The Kalispell bee. [volume] (Kalispell, Mont.) 1900-192?, 1901-12-28
J. J. Hill Thus Characterizes
the Railroad Combine.
SAVES NORTHWEST
The Union Pacific Made Desperate Efforts
to Secure Possession of the Northern Pa
cific But Were Cheekmated.


this afternoon gave out a lengthy
written statement giving the history
Of the so called railroad merger, which
he declares was forced as defen-
Pacific to secure control of the Nor
thern Pacific and Burlington. thus Civ
ing it practically a monopoly of trans
continental traffic. He gives detail
ed history Of the great financial bat
tie which eliminated in the corner in
Northern Pacific, relates the forma-
tion of the Northern Surety COMPANY.
whose object. he says. is simply to act
in fiduciary capacity in holding to-
gether various interests opposed to
the Union Pacific control.
Mr.. Hill prefaces his statement with
an explanation that it is issued to
correct some errors which have aris-
en-. and he says:
AFTER the Northern Pacific failed
and was re-organized by j. P. Morgan
& Co., myself and friends held a
large amount of it's securities, about
S2G,OO000O of stock. common and
preferred.
about year ago the Union Pa
cific company bought the Huntington
and other interests in the Northern
Pacific and at the same time made an
effort to buy control of the Burlington.
with these lines in the hands OF
the Union Pacific interests both the
Northern Pacific and Great Northern
would be largely shut out of the
states of Nebraska, Kansas. aiissouri,
is. d.. To-, Ill. and Wise, except by us
ing other lines of railway, some of
which were in the market for sale.
and might at any time pass under the
contrC. of or be combined HLa the
Union Pacific interests. Then the
Northern Pacific made proposals to
the directors Of the Burlington to buy
their entire property.
when the transaction was about
being closed the people who represent
ed the Union Pacific company, and
who had previously tried to buy the
Burlington, asked to be allowed to
share with us in the purchase of that
company. This proposal we refused
for the reason that it would defeat our
object in buying the Burlington and
further it was against the law of sew
eral of the states in which the long
est mileage of the Burlington was To-
Gated.
AT that time against opposition
of the more southern lines, both the
Northern Pacific and Great Northern
had put into effect p low colonization
rate. and were carrying daily thous
ands of people into the northwest
many of whom were coming from
Kansas and Nebraska, along the
lines of the Union Pacific. After we
| had c1n-n1 ''o nurohase of the Bur
lington the Union Pacific people un
| dertOOk the boldeet e" that was
ever made in this country. and bough
over $6O.OvO,O00 oe 49, stock of the
Northern Pacific I was in New Yorl
at the time. and after Messrs. Morgan
& Co.. were aware of the action o
the Union Pacific people it was fount
out that together we held about $26,
100000 of Northern Pacific common
stock. and inasmuch as the common
stock by right of a contract mad
with the preferred stock holders
when the company was re-Organizet
and the stock issued had the privil
eyes of paying off the preferred stocl
at par on the first day of January O
any year until 1917. Mesrs. Morgan
G. Co., then bought in London am
New York about 100000 900 of tn
common stock of the Northern PacI
fic At the same time the Union Paci
fic interests. having already SO larg
an investment bid the stock unit
there was the largest stock corne
ever known. The common stock i
three or four days went up to 81 90
per share.
Il explained 70 my friends hoy
that, with the control of the NOrther
Pacific, the Union Pacific would cor
troll the entire northwest and ives
from Mexico to the Canadian line
except for the Great Northern. S
great was the effort to get this contrt
that one of my friends in Londoi
who owned s2OOO,OOO of Norther
Pacific common, was offered and r.
: fused $4,000. 900 for his stock. Th
result was that Messr-. Morgan a G.
and ourselves owned s42OO0,O0O o,
of 100000 of the Northern Pac
fc common, with the privilege of Pa