Evening star., 1901-11-14
4o,778 1854, ,es4, ,6s6 ss33, TAG, ,ss4


Totals w 4o77e 1854 4,esa ,6ss ssss 74s ss4
The deal means the absorption of the
Great Northern and Northern Pacific rail-
roads, with a total mileage of 10903 miles,
a total capitalization Of S2S0,Oo0,000 tpar
valued. and total bonded Indebtedness Of
$267. .557, ,954.
Second. Operating agreements with the
Union Pacific, the Southern Pacific and the
Chicago, Burlington and Quincy, with a
total mileage of 22,S40. total capitaliza-
tion of $613, IA, ,S4S, and a total bonded in
debtedness of 400.
! Third. Permanent harmony between Edw-
II. Hartman, Jacob H. Sehiff (Kuhn. Loeb
& Coz, John D. and William Rockefeller, ].
Pierpont Morgan and James J. Hill.
Fourth The purchase of the 1,2j0, 600
shares of Great Northern stock at 1So and
| the purchase of 1,550.Oo0 shares of North
ern Pacific at 115
Fifth. The development of the "commu-
nifty of interest plan, heretofore simply a
''gentlemen's agreement" into corporate
act.
Mfllionaires Banded Together.
The most powerful financiers in the coun-
| try banded together to iEish the project
| through, among them being j. Pierpont
| Morgan, James ]. HILL John D. Rockefel-
Ter, Jacob H. Schiff. head of the house of
Kuhn. Loeb & Co.: William K. Vanderbilt,
| George ]. Gould, Philip ID. Armour and E.
| H. Hartman.
| 1t brings into alliance three Of the great
| est financial groups in the country. These
| are the Morgan group. the Vanderbiits
and the Gould-Harriman-K Kuhn, Loeb &
| Co., combination.
! Harmony of Interest.
The entire plan has been carried in ac-
cordance with ]. Pierpont Morgan's 'har-
| mony Of interest idea, which he has been
| steadily advancing for several years, and
| what has been an armed truce between the
great carrying corporations named seems
| to have been converted into permanent
peace.
/ The elimination was not reached, how
ever without bitter fight between inter-
ests that have now become congenial, the
| final issue of which was the panic of May
| last when James r. Keene cornered
Northern Pacific stock and SIS 600 600 was
| lost by shorts In the squeeze that followed
| the stock rising twenty-three points in
three hours
According to New York reports Union
| Pacific interests consent to the retirement
of Northern Pacific preferred stock, and
ia a corporation which takes over the
Northern Pacific and Great Northern roads
and a half interest in the Burlington prop
erty
Purchase of Millions of Stock.
Through the Northern Securities Com
pany, Great Northern stock, of which there
Is an authorized outstanding issue Of $125,-
OO0OOO is taken in at 16O, and Northern
Pacific, which. after the retirement Of the
preferred stock, will have an outstanding
common share capital Of $17l. 100000, will
be taken over at 115. This provides for a
share issue of $403 ,250,600. or an amount
s., 10000 in excess of the issue reported
as authorized for the Northern Securities
Company. The statement is made that the
stock of the New Jersey corporation is not
a set quantity, but viii provide for the fuN
exchange OF securities upon the basis pro-
posed.
1t Is further intisnated that there Is an
additional provision awarding to the Union
Pacific an extra compensation bonus Of $15.-
100000. but as to that point confirmation
cannot be obtained.
How Union Pacific Gets In.
After the exchange OF securities is def
nitely made the Union Pacific will hold In
the Northern Securities Company an inter-
est Of between 20 and 25 per cent. made up
substantially as follows: Union Pacific IN
terests own about $37. 900 900 Of Northern
Pacific common in addition to their hold
inEs OF preferred. They. win subscribe In
the proportion Of 75-80ths OF their holdings
OF common in the new common stock. which
amounts to $34 ,6S5 600 par. or total of
$500; Exchanged for shares Of the
Northern Securities Company on the basis
OF 115. this gives a total interest in the new
company of $50, ,4S7 ,750 or an amount In ex-
cess OF 20 per cent OF the new company.
$40.00oOO0 OF Northern Pacific preferred.
which Is retired for cash and convertible
bonds. The difference between the $40 1000
coo received and the $34 .685. COB which they
will pay for the new stock leaves q differ
enee Of $5.S15. 600. which appears to be
profit or at least to minimize losses Of the
Union Pacific through other purchases Of
Northern Pacific at high pEaces.
Samuel Spencer Now q Director.
There was meeting OF the Northern Pa
ia
offices of the company. Wall and William
streets, New York. OF the directors there
were present George r. Baker. E. II. Harri-
man. James J. Hill. Brayton Ives. d. Willis
James. John 8. Kennedy, Daniel s. Lamont,
Charles 8. Meilen, Samuel Rea, William
Rockefeller. Charles Steele. James Stiaman,
Eben B. Thomas and Fl. Mex. Twoxnbly
Samuel Spencer. president OF the South
ern railway. was elected member OF
the board in place OF Robert Bacon OF ].
\ ~