The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-11-18
THAT Big CORPORATION.
racfS Relative TO Formation of North.
ern Securities Company.
CHARTER SAID TOBE LEGALLY PERFECT
Means the Practical Concentrate, IS
the Control of the Four Big Roads
Interested.

NHreIul investigation Of the Northern %
~ u"rH ohy scheme finally consum oto,
i"s' week mas disclosed these facts.
l. me charter Of the gigantic securities
company was pronounced legal bv dovon
Il 'he aolest trust lawyers in the country
q The combine would be unlavfn =.
thirteen States among them TuinoIs g.
"lieh some of the big roads RIM
q Although controlling n railroad oo,,,,a
ration OF .d00,o00OOO, the Northern secr-
'''ieS company must pay corporation
TAX on only S4oo,0oo,ooo, the amount of ,ts
capitalization.
A. Inc boards Of directors Of the Ilpes
!" the combine will be theoretically now.
eiIul' but practically hgvreheads.
o. me control of these lines will be con.
teicd practically In one board that Of tho
Northern Securities eompany.
D. The chairman of the executive hoard
Oh the Northern Securities comnsnv win
be In active daily control and viii be tile
Greatest railroad official in the world.
Z. Ihe latter Will be the nominee Of
huhn, Loeb & Co, and will probably be
Edward Il. Hartman.
Inc full Significance Of the harmony
agreement was fully disclosed only a few
days after Its consummttlon. Vh,n IT was
III uerstood that 1t mcant practically the
concentration of control Of dt ST four
oil the greatest railroad prope ,s. 40 herto
poN ertul rivals, into one bout c.au the
giants OF the street were as ON ,hel at
the magnitude OF the achievement -
Inc chief surprise was that such vast
combination could be formed legally il
has developed that the best legal skill In
I'M, me unlted States was employed in work
Ing out the agreement. The charter Of the
Securities wa nh
ted 70 the greatest trust lGwyers of Wall
street. Including such firms as sullivan q
Cromwell, Dill. Bomeiser d Baldwin and
many Others. The engineers of the big deal
regarded the legal difficulty as the chief
one 10 be overcome.
The plan as finally agreed upon was de
clared by the ableSt recognized authority
en- trust law 10 be legally perfect "Ine
charter of the Northern Securities com
pany,'' an authority has said, is legal
In thirteen States 1t would not be-
THE Northern SECURITIES company is
formed to take over the stock of certain
railroads which have been engaged in war
fire. If You live in Illinois and have a
great quantity Of stock in the Great North
ern or the Northern Pacific what law is
there 70 prevent you from putting that
stock in your grip; say, and bringing It
prevent the purchase of that stock by the
Northern Securities company? None.
IF the Northern Securities company can
huY one share Of stock why can It buy
hundred--what is 10 prevent it, in fact,
from buying the majority Of stock Of a
railroad company? Absolutely nothing in
the laws of New Jersey. or, for that mat
ter. in the laws of this state"
II is expected that the S40O.OO00O0 stock
of the Northern Securities company will be
listed as promptly as possible on the stock
exchange, and Great Northern and North
ern Pacific stock simultaneously he strlck-
en- from the list. The bulk of the Great
Northern stock has already been deposited
with j. P Morgan & Co. for exchange
int 4 n Of hprn les
company, and practically the same is true
concerning Northern Pacific.
There is little likelihood of the North
eru Pacific convertible per cent bonds
being listed. as they will doubtless he sur
rendered for common stock with little or
no delay after having been issued