A Big Consolidation - WC & NP

Milwaukee, Wis, Oct. 9. - A private letter written by President Colby of the Wisconsin Central Railroad to a stockholder of the Northern Pacific system reveals a gigantic railway consolidation that will connect the two oceans and revolutionize international railway traffic.  It was never intended that the letter should become public.  It contains the inside workings of a great scheme, which is not yet entirely completed.

The consolidation of the Wisconsin Central and the Northern Pacific systems in amicable traffic agreement was the first step.  Henry Villard has secretly been at work to gain possession of a controlling interest in the Northern Pacific, and has formed an alliance with Charles and Joseph Colby, who have unlimited means.  Through this alliance a majority of the Northern Pacific stock has been secured.

Henry Villard will be restored to his lost estate by being made President of the Northern Pacific system.  All his former enemies will be shorn of their power, and one of the greatest railway consolidation in the world will be consummated.  Even now the contracts have been signed whereby the Baltimore & Ohio Railroad is to enter into an agreement with the consolidated Wisconsin Central and Northern Pacific lines connecting the two oceans.  The Atchison is also in the deal, reaching Mexico and southern California.  Chicago will be made the centre of operating the three great lanes.  The Northern Pacific will be extended  from Puget Sound and built into Alaska, making a continuous line from New York City to Sitka.

Baltimore, Oct. 9 - In the absence of President Mayer, who is attending a coal meeting in Philadelphia, Vice President King was shown the story of the Colby letter. He said that as far as the B&O is concerned there is nothing in this report; which is started to affect the market.  The Wisconsin Central and the Northern Pacific are of course already on very pleasant terms, but it has always been the policy of the Baltimore and Ohio and other trunk lines east to avoid any affiliation with western roads at Chicago to the exclusion of others.  It is more profitable to be independent.

First Vice President Orlando Smith also denied the story,   saying that when the Baltimore and Ohio inspection party were in Chicago recently they looked over the terminals of the Wisconsin Central and made a short trip over their terminal road, and to this fact was doubtless due the manufacture of the story.

NY Times Oct 10, 1889