The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-12-02

Union Pacific common stock. A further
dispatch received from New York last
night says:
eat a meeting of the Union Pacific rail-
road directors. held in this city today, il
was decided TO recommend to the stock
holders. at a special meeting 10 be called
for the purpose, that authorization be
f Ior an. an * AN OF nnS har tace
Company. 1t is proposed that in the event
of the stockholders ratifying this action,
exchange shall be made for at least two
thirds of the Oregon Short Line, while as
TO the remaining one-third, the matter OF
exchange shall be left to the discretion of
the Union Pacific directors. BY. the pro-
posed exchange of stock. the Union Pa
cific will be placed i'll a position whereby
1t will be enabled to elect one-third Of the
board of directors OF the Oregon Railroad
& Navigation Company
Under the existing voting trust OF the
latter, the preferred shareholders elect two
thirds of the board OF directors and a ma
jority of the preferred stock it held in
escrow for the joint benefit of the Union
Pacific. Great Northern and Northern Pa
cific companies. The ownership of the Ore
gon Short Line stock by the Union Pacific.
therefore, will give the Union Pacific the
control of the affairs Of the Oregon Navi-
CATION Company. and therein lies the chief
significance of todayS ACTON Dy the Union
Pacific directors
The foregoing would Indicate that the
several interests that seem 10 have COM
bined to fight Mr.. Hin and invade his ter
ritory had raised the money necessary TO
pay of the interest Indebtedness hanging
over the Oregon Railroad & Navigation. IL
this Is the case. Mr.. Hill will be shut out
for time from a valuable territory. A bat
tie however. Is never won until fought out
10 the end and Mr. Hill's fighting qualities
and resources are so we'll known that all
reports from his enemies must be taken
cum grano sails. Mr. Hill is wideawake
and in close touch with every move made
taI .j,,Sst 3ra RaSidaS
he is personally acquainted with every foot
Of the ground of his own territory and the
territory of every one of his competitors.
which gives him a decided advantage over
the railroad manipulators of Wall street.
AT present Mr. Hill is saying little. but
Saving wood" and while in touch with
New York by wire. he is on the road at
tending TO the operations and develop
ments OF his Great Northern property. The
following message was received last
night from New York. reproduced from
yesterdays New York Herald:
persons usually well informed in regard
to James ]. Hilrs position in the North
western railroad controversy assert that
Mr.. Hill and his friends have sold all or
their Northern Pacific holdings. They de,
clare that Mr.. Hill is not little disguised
over the tactics of the company IN taking
advantage of the Great Northern and the
other companies that formed an agreement
for the regulation o. the extensions IN
Hill they say viii now show them that the
Great Northern does not propose TO be
imposed upon, and they : thlnk th At It IS
posed extensions in the Northwest Will now
be renewed In lively fashion unless some
body backs down. and this will not be done
They say ]. Pierpont Morgan, who is
the directing spirit of the Northern Pa
cific which caused all the trouble by pro-
jecting the Clearwater Short Line, said
that so far as he was aware, Mr.: Hi had
not changed his attitude toward the North
ern Pacific.
The effort OF the Union Pacific to get
control OF the Short Line is said 10 be In
line with the plan OF battle mapped out
by the Morgan interests which not only
control the Northern Pacific but which
as The advisers of the VandeTbilts are In
a position 10 touch the key that moves the
Union Pacific. The many advantages that
would accrue to the Nanderbilts by secur-
ing control OF the Short Line and o. X.
& n lie In the fact that II would make
them the only really tranacontinental line
in the United States. and with the Great
Northern shut out OF Portland's territory
the Vanderbilt Morgan interests would
have Il ali their own way. All OF this
is feasible providing there Is money enough
brought to the West 20 swing the deal
While 1t is not an easy matter 10 get
al the details OF the financial status OF
railroad companies the following condl-
ton of the .. X. ~ n. is supposed Il, be
correct:
The .. r. &. n. common and preferred
stock is about s24aa,t.r OF this xIGpsla0
Of the common stock is owned by the
Short Line. fait OF the preferred stock
abou, 81 ,.sCs of It under the reorganixa-
ton agreement OF 1897, controls the road.
and Il is presumed that the Union Pa
ciiic the Northern Pacific and the Great
Northern. each own one-third OF this pre-
ferred stock. so that the control Of the q
T. & y. viii he In the hands Of any two
OF these three roads that chose to act
Jointly.
According 10 the Reorganization agree
meui all the stock or the company could
not vote at the annual electhon
until al interest account Of aF,at,
g. an.G.ro due the bouGhulders, should have
t.4en paid Therefore at any time that the
common stockholders. that IS the Oregon
Short Line. shall pay $4,000. tbey bv
virtue OF ownership OF the majority Of ali
the stock can control the road and All i,s
Interests y ~ months axe there WAS q
surplus Q. s15nluo In the o. r. 4 \
treasury which could 6a applied 70 This
interest account. Thus the common
Stockholders. that - the Short Line ctrs{a
by adding 10 this surplus amount the aff
ference, $1,000. pay off me interest and
acquire she right - vote which at the
frs, annual e.ec.lon would give them the
full control % the - r. * y Wnerh4r
OF not this Is tae situation a. rs-e4ert ana
whether the Short Line i awaiting IN,
next election 20 assume control Is sgeg{ila-
tive