The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-05-17
ON new BASIS.
Railroad Community of inter-
ests, to Be Arranged.

New York, May 1.-THE Journal Of
Commerce says: 1t seems to be gener-
ally acknowledged that the truce be-
tween the Morgan and the Kuhn, Loeb
& Co. interests in their contest for the
control of Northern Pacific has assum-
ed the dignity of a definite settlement
of future policy and that attempts will
be made to reconstruct so far as is nee
essary, the Community of interests"
plan of railroad mana gement on a new
basis. This means that the northwest
ern roads are to be brought more thor
oughly and directly into the fold than
has heretofore been contemplated.
Kuhn-Loeb interests are already heavy
holders in the Great Northern and their
recent purchases of Northern Pacific
make that road a distinctly Hartman
road Notwithstanding that the nominal
control shall stfn remain with J. P.
Morgan & Co, which, according to best
information, is the present plan. The
Hartman people will be adequately rep
resented in the board of directors of the
Northern Pacific and will be fully able
to protect the Union Pacific from any
encroachments in its territory by the
Northern Pacific. On the other hand
there have been active purchasers of the
Union Pacific stock by interests coming
very close to J. P. Morgan & Co, so that
the practical effect of the recent corner
and the purchases responsible for il
have been the exchange of Union Pacific
stock for Northern Pacific stock.
It is, of course, now question what
financial arrangements will be made by
the Hartman interests for financing
their purchases of Northern Pacific, as
it is taken for granted that they did not
make such purchases on any private &C
count, but with the sole object of pro-
tecting Union Pacific's interests; and it
is therefore supposed that the recent
heavy purchases of the Northern Pacific
securities are to be turned over at their
cost price to the Union Pacific, which
will issue CONVEX tible 4 per cent bonds
in payment There are $10G, 900 900 of
these convertible bonds already author
lied and only $40000,0O0 have thus far
been issued.
It my be stated on authority that the
matter of thus financing the Northern
Pacific stock has not yet been officially
considered by the Union Pacific board.
There is no doubt. however that the
matter will be taken up at a very early
opportunity. It is expected that Mr..
Morgan viii secure satisfactory repre-
sentation in the Union Pacific board
Much interest is shown in the report
that the preferred stock of the Northern
Pacific is to be retired at par. No Off
cia1 statement on this matter is obtain
able, but there seems substantial ground
for the statement that no action having
this in view for next January has yet
been taken.
To secure the cash it would be neces-
sary to issue entirely new securities as
the company has at the moment no re-
sources available for retiring the pre-
ferred exctp, perhaps, something less than
$500, 900 three per cent bonds in the
treasury which are not now reserved
for any specific purpose, and except,
also, a guarantee fund of $4,000 900 cash
for preferred dividends. which becomes
due on January 1, next, available for
any purpose the Northern Pacific d.
rectors may elect. No mortgage may
be issued, however, which will have pref
erence over the present three per cents,
but there is no reason why additional
common stock should not be issued, pro-
viding of course. that it receives the
assent of the proper proportion of the
present stockholders, both preferred and