The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1904-03-25
FORCED TO PROVIDE
FOR STOCK DIVIDEND
Big Distribution of Northern
Securities company's AS
sets Made Public.
NEW PLAN is ADOPTED
IN Expectation of Division Company
Shares and Stocks Were Boom
ing and Advancing by Leaps
and Bounds on Exchange.

New York, March 24.-Following a
day OF great excitement in the stock
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 eff
fected by a 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 elive 1927 stock Of the Northern
Pacific Railway company and $30.l7 Of
the Great Northern Railway company.
The shares of the Northern Pacific
company which were 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 M Quincy holdings
and Northern Pacific coal lands, will
remain in the treasury of the company
until SC plan for their distribution
has bee. we'd.
Anf--ncement of New Loan.
Officis- -.otice of a new plan, which
is signed by President Hill under this
stockholders in a circular letter, which
says in part:
Since the formation of your company
with q view of promoting, developing and
| charging the and traffic OF the
! country served by the Great Northern and
Northern Pacific Railroad companies n
by the Chicago, Burlington and Quincy
railroad, the traffic and earnings Of the
three railways have largely Increased. The
rates paid by the public have been ma
terially reduced.
tended and their condition and facilities
Improved and increased.
Thu stock of the Northern Securities
company was Issued solely for the shares
of the Northern Pacific and Great North
ern Railway companies and other proper
ties purchased by it. In forming the COM
pany and disposing of its 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
made in the full belief that such purchases
We're in no wise obnoxious to any law of
the United States, an opinion which has
received the approval of four justices of
the supreme court of the United States,
namely, MI; Chief Justice Fuller, and as
w. Peckham and oliver Wendell Holmes,
in the suit brought by the United States
against the right of the committee to hold
and vote the shares. However, the ma
jority OF the court. disregarding as irrele-
want any beneficial increase of commerce,
was S OF the on opinlon that hn1t +, IS a. q ma 7 tfaoS Of
of the two railway companies in itself con-
stituted a restraint Of interstate COM
man act of 1880. Accordingly. the railway
companies have been forbidden to permit
your COMPANY to vote or to collect divi-
dendS on the shares he'll by 1t,
Therefore, your directors, at a meeting
held this day, have, d r advice of coun-
sci, decided that in ort.er to fully and
promptly comply with the decree in this
suit, 1t is necessary to reduce the capital
stock. of the company and to distribute to
its shareholders the shares Of stock Of
said railway companies now held by it.
Recommendation to Stockholders.
To this end they have adopted resolu-
tons recommending to the Stockholders:
!. That the capital stock Of this COM
outstandin, to $3.50. being a reduction OF
SO per cent.
2. That 20 per cent. Of the present out
standing shares be called In for surrender
T, and cancellation. a
8. That against each share of the stock
Of this company so to be surrendered
Northern Pae'"- Rilway company, s3O.17
! stock of the G.-s4. Northern Railway com
10y, 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
1904. at II o'clock a. M, at the office OF the
/ company in Hoboken.
! For the purpose of his meeting the
! The assets Of the ompa remaining in
its treasury, after the foregoing distribu-
ton is made. will consist of stocks and
I nfhar. rrnnnrtV fn. No UNIV inIyn1vaI jr tho
suit. producing income and conservative
ly valued at an amount in excess of $685.
600, to which 1t Is proposed to reduce the
stock of the
New Plan Formally Adopted.
The new plan was formally adopt
ed at a meeting OF the directors which
began in the morning and lasted until
, well into the afternoon.
Throughout the day. when Northern
Securities shares were booming on the
Pacif1cs. chiefly Union Pacific. We're 7ad-
vancing by leaps and bounds on the
stock exchange, the air was full of ru-
mors, some Of them of an alarming
character.
Dealings in Union Pacific common
aggregated over 40 per cent. Of the to-
tai outstanding issue. 1t was declared
in various quarters that the Hill-Mor-
gan party had for some a son deemed
it necessary to buy heavily into the
stock.
Large amounts Of Southern Pacific
shares also changed hands, and sales
of Great Northern preferred. Of which
the floating supply is very small,
amounted to 1000 shares. In the bond
division Oregon Short Line As. Union
Pacific convertible Is and Burlington
As were in demand at substantial ad-
| vances.
Conference at Morgan's Office.
After the close Of the market a long
conference was held at the office of ].
p. Morgan & Co.
Messrs. Hill and Hartman left the
Morgan banking house arm in arm, and
apparently in the best of spirits. Both
declined to make my statement beyond
saying that a perfect understanding
had been reached all around. Mr..
Morgan seemed pleased with the days
events.
Sales OF Union Pacific common
aggregated over 10000 shares at a net
advance Of 8A points. Southern Pacific
was traded in to the extent Of over.
161,0 900 shares, gaining net 2A points.
The advance in the 1000 shares of
Great Northern preferred was ~
points. all the Pacifics, in fact the gen.
eral market, went higher with the boom
IN the Northern Securities