The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-11-14
.HERCULEAN TASK
is NOW DONE
Continued From First Page.

Continued From First Page.
other roads involved in the settlement
Ii is suggested, however, that the St.
Paul may be given financial interest
in the next proprietary company.
The whole affair was the principal topic
of conversation in the brokers' offices I'M
til late hour this evening. That there
are points of Importance to be considered
yet is shown by the fact that J. P Nor
gan remained at his Office later than usu-
al. 1t was rumored that meeting of the
Great Northern directors was in session
about 5 o'clock. This could not be con-
firmed, but a call at Mr.. Hills Office dis
closed the fact that he was "busily en-
gagged at a late hour. A call at the va
rious banks closely identified with the
whole problem showed that prominent
officials were also staying down town
considerably later than usual.
The Resolutions Adopted.
The resolutions adopted by the directors
of the Northern Pacific for the retiring
of the preferred stock set forth the terms
of the agreement of July 49, 1896, where
by J. p. Morgan & Co., acting for the
reorganization mana gers, turned over to
the Northern Pacific, Railway company
100000 shares of preferred and 100000 of
common stock, and that it was expressly
provided in the agreement that the pre-
ferred stock would be taken up at par
on the LIST OF any. January prior to 1917.
The resolutions show that meeting of
the Northern Pacific directors July 8,
1896, a form of certificate for the pre-
ferred stock, bearing these conditions,
was adopted, and was duly ratified by
the stockholders. Every certificate of
s75,000,C00 preferred now outstanding,
therefore, bears this provision. The res.
olutionS continue:
Whereas The holders of the majority
OF the common stock of the Northern
Pacific Railway company have requested
the board OF directors to take all such
actions as may be requisite to retire the
whole Of it's preferred stock upon the
list day Of January, 1902, and have given
satisfactory assurances that the neces-
sary moneys for that purpose will be
furnished, and that all action requisite
for that purpose will be taken by the
holders of the common stock: and
Whereas. In the judgment of the board
of directors it is desirable that this COM
Pany should now exercise the option to
retire the preferred stock, it is unan-
imously
Resolved, First, that the Northern Pa
clflc Railway company in the exercise
and every certificate of stock of this
company, has determined, and hereby
does determine, to retire the preferred
stock of the Northern Pacific Railway
company in whole, at par upon the 1St
day of January, 1902
Second-That notice of this action be
published in the usual manner, etc.
Under the resolutions the transfer
books will close for the retirement of the.
preferred issue on Dec. 10 next The
final dividend of / per cent will be pay
able on and after Jan. 1, 1902.
The Herald tomorrow will state that
the Northern Pacific common stock will
go into the new holding company
around lis, and the Great Northern
around 1885,
Leaders Were All Present.
There was full attendance at the
meeting at which the above action was
taken, those present including George F.
Baker and Charles Steele, representing
J. P. Morgan & Co.; Z. III. Hartman, of
the Hartman syndicate, which is in con-
troll of Union Pacific;.J. j. Hill, president
of the, Great Northern; Samuel Rea, vice
president of the Pennsylvania; James
Stiilman, of the National City bank; H.
Nick, Twombly for the Vanderbilts and
William Rockefeller.
The directors decided that the funds
necessary for the retirement of the pre-
ferred stock should be obtained by the
sale at not less than par of s75, 100000 of
per cent bonds. convertible into COM
mon stock. each holder of common stock
now outstanding being entitled to pur-
chase at par an amount equal to seventy
FIVE eightieths &C the amount of his pres
ent holdings. It was further provided that
two dividends of per cent each be paid
on the preferred stock before it's retire
ment.
Samuel Spencer was elected a member
of the board in place of Robert Bacon,
resigned, and the board organized by re-
electing all of the company.s present Of
ficerS
No official statement was obtainable
this afternoon as to the scope of the new
ly organized Northern Securities COM
pany, bat 1t was generally understood
that the company was formed to take
over and control the shares of the North
ern Pacific and the Great Northern rail-
ways and of their leased lines. Great
Northern's outstanding capital Is s125.-
oOo0tO par value, selling at $500 in the
market, while Northern Pacific's total OUT
Standing stock, after the retirement of
the preferred, will be SS0,909, 600 par value,
making total of sees, 900. 600 par value for
the shares of these two Companies. All
$500 for Great Northern the amount would
be increased to $3.50. 100000 for the shares
u Lie Two companies.
Burlington Shares Not IncJudad
Burlington shares, it is understood are
not to be turned over to the new North
ern Securities company. That stock is
now held as collateral for the outstanding
Burlington collateral bonds with voting
rights vested In the Northern Pacific and
the Great Northern railways 1t is under
stood that Northern Pacific and Chicago
q northwestern interests agree to the
retirement of the Northern Pacific pre-
ferred, and that Union Pacific will have
heavy interest in the capital of the
new company, considerably beyond the
par value Of their present Northern Pa
chic share holdings, which are placed at
s7S,o00'doe par value, just over a majority
of the total s155, 0O,oeo, Northern Pacific
stock capital No information was OBJ
Vanderbilts and the Chicago, Milwa,,,,ee
q st. Paul are to have in the new COM
pany.