Wednesday, March 3, 2010

First Big Bend Railroad "Merger"

From "History of The Big Bend Country."


Fourteen years prior to the important decision of the federal supreme court in the case of the Northern Securities Company's "merger" Lincoln county found herself with something in the nature of a "merger" on her own hands. This was in July, 1890, and of the it the Times said:

     "Rumors have been in circulation here for some days to the effect that the Seattle, Lake Shore & Eastern Railway Company had fallen into the hands of the Northern Pacific. The following telegram from President Oakes, of the Northern Pacific Railway Company to the Spokane Falls Globe confirms the report:

     "'The Northern Pacific Company has purchased a little more than a majority of the capital stock of the Seattle, Lake Shore & Eastern--that is, about $3,000,000 out of $5,000,000--and has leased the remainder of the property upon the basis of six and three-quarter per cent interest on the outstanding bonds and the further issue of bonds to complete the line to the International Boundary, a total of about $5,000,000. The annual rental will be about $8,000,000, but inasmuch as the Seattle Company has thus far earned its interest, the Northern Pacific is not likely to be called upon to make good any deficit. The Northern Pacific will enter up on the operation of the Seattle road on the 25th of July.'"

This virtual consolidation of the two lines was particularly unsatisfactory to both Davenport and Spokane. The former town had expended several thousand dollars for the purpose of securing a competing line into the Big Bend Country, while Spokane had subscribed $175,000 in stock to the Seattle, Lake Shore & Eastern road.

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