. Mr.
Stetson remains general counsel to the
company.
THE Northern Pacific" said Mr.. Mel
len to a reporter for The G o b e, ode
clares q dividend of 1 per cent on it's
preferred stock, which will be payable
Dec. l. The reports that a disa gree
ment exists among the directors, so far
as L know, are without foundation.
did not observe any difficulty. There
Is no reason why the stock should be
affected by such rumors."
Mr.. Mellen said that there was no
doubt that the Union Pacific had OBJ
tanned control of the Oregon Short Line
and that 1t had secured a clear way
to Portland and coast traffic That
had been anticipated for some time
by the other transcontinental roads.
He also said 1t was not improbable
that the Union Pacific would eventual
ly gain control of the entire Oregon
railway system.
''The Union Pacific" he said, "holds
a majority Of the common stock of the
Oregon Railway and Navigation COM
pany, while the Northern Pacific and
the Great Northern hold about half Of
the preferred stock Of that company.
1t is stipulated that until the Oregon
railway company pays 20 per cent divi-
dends on the preferred stock the North
ern Pacific and the Great Northern
shall control the road. We elect ten
of the fifteen directors. The Oregon
Railway and Navigation company has
thus far paid about Is per cent divi-
dends, but if the Union Pacific inter-
ests should pay the other per cent on
the preferred stock, then the common
stock would control the company.
There is twice as much common as
preferred stock, but the common cam
not control until the agreement regard
ing the preferred it fulfilled"
Mr.. Mellen was questioned about the
annual report which was recently
issued and the criticisms made that it
was too. good q showing for railway
company to make, the idea being that
it should be seized upon as a pretext
for hostile legislation.
81 do not know about that" replied
Mr.. Mellen. 81 have not had any ex-
perience with legislators in this sec
ton of the country, but, If the legis-
latOrs who anticipate any such action
against the company will look back a
few years, they will not find that the
prosperity Of this company has been
such as to warrant them in sharpen
ing their knives now"
Mr.. Mellen said an understanding
with the Oregon Railway company had
been reached as to the proposed new
Pasco branch of the Northern Pacific,
and it would be built. 1t is a small
line and will cost but about $780, 600 No
other extensions Of note were cOntem-
plated by the Northern Pacific, though
it was the company's policy to get new
connections whenever desirable. Speak
ing generally of the road Mr. Mellen
said that while the outlook for bust
ness this winter was excellent he did
not think the line would be operated
as cheaply this year as last
ut is our policy" he said, 'to re-
trench wherever we can, and we shall
continue to do so, but the last winter
was remarkably open one and favor
able to reduction in operating expenses.
We were saved many thousands OF dol
lars usually spent every winter in
keeping the tracks clear of snow, and
there were other favorable conditions
which we cannot expect this winter.
On the other hand, We have an excel
lent prospect Of good business, so the
receipts will more than keep pace with
past years"