The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1904-01-29
HEIR TO MERGER.
Nall Street Believes the Erie Road Will
Succeed the Northern Secur-
tiles Company.

. III DE- a 1.I
New York, jan. 26.-The directors OF,
The Erie Railroad company declared a,
dividend Of 9 per cent. on the first pre-
ferred stock Of the company yester-
day. making 4 per cent for h fiscal
year. BY this action the great system
passed automatically out OF the hands
Of j. pierpont Morgan. Louis t1tzger-
aid and Sir Charles Iennant. me vots
ing trustees, in whose hands 1T had
heen since the reorganization was COM
| Melted August 20, 1895. Under the
| terms Of thu organization all or the
| stock of all classes must now be issued
by j. p. Morgan & Co.. to the stock
| holders in exchange for the voting trust
| certificates, which they nave helo since
December ], 1895.
wall street believes that great deyel-
onments are in store for the road.
/ Many people believe it is to become the
! successor of the Northern Securities
company If the United States supreme
cpur compels its dissolution and the
distribution of the stock Of Great
Northern, Northern Pacific and Bur-
nngton, which it owns.
What Lawyers Think
Eminent lawyers 1t is said, have told
Mr.. Morgan that the legal objections to
the Northern Securities company cam,
not be successfully made against the
Erie, whose entire system has been
built up by the absorption OF Compel
1 ing and ~contribu1ory lines. which has
been unQuestioned. They have pointed
ont to Mr., Morgan and Mr.. Hill that the
absorption by it of the western roads
would have "a legal precedent in the
ABSORPTION of the Lake Shore and the
Michigan Central by the New York
Central, in accomplishing which the
New York Central exchanged its own
3k per cent. bonds for the securities
\ N * 49, ,.N,JS Syhirh- wore HR-4
posted in its treasury as collateral. 1t
4 is said on very good authority that just
| such a scheme is now being worked U
in the office of j. p. Morgan & Co,
contingent upon the decision of the
United States supreme court next
month, which, it is said. Mr.. Morgan
expects to be unfaVorable.
In connection with these reports. 1T is;
significant. that several months ago Mr.,
Hartman, who is now at peace with
Mr.. Morgan, was elected a director OF
the Erie, in which he has acquired a
very large interest. 1t is also sig
nifcant that Kuhn, Loeb & Co. have
also bought heavily of the stock. This
places the control of the roa in the
hands of j. Pierpont Morgan. James j.
Hill, Z. II. Hartman aud Jacob Schiff.
the men who controlled Northern Pa
cific, Great Northern and Burlington
before the great fight which precipi~
tated the Northern Pacific panic. 1t is
plain that the redistribution of the Sc
c%urities of Northern Pacific in obedi-
ence to the mandate of the supreme
court would return the securities into
the hands of these four men who on
troll the Erie railroad.
Probable Plan of Absorption.
1t is believed that the absorption OF
the roads by the Erie would be accom-
plished by an issue of collateral trust
bonds OF the exact amount of the hold
ings of the Northern Securities COM
pany in Northern Pacific and Great
Northern, both roads controlling Bur
lington. The Northern Securities COM.
pany holds practically all the stock Of
the Northern Pacific railway company
and over $685. 600, 600 of the stock of the
Great Northern railway. 1t is said that
this plan IAN be carried out without re-
curing one dollar in cash.
j. P. Morgan & Co.. would say yester-
day only that the Erie voting trust
would be dissolved as the result of the
action of the directors yesterday.