Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1901-12-23
Statement Regarding the Northern Sec
urities Company Issued By
President ]. J. Hill. zSs:ss "a
Says Union Pacific was After Control
of Northern Pacific to Injure X.
Whole Northwest. H.
He and His Friends Renounced Per
sonal Gain, to Prevent U. p. Alb
sorbtion of Mp.
Outline of the Work that Has Been
Done BY Hill and Morgon in
$E Mp. Circle. %

Mp. Circle. %
J. J. Hill, president of the Great
Northern road, has issued the follow
ing statement regarding the merger of
northwestern roads:
II have been absent from Minnesota
for more than two months and during
that time there has arisen a wide dis
cussion throughout the state of what
has been generally called a consolida.
tion or a merger of-the Northern Pa
cific and Great Northern railways, and
in this discussion statements have been
made which are so widely different
from the facts that feel called upon
to make a conservative statement of
just what has been done in the past
and what will be done in the future.
When the Northern Pacific failed
and the banking house of J. P. Nor
gan & co. reorganized it, myself and
friends were holders of large amount
OF that company's securities. After
the reorganization was completed we
bought about $26,000,OOO of Northern
Pacific stock, both common and pre-
ferred. Some of this stock was after
ward sold by individuals, but large
amount had been held from that time
to the present. -,
About a year ago the Union Pacific
company bought the Huntington and
other interests in the Northern Pacific
and at the same time made an effort
to buy the control of the Chicago, Bur
lington & Quincy. "a > u. -,
With these lines in the hands of the
Union Pacific interests both the North
erns Pacific and Great Northern would
be largely shut out of the state of Ne
braska, Kansas, Missouri, South Da-
Dakota, Iowa, Illinois and Wisconsin,
except by using other lines of railway,
some of which were in the market for
sale and might at any time pass under
the control of or be combined with the
Union Pacific interests.
We then, with the Northern Pacific.
made proposals to the directors of the
Burlington to buy their entire prop
ertv. When this transaction was
about being closed the people who rep
resented the Union Pacific company,
and who had previously tried to buy
the Burlington, asked to be allowed to
share with us in the purchase of that
company; ON this proposal we refused for
the reason that it would defeat our OBJ
Ject in buying the Burlington, and fur
ther 1T was against the law of several
of the states in which the largest mile
age OF the Burlington was located.
At that time. against the opposition
OF OF the more southerly lines, both the
Northern Pacific and Great Northern
had put into effect low colonization
'a!be rate and were carrying daily thousands
OF people into the Northwest, many of
whom were coming from Kansas and
~ Nebraska, along the line Of the Union
Pacific. g. = fs<S
.8 This movement was at its height in
the month OF April and after we had
closed the purchase Of the Burlington
the Z Union Pacific people undertook the
boldest effort that ever was made in
this this country and bought over sixty
millions lElli Of the stock Of the Northern
Iaclfic 81 IN the markets of Europe and
the United States. / was Id New Yorl,
at the time and after Messrs. Morgan
~ 90. We're aware OF the action Of The
l1r ztlnlon g Pacific people it was found that
1fogemt 1E.,g eth mtl1er we held about 26, ,O0O, 600 Of
Mort hern Pacific common stock and,
5sin;asimllch sIll; sir as the common stock, by
tight OF q contract made with the pre-
ferred stockhol lders when the com many
was reorganized and the stock issued,
had had the privilege Of paying OH the pre-
3fe11'ed stock at par on the first day 5tf
" ,'1al anllary In any year until 1917, Messrs
Morgan 4 GO. then bought IN London
and New York about ] {, OOo, 600 81 the
common stock OF the Northern Pas;-
sfI fic; az the same time the Union Pacific
interests, having already So large an
Investment bid the stock ,lp until
there was the largest stock corner ever
known the common stock ii threa 81
4 l.
tour q avs went up ID 81 600 per share.
explained % my friends how thar.
With control of the Northern Pacific.
the Union Pacific would control the en-