Griggs courier. (Cooperstown, Griggs Co., Dak. [N.D.]) 1885-1902, 1902-01-02
NORTHERN SECURITY.

NORTHERN. SECURITY,
Mr.. ]. ]. Hill Explains the Object
Of the Company.
No Maintains that CONSOLIDATION Of RE
val Railroad Lines 10 not Comtempl..,
ted. Tells how the gsecurity
Came to be Organised. @
Mr.. il. Hill, president of the North
ern Securities Company, has issued :
statement to the press embodying the
purposes of the Northern Securities
Company and the events that led to its
formation. He says: Sd q
Il have been absent from Minnesota for
more than two months, and during that
time there has been wide discussion
throughout the state Of what has been
generally called consolidation or q
merger Of the Northern Pacific and Great
Northern railroads, and in this discussion
statements have been made which are SO
widely different from the facts that feel
called upon to make conservative state
ment OF just what has been done in the
past and what will be done in the future.
when the Northern Pacific failed and
the banking house Of ]. p. Morgan & Co.
reorganized it, myself and friends were
holders Of large amount Of the COM
pany's securities. After the reorganiza-
ton was completed we bought about $685.
OOO,O0O OF Northern Pacific STOCK both
common and preferred. Some Of this
stock was afterward sold, but q large
amount has been held from that time to
the present.
about year ago the Union Pacific
Company bought the Huntington and 9TH
er interests in the Northern Pacific and
at the same time made an effort to buy
the control Of the Chicago, Burlington &.
Quincy.
with these lines in the hands Of the
Union Pacific interest, both the Northern
Pacific and Great Northern could be
largely shut out of the states of Me-
braska, 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 con-
troll OF or become Joined with the Union
Pacific interests. We then, of the North
ern Pacific. made proposals to the d.
rectors Of the Burlington to buy their
entire property. When this transaction
was about being closed. the people who
represented the Union Pacific Company,
and who had previously tried to buy the
Burlington, asked to be allowed to share
with us in the purchase Of that COM
pany. This proposal we refused for the
hot l1For 1H,4 &C.,
buying the Burlington; and further, it
was against the law of several Of the
states in which the longest mileage Of
the Burlington was located.
"At that time. against the opposition of
more southern 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 COM
ing from Kansas and Nebraska, along the
lines of the Union Pacific. This move
ment was at It's height in the month Of
April and though after we had closed the
purchase of the Burlington, the Union
Pacific people undertook the boldest eff
fort that ever was made in this country
and bought over $50, 600 Of stock of the
Northern Pacific in the markets of Eu-
rope and the United States. I was in
New York at the time, and after Messrs.
Morgan & Co. were aware of the action
of the Union Pacific people, it was found
that together we held about SIG, 0O0, 600 Of
the Northern Pacific common stock, and,
inasmuch as the common stock by right
of contract made with the preferred
stockholders when the company was re-
organized and the stock issued, had the
privilege of paying of the preferred stock
at par on the first day Of January of any
year until 1917, Messrs. Morgan & Co.
then bought in London and New York
about $16,0OO,OOO Of the comomn stock Of
the Northern Pacific.
Eat the same time the Union Pacific
interests, having already so large an in
vestment, bid the stock up until there
was the largest stock corner ever known.
The common stock in three@or four days
went up to $1,000 per share. explained
to my friends how that, with control of
the Northern Pacific. the Union Pacific
would control the entire northwest and
of the west from Mexico to the Canadian
line, except for the Great Northern. So
great was this effort to get control that
one of my friends in London who owned
$2,OO0,O00 of Northern Pacific common, was
offered and refused $14.ooo.o00 for his
stock. -4fa4%9 ''as>77 -T7
1.-The result was that. Messrs.s Morgan
& CO. and ourselves owned 100000 out
of se,0o0,ooO of the Northern Pacific com
mon with the privilege Of paying of the
SIS, 000,0 600 Of Northern Pacific preferred.
The Union Pacific people owned 81, O0o.0 900
of the common and about $40 100000 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 their own
ership and control Of one-half the Eur
Nngton."
When 1t was known that these pre-
ferred shares could and would be paid of
and before the annual election, mutual
negotiations resulted in Mr.. Morgan CIV
ing them a representation on the North
ern Pacific board. When I was advised
of ny election I notified them that
could not legally act as a director Of the
Northern Pacific and Great Northern at
the same time, and resigned after the
first meeting Of the board.
Several of the gentlemen who have