The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-03-14
Stock Transfers Complicated.

In the further attempted realizado
Of the objects of the decree, it was
provided that the stock Of the two
railroads should be turned back into
the hands of the parties from whom
it was acquired. The natural inquiry
now is, How can this bedone? The
stock Of these two railroads consti-
tutes the principal asset, belonging to
all stockholders alike Of the Northern
Securities: company. A considerable
amount Of the Securities company
stock has been sold for cash without
reference to any exchange Of the stock
Of the two railroads, These last.
interest as any others in all of the
assets Of the corporation, and it is
difficult to conceive how those assets
can be turned back to part Of the
stockholders to the exclusion Of the
rest. The deal with the Hartman
Union Pacific faction involved taking
over the latters holdings by the Se-
curities company in return for stock
and a certain amount Of cash. If this
faction can receive back it's Northern
Pacific stock, which was all that it
sold, 1t will make a very interesting
result in it's financial aspect.
How About the N. p?
Another interesting possibility
growing out of the literal compliance
with the order of the circuit court re-
lates to the control Of the Northern
Pacific. The Hartman faction in the
contest for the control in 1901 had ac-
Quired a majority of all outstanding
Northern Pacific stock, including both
common and preferred, but had not
less than a majority Of the outstand-
! ing common stock. This made it pos
sible for the Morgan-Hill interests to
manipulate the affairs Of the corpora:
| ton in such manner. as to retire the
preferred stock and leave themselves
| in control. The retirement was eff
fected thru the issuance of certificates
Of indebtedness which were open to
subscriptions only by the common
stockholders and these certificates
were made convertible into a new issue
of the same amount Of common stock.
When this manipulation was COM
pleted the stock of the Northern Pa
cific was precisely the same in amount
as before. This turn brought the
Hartman faction to terms and re-
suited in their apparent capltallzat1on
to the Morgan-Hill interests. II as
result of the decision now rendered
the Hartman faction is to be restored
to it's former position, it may give rise
to an interesting contest for the con-
troll of the Northern Pacific.
consequences of Litigation.
1t has been suggested that the only
possible method of proceeding &C
cording to law will be the complete
liquidation of the Northern Securi-
i ties company's affairs. This would
involve receiverships and receiver
sales running into figures of an ap-
palIing magnitude and will doubtless
i give rise to some other form OF COM
| bination to buy in the securities.
/ Since the organization of a North
ern Securities company, if current re-
). ports are to be accredited, conditions
i have materially changed in Wall
street, owing to the collapse of many
of the pet scheme of J. Pierpont Nor
gan and the prestige Of that gentle
man has materially declined. At the
height Of Morgans dictatorship in
financial circles he doubtless could
have effected an organization suff-
Gent for the needs Of the present sit
uation, but with conditions as they ex-
ist to-day and Morgan's loss Of con-
troll unforeseen difficulties may be 4ex-
pected to arise in the further prose
! cution Of any tentative schemes.
1t would not be surprising in the
present juncture to see the fine hand
!, Of the Rockefellers manifesting itself
in any of the several plans which may
be undertaken. In any event 1t viii
be interesting to the public to watch
the course Of events.
Van SAINT Is Gratified
Governor Van SAINT was notified OF
the decision this morning by bulletin
from the Associated Press. He said
81 am very much gratified with the
result of the decision of the supreme
; court in the merger suit, for in my
opinion the decision means more tt
7 the people of our country than any
event since the great civil war. i
Z will for all time prevent the formation
: Of illegal trusts and unlawful combi
: nations