The Kalispell bee. [volume] (Kalispell, Mont.) 1900-192?, 1901-12-28
ing off s75.oooooo of Northern raci.

ing Of 81 5000. 600 of Northern PaCi-
fic preferred.
The Union Pacific people owned
$5,OO0.O0O of the common and about
S42.OOO.000 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 through that ow-
nership and control of one-half of the
Burlington.
when it was known that these
preferred shares could and would be
paid off. before the annual election,
mutual negotiations resulted in Mr..
Morgan giving them a representative
on the Northern Pacific board. AT the same
time l was elected a member of the
Northern Pacific board. When | was
advised of my election | notified them
that could not legally act as a director
of the Northern Pacific and the Great
Mort hern at the same time, and | re-
signed after the first meeting of the
board
Several of the gentlemen who have
long been interested in the Great North
ern railway and its predecessor the St.
Paul, Minneapolis 4 Manitoba and who
have always been among its largest
shareholders, but net the holders of Il
majority of its stock. whose ages are
from 10 to Sc years, have desired to com
bine their individual holdings in corpor-
ate form and secure permanent protec
ton for their interests and a continual
ton of the policy and management
which has done so much for the devcl
opment of the northwest and the en-
hancement of their own property in the
northwest and elsewhere. Out of this
desire has grown the Northern Securi-
ties company. It became necessary in
order to prevent the Northern Pacific
from passing under the control of the
Union Pacific interests, and with it the
joint control Of the burlington to pay off
the S7o,0OOUOo of Northern Pacific pre-
ferred. The enormous amount OF cash
required for this purpose, from a com
paratively small number of men, made
it necessary for them to act together in
large and permanent manner, through
the medium of a corporation, and the
Northern Securities company afforded
them the means Of accomplishing this
object without the necessity of creating
a separate company to finance the trans
actions for the Northern Pacific, while
at the same time the credit Of the North
ern Securities company would be much
stronger as it would hold considerable
amount of Great Nothern and other Sc
curities.
The Northern Securities company is
organized to deal in high class securi-
ties, to hold the same for the benefit of
its shareholders, and to advance the in
terests of the corporations whose securi-
ties it owns. Its powers do not include
the operations of railroads. banking min
ing nor the buying or selling of securi-
ties or properties for others on commits
sion 1t is purely an investment com
pany and the object of its creation is
simply to enable those who hold its
stock to continue the respective inter
,, ests in association together, and to pre-
vent such interests from being scattered
by death or otherwise. To provide
against such attacks as had been made
upon the Northern Pacific by IA rival and
competing interest. whose main invest
ment was hundreds Of miles from tho
northwest, and whose only object ir
buying control of the Northern Pacific
was to benefit their southern propertie.
by restraining the glowth of the country
between Lake Superior tnd Puget sounc
and by turning away from the northern
lines the enormous oriental traffic which
must follow the placing on the Pacific
ocean of the largest ships in the world.
In conclusion he says: Now as II
the effect of what has been done in th'
public interest of the country, let M
ask few questions which | want ever,
candid and honest man to answer 10
! himself:
Did the Union Pacific people, Witl
their railway lines extending from Oma
ha and New Orleans to California ant
Oregon. through the several states II
the middle west and south purchase
maiority OF the stock of the Nurthell
Pacific company for the purpo-e Of aid
ing that company and increasing tn
growth1tnd prosperity of the northern
country, or was il for the purpose of re
stricting such growth, and aiding in th
development of their enormous interest
hundreds Of miles to the south.
Did they purchase the Northern Pa
citic and its interest in the Burlington
for the purpose of building up the Asial
ic trade between the northern zone lyih
from St. Paul and Minneapolis to tn
Pacific coast. or in order that the