The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1910-11-26

tnSult CHdLlBiHS anu Improving LfleIH
as he goes along, and finally bringing
them out in an entirely different form
from any he has talked about For
this reason his enemies have called
him a liar. He is really an inventor,
inventing and planning aloud. He L.,
In fact, very fortunate man; his
enthusiasm drives him to accomplish
an enormous amount of work with
the greatest OF pleasure, every day
How the Grasshoppers Helped.
And this is how the grasshoppers
helped Mr. Hill and his associates Sc
cure possession of their first railroad
line:
In the spring Of 1877 they were
ready to take over the ST. Paul s.
Pacific. People still smiled at it in
st. Paul, and wondered a good deal
how Jim Hill had hypnotized bank
president like Stephen into getting
him to put up the money. If it hadn't
been for the grasshoppers, 1t would
have been different But, as it was,
no one could take it seriously. When
the syndicate came to pay its law
yers, Bigelow, Flandrau & Clark, it
offered there a choice between $25, 900
in cash and 100000 in stock. They
took the cash, as anybody else in the
section would have done. This was
a mistake that cost them principal
and interest to the present time, some
$15.O00,00O, all told. But they did not
know then, and could not know No
one, of course, could guess the thing
that was about to happen.
- l., ,,-;A 4,
1t the usual plague Of grasshoppers
They grew and increased for two
months-swarms Of little fellows who
could only crawl and jump boot or
two high. Then in the early summer,
it came time for them to fly. One day,
without the slightest warning, they
left the country-swarms square miles
wide. They never came back again.
A few of the settlers had stayed on
the farms to make a fourth trial of
the pest ridden country. The grass
hoppers had eaten the young wheat,
but, like early frost, their eatihg had
merely driven back its growth, given
it stronger roots, and really helped it.
That year saw the greatest wheat crop
for its area ever grown in that region.
The farmers who remained started the
new railroad carrying out their crops
day and night.
Northern Pacific Reorganization.
In 1896 Morgan completed the re-
organization of the Northern Pacific.
Even before this Hill and some of the
Great Northern group held several
millions of Northern Pacific bonds.
The reorganization called for SIS as
sessment of the common stock; large
number of the old stockholders refused
to pay it and consequently there was
some S30,O00,0O0 of this in the hands
of Morgan as reorganizer. In Febru-
airy, 1897, Morgan sold S25,SS4, 100 par
value out of $S0,000,00O of this common
stock to Hill and Lord Mountstephen
for the Great Northern groups for
81, 133, 456-$16 a share.
The Northern Pacific before reor-
ganizatioh had had to pay for interest
and rentals of other roads $1,000, 900
year; by reorganization this was cut
almost in ha:f-to little over $4,000
900. The stock of the concern was
almost $5,000000 a year nearer divi-
dends than it was before. The stock
holders, as usual, did not realize this;
tens of millions Of dollars worth of
stock was thrown over
On the other hand, the men who had
planned and intimately understood the
reorganization knew perfectly we'll
especially after the connection with
the Great Northern group had been
made and practical monopoly as
gured-the real value of the stock
Mr.. Morgan stated this precisely on
the witness stand, in the case Of Peter
Power against the Great Northern
on March 26, 1902.
From the day that that plan of re-
organization was issued" he said, 1--WE
never had one moments doubt that
within few years, and before the ex-
piration Of the time fixed for the vot-
ing trust, the common stock would
have reached a point in its price where
1t could be sold at par or better"
In April, 1901. and before the COR
ner" of May--six months before the
voting trust had originally been
planned to expire-Northern Pacific
common had gone up just about one
hundred points In two months more
than four years the Great Northern
group had seen profit Of just about
25,O00,000 on their holdings. 1t was
to be q great deal larger
And now the little group OF men al
the center of hte great aggregation
had accur qllated an economic power
that would have been uncomfortable
twenty-five years befor-. Twenty
thousand miles OF railroad; a capital
zation Of over S9O0,O0O,0O0 outstanding
receipts og $10.o0O,O0O a year-all came
under their direct control. They had
sold much of their stock In the Great
Northern as time went on: but the
group still held some 5000, 0O0--near
Iy 80 per cent of the company's stock
lin the spring of 1901. with J. p
Morgan e Co. they held between $685.
600, 900 and $4,000. 900 OF the s155,000,.
900 stock of the Northern Pacific
about a quarter of the whole. AND
through the Northern Pacific and the
Great Northern they held the Bur-
lington. Taken altogether, IL was one
OF the most remarkable groups of mer
ever got together in the country--thest
wise, aggressive Scotchmen and tlleil
few later associates. They would
would have. been remarkable IL for
nothing else than that they had hung
together for all these years. and taken
for themselves the natural growth OF