The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1901-11-15
DIRECTORS OF NORTHERN PA
ClFIC MEET.
RETIRE PREFERRED STOCK
Northern Securities Company Incor-
porated With Capital Of
$4oo, 10000

New York, Nov. 13.-There were
two important developments in the
railroad situation in the northwest to-
day, and both tended to confirm the
existing belief hat a final basis Of
settlement of the controversy for the
control of the Northern Pacific has
been agreed upon. The ratification of
this agreement will bring into exist
ence the greatest and most effective
example of the community of interest
idea, as applied to the railroad system
of the country. The first of today's
developments was the Incorporation,
at Trenton, N. j., of the Northern
Securities company with a capital
stock of $500, DOC, 900 and the second
was the III ar.ircus adoption by the
Northern Pacific directors of a resolu-
ten providing for the retirement at
Par If the comrany's preferred stock
on January 1, 1902.
There was a full attendance at the
meeting at which this action was TAX
en-, those present including George F.
Baker and Charles Steele, represent
ing J. P. Morgan & Co., E. H. Harri-
man, of the Hartman syndicate, which
is in control of Union Pacific, j. j.
Hill, president of the Great Northern;
Samuel Rea, vice president of the
Pennsylvania, James Stillman, of the
National City bank, H. Mex. TWom-
bley, for the Vanderbilts and William
Rockefeller.
The directors decided that the funds
necessary for the retirement of the
preferred stock should be obtained
by the sale at not less than par Of
SIS, 100000 of iNRr per cent bonds,
convertible intW common stock, each
holder of common stock now outstand-
ing to be entitled to purchase at par
an amount equal to seventy-five eight
holdings. 1t was further provided
that two dividends of one per cent
each be paid on the preferred stock
before it's retirement.
Samuel Spencer was elected a men,
Der of the board in place Of Robert
Bacon, resigned, and the board or
ganized by re-electing all Of the COM
pany's present officers.
No official statement was obtainable
this afternoon as to the scope Of the
rewly organized Northern Securities
company, but it was generally under
stood that the company was formed
to take over and control the shares
of the Northern Pacific and the Great
Northern and Of their leased lines.
Great Northern's outstanding capital
is $125, 100000 par value, selling at
5000 in the market, while Northern
Pacific total outstanding stock, after
the retirement of the preferred will
be 1000, 900 par value, making a
total of $2O5, 900, 900 par value for the
shares of these two companies. Al
5000 for Great Northern the amount
would be increased to $3.50, DOC, 900 fol
the shares, of the two companies.
Burlington shares, it is understood
are not to be turned over to the new
Northern Securities company. Tha'
stock is now held as collateral for the
outstanding Burlington collatera
bonds with voting rights vested in the
Northern Pacific and the Great North
ern railways. 1t is understood tina
the Union Pacific and the Chicago &
Northwestern interest agree to the
retirement of the Northern Pacific
preferred and that Union Pacific viii
have a heavy interest in the capita
of the new company, considerably be
yond the par value of their presen'
Northern Pacific share holdings, which
are placed at $4,000, 900 par value
just over a majority of the total, $155,
900, 900, Northern Pacific stock CAPT
tai, No information was o%btainable
as to what share, if any, the Wander
bits, and the Chicago, Milwaukee &
st. Paul are to have in the new com
pany.
Under the new arrangements. the
Union Pacific railway will have Vot
ing rights in the Burlington, the di
rectors being about evenly divided be
tween the Union Pacific and the Hill
interest and the suggestion was made
today that the Burlington stock may
be held in a voting trust, under the
agreement between the two interests
In this case j. p. Morgan will be
voting trustee.
After the meeting OF the Northern
Pacific directors, ]. J. Hill and George
F. Baker went to Mr.. Morgan's of1ce
and had a conference with him. Later