The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1911-06-01
HUGE RAILROAD
DEAL LAUNCHED
Great Northern issues Six
Hundred Million Bonds.
MAY ABSORB BURLINGTON

Portion of the Immense Sum Intended
to Take Up Outstanding Bonds of
the Great Northern and the Balance
Is Believed to Be Wanted for TAX
ina Over the Burlington, Now Held
Jointly by the Two Hill Lines.
st. Paul, June 1.-Official announce
ment was made from the general Of
fees of the Great Northern railroad
of the issuance of $500 ,O00,0 in
bonds, covering one of the biggest fl
nancial deals that has ever been made
in the West The biggest proportion
of the issue will take care of old
bonds which have been issued by the
lcompany from year to year, to cover
Iextensions and Improvements, but the
other big slice makes provision for
1.-THE taking over of the Burlington rail-
road.
II is claimed by railroad officials
that the consolidation of the Great
. Northern and the Burlington, and the
; separation of the ties between the
) Northern Pacific and the other Hill
Hines. will not take place Immediately,
but 1t is admitted that the Great
Northern, by the issuance of the bonos'
IS providing the means whereby James
: lJ. Hill at the proper time will be able
Q to take over the Burlington system
The fact that Mr.. Hill has been
n planning on acquiring absolute control
of the Burlington, releasing the North
e ern Pacific of its responsibility ana
Icontrol of that line, has been matter
i of common gossip for some time. III
y has been reported that he was simply
a waiting until the time would be pro-
% pitious for the consummation of such
seafs peiGhe IL tRff be paY raYie efiff ~ Sue d
successfully, but that it is under way
lis regarded as certain by those who
have been watching. the trend of
J events.
The fate of the Northern Pacific, If
lit is divorced from the other Hill lines,
n is uncertain. 1t may be taken over
by the Northwestern. or Ii may alb
Isorb the Great Western, a Morgan
road, as is the Northern Pacific.
Hill Issues Statement.
James ]. Hill issued the following
S statement with regard to the deal:
n 1.-The Great Northern Railway COM
i. pany, as of date May 1, 1911, has exc
q cuted its first and refunding mortgage,
securing a total authorized issue of
5000, ,000, 900 bonds.
"The size of the mortgage Is ex-
planned by the fact that the outstand-
I ing obligations of the company, which
, are to be refunded, amount, approx
mately, to s3s0,0O0,0O0. Included, how
/, lever, in the figures last named is the
, direct and contingent obligation of
, the company on the Burlington joint
> fours maturing in 1921 and aggregat-
!, ing 1922, 100000. Covering future of
|, fifty years, approximately s270. .000,.
] 900 in bonds. therefore, will be avail
able for general corporate purposes,
double tracking and additional mile
: / age Since it's beginning thirty-two
, years ago the Great Northern has ex-
. Ipended between s350,000, 900 and $780,
, 00O,0 900 out OF capital and earnings.
. The provision made for the future, In
a consideration Of the rapidly growing
TERRITORY which Great Northern lines
serve, would seem intelligenty oon-
!. lservative. In no other part OF the
J country has nature more generously
bestowed those three great sources of
all national wealth-the farm, the for
est, and the mine-and nowhere else
+ lis there more room for such develop
i. Iment as follows the occupation of q
!, new country by an intelligent popula
e Ition.
Y "The railway company evidently has
+ made ample financial provision to en-
liable 1t to keep It's facilities and ex-
: tensions equal to all demands that a
Q rapidly growing country may make
I upon 1t, and, at the same time, to
: maintain the highest and most efa-
I lcient standard of service. Future is
j. suance Of bonds against property ac-
j, Iquired Is safeguarded by the restric-
0 Itions usually found In mortgages ot
I this kind"