Arizona daily citizen., 1901-12-05
THE GREAT RAILROAD COMBINF,

o.
THE GREAT RAILROAD COMBINF.
The capitalization of the Northern
securities Company recently organized
TO harmonic the transcontinental
railroads. amounts. according to the
estimate OF the Wall Street Journal tn
f1,0l7, 900. O00. The bonded debt OF
the Chicago, Burlington 4 Quincy
hailroad the Great Northern and the
Northern Pacific including the Chi
ago. Burlington and Quincy Com
rahy's Joint As, amounts" says the
Journal TO $Gl7. 900 the capital
stock OF the Northern Securities Com
pany is $400. ooO. 600. making the grand
ptal of $l0l7 900. 900 1t is thus the
rst billion-dollar railroad corporation
.s created The mileage controlled is
about Is. $50 miles and the fixed charg-
IS are about sac. 900. 900 year. On
ihe basis of last years operations it
is estimated that the new company
might have paid its fixed charges ami
have had left about 4 per cent on its
stock, II to the mileage just men
toned we add the 1854 miles con
trolled by the Union Pacific. we find
So .SlG miles in the combine. with n
capitalization vastly exceeding the
rounu billion.
The upshot of the settlement cx.
pressed in the organization OF tho
Northern Securities Company" IA
that the menace to the Union Paciii
involved in a rivals owning the Chi
Gag" Burlington and Quincy Railroad
is ended by the Union Pacific acquiring
a large share of the stock OF pro
prietary company that controls tn"
Great Northern and the Northern Pa
OF the Chicago Burlington and Quincy.
The Union Pacific already controlled
the Southern Pacific and two other i'm
portant lines. 1t may still regard the
combination of the Northern Pacifi
and the Great Northern az rival. but
the power of that combination to In
jure the Union Pacific through the
Chicago. Burlington and Quincy Is
destroyed, This result restores III
status of last May and may be regard
Ell as n victory for the Union Pacific
There are. however, other aspects ol
the settlement which appear to be in
tercsting the politicians of the States
traverscd by the new monster aggrega-
ton AS the Canadian Pacific remains
independent there will still be com
petition In transContnental traffic
The Atchison, Topeka and Santa FL
Railroad is also Independent OF the
combine. But in vast area not reach
cd either by the Canadian Pacific or
the Atchison, there is an end of reck-
less competition and ratc-cuttng, If
Is greatly increased probability.
says the Railroad Gazette. "of peace
order and stability. which will be tho
best situation for all parties. including
the railroads. the producers, the ship
pers and the consumers This il the
railroad point of view and 1t is pos
sibly correct The public seldom pro
fits from the decentralization Of rates,
secret determinations and other evils
that follow upon railroad wars. But,
"a the Gazette says lit was certain
from the start that the formation of
the Northern Securities Company
would excite the fears and the active
hostility OF State officers and Legisla-
lures in the Northwest and the pur.
pose of the Governor of Minnesota 10
contest the legality of the sale of the
Great Northern and Northern Pacifl
has already been declared and Is no
doubt sincere"
1t is agreed among the railroad Jour
nails that such opposition was fore
seen by the organizers OF the Northern
Securities Company and has been pro
vided against Mr., Hill Is said to
know what he is about" understand /.
Ing perfectly what can and what can
not be done in the North lost Colonel
Clough, the general counsel of the new
company is credited with a minute