Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-15
THE TRusTEEsHlp SUGGESTION
This Is the Only One of the Three Cur
rent Rumors That Is Treated With
Any Respect by Northern Securities
People and is Worthy of Deep Con-
Observation-Disclosures of Distribution.

summarized as follows:
"a company is to be formed either
in England or Canada to hold the
stock for the two companies now held
in the treasury of Northern Securities
1.-Two holding companies instead of one
will hold the stocks in question.
Three individuals will be chosen to
act as trustees and hold In their names
the stocks of the Great Northern and
Northern Pacific"
a great number of variations of these
rumors is almost certain to be brought
before the public during the next few
months. Each and every one of them
presupposes that Mr.. Hill and his as
sociates expect to be beaten In their
appeal to the supreme court. and have
therefore made plans to accomplish
their end when the present method is
declared illegal Both these premises
are false. James j. Hill fully expects
to win the appeal. and no plans what
ever have been made or discussed In
council to hold the stocks of Great
Northern and Northern Pacific in case
the appeal should be beaten.
Official comment on the three rumors
treats the first two as perfectly Inn
practicable suggestions. Both of them
would fatty transgress against a decis-
ion declaring the present company IL
legal and both of them could be fought
by the government, and certainty
would be stopped If the present COM
pany is illegal. The trusteeship sug-
gestion is treated with some respect by
Northern Securities people, and e
considered worthy of deep considera-
ton by the bankers and corporation
lawyers OF Wall street who are willing
to express their views upon It. The
terms of the present decision seem to
leave room for such a trusteeship. 1t
is noted also that e. III. Hartman and
his host OF corporation lawyers versei
in all the intricacies of interstate COM
merce law, and railroad legislation,
have lately decided to transfer 100000
shares of Southern Pacific stock held
by Union Pacific to the name OF Will
lam Rockefeller, in the belief that this
practical trusteeship will put that block
of stock beyond the scope of all exist
ing and anti trust legislation.
Question Of Distribution.
A question that is being asked by a
great many people in Wall street is,
sin case the final decision goes against
the Northern Securities and it is nee
essary to rAdistribute Northern Paci-
fic and Great Northern stocks, what
method will be followed by the North
ern Securities Company"
This question was just as vital before
the decision was rendered at ST. Paul,
but it had never occupied the public
mind as it does at the present time.
The matter rests exactly where II rest
ed before the decision was rendered,
and will remain in statu quo until the
decision is finally rendered by the high
est court in The land. Yet it is as true
that the lawyers of the corporation
have given this question some consid-
GRAFTON as it is that they have given
some thought to the other question of
expedients It transpires that two pos
sible methods Of distribution at least
will be open to the company In case
the supreme court decides that such q
distribution must take place.
The first method is the return to the
holders of the Northern Securities GER
itificates of the actual shares of North
ern Pacific and Great Northern de-
posted and exchanged for those GER
tificates of Northern Securities. These
shares of Northern Pacific and Great
Northern are in the safes of the North
ern Securities Company, each stamped
with the date of exchange, and with a
memorandum of the conditions under
which the exchange was made. This
would be the simplest method, and the
obvious result of 1t would be that the
Northern Pacific and Great Northern
stock would rest in the hands Of those
who at present hold the great bulk of
Northern Securities certificates. This
method was followed when it was
deemed wise to distribute the assets
OF the National Wall Paper Company
some few years ago.
Standard Oils Game.
The second method differs materially
from this 1t was followed when the
Standard Oil trust was dissolved. The
manner of it will be apparent from the
following data: The Standard Oil trust
was holding company that held the.
stock of twenty oil manufacturing con-
Germs. 1t was declared illegal by the
courts and was ordered to distribute the
stocks of the subsidiary companies. In
this distribution holder of stock of the
Standard Oil trust who had deposited,
for example, 1,G00 shares of the stock
of the Oil Company of Indiana and had
received trust certificates for those
shares, did not receive his thousand
shares of Indiana Oil stock intact, but
received one-twentieth, or fifty shares
of his own stock. 1t is Immediately evil
dent that under this arrangement the
CLIQUE that controlled 81 per cent of the
Standard Oil trust certificates received
in the distribution majority of the
stock of each one of the constituent
In the case of this trust
the corporation was Immediately REIN
under the laws of New Jer-
sey and has since been doing business,
with some slight alterations. under the
name of the Standard Oil Company.
How About Dividends?
Another question that is agitating
Wall street is whether Great Northern
and Northern Pacific, under the present
directorates, are at liberty to continue
paving dividends and whether the
Northern Securities Company can also
continue to declare its dividend of 11s
per cent pending the final Judgment by
the supreme court.
The opinion of counsel 81 the COM
pany on this question is as follows;
Pending further legal action. the COM