Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-11-14

lsstockholders on July l, 1896, resolution
was adopted unanimously providing for
1.-The issue of SS0,G00,000 of common stock
and s75,oo0,0oO of preferred stock, and
expressly providing that such preferred
stock should be issued upon the condi-
ton that at its option the company
4 might retire the same in whole or IL,
part al par from time to time upon any
first day of January prior to 1917
4 The resolution to retire the preferred
stock Which was passed yesterday had
the approval OF the Hartman interests,
which hold a large majority of the pre-
ferred shares Holders of the majority
OF the common atoek-representing the
Morgan Hill interests requested the
directors to retire the preferred on Jan.
L, 1902 and gave satisfactory assur-
ances that the necessary funds be pro-
vided by sale at not less than par of
| SIS. 900, 0o0 per cent bonds, convertible
| into common stock.
1t has been arranged that the present
common stock holders shall be entitled
to purchase at par an amount of these
| new bonds equal to seventy eighth
eths of the amount of their present
holdings. After the conversion of these
bonds into common stock all of the
! Northern Pacific Company's capital
stock-S155 600, 0o0--is to be of one class
without preference.
| The Hartman party was particularly
| enthusiastic in expressing satisfaction.
A member of this syndicate said:
The arrangements just completed
| amply protect the Union Pacific inter-
| est. The crux of the matter was the
| control of the Burlington system. That
matter has been settled in manner
! that gives satisfaction to all parties
concerned and particularly to the Union
Pacific company. l cannot tell you just
how the control of the Burlington has
been adjusted, but it is a fact that the
| Union Pacific will have an adequate
voice in the management of the prop
erty.'
The Union Pacific interests. which
| own considerably more than one-half of
the Northern Pacific preferred stock,
will receive cash for their shares and
in addition, it is said, a large cash
bonus will be paid by the Morgan-Hih
interest to compensate the Union Pa
cific party for whatever losses 1t may
have suffered by purchase of Northern
Pacific stock 1t fancy prices during the
competitive buying last May. The cur
rent report in Wall street was that this
cash bonus amounted to $i5.000.000
A representative of the Hartman syn
dictate said that it WAS not necessary
that the public should know the extent
to which the Union Pacific interests had
been COMPENSATED. The latter interests
were perfectly satisfied with what they
have received.
4Altho disposing of its Northern Pa
cific preferred stock for cash. the Harri-
man syndicate will continue to be an
Influential stockholder in the Northern
Pacific company This syndicate is be-
lieved to own about SGT 600. 600 of North
ern Pacific common stock.
This amount of common stock will
entitle the holders to subscribe for S34,-
6s5, 600 OF the new convertible bonds.
which, when exchanged for an equal
amount of new common stock, will give
the Union Pacific people s71,6s5,ooo of
the sl55, O00, 900 of the Northern Pacific
stock
Inasmuch as the Northern Pacific
stock goes into the new Northern Sc
curities company at lis, the Union Pa
cific holdings of Northern Pacific stock
will give that interest, according 10 the
figures quoted. sS2.43775o of the the
$500. 900, 600 stock of the new proprietary
company. A member of the Hartman
syndicate is authority for the state
ment that a. full one-quaiter of the
stock OF the new company will be held
by the Union Pacific interests
While the outcome of this adjustment
of the Northern Pacific-Burlington con-
troversy is satisfactory 10 all of the
parties concerned. 1t is apparent that
the Union Pacific party gets more than
1t originally asked for.
After the purchase of the Burlington
system by the Northern Pacific and
Great Northern railroad companies the
Union Pacific people asked to be allow
ed to take third interest in the pur-
chase This request was refused and a
vigorous contest for control of the
Northern Pacific, was begun.
1t was stated on eminent authority
last night that the Union Pacific will
now exercise joint control of the Bur-
lington with the Morgan-Hill interests
either by means of a voting trust or by
equal representation in the board of di-
rectors OF the new Burlington company.
Furthermore the Union Pacific inter-
ests will hold about one-fourth of the
stock of the new $4,000 900 corpora
ton formed to control the Northern Pa
cific and the Great Northern companies.
One of the representatives of the Har-
riman syndicate in reviewing the stu
alton said
Great interests have been welded to-
gether in mastery ana beneficial way.
Perhaps 1t is fortunate in some respects
that this controversy arose. for results
have been reached that might not have
been reached had the matter been set.
tied of hand at the start. The issues in
volved have been decided on a much
more comprehensive scale than might
have been the case at the outset. A
great railroad problem has been ad.
justed in broad-minded and business
like manner and no trace Of animosity
remains"
DADY REDUCES HIS BID.