Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1904-04-06
THE UNION PACIFIC SEEKING
CONTROL.

The St. Paul Pioneer Press calls at
tention, in the following clear explana-
ton of the forces seeking to obtain
control of the Northern Pacific, to the
danger that would follow Union Pa
cif1c control of the road:
The suit brought by the Union Pa
ciic interests to compel the Northern
Securities company. to return the
Northern Pacific shares exchanged by
them for Northern Securities stock
instead of an equal amount in both
Northern Pacific and Great Northern
shares according to the arrangement
OF the Northern Pacific is one Of vital
and permanent importance to the
Twin Cities and the whole territory
through which the Northern Pacific
runs. The situation is entirely differ
ent from that which was presented
after the struggle for control of the
road three years ago. At that time
while Hartman controlled majority
OF the preferred and large percent
age of the common stock of the North
ern Pacific his failure to control the
common made it impossible for him
to control the road. Pursuant to the
right of the common to retire the pre-
ferred, that class of stock, including
the Union Pacific holdings, was con-
verified first into bonds and then into
common stock. Had this converted
stock not been turned into the North
ern Securities company it would, with
the holdings Of the original common,
have given the Union Pacific interests
majority Of the shares. Hence Mr..
Harriman's desire to have his North
ern Securities holdings re-exchanged
for the holdings which he maintains
were turned into the company.
The vital importance of this conten-
ton to the Northwest is manifest.
Union Pacific control of the Northern
Pacific means the control of that road
by men who have only secondary
interest in the Northern Pacific coun-
try, who have no especially large bust
ness interests in the Northwest and
who would naturally run the road as
an adjunct to the enterprises and the
sections in which they are primarily
interested. It would mean that the
Twin Cities would have to meet an
equal Chicago rate where they now
are favored to the extent of the Chi
cago-St. Paul local rate. It would
probably mean the removal of North
ern Pacific headquarters and termin-
ais to Chicago.
This is, in brief, the prospect that is
before the Twin Cities and the North
west if the court should grant the ap-
plication Of the Hartman interests.
Whatever views may be held as to
the now dissolved merger of the
Northern Pacific and Great Northern
it is manifest that instead of merger
whose interests conferred in the
Northwest we shall, if Hartman gets
his way, have merger operated in
utter Indifference if not in direct an
tagonism to the Northwest. Though
the Twin Cities, Minnesota or any
other state may not be technically en-
titled to intervene in the case in pro-
lection of its interest it is manifest
that it has as great a stake in the
proceedings as either of the principal
parties to suit The contamination Of
the Union Pacific project to gain con-
troll of the Northern Pacific would be
such blow to- the development Of this
entire section that every legitimate
means should be taken to avert it.