Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1902-01-02
COMPANY WILL BE OPERAT-
EN- sEpERATELY AS HERE
ToFORE.
PREVENT UNION PACIFIC
xc CONTROL OF THE NORTH
b. PACIFIC AND DIvERTING
TRADE SOUTH.

taT NJ IH0
pacific and the Burlington railroads
4 the Northern Securities company
Explaining the purpose OF forming
kecurities company:
vo seen absent from Minnesota for more
two months and during that time there
60 n wide discussion throughout the
II what has been generally called a con-
T. ar a merger OF the Northern PACING
e. Northern railways, and in this dis
I. o,atements have been made which are
aoIy direrent from the facts that l feel
,Dor =. make a conservative statement
|, what has been done in the past and
will be done in the future.
the Northern Pacific failed and the
. house OF J. P. Morgan & Co. reorgan-
myself n friends were holders OF a
amount Of that eompany's securities.
the reorganization was completed We
about SOC, 900, 600 Of Northern Pacific
hoth common and preferred. Some OF
A ,ock WAS afterward sold by individuals,
~ Ia rgs amount has been held from that
20 the present.
n, a year ago the Union Pacific company
= the HUNTINGTON and other interests in
- ortbern Pacific and at the same time
\ an effort TO buy the control OF the Chi
Burlington & Quincy.
these lines in the hands Of the Union
interests both the Northern Pacific and
Northern would be
I'd Largely. shut Out
States Of Nebraska. Kansas, Missouri,
Dakota, Iowa, Illinois and Wisconsin,
az by using other lines or railway, some
eh were in the market for sale and might
time pass under the control OF or be
he'd with the Union Pacific interests.
then, with the Northern Pacific. made
ais TO the directors OF the Burlington to
cir entire property. When this transac-
as about being closed he people who
snted the Union Pacific COMPANY, and
d previously tried to buy the Burlington,
TO be allowed to share with us In the
&se OF that company: this proposal we re-
Tor the reason that Il would defeat our
Lin buying the Burlington, and further IT
kainst the law of several of the states
h the largest mileage OF the Burlington
cated.
at time, against the opposition OF the
putherly lines, both the Northern Pacifc
eat Northern had put into effect a low
btion rate and. were carrying daily
bds OF people into the Northwest. many
En were coming from Kansas and Ne
along the lines Of the Union Pacific.
movement was at its height In the
OF April and aftsr we had closed
chase or the Burlington the Union Pa
5ople undertook the boldest effort that
Rs made in this country and bought
kty millions OF the stock of the North
life in the markets OF Europe and the
EStates. was In New York at the time
Ter Messrs. Morgan & Co. were aware
&ction OF The Union Pacific people II was
bat together we held about $4,000, 900
bern Pacific common stock and, mas
the common stock. by right OF a con-
hade with the preferred stockholders
be company was r~eorganized and the
sued. had the privilege OF
: Paying OF the Preferred
par on the first day Of January in any
It'll 1917. Messrs. Morgan ~ Co. then
n London and New York about 10. 0oo,-
{he common stock OF tbs Northern Pa
the same time the Union Pacific in
having already so large an investment.
stock I'D until there was the largest
Prnsr ever known: the common stock
or four days went I'D to 81, 1000 per
aimed to my friends how that, with
pf the Northern Pacific, the Union Pa
}uld control the entire Northwest and
gest from Mexico TO the Canadian line,
or the Great Northern. So great was
n to get this control that one Of my
WX 40 ASfA@Sbl VI" -BN1SFoNN Va
Pacific common was offered and re-
l4, oOo,oOo for his stock, The result
Messrs. Morgan & Co. and ourselves
1000, coo out OF so, 900. 600 OF the
Pacific common, with the privilege OF
pr the Is, 900, 900 OF Northern Pacific
The Union Pacific people owned
0 of the common and about AZ, 900. 900
referred, which was a clear majority OF
stock Of the Northern Pacific, and
the exclusive control OF the Northern
railway and through that ownership a
one-half the Burlington.
it was known that these preferred
puld and would be paid of, and before
al election, mutual negotiations result
Morgan giving them a represents
the Northern Pacific board. At the
l was elected a member OF the
Pacific board When I was advised
ection notified them that
Could Not Legally Act
rector OF the Northern Pacific and
prthern at the same time and I re-
yer the FIRST meeting OF the board.
OF the gentlemen who nave long been
IN the Great Northern railway and
f~cessor the ST. Paul. Minneapolis &
company and who a always been
largest Shareholders. but not the
a majority of it's stock, whose ages
seventy TO ~eighty-six years. have de-
combine their Individual holdings in
FORM, and In that way secure per-
protection for their interests and a
non OF the policy and management
: done 50 much for the development
Northwest and the enhancement OF
property In the Northwest and else
GUT or this desire has grown the
securities company.
ne necessary Tin order 20 prevent the
racine from passing under tho con-
. Union Pacific interests and with Il
control of the Buriinsto toni 20 pay OF
PtyrnVe millions OF Northern Pacific
Inc enormous amount OF cash re-
this purpose from a comparatively
mper OF men made 1t necessary for
To Act Together
permanent manner. through the
u corporation, and the Northern
company Afforded them the means
Insnlng this object without the neces-
saetion for the Northern Pacific:
the same time. the credit of the
d oeSurlties company would be much
az ~ would also hold n considerable
Treat Northern and other securities.
therh Securities company Is organ
80 IN high-class securities. TO hold
LOT the benefit OF It's shareholders and
me interests of the corporations
NAles ~ owns. It's powers do not
operation OF railways, banking
.ne buying or selling of Hecuritiea
Tor others on commission; u Is
Investment oompany and tho OBJ
creation was simply to enable those
~ stock to continue their respective
- association together and 10 pre-
interests from being scattered by
otherwisei TO provide against such
haa been made upon the Northern
rival and eompsting interest.
Investment was hundreds OF
The Northwest N whose