The Washington times., 1901-11-25
STORY THAT HILL
HAS A GREAT COUP.
TO FORCE HARTMAN PARTY OUT
Expects Courts to Decide Union Pact
fic Holdings in Burlington IL
legal After the Retirement of
Northern Pacific Preferred.

| NEW YORK. Nov Z4-The latest story
of the great Northwestern railway deal
is that Mr. Hill has still his most i'm
| portant coup to spring, that he is still
entire master of the Northwestern situa-
| tion, and that the Hartman Kuhn, Loeb
& Co, interests have been outwitted COM
pletely.
Mr. Hill. it is said, looks with entire
complacency at the threats of the State
authorities against the deal" In fact, if
the new theory has aur foundation he
expects the efforts of the authorities to
be successful. He expects the combina-
| tiGn TO be declared illegal. but chiefly. he
! looks for the announcement by the courts
that tine Union Pacific cannot either d-
rectly or indirectly own one-kalf of the
Burlington. The result will be that when
the Union Pacific Is compelled to give up
its joint interest in the stock of the new
Burlington proprietary company which
was organized several weeks ago, 1t viii
leave the situation just where it was be-
fore, so far as that company is concern
cd-in absolute control of Messrs. Hill!
and Morgan.
Hartman VIII Have n Gold Brick.
In other words, Messrs. Hartman,
Gould and Kuhn, Loeb & Co, will have
something that is OF no more value 20
them than a gold brick, All Mr.. Hill will
have accomplished his purpos, OF retir-
ing the preferred stock of Northern Pa
cific, and, through the Northern Securities
I11.-
Northern Pacific, although the HERMAN
syndicate. or Union Pacific, literally owns
a majority of the total Northern Pacific
stock. Mr.. Hill will bring this about by
placing Great Northern stock in the
Northern Securities Company.
The Great Northern shares will, if all
of them are turned in at $3.50 share, abb
sorb $225 600, 600 OF the S400, ,000, coo of
Northern Securities stock The whole Of
the S155, 900 600 of Northern Pacific stock,
after the preferred has been converted
into common and exchanged for Northern
Securities shares on the basis of Il5 per
cent of the latter for Northern Pacific
shares will absorb only Sis $50 coo OF
new securities. OF this amount the Harri-
man syndicate gets about $50 600. 900 while
Messrs. Hill and Morgan own the re-
mainder of the s17S, ,250,000 so that they
viii control about $310,ca. 600 of Northern
Securities Company stovi., if every old
share is exchanged
Hill and Morgan secure.
Assuming that many of the minority
shareholders of the Great Northern do not
respond. Messrs Hill and Morgan will
still have much more than the required
one-half or S2Oe, ,0OO, 600 of the new com
pany's shares, so that they will control II
absolutely. That they already control it
is shown by the fact that Mr.. Hill was
appointed president and chairman of the
executive committee. the Hartman peo-
pie thought they were safe when they Sc
cured cne-half of the stock of the new
Burlington company, and their friends an
nOunced that they had routed Mr.. Hill in
the settlement
Don't be disturbed" said Mr.. Hill TO
one of his friends. I'VE have not YIELD
ed a particle, and We have no intention
of giving in. Future events viii show
this
While Mr.. Hill was publicly saying that
he would not yield point, and that no
comhipation of parallel roads was pos
sible on account of the antitrust laws of
the Northwestern States, he was seem
ingly yielding bit by bit to the opposing
faction, and the latter were joyful at the
advantage they thought they were getting
over the farmer from the West " as Hill
the Union Pacific people fell into the trap
and agreed both to retire and TO give up
the control of all their holdings Of that
company's stock.
While Messrs. Hartman, Gould. and
Schin were being told that no law in the
land could prevent the pooling OF securi-
ties, as it is proposed to do under the
Northern Securities Company and, ac-
cording to legal authority, there is no
possibility Of upsetting the new corpora
tion, they lost sight OF the fact that the
Union Pacific could. under the laws OF the
Western States. be compelled TO give up
its one-half interest in Burlington and
abstain from participating in che man
agement Of the Northern Pacific.
VIII Force Union Pacific Out.
Mr. Hill, it is believed, saw this from
the beginning and he recognized 1t sew
eral years ago when he and MIR. Morgan
were thinking OF merging Great Northern
and Northern Pacific. No one knows bet
ter than he does the attitude of Western
Legislatures. and ii is now understood
that If the present laws do not suffice,
laws will be passed that Will secure the
desired results. as announced by Cover
nor Van SAINT and other executives II
this is done the Western States viii be
working in the interest of Mr.. Hin with
out his asking il. and he will be a great
er financial giant than he is today. He
viii have driven the opposition from both
the Burlington and Northern Pacific and
he viii be. with Mr.. Morgan the sole
dictator Of the Northern Securities Com
pany in which the Union Pacific Conf
pany has sunk over $50. OC0 in cash.