Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1904-03-24
FORCED TO PROVIDE
FOR STOCK DIVIDEND.
Big Distribution Of Northern
Securities company's As
sets Made Public.
4 NEW PLAN is ADOPTED.
In Expectation Of Division Company
Shares and Stocks Were Boom
ing and Advancing by Leaps
and Bounds on Exchange.


among the leading financial interests.
the new plan of the Northern Securities
company was made public last evening.
In substance it provides for stock
dividend of 80 per cent, this to be eff
fected by 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 deliver 1927 stock of the Northern
Pacific Railway company and $3O.17 of
the Great Northern Railway company.
The shares of the Northern Pacific
company which We're taken over by the
Northern Securities at Sll5 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 its Chi
cago. Burlington and Quincy holdings
and Northern Pacific coal lands, will
remain i'm the treasury of the company
until some plan for their distribution
has been evolved
Announcement Of New Loan.
Official notice of Il new plan, which
is signed by President Hill under this
date. was sent to Northern Securities
stockholders in a circular letter, which
says in part.
Since the formation of your company
with view of promoting, developing and
enlarging the commerce and traffic of the
country served by the Great Northern and
Northern Pacific Railroad companies and
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.
The respective railways have been ex-
tended and their condition and facilities
improved and increased.
The 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 1T. In forming the com
pany and disposing of its shares no com
missions We're paid. nor has the company
Incurred any expenses save those neces-
sary for obtaining its charter and for the
economical conduct of Its affairs.
The company's acquisition of Northern
Pacific and Great Northern shares We're
made In the full belief that such purchases
were in no wise obnoxious to any law of
the United States. an opinion which has
received the approval of four justices of
namely, Mr. Chief Justice Fuller, and as
sociate justices, Edward ID. White, Rufus
w Peckham and Oliver Wendell Holmes.
against the right of the committee to hold
and vote the shares. However, the ma
jority Of the court. dlsregarding as irrele-
| want amy beneficial increase of commerce,
was of the opinion that, as a matter of
law, your company's holdings of the stocks
of the two railway companies in itself con-
! stituted a restraint of Interstate COM
merce. prohibited by the so-called Sher-
man act OF 1880. Accordingly, the railway
companies have been forbidden to permit
/ your company to vote or to collect divi-
| dcnds on the shares held by It,
1 Therefore, your directors, at Il meeting
held this day. have, under advice Of coun,,
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,
Recommendations to Stockholders.
| To this end they have adopted resolu-
tons recommending to the stock holders:
| /. That the capital stock of this COM
| pany be reduced from 1854, 900 shares. now
outstandin. to $3.50, being reduction Of
| ~ per cent.
2. That 80 per cent of the present out
standing shares he called in for surrender
4 and cancellation
3. That ngainst each share of the stock
/! there will he Differed 1877 stock of tho
Northern Pa = ,.iway company, S3017
| sto.l of .he northern Railway COM
ICY and propOrtionate amounts thereof
| ior each fraction of n share of stock. !.
1 AS required by the laws of the state OF
New Jersey, under which the company
| was created, special meeting of the
| 1904. Mt IL O'Clock a. M, at the office OF tho
company in Hobokcn.
| For the purpose of this meeting tho
stock transfer books will be closed April
| IS, at 3 O'Clock. :
The assets of the company remaining In
it's treasury, after the foregoing distrbu-
| ton Is made will consist of stocks and
| other property in no way involved In the
SUIT, producing income and conservative
I ly valued at an amount In excess of $685.
4 CD. TO which 1t Is proposed to reduce the
| stock of the cOmpany
| 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
| we'll into the afternoon.
1 Throughout the day, when Northern
Securities shares We're booming on the
culbs and Its affiliated stocks and the
Pacifics, chiefly Union Pacific. We're adj
| vancing by leaps and bounds ON the
stock exchange. the air was full of ru-
nors. some OF them OF an alarming
4 character.
Dealings in Onion Pacific common
aggregated over 40 per cent. of the to-
tai outstanding issue. 1t was declared
| in various quarters that the HILL Nor
gan party had for some reason deemed
I it necessary to buy heavily into the
| stock
Large amounts of Southern Pacific
shares also changed hands, and sales
4 ~ LIeht 4SoTtleTIl preferred, Oh winch
the floating supply Is very small.
amounted to 1000 shares In the bond
division Oregon Short Line As. Union
Pacific convertible as and Burlington
Is were in demand at substantial adj
! vances
! Conference at Morgan's Office.
l After the close Of the market I, long
conference was held at the office of J..
". Morgan & Co.
I Messrs. Hill and Hartman left the
Morgan banking house arm in arm, and
| apparently in the best of spirits. Both
1 declined to make any statement beyond
saying that a perfect understanding
mad been reached all around. Mr..
Morgan seemed pleased with the days
| events.
/ sales of Union Pacific common
i aggregated over 10000 shares at n Act
| advance of Sl4 points. Southern Pacific
\ was traded in to the extent of over
10000 shares, gaining net "a points.
! The advance in the 1000 shares Of
1 Great Northern preferred was ~
| points. all the Jacfcs. in fact the gem
| ..al market, went higher with the boom
! N the Northern Securities.
| ON the curb Northern Securities
made net gain OF points on sales
\ 81 H.