Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1901-11-16
THE BIG DEAL is CLOSED
Railroad Systems are Merged on
Morgan's Plan.
WITH CAPITAL OF S4OO, 900, 900.
The Northern Securities Company, Formed
to Garry out the Terms-A Great
Trans continental System Under
one Control.

Trans continental system Under
one Control.
NEW YORK, Nov. 1.-THE Northern
Securities company has just been in
sorporated at Trenton. This company
the outcome of the negotiations for
he settlement of the Northern Pacific
war. 1t will, it is understood, hold the
stock of the Northern Pacific, the Great
Northern and the Chicago, Burlington
and Quincy railroads. The capitaliza-
ion is given as S400,00O,000.
The incorporators are George f. Bak-
sr, Jr., 25S Madison avenue, New York
.ity, Richard Trimble. SO East Twenty
fifth street, New York, and Abram NJ.
Hyatt, Allenhurst, N. j.
Mr.. Baker is son of Mr.. George f.
Baker, the president of the First Ma
.ional bank He is assistant cashier of
that bank. Mr.. Trimble is secretary of
the United States Steel corporation.
sorporator because he is a resident of
New Jersey.
The company takes advantage of the
new law allowing holders of two-thirds
If stock to manage the business. The
company is authorized to acquire stock,
bonds and securities of corporations.
The charter issued is for the second
argest combination ever given legal ex-
stence by the state of New Jersey. The
argest was the steel corporation, with
IN authorized capitalization of $1,000
100000. The fee received by the secre-
AIRY of state for the charter was $780,
700 and was paid by the legal repre-
sentatives of j. pierpont Morgan. The
check for the charter fee was signed
oy Mr.. Morgan personally.
The entire $4e0OOO.0O0 is in common
stock of the par value of 800. The in
.orporators each hold 100 shares of the
stock. The certificate sets forth that
he objects of the corporation are to ac-
luire by purchase. subscription or 9TH
srwise and to hold as investment any
bonds or other securities of indebted
less or any shares of the capital stock
treated or issued by any other corpora
lion or corporations, association or as
sociations, of the state of New Jersey
,r any other state. territory or country.
There is no Specie mention that the
corporation is to acquire the Northern
Pacific and other roads that created the
panic the past summer and which have
lot been taken up by the Morgan syn
1icate, but none of the charters grant
ed by New Jersey to the great corpora
lions ever gives the specific purpose of
the concern.
News of the Incorporation OF the
New Jersey corporation was received
IN Wall street with great satisfaction.
although it was not Immediately re-
iected by any substantial market
movement. This latest development
N the western railway situation marks
one of the most momentous events in
the railroad history of the country.
1t means that actual community of
railroad interests will prevail in the
west and that the difficulties growing
out of the Northern Pacific corner pre-
.ipitated by that company's successful
effort TO control the Chicago. Burling
.on and Quincy have been adjusted to
The satisfaction of Mr. Morgan, Mr..
Hartman and every one else interest
ed either directly or indirectly.
The trouble arose when the Northern
Pacific secured the Burlington and
Quincy. The Union Pacific. through
MIR. Hartman, asked Mr.. Hill for
voice in Burlington and Quincy con-
troll. Mr.. Hill, it is understood, re-
fused. and then ensued the dramatic
Struggle for the Northern Pacific con-
troll. Mr.. Morgan was in Europe at the
time. and the fight was continued until
lit eliminated on May Q, the most
memorable stock corner that ever hap
pened
\ The incorporation of the new compa-
10y means that the great transcontinen-
tai railway systems. with but one ex-
|ception, are now, or win be shortly.
under joint control. Those systems
|are the Union Pacific which controls
|.he Southern Pacific: tie Northern Pa
|ritic and the Great Northern. The
|only independent transcontinental sys-
item is the Atchison, which also has an
outlet on the Pacific coast. While no
definite announcement has yet been
Apade. it is believed that the new hold
e company will take over the North
2 Pacific's $S0,000,000 of common
ok and the Great Northern's pre-
n red, of which 1926. 100000 is author
led and of which S123,000,O00 is out
Fstanding.
1t is thought that Northern Pacis~
common will be taken on a basis or
$3.50 a share and Great Northern at
about 5000 share, but these are not