The age-herald., 1901-11-14
NORTHERN PACIFIC
 CONTEST SETTLED
Final Basis for Its Control
 Agreed On
NEW S4OO,0OO, cOMPA'Y
Preferred Stock of the Northern Pa cific Will Be Retired at Par. Funds From Sale
 or Bonds.

New York, November 13.-There were two important developments today in the railroad situation in the Northwest, and both tended to confirm the existing belief that final basis of settlement of the contest for the control of the Northern Pacific had been definitely agreed to. Final ratification of this agreement will bring into existence the most effective example of the community of interest idea as applied to the railroad system of the country. The first development was the incorporation at Trenton, N. J., of the Northern Securities Company with capital stock of $4OO 100000 and the second was the unanimous adoption by the Northern Pacific directors of a reso- lution providing for the retirement at par of the companys preferred stock on January 1, 1902.
 There was a full attendance at the meeting at which this action was taken, those present including George F. Baker and Charles Steele, representing J. P. Morgan & Co.,; E. H. Hartman of the Hartman Syndicate, which Is in control of Union Pacific; James J. Hill. presi- dent of the Great Northern; Samuel Req. vice president of the Pennsylvania; ;.James Stillman, of the National City Bank; H. Mex. Twombly. for the Vanderbilts and William Rockefeller.
 Sell 75 Million of Bonds.
 The directors decided that the funds necessary for the retirement of the pre- ferred stock should be obtained by the sale at not less than par of S75, OOO 900 of per cent bonds convertible into com mon stock each holder of common stock now outstanding being entitled to pur- chase at par an amount equal to seventy five eightieths of the amount of his pres ent holdings. It was further provided that the two dividends of one per cent each be paid on the preferred stock be- fore its retirement
 Samuel Spencer was elected a member or the board in place of Robert Bacon, re- signed, and the board organized by re electlng all of the company's present of ficers.
 Great Northern's outstanding capital is SlZo oOO,OOO, par value. selling at 200 in the market, while Northern Pacific's total
 
 Of the preferred. will be $S00OO, 900, par value. making total of $2O5, ,O00 900. par value. for the shares of these two com panies. At 200 for Great Northern. the amount will be increased to S99O. 900 QUO Tor the shares of the two companies.
 Burlington Shares Unchanged.
 Burlington shares. it is understood are not to be turned over to the new North err Securities Company That stock is now held as collateral for the outstand- ing Burlington collateral bonds with voting rights vested in the Northern Pa cific and the Great Northern Railroads. It is understood Union Pacific and Chi cago Northwestern interests agree to the retirement of the Northern Pacific pre- ferred and that Union Pacific will have heavy interest in the capital of the new company considerably beyond the par value of their present Northern Pacific share holdings, which are. placed at $7s,- OO0,0O0, par value. just Over a majority of the total 155.000.000 Mort hern Pacific stock capital No information was obtain able as to what share if any, the Van derbilts and the Chicago. Milwaukee and St. Paul are to have in the new com pany.
 Under the new arrangement the Union Pacific Railroad will have voting rights In the Burlington. the directors being
 
 Pacific and the Hill interests.
 As the control of the Burlington road by the Great Northern Pacific interests. followed by the struggle for Northern Pacific shares, caused the affair which reached a settlement today, the disposi- ton of the Burlington naturally Is an interesting question. In that regard the Journal of Commerce tomorrow will say that the Burlington is to be restored by ba flo nd who now own it. to a practically inde- pendent basis and enjoy full and free traffic relations with all its connections This independence Is to be secured through lease by the present owners to new company formed for the pur- pose.
 A member of the firm of J. P. Morgan & Co. said that the Northern Securities Company would be the holding company of the various roads interested, but he declined to say what railroads these were on the ground that the details are not yet completed
 You may rest assured" he said, that 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"
 Statement of the Times.
 Regarding the scope of the agreement, the Times tomorrow will quote a mem- Der of the firm of J. P. Morgan & Co. as follows:
 "The agreement now reached is per- feet in that there is now an understand ing that will protect the Union Pacific, Burlington. Northern Pacific and Great Northern roads. It will maintain the in- terests of each and prevent any of them from interfering with the others"
 One of the heads of the Hartman syn dicate, The Times will also say, declared that the agreement meant that hereafter no important matter could be pushed to a conclusion without the knowledge and assent of the Union Pacific interests. An- other representative of the Hartman in terests made the following statement:
 "The Union Pacific interests are en- tirely satisfied with the settlement reach ed today. We believe that this settle ment recognizes to the fullest extent the claims of which the Union Pacific origin ally sought a voice in the management of the Burlington system. This agreement stamps the situation in the northwest with harmony. It means that the actual community of interest will prevail among the railroads in the northwest and that there will be no further disturbances of the financial world from that source at