New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-01
SAY HILL WILL ABSORB
BURLINGTON RAILWAY
Files Record of Mortgage of
$780, 900. 900, Covering Bonds
Of c., B. & @. and G. N.
MERGER SAID TO BE LEGAL
Bond Issue Will Leave. Enormous
Balance for Future Needs Of
Rapidly Growing North
western System.
I BY Telegraph u The Trihyn..

Chicago. May 31.-One Of tho largest
railway mergers cf recent years. involv-
ing the Great Northern and Chicago.
Burlington e. Quincy railways, with a
total of 1000 miles of line was reported
MS being in prospect to-day The report
came ~ result of an announcement by
James J. Hill in St. Paul of the execu-
tion Of a $500. 600. 600 first and refund
ing mortgage covering the bond issues Of
the two roads
Although President Darius Miller and
other officials OF the Burlington declined
To confirm the report. the announcement
was construed in many quarters as the
first step in a plan which has been under
discussion in railway circles for some
time. It has been predicted that the
Great Northern would take over the
Northern Pacifc's half interest in the
joint control of the Burlington by the
two companies.
Ninety seven per cent Of the Burling-
tons capital stock, or s107.613,Oo0, was
acquired jointly in 1901 by the Great
Northern and Northen Pacific at 5000 a
Trust Company. of New York, as collat
eral for an issue of S215221.000 per
cent bonds. due 1921 and guaranteed
Jointly by the two companies. Mr.. Hills
statement declares that of the $500 ,000,-
600, 5000 100000 is to be used for re-
funding q like amount Of outstanding
obligations Of the company, which would
include the Great Northerns bond issue
Of 100000 600 and the Burlington Issue
also
Mr.. Hills Statement.
The statement follows:
The Great Northern RAILWAY Companv
as Of date MAY /, 1911, has executed its
first and refunding mortgage, securing a
total authorized issue OF $500, 900 900 bonds
The size of the mortgage Is explained 'y.
the fact that the outstanding obligations o.
amount approximately 70 1880 200. 900. Ia
GUIDED. hoWe, or. in these figures last named
is the direct and contingent obligation of
the company on the Burlington Joint Is
+0o, GOO Covering a future of fifty years.
approximately 500 0o0 600 in bonds. there
fore. will he available for general cor
porate purposes. double tracking and addi-
tional mileage. Since It's beginning, thirty
two wears ago. the Great Northern has ex
pended between $3.50. 600 900 and s40o, 00o 900
ont of capital and earnings The provision
made for the future. I'm consideration Of the
rapidly growing territo~v which Great
Northern lines serve, would seem intelii-
gently conservative. In no other part Of
the country mas nature more generously
bestowed those three great sources OF all
ational wealth--the farm. the forest and
tho mlne-and nowhere else is there more
room for such DEVELOPMENT as follows the
occupa ation Of new country by an intelli-
gent population.
The railway company evidently has
made ample financial provision to enable
II 10 keep It's facilities and extensions
equal 70 all demands that a rapidly
growing country may make upon it. and
al the same time 10 maintain the highest
and most efficient standard of service
Future issuance Of bonds against prop
erty acquired is safeguarded by the re-
strictions usually found in mortgages Of
this kind.