Omaha daily bee., 1911-06-01
Will Take Up Gold Bonds Amounting
to Half Of Sum.
MAY TAKE OVER THE c., B. & O.
Officials Say Will Be Separated from
Northern Pacific.
MERGER IS CONSIDERED LEGAL
Waiting Until Time Would be
Propitious for COnsumma-
tiOn of such Deal.
.ARGE PROJECTS IN PRC

ST. PAUL, May IA motive that is
strongly suggested here OF a railroad op-
eration on the scale OF the Northern Sc
ourities company was announced by ]. ].
Hin, chairman of the Great Northern Rail-
way company today when in a typewritten
statement he announced the execution OF a
S6O0.oO0,0O0 first and refunding mortgage to
secure bonds for the Great Northern and
Chicago Burlington & Quincy railroads.
The statement follows:
The Great Northern Railroad company
as OF date May /, 1911. has executed its
first and refunding mortgage securing
total authorized issue Of sGOO,OOO 900 bonds.
The size OF the mortgage is explained
by the fact that outstanding obligation of
the company which are to be refunded
amount Approximately to S30OOO.OO0. In
cluded. however, in the figures last named
by the fact that outstanding obligations Of
the company on the Burlington joint fours
maturing in 1921 and aggregating S222, 400, Co.,
Covering a future OF fifty years. approx
mately S27O, 10000 in bonds therefore will
will be available for general corporate pur-
poses, double tracking and additional mile
age. Since It's beginning thirty-two years
ago, ths Great Northern bas expended
between SS5O.OOO 900 and s4OO.OOoOOO out of the
capital and earnings. The provision made
for the future In consideration OF the
rapidly growing country which Great
Northern lines serve. would seem intelli-
gently conservative.
THE railway company evidently has
made ample financial provision TO enable
It to keep it's facilities and extensions equal
to all demands that q rapidly growing
country may make on Il and at the same
time to maintain the highest and most ef-
ficient standard OF service. Future issu-
ance OF bonds against property acquired
Is safeguarded by the restrictions usually
found In mortgages OF this kind"
The Issue Of s0ooooa0oe in bonds BY the
Great Northern as announced BY Chair
man j. ]. Hill means that number of
large projects are In prospect. according
20 a prominent official. who BY reason of
his intimate knowledga Of affairs declined
TO aflon shan nafae 70 be used
First Il means the 4aking up OF $3.50 600. .000
OF gold bonds of the Great Northern. in
eIuding aaa. .sc.Ooo IN bonds Of the Burning
ton road. for which the Great Northern Is
responsible.
According to this official 1t also means
that the Great Northern win take over the
Chicago. Burlington q Quincy railroad
separating It from the Northern Pacific.
In view of the recent opinions OF the
United States supreme court in defining
reasonable restraint" It is thought a mer-
ger OF the Great Northern and the Buriing-
ton railroads will be deemed a legal mer.
ger.
The fact that Mr.. Hnl has been plan
ming on acquiring absolute control OF the
Burlington, releasing the Northern Pacific
of its responsibility and control Of thai
line. has been a matter OF common GOSSIP
for some time 1t has been reported thai
he was simply waiting until the time woult
be propitious for the consummation Of
such a deal. That time is now quickly
approaching 1t may be two or thre,
years before II can be carried through
successfully, but that II is under way 4
regarded as certain by those who hav
been watching the trend OF events.