The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1901-11-15


be Retired at Par bv sale OF sonds
Convertible Into Common stock.
Union Pacific Company To Have
Heavy Interest In New orporation
New York. November 1s.-There were
two important Developments In the
railroad situation In the northwest and
both tended to confirm the existing be-
lief that a final basis OF settlement OF
the contest for control OF the Northern
Pacific had been definitely agreed to.
Final ratification OF this agreement VIII
bring into existence the greatest ana
m1st effective example Of the communt-
~ OF interest idea as applied to the
railroad system of the country. The
first Of today's developments was thu
incorporation at Trenton. n. J.. OF the
Northern Securities Company. with
capital stock of $400. .00o. 900, and the
second was the unanimous adoption
by the Northern Pacific directors OF =
resolution providing for the retirement
at par of the company's preferred stock
on January 1, 1902.
There was a full attendance at the
meeting at which this action was TAX.
en-. those present including George =.
Baker and Charles Steele, representinG.
]. P. Morgan & Co.. E. III. Harriman<
Of the Hartman syndicate, which is In
control of the Union Pacific; James Js
HILL president OF the Great NortheFns
Samuel Rea, vice president OF the
Pennsylvania; James Stillman, OF the
National City Bank; II. NICK. Twom-
bIey. for the vanderbilts. and William
Rockefeller.
The directors decided that the -fa1pdI.
necessary for the retirement OF th6:
preferred stock should be obtained By
the sale at not less than par OF SIS. .000,s.
600 of per cent. bonds convertible into.
common stock, each holder of common
stock now outstanding being entitled
to purchase at par an amount equal to-
seventy eightieths O. the amount OF his
present holdings. 1t was further pro-
vided that two dividends OF one per
cent. each be presented on the preferr-.
ed stock before its retirement. I
Samuel Spencer was elected a MEM
ber of the board in place Of Robert
Bacon, resigned, and the board organ.
ized by re-electing all of the companyssl
present officers.
No official statement was obtainable
this afternoon as to the scope OF the
newly incorporated Northern Securf-
ties Company. but it was generally un-
derstood that the company was form-
ed to take over and control the shares
Of the Northern Pacific and the Grear
Northern railways. and OF their leased
lines. Great Northerns outstandine
capital is s125,oOoooo, par value. selling
at 200 in the market. while Northern
Pacific's total outstanding stock after.
the retirement OF the preferred win h.
$4,000, 600. par value. making tota1:0k1
s2o5, 100000 par value. for the shares ok.
these two companies. At 200 for Great
Northern. the amount would be increas-s
ed to $330. .000. 900 for the shares OF tn.
two companies.
Burlington shares, II is understooo.
are not to be turned over to the neur
Northern Securities Company. That.
stock is now held as collateral fer thu
outstanding Burlington collateral
bonds. with voting rights vested in fhot
Northern Pacific and Great Northeru
railways. 1t is understood that Unfom
Pacific. and the Chicago Northwesteru
interests agreed TO the retirement q
Northern Pacific preferred and that tho
Union Pacific will have a heavy inter-
/ est in the capital Of the new company!
considerably beyond the par value e
their present Northern Pacific Share
holdings. which are placed at S7s s0oa0n
: par value. just over a majority OF -
: total SIS, 600 Northern Pacific stocr
f.! capital
No information was obtafnable a. -
what share. IL any, the vanderbl1fs.
and the Chicago. Milwaukee ana Gf
3 Paul are TO have in the new compouv
UEder the arrangement. the Uniom
Pacific railway win have voting riehfn
In the Burlington. the board Of dire
tors being about evenly divided -
tween the Union Pacific ana the m
interests The suggestion was u,nan
today that the Burlington stock moro
= be held In a voting trust. under -
agreement between the two tnterons-.
In this case. J. p. Morgan win b -
voting trustee. g
A member OF the firm Of J. 1eos
gan q Co.. said that the Northern -
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