The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-11-14

&TN ~ Iste Ise1ry willard can BE- at-
fS1bu1ed t,,s Inception of the mcdsrn trust
"a a seem within the past two or three
Eaaru The development has been large
The work Of promoters who contract
~ ~ purchase Of Z large number Of
nosn,lH y ossse n Inc same line % business
: cnsciIdate them In one large corpofa-
N,s.. winch Il ca6etalised for an amount
Eerro1y IN sxcess OF the purchase price
81 ths original institution. and then un-
Nod the capital stock and bonds upon
6rsss s~usr Tor 'investments Of the
&haracsev. the promoters taking the encr-
2ncus prollts watch resuIt from the over
&aploalisasion ~ the so-caiied trust
s 1ssw Mhe al this y 10 The methods Of
NJ. WIZARD. IN the Pacific Northwest,
eese .twensy years ago; the main difser-
nss heing that Mr., Willard FIRST pro-
setsn % I assassination Of properties with
As,xy ovsr-cxpitallsation. and then to a
bulssu~ent consolidation.
81 NJ. Wizards frst operations in the Pa.
GiAo Nssthwsst were in obtaining con-
Hrol o. the Oregon steam Navisaticn
Nompsny. ptecc Of enormously profit
Abse property. owned almost entirely by
$partiand cspits,asts. Through Its steam-
Neat lines ON the Columbia river and the
1870 small pieces OF railroad around The
.pnlass and the Cascades. that company
! sebntrolled the only transportation system
ffca tho Pacific coast into Eastern Ore
4on, Eastern Warrington. Idaho and
Montana. The Oregon Railroad a Navi-
CATION was the creation Of Mr.. Willard
IN this basis. aud ysilroai was extend
~ and built to take the place az ths
1 suater transportation lines. Then he en-
tended his operations to Puget sound AMI
for . relatively small sum obtained con-
eroi Of the Newcastle coal mines ana the
narrow gauge railroad extending from
seattle 10 the mines Two companies
were created 10 handle these properties
sfsWish capitalization many times create!
/, than the whole purchase price. win
4 these properties az nucleus. NJ. VII
lard created and Hossea the ssoeks and
/ hpnds cf many different corporations. al
with heavy issues OF both stocks and
Il bonds among which win be- recalled the
z Dragon Improvement Company the Pm
'seet soussa Shore iine. 10 hnila srd oper'
I. ats the railroad connecting Seattle viii
/. the Northern raclae; tho Columbia a Pa
get Sound. 10 operate ana extend tbs
! narrow gauge: tho Northern Pacific Ter.
minai Company; tho Pacific coes, steam
. shtr Company. and others. which went
down In the wreck and have BEEN fargo.
! ten, Al OF these companies were init
s usassiv interviewer, In their operation ans
Ia their financial afsalrs. ard the aggre
gate capitalization was enormously IN ex
\ GEES OF she actual values Of an at IN,
\ propsssies awaed hy them. AN ~ IN.
stocks ana bonds ~ these various com
\ changes and srnEng At the market rrlcel
for these various securities the hackers q
Willard realized frsm his anancial oper
atiens enormous pronsS With this show
Fias. other capitalists were eager TO tak.
part IN his operations and II was az ea~
matter FOR him 90 aoat his famous "hlin.
pco'," ard shss obtain meney smsscsen'
90 secure eontrei 81 tae Northern paeln,
I rssireaas To carry e shrengh 70 compile
slon. and then 10 consolidate an Of tho.,
3 various corporations Into onc sigants,
Z truss the Oregon Transeonslnental
I which was organixsa 20 hold malorl,,
OF the stock. and consequently the ahso
aqte control Of al of the allied com
aries.
AASraksn altogether. this was one of tn
\ ost gigantic financial sehemes ever sue