The free lance. (Fredericksburg, Va.) 1885-1926, 1904-03-26
MERGER %. To DISSOLVE
New Plan Of Northern Securities
Made Public.
STOCK DIVIDEND OF 90 PER CENT.

OtAer Assets of Company viii Remain
In Treasury Until Some plan For
Their Distribution Is Evolved-The
Official Notice.
New York, March 23.--Following a
day Of great excitement in the stock
market and numerous conferences
among the LEADING financial interests
the new Fan of the Northern SECURE
ties company has been made public. Ia
substance il provides for stock diNi-
dend of 80 per cent, this TO be effected
by a reduction of that amount IN the
capital stock of the Securities COM
pany.
For every share OF Northern Securi-
Ties stock surrendered the company VIII
deliver S39 q stock of the Northern Pa
cifc Railway company and S3017 Of the
Great Northern Railway company. The
shares OF the Northern Pacific conf
pany. which were taken over by the
Northern Securities at ll5. and those
of Great Northern at $50. will be dis
tributed on this basis.
The other assets of the Securities
company, consisting chiefly OF its chi
cago. Burlington and Quincy holdings
and Northern Pacific coal lands, viii
remain in Tie treasury OF the company
until some plan for their distribution
has been evolved.
Official notice OF a new plan. which
IS signed by President Hill, was sent
TO Northern Securities stockholders In
o. circular letter which says in part:
since the formation of your con-
pany. with a view Of promoting de-
yelopiue and enlarging the commerce
and traffic of the country served by the
Great Northern and Northern Pacific
Railway companies and by the Chicago.
Burlington and Quincy Railroad COM
pany. the traffic and earnings OF the
three railways have largely increased.
The rates paid 10y the public have been
materially reduced. The respective rail
ways have been extended. and their
condition and facilities improved and
increased
1.-THE company acquisition OF North
ern Pacific and Great Northern s8ares
were made In the full belief that such
purchases were i'm no wise obnoxious
10 any law ID the United States. How
ever the majority OF the supreme court
OF the United States disregarding rs IT,
relevant any beneficial increase o.
commerce was of the opinion that as
matter of law your companys hold
ings of the stocks of the two railway
companies in itself constituted a re
straint of interstate commerce prohib-
tied by the so-called Sherman act Of
1890. Accordingly the railway COM
panies have been forbidden TO permit
your company to vote or to collect diyi-
dend on the shares held by it,
Therefore. your directors have, un-
der advice of counsel. decided that in
order to fully and promptly comply
with'the decree in this suit. it IS neces-
sary to reduce the capital stock OF the
company and 10 distribute TO its share
holders the shares Of stock OF said rail-
way companies now held by H.
"To this end, they have adopted reso-
lutions recommending to the stock
holders:
"First-That the capital stock Of this
company be reduced from 1854 600
shares. now outstanding. to $3.50. be-
ing a reduction of 80 per cent.
Second That said 80 per cent. OF
the present outstanding shares be called
in for surrender and cancellation.
"Third-That against each share OF
the stock of this company so to be sur
rendered there will be delivered 1927
stock Of the Northern Pacific Railway
company. $30.17 stock Of the Great 7.
Northern Railway company. and pro- /
pOrtiOnate amounts thereof for each I
fraction Of a share of stock.
"As required by the laws Of the state |
of New Jersey, under which the COM
pany was created. a special meeting Of |
the shareholders has been called for |
April q. 1904. at II o'clock a. m, al |
the Office OF the company in Hoboken. /
The collection of the May and subse-
quent dividend on such sahres being /
forbidden by the decree until such dis /
tribution has been made the import /
ance Of promptly executing and for /
warding proxies is obvious.
"The assets of the company remain /
ing in its treasury after the foregoing /
distribution is made will consist OF |
stocks and other property in no way /
involved in.the suit producing income. /
and conservatively valued at an amount /
in excess of $3.954.OOO. to which it is |
to reduce the stock Of the /
company"