The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-11-14
DEAL ACCOMPLISHED
Northern Pacific Settlement Now Sat
iSfactOry TO All.
A SECURITIES COMPANY
Will Control Shares of Northern Pa.
cific and Great Northern.
THEY HAVE $6OO,OOO,OOO CAPITAL.
All the COntendng interests Are TO Be
Fully Protected.
HEY HAVE S6OO,OOO,OOO CAPITAL.
SOME OF THE OLD STOCK TO BE RETIRED
Union Pacific viii Have interest in New
COMPANY and Voting Rights in the
Burlington.

New York November 13.-Thcrc 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 RS APP
piled to the railroad systems Of tho coun-
try. The first development was the in.
corporation at Trenton, \. j., of the North,
ern Securities company with a capital stock
Of S600,OoooOO, and the second was the
unanimous adoption 10y the Northern IA
cihc directors OF resolution providing
for the retirement at par Of the company's
preferred stock IN January 1. 1902,
There was a full attendance at the meet
Ing at which this action was taken, those
present including George r Baker and
Charles steel, representing j. 7. Morgan
* Co.. T. II. Hartman of the Hartman
syndicate, which is in control of the Union
Pacific James j. Hill president of the
Great Northern; Samuel Rea, vice presl
dent Of the Pennsylvania; James Stlllman
Of the National City bank; II Mex. Twom-
bly,, for the Vanderbilts. and William
Rockefeller.
The directors decided that the funds
necessary for the retirement of the pre-
feucd stock should be obtained by the
sale at not less than par Of ST500O,O00
Of 4 per cent bonds convertible into com.
mon stock, each holder Of common stock
now outstanding being entitled to purchase
at par an amount equal to 1880 of the
amount Of his present holding. 1t was
further provided that the two dividends
OF 1 per cent each he paid on the pre-
ferred stock before its retirement
Samuel Spencer was elected member
of the board in place of Robert Bacon,
resigned and the board organized by re-
eecGng all of the company'S present Off
GERS. No official statement was obtain
able as TO the scope of the Northern Securi-
ties company but II was generally under
stood that the company was formed to
take over and control the shares of the
Northern Pacific and the Great Northern
railways and Of their leased lines.
Great Northerns outstanding capital is
Sl25,OOoO0O, par value. selling AT POO in
the market, while Northern Pacihcs total
the preferred will be $50 600 coo. par value
ma king total OF S2OJ.OOJOO0, par value
for the shares Of these two companies. At
n,
be Increased to $3.50. 100000 for the shares
Of the two companies.
Burlington shares, II Is understood are
not 20 be turned over to the new Northern
Securities company. That stock Is now
held ms collateral for the outstanding Bur
Iington collateral bonds, with voting rights
vested in the Northern Pacific and the
Great Northern railways, 1t is under
God that Union Pacific and Chicago and
Northwestern interests agree to the retire
ment of the Northern Pacific preferred and
81 al Nr-t1l las,a Ia
terest In the capital OF the new company,
considerably beyond the par value of their
present Northern Pacific share holdings.
which are placed at S1S,oOO,0OO par value.
just over majority Of a total $5500O0,00
Northern Paclnc capital stock No intor
nation was obtanable as to what shares,
If any, the Vanderbilts and the Chicago,
Milwaukee and st. Paul are TO have in
the new company.
Under the new arrangement the Union
Pacific railway will have voting rights in
the Burlington, the directors being about
evenly divided between the Union Pacific
and the Hin interests.
As the control of the Burlington road
by the Great Northern Northern Pacific in
terests followed by the struggle for North
ern Pacific shares caused the affair which
reached a settlement today, the disposition
of the Burlington naturally is an interest
ing question, In that regard the Journal
of Commerce tomorrow Will say that the
Burlington was to be restored by the North
ern Pacific and the Great Northern, who
now own H. to a practically Independent
basis and to enjoy full and free traffic
relations with all its connections This
independence is to be secured through a
lease by the present owners to new com
wy formed for the purpose.
member of the NJ ~ OF j. 7. Morgan &
Co. said that the Northern Securities com
panY would be the holding company Of the
various roads. hut he declined Ia say what
railroads. these are on the ground that the
details are not vet COMPLETED.
you may rest assured he said, that
an difficulty over the Northern Pacific
matter is now 40 an end and this has been
accomplished In a manner highly satsfac-
tory 10 all concerned
Regarding the DC Of the agreement,
the Times tomorrow will a. ote a member
OF the firm of j +. Morgan & Co, as fol
lows:
.''rhe agreement now rea he'd is perfect,
In that there is an understanding that will
protect the Union Pacific. Burlington.
Northern Pacific aud Great Northern roads
II viii maintain the interests of each and
prevent any Of them from interfering with
one of the heads Of the Hartman syndi-
cute the Times will also say, declared that
The agreement meant that hereafter no i'm
portant matter could be pushed 20 con
clusion without the assent or the Union
Another representative OF the Hartman
interests made the following statement:
1.-The Union Pacific interests are entirely
satisfied with the settlement reached today
We believe that the settlement recognizes
to the fullest extent the claim on whlh
The Union Pacific originally sought a voice
hi the management OF the Burlington sys
rem This agreement stamps the situation
I'M the Northwest with the hnal seal OF mar
mouy II means that actual community o.
interests will prevail a9ons ine ra,lf99a ht
no further disturbances OF the financial
world from that source al least
-----azz-----
Gold Shipments to Europe