The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-12-22
HILL SCORES THE
UNION PACIFIC
Issues Statement on the North
western Railway Deal.
ACCUSES HARTMAN CROWD
&
SAYS BE WAS DEFENDING IN
TEREsTS OF PEOPLE.
ACCUSES HARTMAN CROWD

St Paul, Dec. 21-President J. J.
Hill Of the Great Northern railway.
and of the recently organized Northern
Securities company this afternoon
gave the following statement to the
Associated Press:
~ have been absent from Minnesota
for more than two months. and during
that time there has been a question
throughout the northeastern states,
called a consolidation or merger of the
Northern Pacific, Great Northern rail-
ways, and in this discussion statements
has been made which are shown to be
different from the fact and 1 feel
called upon to make a conservative
statement of just what has been done
and what win be done in the future.
When the Northern Pacific failed
and the banking house OF J. 2. Morgan
e Co. recognized tt, myself and friends
were holders Of a large amount of that
company's security. After the reor-
gauiZation was completed we bought
about 26O00,060 of Northern Pacific
stock both common and preferred
Some of this stock was afterwards sold,
but a large amount has been held from
that time to the present
Fight For Burlington Begins.
About a year ago the Union Pacific
company bought the Huntington AMI
Other interests in the Northern Pacific
and at the same time made an effort t.
get the control of the Chicago. Burling-
ton & Quincy.
with these lines in the hands of the
Union Pacific, both the Northern Pa
cifie and Great Northern would be shut
out of Nebraska, Kansas, Missouri,
South Dakota, Iowa, Illinois and Wis
consin, except by using other lines of
railway, some of which were in the
market for sale and might at any
time pass under the control or be COM
bined with the Union Pacific interests.
I'VE, then, with the Northern Pa
cific, made proposals to the directors of
the Burlington to buy their entire
property. When this transaction was
about being closed the people who rep
resented the Union Pacific company and
who had previously tried to buy the
Burlington, asked to be allowed to
shf re 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, 1t was against the law of sew
eral of the states in which the longest
mileage o. the Burlington was located.
Wall Street War Declared.
AT that time, against the opposition
Of the more southern lines, both the
Northwest Pacific an Great Northern
had put into effect a low colonization
rate and were carrying daily thousands
of people into the northwest, many of
whom were coming from Kansas and
Nebraska, along the lines of the Union
Pacific. This movement was at its
height in the month Of April, and after
we had closed the purchase of the Bur
Ington the Union Pacific people under
took the bOldest effort that ever was
made in this country, and bought over
S6O,0O0O00 Of the stOGk Of the Northern
Pacific in the markets Of Europe and
the United States. I was in New York
at the time. and after Messrs. Morgan
q Co. were aware Of the action Of the
Union Pacific people, It was found that
together we held about $26, 600 900 of
Northern Pacific common stock, and
inasmuch as the common stock, by
right Of a contract made with the pre-
ferred stockholders when the company
was reOrganiZed and the stock issued
had the privilege Of paying OF the
preferred stock at par CT the first DAY
Of January Of any year until 1917
Messrs. Morgan &, Co. then bought in
London and New York about 5000 0OC
Of the common stock Of the Northern
Pacific at the same time the Union Pa.
cific interests, having already so large
az. investment, bidding the stock III
until there was the largest stock cor
mr. ever known. the stock in three OF
four days going up to $1,000 per share.
Holds Friends in Line.
Il explained to my friends how that
with control of the Northern Pacific
the Union Pacific would control the en-
tire northwest and the west from Mex,
leo t. me Canadian line, except for the
Great Northern. So great was the eff
fort to get this control that one of my
friends in London, who owned 1000, OOt
of Northern Pacific common, was of.
fered and refused $4,000. 900 for hi
stock. The result was that Messrs
Morgan a Co. and ourselves owned gu
Of S00000OO Of the Northern Pacif,
z common, with the privilege Of payins
of a. 000, 9e0 of Northern Pacific pre-
feTred. The Union Pacific people owned
100000 of the common and abou
100000 Of the preferred, which was .
clear majority Of all the stOl:. Of tn
Northern Pacific. and claimed the ex
elusive control Of the Northern Pacific
Of the Burlington.
When it was known that these. pre
ferred shares could and would be PAL,
of, and before the annual election. mu
tual negotiations r-sulted in Mr.. Nor
gan giving them a representative II
the Northern Pacific board. At tn
same time / was elected z. member. O
the Northern Pacific board When
was advised of my election I notifies
them that I could not legally act as
director of the Northern Pacific AM
Great Northern at the same time. an
1 resigned after the first meeting.
New Company to Hold Control.
Several Of the gentlemen who hav
lo1g been interested Ia the Gres
Northern and its predecessor, the S
Paul. Minneapolis & Manitoba. an
who have always been among its larg
est shareholders. but not the holder
Of majority of its stock, whose axe
are from 20 to Sc years, have desired [
combine their individual holdings i
corporate form and ~ that way secur
permanent protection for their inter
ests and "a continuation Of the polio
and management which has done S
much for the development Of the north
west and the enhancement Of their CIV
property in the northwest and els
where. Out OF this desire has grow
the Northern Securities company.
became necessary Tin order to proven
the Northern Pacific from passing ar
der the control Of Union Uacifc inter
ests and with me joint control Of n
BuI!ing on) TO pay of these S25, 600 ,0l
of Northern Pacific preferred. TIL
enormous amount of cash required I'd
this purpose from comparattvel
small number Of men made it neCes
sary for them to act together in
large and permanent manner through
out a movement Of corporation. an
the Northern Securities company al