Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1904-03-28
TO REORGANIZE 1T
NORTHERN SECURITIES COMPANY
TO STILL EXIST.
But IL Will Not Hold Securities
Prohibited by Supreme Court
DecisiOn---t'aP ital stock to BE
duced 80 Per Cpnt..( ircmIar Nv
Mr.. Hill.

New York, March 23.-Followiny a
day of great excitement in the stock
market. and numerous conferences
among the leading financial interests,
the plan of the Northern Securities
Company was made public last even
ing in circular letter to Northern
Securities stock holders, signed by Pres
ident Hill. The letter says in part:
THE stock of the Northern Securi-
ties Company was issued solely for the
shares of the Northern Pacific and
Great Northern railroad companies
and other companies purchased by it.
The company's acquisition of Nor
thern Pacific and Great Northern
shares was made in the full belief that
such purchases We're in no wise obnox-
ious to any law of the United States
an opinion which has received the APP
prevail of four Justices of the supreme
court of the United States, namely,
Mr.. Chief Justice Fuller and Associate
Justices Edward White, Rufus w.
Peck ham and Oliver Wendell Holmes,
III the suit brought 10y the United
ny to hold and vote the shares. How
ever the majority of the court, disre-
garding as irrelevant any beneficial in
crease of commerce. was of the Opin-
ion that az a matter of law your COM
pany's holdings of the stock of the two
railway companies III itself constituted
a restraint of interstate commerce pro-
hibited by the so-called Sherman act
of 1890. Accordingly, the railway
companies have been forbidden to per-
init your company to vote OF collect
dividensd OH the shares held by you.
Will Distribute shares.
Therefore your directors, at a meet
ing held this day, have. under the ad
vice of counsel, decided that in order
to fully and promptly comply with the
decree in this suit it is necessary to
reduce the capital tsock of the compa-
ny and to distribute to its shareholders
the shares of stock of said railway com.
panies now held by you.
''To this end they have adopted res
olutions recommending to the stock
holders
"First-That the capital stock of
this company be reduced from 1904
900 shares now outstanding to 80, $40,
being a reduction of 80 per cent.
''Second-That said 80 per cent of
the present outstanding shares he
called in for surrender and cancella-
ton.
"Third-That against each share of
the stock of this company 40 to he sur.
rendered there will be delivered 1927
stock of the Northern Pacific Railway
Company; $40. /, stock of the Great
Northern Railway Company, and pro
portionae amounts thereof for each
fraction of a share of the stock.
LAS required by the laws of the state
of New Jersey under which the compa-
ny was created a special meeting of the
shareholders has been called for April
81. 1904, at II O'Clock, a. III, at the
Office of the company in Hoboken.
For the purposes of this meeting
the stock transfer books will be closed
Apri! IS.
1.-The assets of the company remain
ing in the treasury after the foregoing
stocks and other property in no way in.
volved in the suit, producing income
and conservatively valued at an
amount in excess of *3,954, 900, to
which it is proposed to reduce the
stock Of the company
Remaining Assets.
The new plan was formally adopted
at a meeting OF the directors, which
began in the morning and lasted we'll
into the afternoon. There We're pres
ent at this meetiHsg President Hill,
George f. Baker, William p. Clough,
Edward H. Harriman,D. Willis James,
Daniel S. Lamont. John S. Kennedy
George W. Perkins, N. Terhune and
one or more other directors.
Dealings in Union Pacific common
on the stock exchange aggregated over
topper cent of the total outstanding is-
sue. It was declared III various quar-
terra that the Hill-Morgan party had
for some reason deemed it necessary to
buy heavily in this stock.
Large amounts of Southern Pacific
shares also changed hands, and sales of
'VItdt PACACAACN' VI
the floating supply is very small.
amounted to / 900, shares.
MagMatcs in Conference.
After the close of the market "a long
conference was held at the Office Of j.
p. Morgan a. Co. Those who attended
included Mr.. Morgan, Mr.. Hartman,
Mr.. Hill, Mr.. lamont Mr.. Perkins,
j. p. Morgan. Jr. Francis l.. Stetson.
of counsel to ]. p. Morgan & Co.. and
ex-Judge Bum. of Minnesota. Mr..
Hills personal legal adviser.
Messrs. Hill and Hartman left the
Morgan banking house arm in arm and
apparently in the best of spirits. Both
declined to make any statement beyond
saying that perfect understa nding
had been reached all around.
DEITY Badly Damaged.
Honuiam March 24-The recent