The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1901-12-22
PLAIN STATEMENT
BY PRESIDENT HILL
Declares Northern Securities Company Will
Be a Benefit, Not Detriment
10 Northwest
GOV. VAN SAINT THINKS DIFFERENTLY

ner ever known, the common stock in
three or four days went up to $1,000
per share
1T is known how. with the control
of the Northern Pacific, the Union
Pacific would control the entire north
west and of the west from Mexico to
the Canadian line. except for the
! Great Northern. So great was the eff
: fort to get this control that one Of my
+ friends in London, who owned 100000
of Northern Pacific common, was Of
fered and refused sl4,000,000 for his
stock. The result was that Messrs.
Morgan & Company and ourselves
owned $40 10000 out Of $S0,000O00 of
the Northern Pacific common with the
privilege of paying off the $4,000, 900 OF
the Northern Pacific preferred. The
Union Pacific people owned $37 10000
of the common and about $42, 900, 900 of
the preferred and claimed the exclus-
i've control of the Northern Pacific
Railroad and through that ownership
the control of one-half of the Burling-
ton.
when it was known that these pre-
ferred shares would be paid off before
the annual election, mutual negotia-
tions resulted in Mr.. Morgan giving
them representative in the Northern
Pacific board. At the same time / was
elected a member Of the Northern
Pacific board. When [ was advised of
my election / stated could not legally
act as president of the two companies
at the same time, and I resigned at
the first meeting of the board Several
of the gentlemen who have long been
interested in the Great Northern and
its predecessor the St Paul, Minneap-
oils and Manitoba, who have always
been among its largest shareholders,
but not the holders of majority of
it's stock, whose ages are from 70 to
Sc years, have desired to combine the
individual holdings in a corporate form
and in that way secure permanent pro-
lection for their interests and a con-
tinuation Of the policy and manage
ment which has done so much for the
development Of the Northwest. out OF
this desire has grown the Northern
Securities Comralny.
The enormous amount of cash re-
quired for this purpose from a. COM
paratively small number of men made
it necessary for them to act together
in a large and permanent manner,
through the medium of a corporation.
and the Northern Securities Company
afforded them the means of accomplish
ing this object without the necessity
of creating a separate company to
finance the transactions of the North
ern Pacific, while, at the same time,
the credit OF the Northern Securities
Company would be much stronger. as
1t would also hold a considerable
amount of Great Northern and other
! securities.
THE Northern Securities Company Is
organized to deal in high-class secuu-
ties to hold the same for the benefit
of its shareholders and to advance the
| interest Of the corporations whose Sc
curities It owns. The company is
purely an investment one and the OBJ
ject for which It was created was sim
ply to enable those who hold its stock
to continue their respective interests In
association together and to prevent
such interests from being scattered by
death or otherwise; to provide against
such attacks as has been made upon
the Northern Pacific by a rival and
competing interest whose main invest
ment was hundreds OF miles from the
Northwest and whose only object in
gaining control of the Northern Pacific
was to benefit their southern properties
by restraining the growth of the coun-
try between Lake Superior and Puget
Sound, and by turning away from the
northern lines the enormous Oriental
traffic which must take place.