The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1901-11-27
GIGANTIC RAILWAY DEAL
Company Formed With $500, ,OOO,-
900 to Operate Western Systems.
THE N. P. CONTEST SETTLED

Over the Great Northern and tne
Northern Pacific Stock Union Pa
clfc Interests Safeguarded in the
Northwest and Everybody Content.
New York City. - Tremendous pro-
gress was made toward arranging
the final details of the great alliance
of the railroads Of the Northwest. A
holding company, with a capital of
S4O0.0OO,OO0, was Incorporated under
the laws of New Jersey to take over
the stock of the Great Northern and
Northern Pacific. Resolutions to re-
tire the preferred stock of the North
ern Pacific were passed, and it became
known that the Great Northern and
Northern Pacific companies would
lease the Burlington system to the
new Burlington Railway Company, a
concern whose hoard of directors will
be composed of an even number OF
representatives of either faction-Hill-
Morgan and Hartman, Kuhn. Loeb
parties u tHe -Noltueiu "SinS WI
test
Stripped of their technical character,
these statements mean the first steps
toward official settlement Of the North
ern Pacific controversy, also an agree
ment on a plan among the bankers to
put the securities in marketable shape,
and further. harmonious operation Of
all the railroads controlled by the two
factions separately or jointly, practi-
cally all the big railroads of the West
Both parties to the Northern Pa
cfic controversy claim a victory-one
in that it acquires an equal voice in
the management of the Burlington,
and the other in that it maintains con-
tains control of the Northern Pacific.
1t was the purchase Of majority of
the stock Of the latter line that precip-
itated the May panic.
To the outsider the settlement ap-
peared more like a compromise, forced
because each side was drawn unwit-
tingly into a position where further
control meant further loss. Wall
Street took this latter view and the
market for securities was not stimu-
lated into active buoyancy.
The corporation which came into
existence at Trenton will be known as
the Northern Securities Company. 1t
is the second largest corporation ever
formed. its capital being exceeded only
by that of the United States Steel
Company. 1t was organized under the
laws of New Jersey. because this is
the only Commonwealth under whose
statutes the company could acquire
tine powers which it needed. The
amount of the filing fee, paid by the
check Of J. P: Morgan & Co., was
$S0.O0O
The powers conferred upon the COM
pany by the articles of Incorporation
include these:
"To acquire by purchase. subscrip-
tion or otherwise. and to hold as in
veStment any bonds or other securities
of Indebtedness or any share Of capital
stock created or issued by any other
corporation or corporations, associa-
tion or. associations of the State Of
New Jersey or any other State, Ter
ritory or country.
ITO purchase, hold, sell, assign,
transfer, mortgage or otherwise to dis
pose of any bonds or other securities
or evidences of debt created or issued
by any other corporation cr corpora
tions, association or associations Of the
State of New Jersey or any other
State, Territory or country. and while
owner thereof to exercise all the
rights, powers and privileges of such
ownership"
A special provision in the charter
sets forth that the company may do
any acts or things designed to protect.
preserve, improve or enhance the value
of any bonds or other securities or evil
dence Of Indebtedness or stock of COM
panies which it may acquire.
The charter Is perpetual, and in or
der to guard against undesirable pub
licity 1t provides that the directors
shall determine from time to time
where, when and how the books of the
company shall be opened to the inspec-
ton Of the stockholders.
The capital stock Of the company Is
divided into 100000 shares at $100
each. all of which Is to be common
stock.
The papers were filed by the law
firm Of Stetson. Jennings & Russell, of
this city, and the incorporators men..
toned in them are George F. Baker.
Jr.. of New York City; Richard Trim
BILE. Of New York City. a1d Abram NJ
Hyatt. Of AllenbnrSt. y. j.
While the details of the plan for the
acquisitisr of the Northern Pacific
and-Great Northern stock by the new
company are not set forth in the char
ter some of the particulars were
learned from the representatives of
one of the interests concerned in the
settlement According to this author
ity. it may he stated unreservedly that
the basis on which the stock Of these
two companies will be exchanged for
the stock Of the new company will be
$50 for every share of Great Northern
stock and 115 for every share of North
ern Pacific stock. The exact amount
needed for such an exchange on the
basis above mentioned would be $403,-
900, 900. or S3.000.000 more than char
ter of the company provides for. But
as the stock of the new company may
be increased at any time, this excess
is not material. especially as some Of
the stock Of the two railroad COM
panies will probably never be turned
in. 1t is understood that the Union
Pacific will get an extra bonus of S15,-
100000 to compensate it for the loss
Argentina Will Buy American shoes.
The Argentine Republic desires to
place q contract for an annual supply