Courier Democrat. (Langdon, N.D.) 1891-1920, 1902-01-02
each COMPANY WILL DE OPERAT-
ED SEPARATELY AS HERE
TOEORE.
WILL PREVENT UNION PACIFIC
GETTING CONTROL OF THE NORTH
FERN PACIFIC AND DIvERTING
TRADE SOUTH.

merger of the Great Northern. the North
ern Pacific and the Burlington railroads
under the Northern Securities company
and explaining the purpose OF forming
che securities company:
T have been absent from Minnesota Tor more
cham two months and during that time there
has arisen wide discussion Throughout the
state of what has been generally calleo con-
so1dation or q merger Of the Northern racine
and Great Northern railways. and In this ais
cussion statements have been made which are
40 widely different from the facts that teei
called upon to make a conservative statement
Of lust what has been done in the past ana
what Will be done in the future.
When the Northern Pacific failed ana the
banking house Of ]. P. Morgan & co. reorsan-
1zed It, myself and friends were holoers OF
large amount of that companys securities
After the reorganization was completed we
bought about SIG. 600. 600 of Northern Pacihe
stock. both common and preferred. Some OF
,h;s stock was afterward sold by individuals.
MT a large amount has been held from that
time to the present.
About a year ago the Union PACING company
bought the Huntington and other interests IN
che Northern Pacific and at the same time
made an effort to buy the control OF the Chi
eago. Burlington & Quincy.
with these lines in the hands OF the Union
~~--~ ~.-~
Great Northern would be
Largely Shut Out
Of the States Of Nebraska. Kansas, Missouri
South Dakota. Iowa, Illinois and Wisconsin.
except by using other lines OF railway, some
Of which were in the market for sale and might
at any time pass under the control OF or be
combined with the Union Pacific interests
We then, with the Northern Pacific. made
proposals to the directors Of the Burlington to
buy their entire property. When this transac-
ton was about being closed the people who
represented the Union Pacific company, ana
who had previously tried to buy the Burlington.
asked to be allowed to share with US in the
purchase of that company; this proposal we re-
fused for the reason that 1t would defeat our
object in buying the Burlington, and further 1t
was against the law OF several Of the states
in which the largest mileage of the Burlington
was located.
more southerly lines, both the Northern Pacific
and Great Northern had put into effect low
colonization rate and were carrying daily
thousands Of people into the Northwest. many
of whom were coming from Kansas and Ne
eraska. along the lines of the Union Pacific:
This movement was at its height in the
month OF April and after we had closed
the purchase of the Burlington the Union Pa
cific people undertook the bodest effort that
ever was made in this country and bought
over sixty millions of the stock Of the North
ern Pacific in the markets of Europe and the
United States. was in New York at the time
and after Messrs. Morgan & Co. were aware
of the action of the Union Pacific people 1t was
found that together we held about 2oOo0 QUO
of Northern Pacific common stock and mas
much as the common stock. by right of con-
tract made with the preferred STOCKHOLDERS
when the company was reorganized and the
vtock issued, had the privilege of
Paying OF the Preferred
"Atock at par the first day of January in any
gear until 1917, Messrs. Morgan & Co. then
bought in London and New York about 16.00O.-
900 Of the common stock Of the Northern Pa
cific: at the same time the Union Pacific in
terests. having already SO large an investment.
bid the stock W until there was the largest
stock corner ever known: the common stock
in three four days went up to $loOo per
share.
control OF the Northern Pacific. the Union Pa
.cihc would control the entire Northwest and
of the West from Mexico to the Canadian line.
except for the Great Northern. So great was
friends in London, who owned 100000 OF
Northern Pacific common, was offered and re-
fused $14,OOO.OOO for his stock. The result
that Messrs. Morgan & Co: and ourselves
owned 100000 out OF S0,0oOooO OF the
Northern Pacific common, with the privilege OF
paying off the rs, 0O0.O 600 of Northern Pacific
preferred. The Union Pacific people owned
$1,000. 600 of the common and about AZ. 000. 600
of the preferred. which was clear majority OF
all the stock of the Northern Pacific and
claimed the exclusive control OF the Northern
Pacific railway and through that ownership a
control Of one-half the Burlington.
When it known that these preferred
shares could and would be paid off and before
the annual election, mutual negotiations result
ed in Mr.. Morgan giving them representa-
tive in the Northern Pacific board. At the
same time was elected member of the
Northern Pacific board When I was advised
OF my election notified them that
Could Not Legally Act
as director Of the Northern Pacific and
Great Northern at the same time and re.
signed after the first meeting of the board.
Several of the gentlemen who have long been
interested in tho Great Northern railway and
its predecessor the ST. Paul. Minneapolis &
Manitoba company and who have always been
among its largest shareholders. but not the
holders ,or a majority Of its stock, whose ages
are from seventy to eghty-sx years. have de-
sired to- combine their individual holdings IN
corporate form. and in that way secure per-
1nanent protection for their interests and a
continuation OF the policy and management
which has done so much for the development
of the Northwest and the enhancement of
their own property in tho Northwest and else
where. Out OF this desire has grown the
Northern Securities company.
1t became necessary I'm order to prevent the
Northern Pacific from passing under the con-
troll of the Union Pacific interests and with 1t
the Joint control o. the Burlins toni to pay of
the seventy-fve millions OF Northern Pacific
preferred. The enormous amount of cash re-
quired for this purpose from a comparatively
small number OF men made 1t necessary for
them
To Act Together
IN large and permanent manner through the
medium Of corporation. and the Northern
Securities company afforded them the means