The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-07-01

1T was planned through the for
nation of the Northern Securities
company, to form a holding concern
for the control of these three great
vent a dispersion of securities that
might follow where large amounts
were held by men we'll advanced in
years. and so to secure the properties
against speculative raids by interests
at best not directly concerned in the
progress Of the country served by
these lines. This was declared illeg-
al. under the Sherman antitrust law,
by a divided court. upon suit by the
United States government, and the
Northern Securities company was dis
solved.
Make Homogeneous Whole.
I'm 1907 the subsidiary companies
controlled by the Great Northern. in
Gliding fourteen railway companies
operated as a part of IL. We're pur-
chased n incorporated, making Of
whole. In h same year I resigned
the presidency Of the system and be-
came chairman Of the board OF direc-
tors. the office that l lay down today.
The work of extension and improe-
ment has gone forward steadily, BY
Portland & Seattle line. along the
north bank of the Columbia river, the
Great Northern and the Northern Pa
ci1c obtained Jointly entry over their
own tracks into Portland. Lines are
now being constructed through east
ern Oregon that will open up a large
and productive country In 1903 the
Colorado & Southern: so that the
Great. Northern covers. directly or
over the tracks of allied lines. a ter
ritory reaching from Chicago. st.
Paul. Minneapolis. Duluth and STU
perior on the east to Puget sound and
Portland on the west and from Gal
weston to Vancouver. b. c.. The Great
than 400 miles of the original pur-
chase to 7.407 miles.
Reduced Rates Frequently.
II have some pride in the fact that.
while constantly increasing both the
volume and the efficiency of it's serv-
ice. the Great Northern has at the
same time carried to market the pro-
have greatly developed the territory
served by its lines. If the freight and
passenger rates in force in 1881 had
remained unchanged until 1910, the
total revenue collected from both
sources for the thirty years would
have beer s1.sss.27a.1a4.so. The rev.
cnue actually collected was sS%9s.s67,-
23a'1. The saving to shippers by
the rate reductions which this repre-
SCENTS was s1.267.411.954.s9, or twice
the total amount received by the rail-
road. The average par value of its
outstanding stock and bonds in the
hands of the public during the same
time was s155.576,a Rate reduc-
tlons in thirty years saved to the pub
lie more than eight times the average
capitalization. In other words. the
railroad could have paid cash for the
entire par value of its stocks and
bonds in less than every four years
out of its earnings l hope this may
be considered a fair division.
The results herein summarized
could not have been obtained without
the cooperation of a staff of able and
devoted assistants, trained to admins
%trative work and grounded in right
methods. II was clear to me from the
first that the railroad must net more
returns generally accepted at the
time. High efficiency could be achiev-
ed only through the work of highly
efficient men working With the best
appliances. The.staff was built up by
recognizing intelligence and merit
through promotions as vacancies oc-
CURED in the company's service, and
by establishing throughout a morale
n a was recognized by employees from
the highest to the lowest. The re-
suit has been competence and LOYALTY,
physical efficiency and financial sue
cess.
History of F~inancie1ing.
u shall give only a short summary
or the financing Of his great under
taking. The Great Northern was built
ny the money furnished by its stock
and bond holders and With what it
earned. AS part Of the property of the
st. Paul & Pacific it obtained some
fragments of a land grant in Mime
sofa to that company. With the pro
ceeds of the sales of these lands near
lN $4,000, 900 of bonds were retired
and the annual interest charge has
heen correspondingly reduced. All
me other transcontinental lines had
received large subsidies in cash or land
grants, or both. They suffered the
,heek OF financial stresses n passed
,hrough receiNerships and reorganl.
cations, The Great Northern, which
includes the Manitoba. never failed,
never passed a dividend. never was
financially insecure in any time Of
panic. For thirty years its credit has
been uni1mpaired and it's
equal to any demands upon them; and
in times of financial distress it has
been able to assist materially in NOV
ing the crops of the northwest. The
security Of the investments of the
holders of stock and bonds has al
ways been a first consideration: and
the success and prosperity that attend
the company today have not been pur-
chased either by any doubtful transac-
tons in the stock market or at the
cost of 81 ever committed by man or
woman to this company in trust.
No One Would Buy 1t.
"When we obtained an option on the
securities of the old st. Paul & Pa
cllc company. no individual or finan-
clal house in Europe or America, out
side of those associated with us, would
have taken the bargain off our hands.
BY a few it was regarded as a doubt
full venture, by most as a hopeless
mistake. AS has been said, obliea-
tions a~ggregating about 1000, 900
were capitalized at a little over $751;
100000. h first stock issue was
sl5.oO0.000 The increase Of capitali-
cation from that day to his has fol-
lowed step by step. the growth of the
property. though falling far below its
aggregate cost. Millions of earnings
have been used in betterments and
new construction that. are usually COW
cred by the sale of stock and bonds.
The stock of the St. Paul, Mime
apolis & Manitoba was limited by its
charter TO $50. 900. 900. When the
Great Northern was organized 1t took
over the charter of the Minneapolis
IL st. Cloud Railway company. The
capital stock was made $50, 600, 900.
which was afterwards increased to
$4O,0OO.OOO IN half common and half
preferred. This raj further increased
to s45.000,00 in 1893 and to $75,-
100000 in 1898. one Of which was
issued as common stock, but all made
uniform in character and all shares