The Montgomery advertiser., 1901-11-14
THE NORTHERN PACIFIC END OF THE sQUABBLEs OVER
 THE LINE. Security Company With Capital of $40O, 100000 is Organized to Take Over Management
 of Railroad.

important developments today in the rail- road situation in the northwest and both tended to confirm the existing belief that final basis of settlement of the contest for the control of Northern Pacific had been definitely agreed to. Final ratifica- tion of this agreement will bring into ex- istence the most effective example of the community of interest idea as applied to the railroad systems of the country. The first development was the incorporation at Trenton, N. J., of the Northern Secu- rites Company with a capital stock Of $40o, 900, 900 and the second was the unani- nous adoption by the Northern Pacific directors Of a resolution providing for the retirement at par of the company's pre-, ferred stock on January l, 1902.
 There was full attendance at the meeting at which this action was taken, those present including George F. Baker and Charles Steele, representing J. F. Hartman Syndicate, which Is in control of the Union Pacific; James J. Hill, Pres ident of the Great Northern: Samuel Req, yice-President of the Pennsylvania; Bank; H. Mex; Twombly, for the Van derbilts. and William Rockefeller.
 The directors decided that the funds necessary for the retirement of the pre- ferred stock should be obtained by the sale at not less than par of Sb000,OO0 of per cent bonds convertible into common stock, each holder of common stock now outstanding being entitled to purchase at
 
 eightieths of the amount of his present holdings. It was further provided that the two dividends of per cent each be paid on the preferred stock before Its re- tirement.
 Samuel Spencer was elected a member of the board in place of Robert Bacon, resigned. and the board organized by re- electing all of the company's present of- ficers.
 Great Northern's outstanding capital is SIPS, ,000. 900 par value, selling at 200 in the market. while Northern Pacific's total outstanding stock after the retirement Of the preferred will be $S0. 0oO,0 900 par value, making a total of $205, ,00O, 900 par value, for the shares of these two companies. At 200 for Great Northern. the amount will be increased to $330. 600 for the shares of the two companies.
 Burlington shares, 1t Is understood, are not to be turned over to the new North ern Securities Company. That stock is now held as collateral for the outstand- ing Burlington collateral bonds, with vot- ing rights vested in the Northern Pacific and the Great Northern Railways. It is understood that Union Pacific and Chi cago Northwestern interests agree to the retirement of Northern Pacific preferred and that Union Pacific will have a heavy interest in the capital of the new company, considerably beyond the par value of their present Northern Pacific share holdings which are placed at $7S.- 000 900 par value, just over majority oI the total $155, 900, 900 Northern Pacific stock
 
 as to what share if any the Vanderbilts and the Chicago. Milwaukee and St; Paul are to have in the new company Under the new arrangement the Union Paclnc will have voting rights in the Burlington, the directors being about evenly divlded between the Union Pacific and the Hill interests.
 A member of the firm of J. P. Morgan and Company said that the Northern Se- curities Company would be the holding company of the various roads interested but he declined to say what railroads these were on the ground that the de- tails are not yet completed.
 You may rest assured.' he said. that all difficulty over the Northern Pacific matter is now at an end and this has been accomplished in a manner highly sa satisfactory to all concerned"
 Regarding the scope of the agreement The Times tomorrow will quote a mem Der of the firm of J. P. Morgan X Co. as follows:
 "The agreement now reached is perfect, in that there is now an understanding that will protect the Union Pacific Bur Bur lingtcn. Northern Pacif and Great Northern roads. It will maintain the In terests of each and prevent any of them from interfering with he others
 One of the heads of the Hartman clared that the agreement meant that hereafter no important matter, could De pushed to conclusion without the knowledge and assent of the mon Fa1 1 clnc interests. Another repr eJ TA the Harrima1 interests made the lol- lowing statement:
 The Union Pacific interests are en- tirely satisfied with the settlement reach ed today. We believe that this settle ment recognizes to the fullest extent the claims of which the Union Pacific orig inally sought a voice in the management of the Burlington system. This agree ment stamps the situation in the North west with the final seal of harmony. IL means that actual community of inter ests will prevail among the railroads in the Northwest and that there will be no further disturbances of the finan- cial world from that source, at least"