The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-05-21
z 49,
.PR0IEST AGAINST
~ HARRIMAN'S SUIT
Continued From First Page.

Short Line bondholders against the suit
/ brought By Hartman and Pierce
sfgaf1sts the Northern Securities COM
rparSeissRot a surprise to u.s. said
-Jndgss George B. Young, one of the
Northern Securities counsel when seen
last nigh regarding che report that the
bendhofders had entered a protest
against the suit brought against the
Northern. Securities company in New
Jersey, and which vas commenced in
the Enftedzs SO IS Newark yes
terday. x
"The onlyfnf opl11aton have regard
ing the matterss said Judge Young, ''is
What / have learned by reading the
telegfaphtfc reports bur it is not sur
pEising that the kohdnBiders have en-
tered such a profess tgsinply means
that they, as the. parties most inter-
sest9d, desire. 10 protect fffeir rights;
that they are satisfied With the distri-
button of the Northern Securities stock
as planned by the Northern Securities
company"
What elects their protest likely to
have upon the case now in the courts?"
Judge Young was asked.
THAT cannot be told at this time"
said Judge Young, t'but since the bond
holders and not the trustees are the
ones most vital1y interested, it will no
doubt have a bearing favorable to the
Northern Securities company"
In what ina nner are these Oregon
Short Line bbndholders interested in the
distribution Of the Northern Securities
stock?' was asked.
'"They are interested because this
Northern SECURITIES stock is pledged as
security for the Oregon Short Line
bonds held by the people protesting.
MessFs. HarhialAn and Pierce, trustees
of the oregon Short Line, hold Northern
Securities stock, which they have
pledged, as trustees of the Oregon line,
to secure millions of dollars in bonds
issued by that line. This Northern Sc
curities stock, pledged as it is, is really
the property of the Oregon Short Line
bondholders, although Messrs. Harri-
man and Pierce, as trustees, have con-
troll of it,"
Argues for Plaintiff.
NEWARK, N. j., May 20.-Arguing
for the plaintiffs today in the suit of
E. H. Hartman and Winslow S. Pierce
against the Northern Securities and
Northern Pacific, before United States
Judge Bradford, Francis V. Lindabury
said that the Northern Securities COM
pany was never properly in possession
of the Northern Pacific and Great
Northern stocks, because it obtained
them in manner which the courts had
declared to be illegal.
Mr.. Lindabury said the Oregon Short
Line had acquired $7S,000,000 of the
$50, 600, 600 stock of the Northern Pa
cific, a majority of the whole. But of
this stock only $37,000,000 was COM
mon, while the full issue of common
stock was $50 ,000, 600. Under the char
ter of the Northern Pacific, it was later
learned the common stock had the
right to retire the preferred stock at
any time.
Messrs. Morgan and Hill, having ac-
quired S42. 100000 of the common stock
in the meantime, notified Mr.. Hartman
and the Oregon Short Line company
that they proposed to retire the pre-
ferred stock and issue common in it's
place, but that no holder Of the pre-
ferred stock would be allowed to sub
scribe for the new issue of common
stock. At the same time Morgan and
Hill announced that they were about
to organize the Northern Securities
company and that Hartman and the
Oregon Short Line people could put
their stock of the Northern Pacific into
the new corporation on the same basis
as Morgan and Hill were putting theirs.
Mr.. Lindabury said that his clients
were thus forced into the combina-
ton. He declared that they had moth
ing to do with the organization of it
and they claimed that now they have
a right to their stock deposited.