Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1901-12-23

!
Mexico to the Canadian line, except
for the Great Northern. So great was
the effort to get this control that one
OF my friends in London, who owned
1000, 900 Of Northern Pacific common,
was offered and refused s14,Ooo,O0O for
his stock : : The result was that
Messrs. Morgan & Co. and ourselves !
owned 42,0O0,000 out of sO,00o,0oo OF
the Northern Pacific common, with the
privilege of paying off the 75,OO0;W0
OF Northern Pacific preferred. The
Union Pacific people owned 37,OOOOOO
of the common and about 42,OOO,0 600 of
the preferred, which was a cleac ma
jority OF all the stock of the Northern
Pacific, and claimed the exclusive con-
troll OF the Northern Pacific railway
and through that ownership control
of one-haH the Burlington. r,
When it was known that these pre-
ferred shares could and would be paid
off, and before the annual election.
mutual negotiations resulted in Mr..
Morgan giving them representative
in the Northern Pacific board. At the
same time I was elected member of
the Northern Pacific beard. When |
was advised Of my election ! notified
them that I could not legally act as a
director of the Northern Pacific and
Great Northern at the same time ard
resigned after the first ,n.s,.lng If
the board.
Several of the gentlemen who have
long been interested in the Great
Northern railway and its predecessors,
the St. Paul, Minneapolis & Manitoba
company, and who have always been
among its largest shareholders, but not
the holders of a majority of it's stock,
whose ages are from seventy to eighty
SIX years, have desired to combine
their Individual holdings in corporate
form. and in that way secure perma-
nent protection for their interests and
continuation of the policy and man
agement which has done so much for
the development of the northwest and
the enhancement of their own prom
erty in the northwest and elsewhere.
Gut OF this desire has grown the North
ern Securities company.
1t became necessary lin order to
prevent the Northern Pacific from pass
ing under the control Of the Union Pa
clhc interests and with it the joint con-
troll OF the Burlington) to pay off the
seventy-five millions of Northern Pa
e1tic preferred. This enormous amount
Gu cash required for this purpose from
comparatively small number of men
made it necessary for them to act to-
gether in large and permanent man
ner, through the medium of a corpora
ton, and the Northern Securities COM
pany afforded them the means of ac-
ccmpllshing this object without the
necessity of creating a separate COM
pany to finance the transaction for the
Northern Pacific; while, at the same
time, the credit Of the Northern Secur-
tiles company would be much stronger.
as it would also hold considerable
amount Of Great Northern and other
securities. -5 zs, 7'5'f'
The Northern Securities company is
organized 70 deal in high class securi-
ties, to hold the same for the benefit of
Its shareholders and to advance the in
terssts of the corporations whose Sc
curltles it owns. Its powers do not
include the operation of railways,
banking, mining nor the buying or sell
ing of securities or properties for
others on commission; it is purely an
investment company and the object of
It's creation was simply to enable those
who hold its stock to continue their
respective interests in association to-
gether and to prevent such interests
from being scattered by death or other
wise; to provide against such attacks
as has been made upon the Northern
Paeifie l,teaf by arrival and competing inter
est, whose main Investment was hun
sdreds OF miles from the Northwest and
whose " t: only object in buying control of
the Northern Pacific was to benefit
t1' their south ern properties by restrain
Ing the growth Of the country between
Lake LAX SUPERIOR and Puget Sound, and
by turning away from the northern
lines the enormous oriental trafic
which l i; must follow the placing on the
4 paclfic ssaesI ocean Of the largest ships in
the world. ssS 5 @.s L, .5s.. :. ,.T..z.
The foregoing is q brief. and abso-
$ iutely correct statement OF the whole
subject and Its truth can easily be vsri-
NED by the state of Minnesota Or any5 my
other state OF person having sufficient
interest to Investigate the facts, which
are all matters of record. s3s. 81 y
Z Now as to the effect of what has
been done upon the public interests of
the the country, let me ask few questions,
which want every ra a s1sd q NJ II,