The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-09-29
Rumors In Air of Huge Ra ilroad
Merger.
Santa Fe Milwaukee, and North
ern Securities i'm 1t.
NEW YORK CONFERENCE
Financial Circles Aroused Over
Reported Deal.
Santa Fe to Atlantic, Milwaukee
to Pacific.

Chicago Sept. 29.-There is a re-
port in financial and railroad circles
that plan for the settlement of the
Northern Securities litigation has
been agreed upon. Financial and rail-
road circles in Chicago, New York and
the entire western country as well
were startled today by the .prelimi-
nary announcement of the proposed
plan The report is that the first
move will be a harmonious ending of
the Northern Securities litigation. the
merger Will be dissolved and the prop
erty distributed in a manner satisfac-
tory to the federal authorities who
prosecuted the case. and at the same
time satisfactory to the big interests
behind it, This method is said to be
as follows:
The Union Pacific (Harriman-Roek-
efeller) to take the Chicago, Burling-
ton < Quincy, now part of Northern
Securities.
The Great Northern. also a part of
the Northern Securities company, to
be retained intact by James ]. Hill, it's
founder and builder.
The Chicago, Milwaukee & St. Paul
NROckefeller) to take the Northern
Pacific and thus gain a through line
TO the Pacific coast, which it has long
desired.
In addition to these moves. which
Will all be in manner indicating
friendly relations. the community OF
interests will provide an eastern out
let for the AtchiSOn deal, in which it
IS believed the Pennsylvania, New
York Central and others in the east
figure, as we'll as Morgan and Hill.
The latter are strong in Erie, and the
proposition to make the Atchison and
Erie a joint through line from coast
TO coast is said to be for the mutual
benefit OF all
Up to date there has been no def
mite confirmation of the report, but
the story as it has been circulated
already has widespread attention and
the keenest interest is evinced. The
basis of the reports are the confer
ences now being held in New York.
These are attended by James ]. Hill,
r. H Hartman, J. Pierpont Morgan,
A J. Cassett, Z. J. Berwind and 9TH
ers of the leading railroad map max
ers of the nation. From sources uSu-
ally Well informed on the moves of
these interests the story came today,
but entirely in the form of rumors.
These rumors. however, were sufficient
TO induce general buying of the secu-
rites affected by the reported combi-
nations
The sharp advance in Northern Sc
curities shares, following similar rapid
and substantial advances in the prices
of Union Pacific. Atchison. Erie and st.
Paul. all within short time, due to
heavy accumula ton of these shares by
important banking interests, are taken
by brokers to indicate the consumma-
tion of some such deal. but they do not
undertake TO either confirm or deny
the details.
The Northern Securities company
was organized in November, 1901. for
the purpose of controlling the Union
Pacific. Northern Pacific, Great North
ern and Burlington railroads Its pro-
posed capital was 400 million dollars
and its purpose was to coutrol 24,794
miles of railroad, with a total capitaH-
cation of 1910 million dollars. The
merger was opposed by the federal
government and a decision declaring il
illegal was rendered by the United
States supreme court in March of the
present year
The efforts to reach a settlement is
said to have in addition to the lines
included IN the original merger, taken
in the great Santa Fe system and the
necessary lines to give the Santa F'e
an outlet to the coast; and the Chi
cago. Milwaukee & St Paul system.
The Santa Fe has a mileage of 5,031
miles. the Milwaukee 1850 miles, and
the Pennsylvania lines 5,165 miles, the
Union Pacific 5.556. the Northern Pa
cific 500. the Great Northern 5.41S, the
Burlington Sill; a total of 2,04O miles.