The Savannah morning news., 1901-11-14
The GREAT COMBINE
BEGINNING OF THE COMMUNITY
OF INTEREST," PROJECT.
MAGNETS NET YESTERDAY.
MORGAN's PLAN BELIEVED TO BE
UNDER WAY.

Northern Pacific Preferred stock
VIII BE Retired at Par Jan. 1,
10O2-Northern Securities Compa-
NY VIII Be Holding Concern for
the Various Roads Interested.
Conferring Omcials Reticent ana
Few Details Are Known.
New York, Nov. 13.-There were two
| important developments in the railroad
situation in the Northwest and both
tended to confrm the existing belief
that final basis of settlement of the
contest for the control of Northern Pa
cific had been definitely agreed to-
Final ratification of this agreement
will bring into existence the greatest
and most effective example of the COM
munity of interest idea as applied to
the railroad system of the country. The
first of to-day's developments was the
incorporation at Trenton, N. j.. of the
Northern Securities Company with
capital stock of $400, 900. and the sec
ond was the unanimous adoption by the
Northern Pacific directors of resolu-
ton providing for the retirement at
par of the company's preferred stock
on Jan. /, 1902
There was a full attendance at the
meeting at which this action was
taken. those present including George
F. Baker and Charles Steele, repre-
senting J. p Morgan & Co, e. II.
Hartman of the Hartman syndicate,
which is in control of Union Pacific:
! James J. Hill, president of the Great
Northern; Samuel Rea, vice president
OF the Pennsylvania; James Stillman
of. the National City Bank; H. Mex.
Twombley, for the Vanderbilts, and
William Rockefeller.
The directors decided that the funds
necessary for the retirement of the
preferred stock should be obtained by
the sale at not less than. par of s75,-
100000 of 4 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 Of the
amount of his present holdings. IL
was further provided that two divi-
dends Of one per cent, each be paid
| on the preferred stock before its re-
t4rement
| Samuel Spencer was elected a menu
! Der OF the, board in place OF Robert Ba.
con-. resigned. and the board organized
| by, re-electing all of the conlpanv,s
present officers. -.
No official statement was obtainable
this afternoon as to the scope of the
newly Incorporated Northern Sec,iri-
ties Company but it was generally un-
derstood that the company was formed
10 take over and control the shares
OF the Northern Pacific and the Great
Northern railways and OF their leased
lines, Great Northerns outstanding
capital is Sl25.0O0,000 par value selling
at 200 In the market while Northern
Paciilcs total outstanding stock after
the retirement of the preferred, will. be
$50 900, 600 par value, making a total of
O5O0O,O00 par value for the shares of
these two companies. At 200 for Great
Northern, the amount would be in
creased to s330,000.000 for the shares of
the two companies
Burlington shares, 1t is understood.
are not to be turned over to the new
Northern Securities Company That
stock is now held as collateral for the
outstanding Burlington collateral
bonds, with voting rights vested in the
Northern Pacific and the Great North
ern Railways. 1t is understood that the
Union Pacific, and Chicago Northwes-
tern interests agreed to the retirement
OF Northern Pacific preferred and that
Union Pacific will have heavy inter-
est in the capital of the new company,
considerably beyond the par value OF
their present Northern Pacific share
holdings, which are placed at $7S,00O,-
900 par value, just over majority of
the total sl55,0O0,000 Northern Pacific
stock capital. No information was oo-
tainable as to what share, II any, the
Vanderbilts. the Chicago. Milwaukee
and ST. Paul are to have in the new
company.
Under the new arrangement the
Union Pacific Railway will have voting
rights in the Burlington, the board of
directors being about evenly divided
between the Union Pacific and the Hill
interests. The suggestion was made
to-day that the Burlington stock may
be held In voting trust, under the
agreement between the two interests.
In this case J. p. Morgan will be a vot-
ing trustee.
After the meeting of the Northern
Pacific directors j. ]. Hill and George
f. Baker went to Mr.. Morgan's office
and had a conference with him. Later
Jacob Schiff of Kuhn. Loeb & Co., and
r. II. Hartman called. All declined
to be interviewed. A member of the
firm of J. P. Morgan & Co. said that
the Northern Securities Company
would be the holding company of the
VARIOUS ROADS Interested, Dut ne de-
clined to say what railroads these were
on the ground that the details are not
yet completed, and premature publica-
tion might interfere with their consum-
nation.
you may rest assured" he said,
that all difficulties over the Northern
Pacific matter is now at an end and this
has been accomplished in manner
highly satisfactory to all concerned"
-----e--s--~-------
IGLEsIAs HAS NOT ANSWERED.