Page:Memoirs of Henry Villard, volume 2.djvu/359

executive officers, for investigation and report. This brought up the general question whether it would be wise, with regard to other roads, for the Northern Pacific to establish its principal eastern terminus at Chicago instead of St. Paul. There were strong reasons for and against the change. In the board, too, opposition was shown at first, but, after the operating and legal advisers of the board had, upon long consideration of the subject in all its bearings, recommended the lease of the Wisconsin Central and the terminals, it was authorized by resolution of the board on April 1, 1890, and executed. The terminals were organized and leased as a separate company under the name of Chicago & Northern Pacific. In its organization, the chairman followed the same plan that had proved so successful in the case of the St. Paul & Northern Pacific Company, so that the Northern Pacific received one-half of the stock as part of the consideration of the lease. It was expected that this stock would, as in the other case, become valuable assets. These consequential steps, which were believed to be a great advantage to both lessor and lessee, turned out to have been grave mistakes, and were corrected in the reorganization of the Northern Pacific.