Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-06-01
GIVES CHANCE
FOR A MERCER?
Trust Decisions Followed by
Move to Unite %" and
Great Northern.
BOND ISSUE ANNOUNCED
Would Give j. j. Hill a Single Sys
tenn of 1900 MiIes-Stocks
Go Higher.

|
lstrength was displayed in the STOCK
market through the morning session.
Hill stocks attracted special attention
Iby reason of the announcement of the
Great Northern's proposed financing,
land in some quarters the view was
held that the project to take over the
Burlington had been made more feast
BILE by the tenor of the supreme
courts decisions in the Standard Oil
and American tobacco cases.
WANT SLICE OF MELON.
The report that the Burlington's sur
plus of s2s,00O,00O would be divided
among the stockholders of the Great
Northern and Northern Pacific caused
a heavy buying movement in Hill
stocks, and they advanced ? points
over yesterdays close.
BIGGEST IN YEARS.
Chicago, June 1.-One of the big
gest railway mergers of recent years,
involving the Great Northern and
Chicago, Burlington and Quincy rail-
ways, a total of 1000 miles of line,
is reported as being in prospect. The
! report came as a result of an an
nouncement by James J. Hill in st.
| Paul Of the execution of a $500, 0,000,-
900 first and refunding mortgage
covering the bond issue 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 discus
sion in railway circles for some
time. 1t has been predicted that the
| Great Northern would take over the
| Northern Pacific's half interest in the
joint control Of the Burlington by
| the two companies.
| STOCK OWNED JOINTLY.
Ninety-seven per cent of the Bur-
| lington's capital stock, or $107, 3d.
| 900, was acquired jointly in 1901 by
the Great Northern and Northern Pa
| cific at 5000 a share and deposited
with the Standard Trust company of
| New York as collateral for an issue
of S215,227,OOO 4 per cent bonds,
due 1921 and guaranteed jointly by
| the two companies. Mr.. Hills state
ment declares that of the $500, 0,000,-
| 900, $500, 100000 is to be used for
refunding a like amount of out
standing obligations of the company,
which would include the Great
Northern's bond issue of 100000
! 600 and the Burlington issue also.
HILL ISSUES STATEMENT.
The typewritten statement issued
! by Mr.. Hill follows:
"The Great Northern railway COM
pany. as of date May l, 1911, has
executed it's first and refunding mort
gage, securing a total authorized is
sue of 100000, 900 bonds. The size
| of the mortgage is explained by the
! fact that the outstanding obligations
of the company which are to be re-
/ funded amount, approximately to
$3.50. 1000. Included, however, in
/ the figures last named is the direct
and contingent obligation Of the
company on the Burlington joint 40
maturing in 1921 and aggregating
| 1922, 100000.
Covering a future of so years.
approximately s27O.OOO,OOO in bonds
JuSl eiOIet Will NC dNdlldDiS lOl gem
eral corporate purposes, double
tracking. and additional mileage
POINTS GROWTH.
"Since its beginning. 32 years ago,
the Great Northern has expended be-
tween $3.50, 100000 and 100000 |
900 out of capital and earnings The
provision made for the future, in
consideration of the rapidly growing
territory which the Great Northern |
line serves, would seem intelligentIy
conservative
''In no other part of the country
has nature more generously bestow- |
ed those three great sources Of all
national wealth-the farm, the for
est and the mine-and nowhere else
is there more room for such develop /
ment as follows the occupation of I
new country by an intelligent popula- /
ton.
THE railway company evidently
has made ample financial provision
to enable 1t to keep its facilities and .
extensions equal to all demands that I
rapidly growing country may make .
upon it, and. at the same time, TO +
maintain the highest and most ef-
ficient standard of service. Future
issuance Of bonds against property
acquired is safeguarded by the re-
strictions usually found in mortgages
Of this kind"
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