The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-01
HILL ROADS IN
Bic BOND DEAL
Securities to the Amount of
$600.000.00O to Be Issued
for Various Purposes.
FINANCIAL PROVISION
IS MADE FOR EXPANSION
Great Northern and Chicago,
Burlington & Quincy Gov
cred by Mortgage.

ST. PAUL, Mimi, May 31-A move
that is strongly suggestive here of rail
road operations on the scale of the
Northern Securities company was an
nounced by J. j. HILL chairman of the
Great Northern Railway company, to-
day when in statement he announced
the execution of 5000, 900 first and
refunding mortgage to secure bonds for
the Great Northern and Chicago, Bur
lington & Quincy.
The statement follows:
''The Great Northern Railroad COM
pany as of date May l. 1911, has exc
cuted its first and refundlng mortgage
securing a total authorized issue of
5000 100000 bonds.
Size of Mortgage Explained,
tfThe size of the mortgage is ex-
planned by the fact that the outstand-
ing obligations of the company which
are to be refunded amount approx
mately to $330,000,000. Included, how
ever, in the figures last named, Is the
direct and contingent obligations of the
company on the Burlington joint Is
ma turing In 1921 and aggregatlng
1929 100000. Covering future of
fifty years, approximately $4,000, ,0Oo
in bonds therefore will be available for
general corporate purposes, double
its beginning thirty-two years ago the
Great Northern has expended between
s350,o0o,000 and $400,ooo,oo0 out OF
capital and earnings. The provision
made for the future, in consideration
of the rapidly growing territory which
Great Northern lines serve, would seem
intelligently conservative.
"The railway company evidently has
made ample financial provision to en-
able it to keep its facilities and exten-
sions equal to all demands that rapid:
ly growing country may make on 1t and
at the same time. to maintain the high
est and most efficient standard of ser
vice Future issuance of bonds against
property acquired is safeguarded by the
restrictions usually found IN mortgages
of this kind
Hill's Future Plans.
The issue OF $500, ,oo0. 900 in bonds by
the Great Northern as announced by
Chairman j. j. Hfl means that num-
Der OF large projects are in prospect ac-
cordng to a promi1rnt official who de-
clned 10 allow his Namc to be used.
First. il means the taking UP Of 1890,
600 900 OF gold bonds Of the Great North
ern. including s322. 100000 in bonds Of the
Burlington road for, which the Great
According 10 this official, II also means
that the Great Northern will take over
the Chicago, Burlington & Quincy rail-
road separating II from the Northern
Pacific.
In view Of the recent opinions of the
supreme court OF the United States In de-
filming reasonable restraint" IL is
thought a merger of the Great Northern
and the Burlington railroad will be
deemed n legal merger.
The fact that Mr.. Hill has been plan
ming on acquiring absolute control OF
the Burlington, releasing the Northern
Pacific of its responsibility and control
OF that line. has been a matter OF com
mon gossip for some time. 1t has been
reported that he was simply waiting until
the time would be propitious for the con-
summation Of such A deal. That time is
now quickly approaching. 1t may be
two or three years before il can be car
rlsd through successfully. but that il is
under way is regarded as certain by
those who have been watching the trend
OF events.