New-York tribune., 1901-11-15
RAILROAD TRUST ELECTION
NORTHERN SECURITIES COMPANY FOR
MALLY ORGANIZED-REAC-
TTON IN STOCKS.

The Northern Securities Company, incor-
nora.ed on Wednesday in Trenton, with capt.
tai Of 500 OoG oG0 for the purpose or taxing
over the stocks OF the Northern Pacihc anu
Great Northern roads. was formally oTsaliizeu
yesterday by the election OF the foio"iHs oo"'N
of directors: John S. Kennedy. D. WINS James,
Samuel Thorne j. j. Hill, z. T Nichols. George
r Baker Robert Bacon, George w Ferhiiis
Daniel S Lamont, E. H. Hartman, JACOB ID
schir. James Stillman. W. r. Clough' Z. =
Clark and X. Terhune.
Although IL was generally felt that the licoi
roration of the proprietary company marked
,ha virtual and of the determined and disturbing
contest in the Western railway field, there was
5ouht as TO the extent Of the advantage ac-
cruing 10 the Union Pacific under the plan JUST
carried into execution, and disappointment over
the failure of the plan, as far as announced To
include the St Paul. Aided by these corsloefa-
ffons the reaction which always occurs In the
stock market when the good news is OUT SET
in Yesterday morning. After an initial auVahce
the whole list declined, Union Pacific SINKING
from 1851 to lo4, and st. Paul from l'-1s 10
1851 In the last half hour came rally, and
Union Pacific closed at 100. net loss OF -h2
points for the day. and st. Paul at 1924, net de-
cline Of pa points. Union Pacific preferred lost
2 points.
The stockholders OF the Burlington met yester-
day in the West. and took an adjournment until
November 81 a fact which wEs seized upon mere
as alleged proof of hitch in the final working
out Of the general plan Of settlement 1ha'
there was any adverse significance IN the ao-
tournrnent was, however, denied on the hlsllesl
authority The Union Pacific viii have an equal
voice with the Great Northern-Northern Paclnc
interests in the Chicago. Burlington and quincy
Railway Company, the control Of which VIII De
lodged in a voting trust
Reports that the St Paul and the Chicago and
,So-thzresteru are formally Included in the agree
1nent OF which the formation OF the NorIhe Il
Securities Company and the JOINT conlroi oi the
Burlington features, are belieNeo 70 ot III ~,
correct but that understanding mas peeh
reached with those two roads regarolhg telLi
tory, rates and the routing Of business Is Proo-
able ,,,.
The Union Pacific Is understood TO hold aoouI
s37 100000 of Northern Pacific common STOCK, o
which win entitle it TO subscribe Tor sot.oeo.ooo
of the convertible bonds. These Will Immediate
" be exchanged for equal amount OF common
stock giving the Union Pacific Si1,ooo,uVo o.
Northern Pacific common. Tor whlch = Sso 5on
receive 115 per cent, or approximately So-;oo' S
OOO In the stock of the Northern SecurltleS Coli-
1oany thus giving il an interest OF a nttie over
90 per cent in the capitalization I" 'iial o'ii
ipany. ,. Ill, nv,
for its bonds out Of its holdings o. pIe6erreu @
stock which amount to about S41.pU.opV, PAL
value The company will thus receive IN cas- cash
the difference between S41oo0Ooo and S34ooo-
600, the amount OF Its SUBSCRIPTION 10 'ie o0-
verrible bonds.
There was a little trading yesterday in North
eru Securities stock when issued" 200 shares
being sold at no The close was at 10 bio, IL
asked The convertible bonds closed at lOo pio.
1t is announced :nat application will before long
be made TO list on the Stock Exchange the
S4O0OOo0O0 stock Of the Northern Securitles
Company The Northern Pacific convertible
bonds VIII not be listed OF dealt in, and 1t Is
understood that the whole Issue Will be con-
rarted into common stock
II is estimated that less than S10Oo0Oo0 cash
will be required for financing the new proprte-
tary company a sum relatively small that no
serious disturbance TO the money market neeo
be feared from the operation