The Cairo bulletin., 1906-11-30
HILL bALKEO BIG
RA|LROADMERCER
DECLARES HE CHECkMATED COM.
BlNE AFTER HE WAS OFFER.
ED MANAGEMENT
ON GRILL IN MINNESOTA
Mnnesota's State Attorney General
Would Squeeze $55 900, 900 in
Watered Stock Out OF Great
Northern.

ST. Paul Mimi, Nov ga colos
cal combination of all the railroads il
the West, between the Canadian bor
der and the Mexican line. This is tn,
stupendous railway movement outlin
ed by James J. Hill And the move
ment was checkmated only by the re
fusal of one man to enter the combl
nation That man was himself
MI. Hill made this remarkable dis
closure while testifNing before tht
| Minnesota Railroad and Warehouse
| Commission. Wrought up to higf
pitch. he asserted and deiterated the
honesty Of his purposes in his great
transactions, especially of the last
few years. and thereby he made al
most equally remarkable disclosure.
147 Per Cent Dividends.
| Stockholders of the Great North
ern Read have received the equivalent
of 147 per cent in dividends during
the past year, made up of yer cent
from operation of the road. 40 per cent
in the form of a stock dividend and
100 per cent from the ore land deal,
the last being almost a free gift Of
Mr. Hill to his stockholders. inasmuch
as he could have rightfully held that
profit fer his personal account. This
was demonstrated in the examination
of Mr. Hill by Edward T. Young. at
torney general. who had charge of the
examination.
During the past year the Great
Northern admittedly has issued $685.
600 600 i'm new stock Holders of the
s125 100000 stock which was already
ont were allowed to absorb this new
issue at par, Great Northern investors
being allowed one share of the new
stock for every FIVE shares they al
ready held Many simply sold thor
options on the new issue. This proved
worth in profits, conservatively esti-
mated, 40 per cent dividend to the
old stockholders.
During the year there was also is.
sued by Mr.. Hill s150,000. 900 in stock
of the Lake Superior company, which
new company represented the hold
ngs Of iron ore which Mr. Hill had
accumulated through a series Of years
Thii Superior Company stock was
given to the Great Northern stock.
holders. share for share, thus equaling
dividend of 100 per cent. In addi-
tion the Great Northern declared its
usual annual cash dividend of 7 per
cent Thus, in the aggregate. the div
idend for the year was practically 1f7
per cent.
Hill Nettled on Stand.
Mr. IIill's statements along this line
were brought out by Mr.. Young after
severe cross examination Some Of
he quections evidently nettled the
magnate. His venerable |
head shook and his finger trembled |
IN the air in unconscious queries of |
his examiner In the intensity Of his
telling as he replied TO the pointed |
queries of his examiner In the inten.
sity OF his feeling MIR Hill biutel |
1t a plan for a combination of all west. |
orn railroads. With himself at its head,
which plan had not matured because
Of his refusal to take charge.
IL could have accepted he said. |
the management of all the railroad
ines in the West between the Cana
iian boundary and Mexico. but re-
fused that I might continue in charge
If my interests in the Northwest and
he development cf this part of the
country
Mr.. Young then asked as TO the
'easons for the Great Northern Com.
lany being made up of so many small
IT companies. some Of which il leases.
,ther of which it controls by owning
heir stock.
We find 1t more advantageous.
aid Mr.. Hill. TO have different cor.
,orations in different states. States.
have found, are sometimes very
nxious TO get railroads and offer in
Iucements for htme to enter and build
inor. And then as soon as they do.
hey do all in their power to tear
hem 10 pieces Having different state
TO greater degree lin
is tho influence Of such undesirable
Iction in its effect on the whole
treat Northern company.
Would Squeeze Out Water.
Attorney General Young said after
he hearing: "As a result Of the evi-
Ience secured in the examination Of
ir. Hill showing duplicate issues Of
apital stock fer the Great Northern'sl
ranch lines. 7 am considering how 7
o bring proceedings to compel the re-
irement Of one set Of the stock. either
hat Of the branch line which is still ]
float and paving dividends. or that ]
4 the main line. issued for the pur-
'ose Of buying up tire subsidiary com
an
The people are now paying divi