The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-06-01
A GREAT RAILWAY
MERGER REPORTED
Deal on by Hill to Unite the
Great Northern and Bur-
lington Roads.
tNational News Association

Chicago, June 1.-One of the biggest
railway mergers of recent years, in
volving the Great Northern and Chi
cago, Burlington and Quincy railways,
a total of 1900 miles of line. was re-
ported as being in prospect yesterday
The report came as a result of an an
nouncement by James J. Hill in ST
Paul of the execution of a $500, 900 900
first and refunding mortgage covering
the bond issues of the two roads
Although President Darius Miller
and other officials of the Burlington
declined to confrm the report, the an
nouncement was construed in many
quarters as the first step in a plan
which has been under discussion in
railway circles for some time. 1t has
been predicted that the Great North
ern would take over the Northern Pa
cific's half interest in the joint con-
troll of the Burlington by the two COM
panies.
Merger a Logical Move.
Ninety-seven per cent of the Burling-
tons capital stock, or s107 ,613, 900, was
acquired jointly in 1901 by the Great
Northern and Northern Pacific at 5000
a share and deposited with the Stand
ard Trust company of New York as
collateral for an issue of S215,227, 900
per cent bonds, due 1921 and guar
anteed jointly by the two companies
Mr.. Hills statement declares that of
the s600,O0,000. s33O,0OO,0OO is to be
used for refunding a like amount of
outstanding obligations of the CON-
Northern's bond issue of 100000, 900
and the Burlington issue also.
J. J. Hill Issues Statement.
The typewriter statement issued by
Mr.. Hill follows:
The Great Northern railway COM
pany, as of.date May 1, 1911, has exc.
cuted its first and refunding mortgage
securing total authorized issue of
$500, 100000 bonds. The size of the
mortgage is explained by the fact that
the outstanding obligation of the COM
pany which are to be refunded amount
approximately to $3.50 100000. Includ-
ed, however, in the figures last named
is the direct and contingent obligation
of the company on the Burlington
joint As maturing in 1921 and aggre-
eating s222,4OO,0O0.
Covering future of fifty years ap-
proximately s27O,0OO.OOO in bonds,
therefore will be available for general
corporate purposes, double tracking
and additional mileage.
Points Growth Of Great Northern.
"Since it's beginning, thirty-two
years ago, the Great Northern has ex.
banded between $3.50, 1000, 900 and $780,.
100000 out of capital and earnings
The provision made for the future in
consideration of the rapidly growing
| territory which the Great Northern
| line serves, would seem intelligently
conservative.
nature more generously bestowed
those three great sources of natural
wealth-the farm, the forest, and the
mine-and nowhere else is there more
room for such development as follows
the occupation of new country by ar
intelligent population.
THE railway company evidently has
made ample financial provision to en-
able it to keep it's facilities an extern
sions equal TO all demands that rap
idly growing country may make upor
it, and at the same time to maintain
the highest and most efficient stand
ard of service. Future issuance Of
bonds against property acquired is
safeguarded by the restrictions usual
ly found in mortgages of this kind"
Result of Long Standing. Plans.
The rumor that the Great Northern
proposed to take over the Northern Pa
cific interest in the Burlington was as
cribed in some quarters as the reason
for spectacular rises of as much as
eight points in the Northern Pacific
stock in December, and is also said
to be connected with recent reports Of
negotiations between the Northwest
ern and Northern Pacific for through
passenger car service to the Pacific
coast. The Northern Pacific's through