The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-03-17


The pro rata method will land the
IIcontrol OF Great Northern and of
Northern Pacific in the hands Of Mr..
Hll and his friends, who hold over SO
per cent of Northern Securities. It
Will also assure that these people own
me companies represented by the
$e,oOO, 900 "other assets It will, IN
1act' put the company just where it
was In October, 1901, and enable it to
says: ,.e.s.' .7., - 49, 49, =
''well, I've still got the roads,
haven't II" this is what he means. -
Inc difference is that the company
was organized the first time in the
middle of the biggest boom in history.
II was easy to get the capital needed.
NOW, with Wall street flat on its back,
with Mr.. Morgan no longer a name to
con1ure with. with dozen other
roads ahead Of it in the race Of capt.
tai, the task, is not so easy. ~.
HAD the company not become en-
tangled, the securities Of the company
Wou1o now probably be scattered far
and Wide around the world. 1t will
take years Of hard work, years of per-
suaslon, wisdom, wealth, prosperity
and confidence to distribute the stocks
as they would have. been distributed
py this time. had it not been for the
merger suits. This is where the shoe
really pinches. =, ~
Undigested Securities.
Messrs Morgan, Hill, Hartman, etc.,
nave on their hands a fearful load Of
what the first named gentleman calls
.und1gested securities" Mr.. Harri-
man has wisely put his load into a
trust company and issued and sold
ponds for them. He sells the bonds
at W or less and they get all the in
terest that the stocks pay. They are
considered a very fine line Of specula-
tive bond. That was easy.
MI. Hartman kept the advantage of
the voting power Of the, stock, but got
load for him. When 1t comes to wis
dom in these judiciary matters, the
street Is willing to take off its hat to
Messrs. Kuhn, Loeb & Co., who make
these plans for Mr.. Hartman. =,
Mr.. Hill Is not so fortunate. It is
true, that he sold $15,ooo,o0o Of his
STOCK In one lump at about Sis per
share, and it is equally true that he
has bought back at least as much
since at below 90. That represents
a profit to Mr.. Hill Of about $4,000
600 on the deal. >:.r' t
No one but Mr.. Hill and his imme-
| date friends can tell just how much
IL
land, Holland and America in such
transactions, SO no one can guess with
just what patience Mr.. Hill and his
friends will bear the load. '*r>.' a,
| Able to Carry Stock. ,s.
What Wall street does know is that
Mr.. Hill and his friends have it. and
are probably well able to carry it un.
/ til the public Of the world at large
/
whether they are Great Northern
! Northern Pacific, or the stocks Of
i other companies or another company
| that takes over the stocks Of Grea
Northern and Northern Pacific. .-qt
The history of the Standard OF
this connection, This trust was de,
clareds an outlay, illegal, and totally
| unfit to. live by the supreme court
It Immediately died. , It refunded it,
stocks, under the pro rata plan, an6
went out Of existence. The Rookie.
fel1ers and their friends got more thar
half Of each stock that had been hello
! by the trust. Mr.. Rockefeller might
| have said, If he ever said anything:
well. I've still got thte properties
haven't II"
He and his friends formed a simple
little company called the Standard OF
Company of. New Jersey. They de.
posted their stocks In that and go'
other securities for them. Those
other securities are the Standard Oh
stock now selling around $500: 80
Doubtless this company was legal OF
the supreme court, armed as 1t is with
power to enforce its rulings would
| never have allowed it. Anyway, II
continues to thrive and grow and
gather wealth and power to this day
and no one is trying to bring it to the
| har .-a., ..-... .-.s rs. 49,.