The San Francisco call., 1901-11-14
RAILWAY FIGHT
NOW At AN END
Satisfactory Adjustment
of Northern Pacific
Controversy.
Community Of Interest Idea
Adopted by the Con- :.
testing Roads.

H-
NEW YORK, Nov. 13.-There were two
important developments to-day in the
railway situation in the Northwest and
both tended to confirm the existing be-
lief that a final basis of settlement of
the contest for control of the Northern
Pacific has been finally agreed to. Final
ratification of this agreement will bring
into existence the greatest and most ef-
fective example of the community of in
terest idea as applied to the railroad sys-
TEN of the country.
The first of to-day's developments was
the Incorporation at Trenton, N. j., of the
Northern Securities Company, with a
capital stock of $400, 900 600, and the Sec
ond was the unanimous adoption by the
Northern Pacific directors of a resou-
ton providing for the retirement at par
of the company's preferred stock on jan
uary l, 1902.
There was a full attendance at the meet
ing at which this action was taken, those
present including George Baker and
& Co., E. H. Hartman of the Hartman
syndicate, which is in control of the
Union Pacific; ]. J. Hill, president of the
Great Northern; Samuel Rea, vice presi-
dent of the Pennsylvania; James Stillman,
of the National City Bank; H. Nick.
Twombley, for the Vanderbilts. and VIII
liam Rockefeller.
necessary for the retirement of the pre-
ferred stock should be obtained by the
sale at not less than par of $1,000 900 four
per cent bonds convertible into common
stock, each holder of common stock now
outstanding being entitled to purchase at
par an amount equal to seventy-fVe eign-
tieths of the amount of his special hold
ings. 1t was further provided that two
dividends of l per cent each be paid on the
preferred stock before it's retirement.
No Official Statement Obtainable.
Samuel Spencer was elected a member
of the board in place of Robert Bacon,
resigned, and the board organized by re-
electing all of the company'S present off,
GERS.
No official statement was obtainable this
afternoon as to the scope OF the newly
incorporated Northern Pacific securities,
but it was generally understood that the
company was formed to take over and
control the shares of the Northern Pa
and their leased lines. The Great North
ern's outstanding capital is SIPS, 900 900 par
value, selling at 200 in the market, while
the Northern Pacific's total outstanding
stock. after the retirement of the pre-
ferred, will be $50 900 900 par value, max
ing total of $2O5, 900 900 par value for the
shares of these two companies At zoo
for Great Northern the amount would be
! increased TO $3.50 900, 900 for the shares of
the two companies
Burlington shares, it is understood, are
not to be turned over to the Northern Sc
curities Company. That stock is now held
as collateral for the outstanding Burling-
| ton collateral bonds, with voting rights
vested in the Northern Pacific and the
Great Northern railways. 1t is under
stood that the Union Pacific and Chicago
and Northwestern interests agree to the
retirement of the Northern Pacific pre-
ferred and that Union Pacific will have a
heavy interest in the capital of the new
company. considerably beyond the par
value of their present Northern Pa
cific share holdings, which are placed at
SIS, 900 900, par value, just over majority
of the total. $155 100000 Northern Pacific
stock capital. No tnformation was OBJ
tainable as to what share, If any, the
Vanderbilts and the Chicago, Milwaukee
and st. Paul are to have in the new COM
pany.
Pacific Railway will have voting rights
in the Burlington, the directors being
about evenly divided between the Union
Pacific and the Hill interests. The sug-
gestion was made to-day that the Bur
lington stock may be held in voting
trust under the agreement between the
two interests In this case j. T. Morgan
will be voting trustee
After the meeting of the Northern Pa
cific directors, ]. ]. Hill and George II.
Baker went to Morgan,s once ana nad a
of Kuhn, Loeb & Co., and T.. H. Hartman
called All declined to be interviewed.
A member of the firm OF ]. r Morgan
Company would be the holding company
of the various roads interested, but ne de-
clined to say what railroads these were,
yet completed, and premature publication
might interfere with their consummatton.
You may rest assured SAID me- tnat
all difficulty over the Northern Pacific
matter is now at an end, and this has
been accomplished in a manner highly
satisfactory to all concerned.
Retiring the Preferred Stock.
The resolutions adopted by the directors
of the Northern Pacific providing for the
retiring of the preferred stock set forth
+arp Of the agreement or july 10,
1895. where j. Pierpont Morgan Co..
acting for the reorganization managers,
turned over to the Northern racine Rall,
| and 100000 shares of common stock, and
that it was expressly provided In the
agreement that the preferred stock could
be taken up at par on tne nrst ody ol any
| January prior to 1907.
/ The resolutions show that at meeting
| of the Northern Pacific directors, July 8,
| 1896. a form of certificate for the preferred
| stock hearing these conditions was adopt
| ed and was duly ratified by the stock
holders. Every certificate of the S75.OOO,O ,OOO
| preferred stock now outstanding therefore
| bears this provision. The resolutions com
| tinue:
| Whereas The holders of the majority of the
| common stock of the Northern Pacific Railway
| Company have requested the board of directors
to take all such action as may be requisite e
| retire the whole of its preferred stock upon the
first day of January. 1902. and nave given salts
! factory assurances that the necessary moneys
! for that purpose will be furnished and that all
! action requisite for that purpose will be taker
! by the holders of the common stock; and
! whereas In the judgment of the board OF
| directors it is desirable that this company
| should now exercise the option to retire the
| preferred stock, it is unanimously
Resolved That the Northern Pacific Company
/ in the exercise of it's right specifically eX-
| pressed in each and every certificate Of stock
! Of this company has determined and hereby
| does determine to retire the preferred stock OF
| the Northern Pacific Railway Company ir
whole at par upon the first day of January
| 1902.
Under the resolutions the transfer books
will close for the retirement of the pro-
posed issue on December 10. The final
| dividend of l per cent will be payable on
and after January l. 1902
The Herald tomorrow will state that
| the Northern Pacific stock will go into
| the ''new holding company around lie
| and the Great Northern around $780,
Wins on the Official Count.
| PHILADELPHIA, Nov. 13.-The official
| count of the recent election in. Philadel-
| phia County, which was completed to-
day. reveals the fact that ]. Harry Davis
Republican, one of the candidates on the
| Union party ticket for Judge of the Com,
| mon Pleas Court No. 5, was elected over
J IIo,-,, D,,d5 Dopaocrat his coIIao QUO -,