The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-06-01
GIANT MERGER
OF RAILROADS
J. J. Hlll to Unite the Burlington
With Great Northern Is tho Propo.
sition He Is Said to
Contemplate.
UP 1900 MILE SYSTEM


Confirm the Report Of Great
Deal Which Has Long
Been Planned.
MINNEAPOLIS, June 1.-"Rub-
bish," said the great railroad man,
when asked II the Great Northern
would absorb the Burlington line.
Il am getting old and want to leave
my road in good shape said j. j. Hill
In discussing the first mortgage ever
placed upon his lines.
! The Story.
CHICAGO, June 1.--One of the big
best railway mergers of recent years,
involving the Great Northern and
Chicago, Burlington and Quincy rail-
ways, total of $1,000 miles of line,
was reported as being in prospect
yesterday. The report came as re-
suit of an announcement by James J..
/ Hill in st. Paul Of the execution of a
S600,000,000 first and refunding mort.
gage covering the bond issues of the
two roads.
Although President Darius Miller
and other officials of the Burlington
declined to confirm the report, the an
/ quarters as the first step is 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
companies.
Ninety-seven per cent of the Burl
ington's capital stock, or s10I613,000
/ was acquired Jointly in 1901 by the
4 Great Northern and Northern Pacific
at 5000 share and deposited with
the Standard Trust company of New
York as collateral for an issue OF
>. S215,227 900 four per cent bonds, due
1921 and guaranteed Jointly by the
u two companies. Mr.. Hills statement de
clares that of the s60o,000,000, $3.50,
100000 is to be used for refunding 9
like amount of outstanding obligations
OF the company. which would include
the Great Northern's bond issue o.
500 900. 600 and the Burlington issue
also.
The typewriter statement issued b,
Mr.. Hill follows:
"The Great Northern railway com
pany as of date May /, 1911, has ex
ecuted it's first and refunding mort
gage, securing total authorized is
sue of s60O,ooo,Ooo bonds. The siz'
of the mortgage is explained by th'
fact that the outstanding obligation
of the company which are to be re
funded amount, approximately t.
$3.50. 900. 600. Included, however, il
the figures last named Is the direc
and contingent obligation of the com
pany on the Burlington joint As ma
turing in 1921 and aggregating 1924
400, 900.
Covering future of fifty years, ap
proximately s270,000000 in bonds
therefore, will be available for gen
eral corporate purposes, double track
ing and additional mileage.
Since its beginning, thirty-tw'
wears ago. the Great Northern ha
expended between $35o,oOo,O00 ant
s4O0. .o00, 900 out OF capital and earn
ings. The provision made for th'
future. in consideration of the rapid.
: growing territory which the Grea
, Northern line serves, would seem in
, telligently conservative.
, I'm no other part of the country ha
nature more generously bestowe'
those three great sources of all ma
, tional wealth-the farm, the forest
and the mine-and. nowhere else !
there more room for such development
as follows the occupation of nev
cuntry by an intelligent population.
"The railway company evidently ha
made ample financial provision to en-
able It to keep its facilities and eS
: tensions equal to all demands that
: rapidly growing country max
upon It, and, at the same time, t.
maintain the highest and most efnc
lent standard Of service. Future is
suance of bonds against property ae
quired is safeguarded by the restric
/ tions usually found in mortgages 0
!, this kind
! The rumor that the Great Northern
proposed to take over the Northern
I Pacific's interest in the Burlington
$ was ascribed in some quarters as tn
reason for spectacular rises OF a.
much as eight points in the Northern
Pacific stock in December, and is als'
sa,d to be connected with recent re
ports of negotiations between TN
northwestern and Northern Pacific'