The Kalispell bee. [volume] (Kalispell, Mont.) 1900-192?, 1901-11-16
THE BIC DEAL
CONSuMMATED
Preferred Stock of the N. P.
Railway Is Retired.
A GIANT CORPORATION
The New Company Has capitalization
of S4O0,OOO,OC0 The Burlington
Also Interested.

. New York, Nov. l3. There are two
important developments in the railroad
situation in the northwest, and both
tended to confirm the existing belief that
a final basis of settlement of the contest
for the control Of the Northern Pacific
has been definitely agreed to. Final
ratification of this agreement will bring
into existence the greatest and most
effective example Of the community of
interest idea as applied 10 the railroad
system of the country. The first of to
days developments was the incorpora
ton at Trenton, \. j., Of the Northern
Securities company, with a capital stock
of s;i00,000,0O0, and the second was the
unanimous adoption by the Northern
Pacific directors of resolution provid
ing for the retirement at par of the com
pany's preferred stock on January l, 1902
There was full attendance at the
meeting at which the action was taken,
those present including George +. Baker
and Charles Steel, representing j. =.
Morgan 4 Co.; Il. Ii. Hartman Of the
Hartman syndicate. which is controlled
by the Union Pacific; j. j. Hill. presi
dent Of the Great Northern; Samuel
Rice, vice president of the Pennsylvania;
James Stllman of the National City
bank; II. Mex. Twolnbley for the Van
derDilts, and William Rockefeller.
The directors decided that the funds
necessary for the retirement of the pre-
ferred stock should be obtained by the
sale at not less than par of s75,o00,0OO Of
4 per cent bonds, convertible into com
mon stock, each holder of common stock
now outstanding being entitled to pur
chase at par an amount equal to % 80 o
the amount of his present holdings.
1t was further provided that two div
dends of per cent each be paid on the
preferred stock before its retirement.
Samuel Spencer was elected member
of the board in place of Robert Bason
resigned, and the board organized by re
electing all of the company's present
officers.
No official statement was obtainabl'
this afternoon as to the scope of th'
newly organized Northern Securities
company, but it was generally under
stood that the company was formed t.
take over and control the shares of tn
Northern Pacific and the Great North
ern railways and of their leased lines
The Great Northern's outstanding capi
tai is 5l25,O00,OOO par value, selling a
5000 in the market, while the Northern
Pactic's total outstanding stock, after tn
retirement of the preferred, will be $50
100000 par value, making total of S2O5
100000 par value for the shares of thes
two companies.
Burlington shares, il is understood, ar
not to be turned over to the Northern
Securities company. That stock is no,
held as collateral for the outstanding
Burlington collateral bonds. votin
rights vested in the Great Northern raj
way. 1t is understood that the Norther
Pacific and the Chicago Northwestern
interests agreed to the retirement of tn
Northern Pacific preferred and the Unio
Pacific will have heavy interest in tn
capital of the new company, considerabl
beyond the par value of their presen
holdings, which are placed at SIS, 10000
par value, just over majority of tn
total of s1o5,OOO,OOO Northern Paciti
stock capital. No information was oil
tainable as to what share, if any, tn
Vanderbilt's and the Chicago, Milwal
kee 4 st. Paul are to have in the ne'
company.
Under the new arrangement the Cnio
Pacific railway will have voting rights
the Burlington, the directors being abor
evenly divided between the Union p;
cific and the Hill interests, and the su,
gestion was today that the Burlingto
stock may be held in IA voting trust vi
der the agreement between the two il
terests. In this case J. p. Morgan wi
be a voting trustee.
After the meeting of the Northern p
cific directors, j. j. Hill and George
Baker went to Mr.. Morgan's Office ar
had conference with him. Later Jact
Sch;ff, of Kuhn, Loeb d Co., said tn
the Northern Securities company wou
be the holding company of the vario
3 roads interested, but he declined to S,
, what railroads these were on the groun
that the details were not yet cOmplet