Fort Mill times. [volume] (Fort Mill, S.C.) 1892-current, 1901-11-20
GIGANTIC RAILWAY DEAL
Company Formed With S4OO, ,ooo,-
COO to Operate Western Systems.
THE. NJ. P. CONTEST SETTLED
A"secur tiles" Company Organized 10 Take
over the Great Northern and the
Northern Pacific Stock - Union Pm
~ihc Interests Sareguarded I'm tho
Northwest end Everybody Content.

New York City. - Tremendous pro-
Sress was made toward arranging
the final details of the great alliance
of the railroads OF the Northwest. A
holding company, with n capital of
100000 900. was Incorporated under
the laws of New Jersey 10 take over
the stock OF the Great Northern and
Northern Pacific. Resolutions TO re-
tire the preferred stock of the North
ern Pacific were passed. and 1t became
known that the Great Northern and
Northern Pacific companies would
lease the Burlington system to the
new Burlington Railway Company, n
concern whose hoard OF directors will
be composed OF nm even number OF
representatives OF either fartlon-Hin-
Morgan and Hartman. Kuhn. Loeb
parties TO the Northern Pacific CON
test
Stripped OF their technical character.
these statements mean the first stems
toward official settlement OF the North
crn Pacific controversy. also an agree
ment on plan among the bankers to
put the securities in marketable shane.
ana. further. harmonious oncra ton OF
all the railroads controlled Nv the two
FACTIONS separately or Jointly. practi-
cally all the big railroads VI the West.
Both PARTIES to the Northern Pa
chic controversy claim n victory-one
IN that IL acquires an equal voice IN
inc manacemcnt of the Burlington.
ana me other in that Ii maintains con-
tains control OF The Northern Pacific.
IL was the purchase Of Il majority OF
INC STOCK or the lat5ec line that precip-
itatod the MAY manic.
TO tho outsider tin settlement an
pearcd moro like compromise. forced
because each side was drawn unwit-
tlngly mo position where further
control meant further loss Wall
street took this latter view and the
market for securities was not stImu-,
lated into active buoyancy.
The corporation which came into
existe''cr ut Trenton will I've known rs
The Northern Securities Comnanv. If
is the second LARGEST corporation ever
formed. It's caniial being exceeded only
by hat OF the United States steel
company. 1t was organized un,ler the
laws OF New .Tcrscr. hccauSe This IS
the cnly Commonwealth under whose
statutes The cnmDanv' could acquire
tie powers which Ii needed. The
amount ~ the fling fee. pail by the
SS0.00O.
Tho powers conferred anon the com.
nanY by the articles ~ incorporation
include these:
ITO acquire by rur,ilasn. suDscrin-
non or otherwise. aud 10 hold rs in
NcStment any honds o. other securities
"l lndeotednrsS or any share of caDital
"t"cE created or issued by any Other
corporation or covporatious, associa-
ton or associations OF the State of
New Jersey or my other State, Ter
ritory or country.
TO purchase. hold SELL: ASSIGN.
transfer, mortgage or otherwise to dis
pose or any bonds or other securities
or evidences OF debt created or issued
ny any otner corporation or corpora-
IONS association or associations OF the
STATE OF New Jersey or any other
state. Territory OF. country. and while
owner thereof to exercise all the
rights. powers and privileges OF such
ownership"
speciai provision in the charter
sets forth that the company NAV do
any acts az things DESIGNED to protect
preserve. improve or enhance the value
or any bonds or other securities or eyi-
dence OF indebtedness or stock OF com
panies which II may acquire.
The charter Is perpetual. and in or
der to guard aga inst undesirable pub
Hcity II provides that the directors
Shall determine from time 10 time
"here, when and how the books OF the
COMPANY shall be oncned to the insnec.
hon or the stockholders.
The caDital stock OF the componv ,s
divided into 1000 900 shares Mt S1OO
each. all OF which Is to be common
stock
me paners were filed by the law
nrh OF Stetson. Jennings & Russell of
'iliS CITY. ond the incorporators mem
TONED I'm them are George T.. Baker.
Jr., OF New York City; Richard Trim
bic. or New York City. and Abram NJ.
HYATT. OF AlIenhurst. n. 7.
WhiIe the details OF the plan for the
acquisition OF the Northern Pacific
and Great Northern stock by the new
company are not set forth i'm the char
yer. some of the particulars were
learned from the representatives Of
one Of the interests concerned in the
settlement. According to this author
ity. 1t may be stated unrese-vcdIy that
the basis ON which the stock of these
:wo companies will he exchanged for
me stock or the new company will be
iHo Tor every share OF Crent Northern
FfocK ana IL = for every share of North
err Pacific stock. The eyoct omount
needed for such an EXCHANGE on thc
basis above mentioned would no S109
100000. or Sc. .O00. 600 more than cha
Ter or the company provides for. But
Us the STOCK or the new company may
ne Increased at any time. this excess
iS not material. especially as some OF
'he stock OF the two railroad COM
n'hies VIII probably nevrr he turned
~ u is understood that the Union
daclnc VIII get an extra bonus of Si5.-
ooo'ooo TO compensate 1t for the loss