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This is ex- tremely convenient Post Date: Wed, 6 Aug 2008 0:24:12 +0000
00 of the former, Hill did a good thing in a twofold sense : Firs!, the Great Northern converted an an- nual fixed charge of $1,200,000 (6 per cent on $20,000,000) into a matter optional with the Great Northern. It may pass or re- duce a dividend on its own stock, practically at the directors' pleasure, whereas it must pay a guaranteed dividend on the Man- itoba stock so long as the latter was outstanding ; second, ex- changing $25,000,000 of stock for $20,000,000 of a different obli- gation is one of the ways of "loading," as they call it. This is ex- tremely convenient for a prosperous and growing company ; it helps to consume an awkward surplus which, when too large, al- ways inspires envy and invites attack.

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of Minn Post Date: Wed, 6 Aug 2008 0:08:21 +0000
Thus, when one pays out in dividends $1,750,000 per annum (7 per cent on $25,000,000) as against $1,200,000 (6 per cent, on $20,000,000) his company is to all appearance, and to some extent in fact, $550,000 poorer at the end of a year than it would have otherwise been. The ex- change of Great Northern preferred stock for Manitoba stock was substantially completed in 1899, and during the same year an ad- ditional amount of Great Northern stock, $15,000,000, was offered to its stockholders at par and issued to enable the company to ac- quire $7,500 ooo additional stock of the Eastern Railway Co. of Minn.

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These lines, the principal one Post Date: Tue, 5 Aug 2008 23:48:51 +0000
, and to buy a railway system centering in Spokane, Wash., , consisting of 217 miles of track and presumably the ordinary rolling stock for the same. These lines, the principal one of which was known as the Spokane Falls and Northern Railway, had been promoted and largely built by - - Corbin, who is said to have cleared a large fortune by selling to the Great Northern.

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00, but whether this sum was Post Date: Tue, 5 Aug 2008 23:38:49 +0000
The securities of the Spokane system so bought ag- gregated, according to Poor's Manual for 1899, p. 630, $9,776,- 200.00, but whether this sum was the face or the actual purchase price is not stated.

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Paul, Minneapolis Manitoba Com- Post Date: Tue, 5 Aug 2008 23:24:33 +0000
We have thus followed the Great Northern from its enforced pause in what used to be called "The Great American Desert" in its successful resumed march to Puget Sound, and from its $20,000,000, and then $5,000,000 more of preferred stock to further increases raising its aggregate stock to $90,000,000 at an early date in 1899, an d this without breaking the market therefor but rather the contrary. It should be added here that a 'reserved right of the company to issue $20,000,000 of common stock was never used, and has been permanently abandoned, so that there is in fact but one class of Great Northern stock ; also that the original $20,000,000 of this stock was issued to stockholders of the St. Paul, Minneapolis Manitoba Com- pany for fifty cents on the dollar, they, however, surrendering as additional consideration for the stock, odds and ends of securities belonging to the Manitoba system, and having an aggregate face vahie of over $22,000,000.

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We may be sure also Post Date: Tue, 5 Aug 2008 23:06:51 +0000
These securities, whatever their real value in cost, were a part of the earnings of the Manitoba Com- pany, and had their origin largely or entirely in branch roads or other properties built and capitalized by the Manitoba. Should it be objected that the value of Great Northern stock at 200 as per sales in March, 1901, is too high, it must, of course be conceded that very heavy offerings at that figure would not have been absorbed by the market; yet, under the depres'sion of the May panic in 1901, 167^ was the lowest figure reached by Great Northern, and frequently afterwards during the year it went above 190. We may be sure also that even 200 would not buy a controlling interest.

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Here would have been Post Date: Tue, 5 Aug 2008 22:49:31 +0000
It may be mentioned here that the "common" stock of the Northern Pacific on its reorganization in 1896 was fixed at $80,000,000, and that half of this was offered to the Great Northern if it would guarantee the payment of in- terest on the new bond issues of its former rival. This offer was accepted and the stock would have been delivered if the supreme court of the United States had not decided in the Pear sail case that such transaction would have virtually made a consolidation of the two roads, was in violation of the statutes and policy of Minnesota, and hence could not be legally consummated. Here would have been at least $40,000,000 more to add to the already extra profits of Mr.

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Knowledge in advance Post Date: Tue, 5 Aug 2008 22:35:06 +0000
Hill and his friends. In estimating the ex- tra profits as above no notice is taken of townsite opportunities and other avenues of profit which the absolute control of a rail- way system gives to its chief and his intimates. Knowledge in advance of the time and amount of issue of the different blocks of capital stock above mentioned could have been turned to im- mense advantage by quiet buying and selling at the right times.

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Troubled with washouts between Seattle Post Date: Tue, 5 Aug 2008 22:20:13 +0000
The present enormous financial power of the Great Northern can perhaps be best appreciated from the physical side by noting a few of the things which it does with scarcely a ripple in its financial current. It spends in 1901, $5,000,000 in permanent improvements ; opens a 20 mile cut-off in Montana, and builds thirty miles of new road in Washington between Fair Haven and Blanchard, on which are four tunnels, one of them 1,200 feet long builds this merely to avoid the sharp curves on the old line between those points. Troubled with washouts between Seattle and Edmonds, it sets the road on piles driven in the water beyond reach of future landslides.

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Masterful men the ultimate problem Post Date: Tue, 5 Aug 2008 22:04:23 +0000
It quietly adds new feeders to the main line and lengthens the feeders already built .or bought. Masterful men the ultimate problem of taxation Herein of modern plutocrats and Roman emperors Side light from Napoleon and his career The art of R.

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