Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-11-14
A GIGANTIC DEA
Settlement Of Northern Pacific
Controversy Most Important
In History Of Railroads.
Rival interests Involving Mil.
lions and Millions Of Dollars
Are Consolidated.
Big Railroad Systems Brought
Under Joint Control by
the Settlement.

i character of the recent Northern Pa
cific railroad settlement came out with
the announcement of the formation, I'M
der the laws of New Jersey, of the
Northern Securities Company, with 8
capital of $500 600, 600, published in these
dispatches Wednesday.
This company is to take over the
stocks of the Great Northern and the
Northern Pacific railroads and control
| those properties. The three incorpora-
tors named-George f. Baker, Jr., Rich
ard Trimbe and Abram NJ Hyatt-are
merely temporary representatives of the
1 Morgan-Hill interests. They will be re-
placed by board of directors, in which
1 the Union Pacific interests will have a
4 liberal representation.
The settlement puts an end to the con-
! troversy over the control of the Bur-
\ lington, provides for joint control of the
/ Northern Pacific and the Great North
| ern, and assures protection to the Union
| Pacific interests in the northwest.
The deal is the most important in the
| history of the world for never have
! railroad interests so enormous been
/ brought under one management.
The formation Of the new company is
! the formal ending of the rivalry which
/ developed into the most bitter railroad
| war in the history of the country. In
| terests representing hundreds of millions
! of dollars clashed in financial duel
which for time threatened grave disas-
! ter not only in this country but to the
entire world.
The struggle was for the control of the
Burlington system, the Hill-Morgan or
Northern Pacific interests seeking to
keep the important line out of the hands
/ Of the Hartman or Union Pacific party.
The Hill men quietly bought up a
great portion of the Burlington stock,
| and the Hartman crowd struck back by
making a raid on Northern Pacific Sc
ourities. The raid was panic on Wall
street, in which Northern Pacific in one
day jumped from par to $1,000, while all
other securities declined at an alarming
rate.
Prompt work by financial houses
averted the threatened disaster by safe
guarding the houses in peril, and this
country escaped a serious panic.
When the next settlement day came in
London many spectators there were
found short on Northern Pscific, but an
| agreement to grant more time saved the
situation there. too.
The specific object of this $500 Geo
| company is to acquire all of the capital
stock of the Northern Pacific and the
Great Northern railroads. The North
crn Pacific shares will be turned over to
the proprietary corporation at 10,
which. for the s155.0o0.0oo of Northern
Pacific common stock that will be eX-
tant under the settlement plan, viii be
equivalent to s17S,25o,ooo.
The Great Northern stock will be
turned in at $50, which, for the S125.00o,-
600 of stock, is equivalent to S225 1000, 900.
The aggregate of these two sums is
S403, $50, 600.
Should all the shares Of both roads be
transferred under this plan the capitali-
cation of the proprietary company will
be increased. There is good authority
for the statement that large majority
of the Great Northern shares have been
pledged.
The new Burlington Proprietary Com
| pany, chartered in Iowa, to lease and
| operate the Burlington railway system,
is entirely distinct from the New Jersey
| corporation, aitho it will be controlled
| by the same interests.
| The Securities company is purely a
| financial organization to handle the Sc
curities of the Great Northern, North
ern Pacific and Burlington railway COM
panies and will have nothing whatever
to do with the management or traffic af-
| fairs of tfose roads. Each one of the
three corporations Will be operated in
dependently as heretofore, except that
/ Darius Miller vice president of the
| Great Northern, will be the traffic direc-
! tor for three roads and the general traf-
! fic officials of the three roads will report
/ to him instead of to the president or
general manager OF their respective
roads.
| j. c. Stubs, vice president of the
| Southern Pacific, holds the same posi-
| ton for the Hartman roads-Union Pa
cific, Southern Pacific, Oregon Short
/ Line and Oregon Railway and Naviga-
ton Company.
| The stockholders of the Chicago, Bur-
| lington & Quincy railway will hold an
adjourned meeting. and it is understood
that the list of directors named will be
| formally elected, and the action taken
| by Hartman interests in New
York will be ratified.
| About the time that the news of the
| Incorporation of the Northern Securi-
| ties Company reached Wall street the
directors of the Northern Pacific rail-
way went into session. There We're
present President Charles S. Mellen, E.
II. Hartman, j. j. Hill, William Rookie
| Teller, n Nick. Twombly, Daniel S. La
mont. John S. Kennedy. d. Willis
James, Charles Steele, James Stillman,
George F. Baker, Samuel Rea, Eben b.
| Thomas and Brayton Ives.
The resignation of Robert Bacon of j.
P. Morgan & Co., as q member of the
! board was accepted. and Samuel Spen-
Ger, president of the Southern Railway
Company, was elected in his place.
| Resolutions were unanimously adopt
| ed that the Northern Pacific Railway
Company exercise the right specifically
expressed in each certificate of it's stock
and retire the preferred stock at par on
| the first of next January. The Northern
| Pacific reorganization ageement of July,
| 1886. authorizes this company to retire
| the preferred stock in whole or in part
at par from time to time upon any first
day Of January during the twenty years
| succeeding the date of said reorganza-
| ton agreement: it being the purpose
and intent Of the sald agreement that
the ultimate control of the new COM
party should be held and be exercised by
the holders of the common stock, and