The Price of Rail Dominance
A clash over mileage rates and interest terms strains the relationship between the Oregon Railway & Navigation Company and the Northern Pacific.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
The Oregon Railway & Navigation Company recently gave notice to the Northern Pacific of a desire for a change in the traffic agreement by which the Northern Pacific uses the Oregon Railway & Navigation Company's road from Wallula to Portland. By the present arrangement, which is perpetual, the Northern Pacific Company is entitled to sixty-six miles extra mileage on the OR&N road. The OR&N company not only wants this part of the contract rescinded, but asks for another mileage concession for itself on the ground that it is the character of the road and it is entitled to it. A hitch has also arisen between the company and a syndicate regarding a $14,000,000 consolidation loan, due to the high rate of interest (9 per cent) demanded. Officers of the company seem unwilling to pay such an exorbitant rate while money can be borrowed elsewhere at 4 to 6 per cent.
“A hitch has now arisen between the company and the syndicate, on account of the high rate of interest (9 per cent per annum) which the syndicate demand.”
The struggle for control over transit infrastructure and the push-pull of monopolistic agreements are historical echoes of the ongoing regional debates regarding public versus private control of transit and the power of large corporate entities over local geography. The route from Wallula to Portland remains a vital artery of Northwest commerce, albeit with far different financial stakes today.
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