The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1904-03-25
TO PROVIDE
FOR STOCK DIVIDEND
Big Distribution of Northern
Securities Company's As.
sets Made Public.
q NEW PLAN is ADOPTED
in Expectation of Division Company
Shares and Stocks Were Boom
ing and Advancing by Leaps
and Bounds on Exchange.
q NEW PLAN is ADOPTED

market and numerous conferences
among the leading financial interests.
the new plan of the Northern Securities
company was made public last evening.
In substance it provides for a stock
dividend of so per cent, this to be ef-
fected by q reduction of that that
amount in the capital stock Of the Sc
curities company.
For every share Of Northern Secur-
tiles stock surrendered the company
will deliver 1927 stock of the Northern
Pacific Railway company and S3O.l7 of
the Great Northern Railway company.
The shares Of the Northern Pacific
company which We're taken over by the
Northern Securities at Sis and those OF
Great Northern at $3.50 will be distrib-
uted on this basis.
The other assets Of the securities
company, consisting chiefly Of It's Chi
cago, Burlington and Quincy holdings
and Northern Pacific coal lands, will
remain in the treasury Of the company
until so plan for their distribution
has bee. lived.
Advancement of New Loan.
Oficia4 ,!otice of a new plan, which
is signed by President Hill under this
date, was sent to Northern Securities
stockholders In a circular letter, which
says in part:
Since the formation of your company
with a view of promoting, developing and
charging the and traffic Of the
! country served by the Great Northern and
by the Chicago, Burlington and Quincy
railroad the traffic and earnings or the
three railways have largely increased. The
rates paid by the public have been ma
terially reduced.
The respective railways have been ex-
tended and their condition and facilities
improved and increased.
The stock of the Northern Securities
company was issued solely for the shares
of the Northern Pacific and Great North
f t}la R RiiIESa ysG g9Sm N z Is a foTm 31nef tb pt0 eom-
pany and disposing of it's shares no com.
missions were paid. nor has the company
incurred any expenses save those neces-
sary for obtaining it's charter and for the
economical conduct Of Its affairs.
The company's acquisition of Northern
Pacific and Great Northern shares were
We're in no wise obnoxious to any law Of
the United States, an opinion which has
received the approval Of four justices OF
namely, Mr.. Chief Justice Fuller. and as
sociate justices, Edward p. White, Rufus
W. Peckham and oliver Wendell Holmes.
against the right Of the mint to hold
and vote the shares. However, the ma
jority Of the court, disregarding as irrele-
want any beneficial increase Of commerce..
was of the opinion that, as a matter OF
law, your company's holdings of the stocks
Of the two railway companies in Itself con-
merce, prohibited by the so-called Sher-
man act of 1890. Accordingly, the railway
companies have been forbidden to permit
your company to vote or to collect diVi-
dends on the shares held by 1t.
Therefore, your directors. at a meeting
held this day, have, under advice Of coun,
| al . l~aiInl - thnt Ia, rln p 10 rll1 ", and
promptly comply with the decree in this
suit, it Is necessary to reduce the capital
stock of the company and to distribute tic
it's shareholders the shares OF stock OF
said railway companies now held by 1t.
Recommendations to Stockholders:
To this end they have adopted resolu.
/. That the capital stock Of this com
pany be reduced from 1854, 900 shares, o
outstandin, to $3.50. being a reduction OF
2. That 80 per cent of the present out.
standing shares be called in for surrender
and cancellation.
Of this company so to be surrenderec
there will be delivered 500. q stock Of the
Northern Pa"'@ halfway company, S3o.li
stock Of Tie ,..a. Northern Railway com.
Y.Any. and proportionate amounts thereof
Tor each fraction of q share of stock.
AS required by the laws Of the state OF
New Jersey, under which the company
was created, a special meeting of the
shareholders has been called for April Il
1904. at II O'CLOCK a, M, at the office Of thu
company in Hoboken.
For the purpose of this meeting thu
stock transfer books will be closed Apri
Is, at 3 o'clock. >
The assets Of the n remaining II
It's treasury. after the foregoing distribu
ton Is made, will consist Of stocks anC
other property in no way involved in tht
suit, producing income and conservative
~ valued at an amount in excess Of So. 954,
900, to which it is proposed to reduce thu
stock of the company.
New Plan Formally Adopted.
The new plan was formally adopt
ed at a meeting Of the directors whici
began in the morning and lasted until
we'll into the afternoon.
Throughout the day, when Northern
, Securities shares were booming on tn
! curbs and it's affiliated stocks and thu
: Pacifcs, chiefly Union Pacific, were ad
! vancing by leaps and pounds on tn
: stock exchange, the air was full Of ru
mors, some Of them Of an alarming
character.
Dealings in MO Pacific common
f aggregated over 40 per cent. Of the to
n tai outstanding issue. 1t was declared
in various quarters that the Hill-Mor
= gan party had for some reason deemed
= it necessary to buy heavily into tn
= stock.
Large amounts Of Southern Pacih
shares also changed hands. and sale
Of Great Northern preferred. Of which
the floating supply Is very small
amounted to 1000 shares. In the bon
a division Oregon Short Line As, Uniol
n Pacific convertible As and Burlington
y As were In demand at substantial ad
d VanCeS.
Conference at Morgan's Office.
:, After the close Of the market a Ion
= conference was held at the office OF .
P. Morgan & Co.
d Messrs. Hill and Hartman left tn
l. Morgan banking house arm in arm, an
i apparently In the best Of spirits. Bot
declined to make any statement beyon
j.. saying that a perfect UNDERESTIMATE
had been reached all around. NJ
Morgan seemed pleased with the day
events.
y Sales Of Union Pacific commo
aggregated over 10000 shares at a nt
advance Of 81 points. Southern Pacif
IS was traded in to the extent of ove
$4,000 shares, gaining net TX point
The advance in the 1000 shares
u Great Northern preferred was 4
le points. all the Paclfcs, in fact the ger
eral market, went higher with the boo
in the Northern Securities.
L On the curb Northern Securitit
IL made a net gain of 6 points on sal'
IN about 90, 900 shares. The stock touche
1915 and closed at 80.