The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-12-21

New York at the time, and after Messrs.
Morgan & Co. were aware of the action
OF the Union Pacific people, it was found
that together We held about SIG, 900, 900 of
Northern Pacific common stock, and, in
asmuch as the common stock by a right of
contract made with the preferred stock
holders when the company was reorgan-
lied and the stock issued, had the priv
ilege of paying off the preferred stock
at par on the first day of January of any
year until 1917, Messrs. Morgan & Co.
then bought in London and New York
about $16,O00,0OO of the common stock of
the Northern Pacific
U. p. Domination Feared.
"At the same time the Union Pacific
interests, having already so large an in
vestment, bid the stock up until there was
the largest stock corner ever known. The
common stock in three or four days went
up to $1,000 per share. l explained to my
friends how that, with control of the
control the entire northwest and of the
west from Mexico to the Canadian line,
except for the Great Northern. SO great
was this effort to get control that one Of
my friends in London, who owned 81, ,O00,-
600 or Northern Pacific common, was Of
fered and refused $14 100000 for his
stock.
''The result was that Messrs. Morgan
& Co. and ourselves owned 100000 out
Of 10000, 900 of the Northern Pacific COM
mon with the privilege of paying off the
$75, 900, 900 Of Northern Pacific preferred.
The Union Pacific people owned $37 00O, 900
of the common and about $40, ,OOO, 900 of the
preferred, which was a clear majority of
all the stock of the Northern Pacific and
claimed the exclusive control of the
Northern Pacific railway and their owner
ship and control of one-half the Bur-
lington."
When 1t was known that these preferred
shares could and would be paid off and
before the annual election, mutual nego-
tiations resulted in Mr.. Morgan giving
them representation on the Northern
Pacific board. When was advised Of my
election I notified them that could not
legally act as a director Of the Northern
Pacific and Great Northern at the same
time, and 1 resigned after the first meet
ing of the board
Genesis of Northern Securities Co.
Several of the gentlemen who have
long been interested in the Great North
Minneapolis & Manitoba, and who have
always been among it's largest share hold
ers but not the holders of a majority of
its stock, whose ages are from 70 to SO
years, have desired to combine their in
dividual holdings In corporate form and
in that way secure permanent protection
for their interests and a continuance Of
the policy and Management which has done
so much for the development of the north
west and the enhancement of their own
property in the northwest and as else
where. Out of this desire has grown the
Northern Securities company. 1t became
necessary lin order to prevent the North
ern Pacific from passing under the con-
troll Of the Union Pacific interests and
with it the joint control of the Burling-
tom to pay off the $4,000 of Northern Pa
cific preferred. The enormous amount
of cash required for this purpose from a
comparatively small number of men made
it necessary for them to act together In
a large and permanent manner, through
the medium Of corporation, and the
Northern Securities company afforded
them the means Of accomplishing this
object wit hout the necessity of asking n