his principals, as there were indications that the advantages of the combination suggested by himself for the joint control of the Union Pacific and Northern Pacific for their common good had so impressed the managers of the Union Pacific that they themselves contemplated acquiring control of the Northern Pacific through the Oregon & Transcontinental. As the Deutsche Bank had already made itself morally responsible for the introduction of nearly thirty millions of Northern Pacific and Oregon Railway & Navigation bonds into the German market, this prospect was a serious matter, since the Union Pacific would surely manage the other companies mainly for its own benefit. It would also mean the loss to the Bank of the current business of the two companies, and of the steadying financial influence over them which the German bankers wished to and were entitled to exercise. The conclusion was reached that Mr. Villard should resume the Oregon & Transcontinental presidency, and that, in order to give him a proper backing, a syndicate should be formed to buy and hold 75,000 shares of the company's stock. Accordingly, he was chosen president on June 28, 1888, some weeks before his return from Germany.
From Berlin, Mr. Villard went to Karlsbad for treatment. While walking there on the principal promenade one day, he was surprised to meet Mr. Gardiner M. Lane, assistant to President Adams, who said to him: I came here by special order of President Adams to deliver an important message to you by word of mouth." Mr. Villard suspected at once that he had changed his mind regarding the settlement between the two companies, and so it turned out. The message was, in substance, that the contract could not be ratified by the Union Pacific unless certain modifications of it were conceded. As these seemed to him unimportant, he cabled at once to the Northern Pacific, recommending the concession. The reply came that it had already been made, but that the Union Pacific had backed out of the agreement altogether.
