New-York tribune., 1903-04-10
AFFECTS STOCK LITTLE.
Continued from first pnEc.

companies.
On the other hand, a representative Of Mr.
Morgans banking house said that ''the decision
put a new light upon the entire matter and
would enable the lawyers representing the
Northern Securities Company to work along
new lines"
The decision brought group of important
financial men to Mr.. Morgans office. to inquire
what he thought of the unexpected turn in the
situation. This manifestation of interest brought
out report that a conference to discuss the
future policy of those nearest concerned had
been suddenly called but this rumer de-
MED
James ]. Hill. president of the Great Northern
Railway Company one OF the two companies
held by the Securities Company. who returned
from Europe yesterday the Teutonic said:
From the reports thus far received I am not
able clearly to understand the reasoning by
which the decision was reached. The railroads
held by the Securities Company-splendd prop
critics, with excellent records for earnings-are
paid for No court take them away from
us.
The president of one of the principal wall-st.
banks said:
Pending final decision iof the United States
Supreme Court do not think any question is
likely to be raised that would seriously affect
the value OF Northern Securities as collateral
Speaking of the effect of the decision on the
Louis and San Francisco Railway companies
Judge William H. Moore. an influential director
OF the former corporation, said:
The decision in the Northern Securities
will in no way affect the proposed merger OF the
two roads. The cases are not analogous. The
Rock Island and the Frisco roads are not paral-
lei lines nor are they competing lines
Judge Moore's assurance was timely and we'll
received on the Exchange floor.
Edward Lauterbach said last night that the
decision of the United States court in the
Northern Securities case was certainly satfs-
factory, and proved his case.
1T means the end of monopoly of railroad in
'terests,' said he. "and that Is what we con-
tended for. 1t is definitely decided that no
railroad can control a competing line, just what
strove for. In view of this decision, IL is
somewhat comforting to think that our efforts
are indorsed, so TO speak,
Corporation lawyers said that this
government case. It would have preference over
the regular calendar. and that final decision
could be rendered before the close of the year.
Speculation as to what effect the decision
would have on the future Of the Northern Sc
curities Company was heard in many quarters
in the hour succeeding it's official announce
ment A report was circulated that those in
control had already perfected an arrangement
whereby one or two trustees would take over
the control Of the Great Northern. Northern
Pacific and Burlington companies from the hold
ing company 1t was argued that such a
transfer could be quietly and effectually made
without in the least disturbing the stock or
money market Before the receipt Of the news
that an appeal would be taken a few brokers
thought that such trusteeship would make an
appeal with its attending uncertainty unneces-
sary.
1t has generally been understood in financial
hat 4ba In
ties Company long ago provided Alternative
plan in the event of yesterdays decision going
against them, and in the higher court af-
frmed this opinion What this plan is remains
a mystery. The news from London that a
Northern Securities Company had been formed
under the laws of Great Britain to take over the
existing holding company. was regarded as In
terestng in this connection a director of the
latter company denied all knowledge of such an
organization in England.
The most satisfactory conclusion reached by
those TO whom specific information to the
future of the holding company was denied. was
that one step nearer solution of the important
question OF the proper legal consolidation OF
railroad properties had been reached: that if
mergers of this class proved inimical to the
lest interests of the country another and more
satisfactory of bringing to fuihlment the
ends of the leaders of finance would be found
Inc Northern securities -OHipduy Wis VI
ganized in New-Jersey. under the general in
corpora ton laws of that State November IL.
1901 to acquire. hold and administer property.
especially Great Northern and Northern Pacific
Railroad stocks. For jurisdiction. the Northern
Securities Company is a citizen of New-Jersey,
the Northern Pacific Railroad citizen of Wis
consin and the Great Northern Railroad citi-
zen of Minnesota.
After it's reorganization it charged that
the Northern Securities Company not or
ganized in good faith to purchase and pay for
the stocks of the two railway companies. that
it never had money enough to do so. and that
the only consideration for the transfer TO it of
the shares of the two railway companies was
the issue and delivery of it's own shares in ex-
change therefor. Soon afterward three actions
were brought i'll the United States courts to test
the legality of the company. One suit
brought by the United States by Attorney Gen
eral Knox one by the State of Washington and
one by the State of Minnesota
What effect the decision against the Northern
Securities Company case will have in the South
furnishes interesting theme for spectators
in this field. 1t will be remembered when John
W. Gates was being examined recently before
the Interstate Commerce Commission it
strongly hinted that Mr.. Morgan was actively
engaged in forming a Southern securities COM
pany, to be modelled on the Northern Securities
plan. and to take over and control important
Southern railway properties. When Charles q.
Gates of Harris. Gates & Co. asked for his
opinion as to the future of these properties. he
said:
The Interstate Commerce Commission is now
Investigating the sale of the Louisville and
Nashville Railroad Company to the Atlantic
Coast Line Company. Its investigation is 10 de
termine whether the two lines are competitive