Evening star., 1901-05-06
GIGANTIC RAILROAD DEAL
RUMORED MERGER OF FOUR GREAT
INTERESTS.
Plans Made Four Years Ago--One Ex.
planation of Burlington Trans-
fer-HistOry of Scheme.
Plans Made f,

A special to the New York Times from
st. Paul. Mimi, says: A good deal has
been accomplished, says close personal
friend of J. J. Hill. in the consolidation
of the Burlington railroad with the North
ern Pacific and Great Northern, but the
undertaking outlined in New York in 1898,
just after peace was declared in the war
with Spain. has only begun. The next
move will astound the world. 1t is move
meut undertaken by New York tnanciers
at the time named, and the consummatiop
of the Northern Pacic-Great Northern
Burlington merger makes the success of
that scheme not only possible. but it is the
first step toward the consolidation Of the
great railroad systems of the country.
In July. 1898, in New York. in law Office
on lower Broadway. conference of rail
road hnanciers was held. Among those
present. it is understood, were James J. Hill
and j. Pierpont Morgan. The object of the
conference was TO discuss means for the
consolidation of three of the great railroad
81 stems of the country-the Could and Van
derbilt interests ana the properties con-
trolled by MesSrS. Hill and Morgan. This
was the beginning of the merging of the
various lines of railroad which has con-
tlnued ever since, but ii appears at that
time that Messrs Hill and Morgan did not
control enough railroad property to equal
that of the Gouds and Vanderbilts and
the merger of interests could not be eff
feCted on equal terms.
1t Is said that Mr.. Hill was advised to
see what he could do toward increasing his
control of western roads before the pro-
Jected consolidation was further consid-
cred. 1t was about this time that he
turned home and secured control of the
Northern Pacific by purchase of stock
which he Is said to have obtained at a very
low figure Then followed his attempt to
consolidate the Great Northern and North
ern Pacific. The law of Minnesota, how
nd hh wa
abandon this line of action and start out in
a new direction. In the meantime the
Northern Pacific, controlled by Messrs.
Morgan and Hill, bought the St Paul and
Duluth, with its splendid terminals at the
head of the great lakes. and had thereby
added twenty-five millions TO it's assets. ].
j. Hill also acquired the Sioux City and
Northern and the Sioux City and O'Neill
roads, giving him an extension into CEN
trail Nebraska, in direct line for Denver,
where rumor says he will extend the line
to connect with the road now being built
by Senator w. \. Clark into southern Cali
fornia.
This much accomplished. Mr. Hill sought
other conquestS. He made overtures for the
st. Paul road, and. failing in this, went
after and brought TO a successful Conclu-
sion the purchase of the Chicago Buriing-
ten and Quincy.
How wei! the plans outlined in New York
have been carried ahead may be judged by
the concerted efforts of the Goulds and
Eanderbilts in picking up new properties as
fast possible. The Union Pacific has
been brought under control of the parties
to the compact. the Southern Pacific was
acquired almost in a day, the great coal
roads and coal properties have come into
the possession of the allied interests and
the Erie and the Baltimore and Ohio are
known to belong to the same interests
1t would now appear that if these plans
are to be further completed that the Hill-
Morgan combine is now prepared to nego-
tiate with the GOuds ard Vanderbilts on
about even terms. and that the, gigantic
consolidation is nearly at hand.