The times., 1901-04-26

A Statement Regarding the NeEotia-
tions with the Northern Pacific
The Boston Stockholders Chagrin-
ed over the Loss of Control.
BOSTON. April 25.-A special meeting
Of the directors Of the Chicago. Burling-
ton and Quincy was held here today.
At the close of the meeting this state
ment to the holders was given out:
"A proposition has been received by
your directors for the purchase of all or
any part not less than twO-thirds OF the
outstanding capital stock at 5000 PER
share. payable in the joint per cent
bonds of the Great Northern and
Northern Pacific Railway Compani $,
with the option TO the stockholders to
receive part of the payment in cash
if they SO desire Full details Of the
proposition will be mailed to the stock
holders in few days
1t is not expected there will be any
hitch in the Burlington negotiations on
account Of matters of detail Direc-
tors of the Burlington realize that Mr.,
James J. Hill has absolute control of
the situation, and that it would be use
less not to accede TO any reasonable
terms. Leading interests in the Chica-
go. Burlington and Quincy road eX-
press some chagrin over the fact that
control Of their property is passing into
other hands, and there is a feeling in
some quarters that the event was
made possible through ultra -conseryat-
ism Of Chicago, Burlington and Quincy
directors 1t is argued that had the di-
rectors increased the dividend rate to
per cent some time ago, which might
have been done without difficulty, the
stock would have appreciated in market
value to a point where intending pur-
chaeers Of controlling interest would
have hesitated before embarking upon
such a plan. Then, again, there have
been opportunities Of refunding the
bonded debt so as to allow payment OF
larger dividends To stockholders. But
the directors persistenuy have refused
TO consider refunding scheme.
The Chicago. Burlington and Quincy
today has l.6CO miles of unbonded road,
which has been built out OF surplus
earnings and through issue of new
stock. With $4,000 per mile, this would
allow for issue of $32. .O0O000 bonds-an-
other excellent plum for stockholders.
The fact of the matter is that the
Chicago, Burlington and Quincy direc-
tors never dreamed that anyone would
have the audacity TO buy a controlling
interest in open market. Such thing,
+o Z n no
even after the Hill people had obtained
nearly one-half of the capital stock,
prominent Burlington officials tabooed
the idea and dismissed ii as idle gossip
to explain stock market manipulation
of shares. Large stockholders Of the
road in Boston are hoping that the deal
will fall through, and that they viii be
permitted to maintain their stock in
terest in the property.
People who have access to the facts
and figures concerning the road and its
finances declare emphatically that the
property Will earn per cent on basis
Of 200, or 4 per cent on basis Of 250,
for many years to come. Beginning in
1903 high rate bonds viii begin to ma
alton Of the sinking fund, saving on in
terest charges viii ensure the establish
ment of a larger dividend rate, or at
least furnish a backlog against a reduc-
ton in dividends through crop failure
or other unexpected Interruptions Of
traffic.
CHICAGO, April 25.-Directors Of the
Chicago, Burlington and Quincy Rail
road Company voted today to submit
proposition from the Northern Pacific
Railroad Company jointly with the
great Northern Railroad Company to
the Burlington stockholders for $500
share in per cent joint trust collateral
bonds, with the privilege Of taking part
cash.
The bid Of the would-be purchasers is
contingent on holders Of 75 per cent Of
the entire capitalization Of the Burling-
ton consenting to the sale This is sim
ply in line with announcements that
have been made, and as the terms have
been accepted by the majority Of the
shareholders, the formal ratification
will result from the directors action.