Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1901-11-21
A RAILWAY TRUST.
To Control Northern Pacific and
Great Northern Roads.
Company Capitalized at S4OO. 1000, 900
Is Incorporated In New Jersey
and VIII Aid In Carrying Out
the "Community OF Interests
Ideas Of the 1agnates.

New York, Nov. 14.-There were
two important developments yester-
day in the railroad situation in the
northwest, and both tended to CON
firm the existing belief that a final
basis of settlement of the contest for
control of Northern Pacific had been
definitely agreed to. Final ratifica-
tion of this agreement will bring into
existence the greatest and most ef-
fective example of the community of
interest idea as applied to the rail
road systems of the country.
The first development was the in
corporation at Trenton, n. j., of the
Northern Securities Co. with a capital
stock of $400O0O,000 and the second
was the unanimous adoption by the
Northern Pacific directors of a reso-
luton providing lor the retirement
at par of the company's preferred
stock on January ], 1902.
There was full attendance at the
meeting at which this action was
taken those present including George
+. Baker and Charles Steele, repre-
senting J. p. Morgan & Co.; f. II.
Hartman, of the Hartman syndi-
cate which is in control of the Union
Pacific; James j. Hill, president of
the Great Northern; Samuel Rea, vice
president of the Pennsylvania; James
Stillman, of the National City bank;
II. Mex. Twombley. for the Wander
bilts, and William Rockefeller.
The directors decided that the
funds necessary for the retirement
of the preferred stock should be OBJ
tanned by the sale at not less than
par of S75,000,000 of 4 per cent. bonds
convertible into common stock, each
holder of common stock now out
standing being entitled to purchase
at par an amount equal to seventy
five eightieths of his present
holdings. 1t was further provid-
ed that two dividends of per cent.
each be paid on the preferred stock
before its retirement.
No official statement was obtain
able as to the scope of the newly in
corporated Northern Securities Co.,
but it was generally understood that
the company was formed to take over
and control the shares of the North
ern Pacific and the Great Northern
railways and of their leased lines. The
Great Northern'S outstanding capital
is S12j,000,000 par value, selling at 200
in the market, while the Northern Pa
cific's total outstanding stock after
the retirement of the preferred, will
be SS0,000.000 par value, making
total of $205,000,0 900, par value, for the
shares of these two companies. At
200 for Great Northern, the amount
will be increased to $330,000,000 for
the shares of the two companies.
Burlington shares, it is understood,
are not to be turned over to the new
Northern Securities Co. That stock
is now held as collateral for the out
standing Burlington collateral bonds,
with voting rights vested in the
Northern Pacific and the Great North
eln railways. 1t is understood that
the Union Pacific and Chicago &
Northwestern interests agreed to the
retirement of Northern Pacific pre-
ferred, and that the Union Pacific
Will have heavy interest in the cap
ital of the new company, entirely be-
yond the par value of their present
Northern Pacific shareholdings, which
are placed at $7S,000,000 par value,
just over majority of the total $780,
100000 Northern Pacific stock capital.
No information was obtainable as to
what share, if any. the Vanderbilts
and the Chicago, Milwaukee & st.
Paul are to have in the new company.