The times. [volume] (Richmond, Va.) 1890-1903, 1901-11-14
Effective Example Of the Community
ofintaress Idea.
BIG CORPORATION ORGANIZED.
ca;ital is f.ur Hundred Million Dollars, and
the Powers Are 10 Buy aud Deal in
Stocks aud s:euriiiss-sanu:l
Spencer Is Made Director
oi the Northern
paeilis.
(By Associated Prcss.j

NEW YORK, Nov. I3.-There We're two
important Developments in sae railroad
situation in the Northwest, and both tend
ed to confirm the existing belief that
fil:al basis OF settlement OF the contest
for the control OF the Northern Pacific
has been definitely agreed on. Final rat
ifcation of this agreement will bring into
existence the greatest ana most elfective
example of the community of interest idea
as applied TO the railroad systems OF the
country.
The first of to-day's developments was
the Incorporation. at Trenton. n. j.. OF
the Northern Securities Company, with
capital stock of SiOo. eco, ,00J, and the sec
ond W. 5, the unanimous adoption by the
Northern Pacific directors of q resolution
providing tor the retirement at par of the
company's preferred sock on January l.
1902
FULL ATTENDANCE
There -as full attendance ar the
meeting at which this action was taken.
those present including George {. Baker
and Charles Steele. representing J. 2.
Morgan and Company: f. Fl. Hartman.
of the Hartman syndicate. which is in
the control OF The Union Pacific: James
j. Hill. president OF the Great Northern;
Samuel Rea, yic.-president OF the Penn
sylvania; James St.l!man, of The National
City Bank; H. Mex Twcuabiy, for the
Nander,ilts and William Ruci.assIler.
The directors decided that the funds
necessary for the retirement of The pre-
fsrred SO k should lie obraln net by .ha sale
at not less shas:1 par of S,o. 80. 600 Of !. par
cent bonds. convertible into common
- ..z- -
outstanding teing entitled TO purchase at
par an amount equal TO seventy -e.ghti-
eths OF the amount of his present hold
iags. II vas farther provided that two
dividends Of / per cent. each be paid on
the preferred stock before its retirement
PRESIDENT OF SOUTHERN.
Samuel Spencer was elected a member
of the board in place Of Robert Bacon,
resigned, and the board o~Sai.ized by re-
eiecting ali of the comoanys present OIL
GERS.
No official statement was 1s..t.s tie this
evening as 70 the scope of the newly
incorporated Northern Securities CoIipa-
ny. but it was 5 -nerally understood mat
the company was formed to take over
and control the shares of the Northern
Pacific and the Great Northern Railways
and of their leased lines. ti-.eat Horthern
7 outstanding ca pitaI is sl25 5eG0.to5 par Naius.
ern Pacific total outstanding stock After
the retirement of the preferred Iisti he
$50. 600 par value. making Il .o.at at
s2D5, COO, ee0 par value for the stasss CT
these two companies at go for Great
Northern. the amount would be .rcrss.ed
to 500. coo for the shares of :he :wo
companies.
BURLINGTON SHARES.
Burlington shares. it is understood. n-e
hat psd tpf ba .,.,y Nf,r her
| Securities Company. That stock is aow
/ nald as collateral for the Outstanding
| Burlington collateral bonds. with yo ini,
| rights vested in the Northern Pacific and
| the Great Northern Railways. It is dr-
derstood that :he Er;oa Pacific and Chi
! cage Northwestern interests agreed 20 tho
| retirement o. Northern Pacific preferred
and that Union Pacific will have a heavy
| interest in the capital of the new COM
| pany considerably beyond the par value OF
| their present Northern paeitic share hold
| ings. which are placed at sIS.0S0.hJ par
/ value just over'a majority of the total
s1J5, ,Oo1, tD0-Northerr Pacific stock capital.
| No information was obtainabie as to
! what share. If any the yanderbiits. the
/ Chicago. Milwaukee and ST. Paul are "a
/ have il the new company.
| DIFFICULTY AT END.
| Jnder the new arrangement the Union
/ Pacific Railway will nave voting rights
! in the Burlington. the Beard of Directors
| being about evenly divided between the
/ Union Pacific and the Hill Interests. The
/ suggestion was made today that the Bur-
! linSton stock may be held in d voting
/ trust until the agreement between the TIVE
interests. In this case J. f. Morgan will
! b. a voting trustee.
i After the meeting of the Northern, P1ei-
/ fic directors. j. J. Hill and George F.
Baker went to Mr. aIorgan's office and
had a conference with him. Later Jacob
I Schiff of Kuhn. Lenb & Company. and E.
Fl. Hartman called Al declined to be
/ interviewed.
a member Of the firm of j. p Morgan
& Company sait! that the Northern sss,tsi-
ties Company would be the holding CONS
4 pany of the v;.rIotis roaass Interested bur
he declined 10 say what rsitrcaos these
| were on the ground that details are not
i yet COMPLETED. and premature pubitei,-
/ tion might interfere with tneir constiin-
| nation.
/. You may rest assured. he sgid. that
all difficulty over The Northern Pacific
matter is now at an end ana this has
been accomplished in a nnaaasr highly
t satisfactory to ali concerned