Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1910-11-25

region. The farmers who remained
started the new railroad carrying out
their crops day and night.
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 a ST.
ssment of the common stock; a
large number Of the old stockholders
refused to pay it, and consequently
there was some $3O,0OO,OOO Of this
in the hands OF Morgan as reorganiz
or. In February, 1897, Morgan sold
S2J,>34,lOO par value Out OF $SO,O0O,'
900 of This common stock to Hill and
Lord Mount5tephen for the Great
Northern groups for $4,133,456-$1G a
share.
The Northern Pacific before reor-
ganiza,ion had had 10 pay for interest
and rentals of other roads $ll.OOo,OOO
a year; by reorganization this was
cut almost in half-to a little over
Sc. 900, 900. The stock OF the concern
was almost $5,OOO,O00 year nearer
dividends than it was before The
stockholders, 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 under
stood the reorganization knew per
fectly well-especially after the con-
nection with the Great Northern
group had been made and a practical
monopoly assured-the real value or
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, we
never had one moments doubt that
within few years, and before the
expiration of the time fixed for the
voting trust, the common stock would
have reached point in its price where
it 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 PACING
common stock had gone up just about
one hundred points. In two months
moro than four years the Great North
ern group had seen profit OF just
about $25 .Oon.OOO on their holdings.
1t was to be a great deal larger.
And now the little group OF men
at the center of the great aggregation
had accumulated an economic power
that would have been inconceivable
twenty-five years before. Twenty
thousand miles of railroad; capital
ization of over 5000, 100000 outstand-
ing, receipts of $4,000 900 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 $33 100000
nearly 30 per cent of the companys
stock-in the spring of 1901; with j.
P. Morgan & Co.. they held between
$25, 100000 and $4O,OO0,0O0 of the
s155. OOO, 900 stock OF the Northern Pa
cifc-about a quarter of the whole.
And through the Northern Pacific and
the Great Northern they held the
Burlington. Taken altogether, it was
one of the most remarkable groups
of men ever got together in the coun-
try-these wise, aggressive Scotch
men and their few later associates.
They would have been remarkable If
for nothing else than that they had
hung together for all these years, and
taken for themselves the natural
growth of powerful corporation in
a new and expanding country.