The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-22
Certificate Of Character Is
Sought in Iowa.
MERGER SCHEMEINFULL
Two Bills to Advance the Interests
of Northern Securities.
HOW THE BURLINGTON FIGURES
Campaign of the Merger Kings Ex-
posed in Detail to Certain
Legislators.

Special to The Journal.
Des Moines, Iowa, Feb. 22.-The
exact and the very intimate rela-
lions which the Hubbard merger bill and
the Molsberry-Sweet bill now before the
Iowa Legislature sustain toward the
Northern Securities company's great rail-
road merger have been made plain. The
msmbers of the legislature who have
been taken into the confidence Of the at
torneys interested in the securing of the
passage of these two measures have been
told in detail what effect the measures
would have in preparing the ground for
carrying out the merger plans.
Briefly, the Hubbard and Molsberry bills
are both essential parts OF the same legls-
lative program which aims to empower
the Northern Securities company to carry
on the business of one of it's constituent
corporations under Iowa law. II Iowa
does not give the privilege which is asked,
there, is very great question Whetner
it can be secured in any state. While it
is impossible to say whether the denial
of these privileges would ultimately affect
the plans of the merger organizers, 1t is
known that as matters now stand much
depends on the course which the Iowa
legislature takes Powerful infu-
ences are being brought to bear to Sc
cure these two changes in the Iowa law.
Objects of the Bills.
The MoIsberry bill provides that any
railroad corporation incorporated under
Iowa laws may issue It's bonds to any
desired amount per mile without reference
to the amount of capital stock it has
outstanding. At present the law prohb
it's the issuance of bonds In excess of
two-t birds of the capital Stock unless
the total issue of bonds be SIG, 100000 or
less. This provision Is desired in the
interest of the Chicago, Burlington &
Quincy Railway company, as will be ex-
planned hereafter.
The Hubbard bill provides that any rail-
road company organized under Iowa laws
may extend, it's lines into any other state
whether adjacent to Iowa or not, and may
lease, buy acquire the securities of, con-
solidate with, or generally adopt in its
own system any railroad in such other
st ate The present law of Iowa provides
that all these things may be done by an
Iowa company In any state adjoining
Iowa; the change which is asked merely
permits these acts to be done not only
in states adjoining Iowa, but in all other
states. This also is asked in the interest
of the Chicago, Burlington & Quincy
Railway company.
Hill Toys With Burlington.
To go back now to the explanation of
those details concerning the Northern Sc
curities merger which are essential to
proper understanding Of these two bills.
it is stated that long time prior to pub
lie announcement that consolidation of
the Northern Pacific, Great Northern and
Burlington roads was contemplated, Mr..
Hill and his associates began buyinp
shares Of the Burlington in the general
market. This was done very quietly and
the market did not realize an effort was
going on to secure control of the property
Mr.. Hill finally secured about 100000
shares, so near as can be learned, which
was almost half enough to control the
Burlington company.
Then he went to the directors of the
Burlington and informed them of his