The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1904-04-01
PLANS TO KEEP CONTROL
PURPOSE OF MERGER TO BE
CONTINUED IN AGREEMENT
BETWEEN FACTIONS.
Hill and Hartman Interests Are Goino
to Be Bound Together Under
New Method.

NEW YORK., April 1.-"When the
distribution of the Northern Securities
assets is completed, there will be in
the northwest such a community of in
terests as has not been dreamed of by
states
This statement comes from head
ly the truth. It's meaning is that the
Hill and Hartman interests are going
to be so bound together by the meth
od of distribution of the stocks in the
treasury that so far as the northwest
Every holder of share of Northern
Securities will get his pro rata share
Of Northern Pacific, his pro rata share
Of Gerat Northern, his pro rata share
of the securities representing coal
cash.
The result Will be about as follows:
J. ]. Hill and his clique, including Will
lis D. James. Dan Lamont, j. P. Nor
gan, George F. Baker, Robert Bacon,
etc, will get about 60 per cent of Great
Northern, so per cent of Northern Pa
cific, and 60 per cent of the other as
sets.
+. H. Hartman and his clique. in
Guiding James Stillman, Jacob Schiff,
Northern. 90 per cent of Northern Pa
cific. and 20 per cent of the other as
sets.
The remaining 90 per cent. of each
will go to the scattered stockholders of
Northern Securities and most of the
stock will vote with the Hill Morgan
mana cement OF each road.
Result of Distribution.
From such a distribution there can
be but one result. The Oregon Short
lire. as a 20 per cent stakeholder of
Great Northern and Northern Pacific
will get representa- ton on each board.
and there will be a practical merger of
all interests. All the roads will act to-
gether, in all questions of common in
terests, such as rates, the building of
new lines in new territory, etc.
To all intents and purposes, the
original object of the merger will be
Goubly assured. and the only new fac
tor in the situation is that the Harri-
man roads, instead of being shut out
will be of strong and vital interest in
the northwest.
The law will be obeyed very literal
". There will be no question at all of
the legality of the distribution au-
thorized as it is by the precedent of the
sugar company, the Standard Oil trust
and other disbanded companies. 1t is
fact. the only lawful method of dis
tributing these securities.
If the control of Northern Pacific
were handed over to the Hartman in
terests, as it stood on the day after
the panic of May 9, 1901, suit would
Immediately be brought by the attor-
ney general against the Union Pacific,
as holder of the stocks of a parallel
and competing road
Mr. Hartman does not desire any
such contingency. He has consented
to the other and more reasonable meth
Oh, and MI Hill and Mr.. Morgan also
desire it. 1t will be put in effect after
the attorneys have fully digested the
decision found the ways and the
means at their disposal, and are practi-
tically assured that no single point
CT law has been or will be violated in
the transfer. ..,.4,
Trusts Certificates.
When that is done the stocks owned
by Messrs. Hill. Morgan and their
friends will be trusteed and trustees
certificates will probably be issued
against them. The certificates may or
may not take the form of income or
annuity bonds, with interest payable
if earned. In other words, the owners
Of these stocks will simply use them
as collateral for bonds that will be
practically notes, callable when desired
at a certain price, and bearing a Slid
ing scale of interest. 1t will be prac-
tically a voting trust.
1t might very we'll be called the
Hill Estate" The trustees will have
nothing to do with the management
Or administration of the roads, any |
more than a bank has to do with the