Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1901-12-26
Says Securities COmpany's Purpose
Was to Save Northwest From
Union Pacific.
Wished to Protect the Interests of
the Three Northwestern
Roads.
Through and Local Rates Will Be
Reduced When Traffic
Warrants it.

Northern has issued an address to the
public about the formation Of the
Northern Securities company, which is
of great interest to the people of the
northwest. In substance his state
ment is as follows:
When the Northern Pacific failed,
the banking house of Morgan & Co,
reorganiZed the road and Mr.. Hill
and his friends bought abont 26 mil
lions of the Northern Pacific stock.
About year ago the Union Pacific
company and other interests, bought
largely of the Northern Pacific Sc
curities, and at the same time at
tempted to control the Burlington
Had this succeeded the Northern Pa
citic and the Great Northern would
have been largely shut out of the
traffic of the states OF Nebraska, Kan
sas, Missouri, South Dakota, Iowa,
Illinois and Wisconsin, except by u.s.
ing other lines that were for sale, and
might pass into the Union Pacific
hands at any time. 1t was then that
the Hill and Morgan interests sought
to buy the Burlington outright.
There was a large emigration to the
northwest from the states tributary
to the Union Pacific, and that COM
pany wanted to head off any further
move. So they attempted to get con-
troll of the Northern Pacific and the
famous corner last spring in that
stock was run in New York when
shares OF common stock went up to
81, 600 share in three or four days.
In order to keep the Northern Pa
citic and Burlington from the control
of the Union Pacific, it was necessary
to raise $4,000, 900 pay of that amount
of Northern Pacific preferred stock
which could be done under the re-
organization agreement, and to raise
this cash through comparatively
small number OF men, it was necessary
to act together through corporation,
and the Northern Securities company
was the means chosen The purposes
of the company was to protect the in
terests of the three northwestern
roads, and to insure the development
of the northwest, which, had the
Union Pacific secured control, would
have suffered by being in the hands
of rival road, whose interests were
separate and lay in the southern part
of the country. The new trade of
the orient which was being gained by
the northern lines for the ships on the
Pacific would also be diverted to the
seaports and ships controlled by the
Union Pacific interests.
The Union Pacific plan was pre-
vented from realization, although
Mr.. Hill points out that he and his
friends could have sold their Northern
Pacific stock and make from $40 to
$50 millions which they might have
legally pocKeted. He claims that by
this action of the Morgan-Hill and
Burlington, the business interests OF
the great region between Lake Su-
perior and the Puget Sound have
been protected, and the continued
development of the country assured.
Had even 20 millions of the Northern
Pacific stock passed into the hands of
the Union Pacific at the critical time,
that system would have controlled the
transportation of the entire country
from Canada to Mexico, and that
would would have meant a great
drawback to the settlement of the
growing northwest.
Mr.. Hill also states that the through
and local rates will be reduced as the
increased volume Of traffic will war
rant it, and that in the near future;
that the development of the country
will be hastened with the increased
population that the roads will secure.
The Northern Pacific and Great
Northern will be operated separately
as in the past. and he asks for time
and fair play to show whether the
public will be benefited or injured by
the action of himself and associates.