Passaic City record., 1901-11-16
GIGANTIC RAILWAY DEAL
Company Formed With S40O, ,OO0,-
600 to Operate Western Systems.
THE N. P. CONTEST SETTLED

Over the Great Northern and the
Northern Pacific Stock Union Pa
cifc Interests safeguarded in the
Northwest and Everybody Content.
New York City - Tremendous pro-
gress was made toward arranging
the final details of the great alliance
of the railroads of the Northwest A
holding company, with a capital of
S40O.000,O00, was incorporated under
the laws of New Jersey to take over
the stock of the Great Northern and
Northern Pacific. Resolutions to re-
tire the preferred stock of the North
ern Pacific were passed. and it became
known that the Great Northern and
Northern Pacific companies would
lease the Burlington system to the
new Burlington Railway Company, a
concern whose board of directors will
be composed of an even number of
representatives of either faction-Hill-
! NIOl tllt AilID IIOtD-
parties to the Northern Pacific con-
| test
Stripped of their technical character.
these statements mean the first steps
/ toward official settlement of the North
ern Pacific controversy. also an agree
ment on plan among the bankers to
! put the securities in marketable shape.
and. further harmonious operation of
all the railroads controlled by the two
factions separately or Jointly. practi-
cally all the big railroads of the West.
Both parties to the Northern Pa
cific controversy claim victory-one
, in that 1t acquires an equal voice in
the management of the Burlington.
and the other in that it maintains con-
tains control of the Northern Pacific.
1t was the purchase of majority Of
the stock of the latter line that precip-
itated the May panic.
To the outsider the settlement ap-
peared more like a compromise. forced
because each side was drawn unwit-
tingly into a position where further
control meant further loss. Wall
Street took this latter view and the
market for securities was not stimu-
lated into active buoyancy.
The corporation which came into
existence at Trenton will be known as
the Northern Securities Company. 1t
is the second largest corporation ever
formed. its capital being exceeded only
by that of the United States Steel
! Company It was organized under the
! laws of New Jersey. because this is
the only Commonwealth under whose
statutes the company could acquire
the powers which it needed. The
amount of the filing fee. paid by the
check of J. P. Morgan & Co., was
SSOO0O
The powers conferred upon the COM
Dany by the articles of incorporation
include these:
ITO acquire by purchase. subscr!p-
tion or otherwise. and to hold as in
vestment any bonds or other securities
of Indebtedness or any share of capital
stock created or issued by any other
corporation or corporations. associa-
ton or associations of the State of
New Jersey or any other State, Ter
ritory or country.
"To purchase. hold. sell assign.
transfer, mortgage or otherwise to dis
pose of any bonds or other securities
or evidences of debt created or issued
by any other corporation or CORPORA
tions, association or associations of the
State of New Jersey or any other
State. Territory or country. and while
owner thereof to exercise all the
rights. powers and privileges of such
ownership"
A special provision in the charter
sets forth that the company may do
/ any acts or things designed to protect.
] preserve. improve or enhance the value.
of any bonds or other securities or evil
dence of Indebtedness or stock of COM
panies which it may acquire.
The charter is perpetual. and in or
der to guard against undesirable pub
licity it provides that the directors
shall determine from time to time
where. when and how the books of the
company shall be opened to the inspec-
tion of the stockholders.
The canital stock OF the company is
divided into 100000 shares at 500
| each. all Of which is to be common
stock.
The papers We're filed by the law
firm of Stetson. Jennings & Russell. of
this city. and the incorporators men
toned in them are George f. Baker,
! Jr.. of New York City; Richard Trim
Bile. of New York City. and Abran NJ.
HYATT. of Allenhurst. N. J.
While the details of the plan for the
acquisition of the Northern Pacific
and Great Northern stock by the new
company are not set forth in the char
ter some of the particulars We're
learned from the representatives of
one of the interests concerned in the
settlement. According to this author
| ity, it may be stated unreservedly that
the basis on which the stock of these
two companies will be exchanged for
the stock of the new company will be
lS0 for every share of Great Northern
stock and 115 for every share of North
ern Pacific stock. The exact amount
needed for such an exchange on the
basis above mentioned would be $403-
100000, or $3,O00,00O more than char
ter of the company provides for. But
[ as the stock of the new company may
be increased at any time, this excess
is not material. especially as some of