Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-03-23
THE SECURITIES COMPANY.
Text Of the Circular on Distribution
of the Assets

4
| New York March 23.-The official
circular notifying shareholders in the
Northern Securities Company of the
plan for distribution of the stock in the
form of a dividend in order to comply
with the decision of the supreme court,
has been Issued. 1t says in part:
4 Since the formation of your COM
rany with view of promoting, devei-
cping and enlarging the commerce and
| traffic of the country, served by the
| Great Northern and Northern Pacific
railway companies and by the Chicago,
burlington 4 Quincy railroad company,
| the traffic and earnings of the three
railways nave largely increased. The
rates paid by the public have been
materially reduced. The respective
railways have been extended and their
condition and facilities improved and
Increased
THE sock of the Northern Secur-
titles Company was issued solely for
the shares of the Northern Pacific AMI
Great Northern railway companies and
|other properties purchased by 1t. In
forming The company and disposing OF
its shares no commissions were paid.
nor has the company incurred any
expenses save those necessary for OBJ
tanning Its charter and for the eco
nomical conduct of its affairs.
The Gompany's acquisition of Nor
thern Pleific and Great Northern
shares was made in the full belief that
such purchases We're in no wise obnox-
ious to amy law of the United States.
"a belief 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 d. White, Rufus w.
Peckhanl and Oliver Wendell Holmes,
in the suit brought by the United
States against the right of the COM
pany to hold and vote the shares. How
ever, the majority of the court disre-
garding as irrelevant any beneficial
increase. OF commerce, was of the opin-
ion that as matter of law, your
company's holdings of the stocks of
the two railway companies in itself
constituted a restraint of interstate
Sherman act of $780, Accordingly, the
railway companies have been forbid
den to permit your company to vote
held by it.
Therefore, your directors. at a
meeting held this day. have, under the
advice of counsel decided that in or
der to fully and promptly comply with
the decree in this suit, it is necessary
to reduce the capital stock of the COM
pany and to distribute to it's sharehold-
ers the shares OF stock of said railway
companies now held by 1t.
ITO this end they have adopted reso-
lutionis recommending to the stock
holders
First, That the capital stock of this
company be reduced from 3954000
shares now outstanding to $3.50, be-
ing reduction of 80 per cent
''Seeond The said 80 per cent of the
present outstanding shares be called
in for surrender and cancellation.
Third, That against each share of
the stock of this company so to be sur
rendered, there will be delivered S392T
stock of the Northern Pacific Railway
Company; s3o.17 stock of the Great
Northern Railway Company and pro-
portionate amounts thereof for each
fraction of a share of stock.
AS required by tile iitNS Ol Tie STAT
OF New Jersey under which the com
pany was created a special meeting OF
the shareholders has been called for
April 81, 1904, at II o'clock a. m. at the
Office of the company in Hoboken.
"For the purpose of this meeting the
stock transfer books viii be closed on
April IS, at 3 o'clock"
The new plan was formally adopted
at meeting of the directors which be-
gan in the morning and lasted until
welt into the afternoon.
Turnout the day the Northern Sc
curtties shares were booming on the
curb and its affiliated-s stocks and the
4Paeifics, chiefly Union Pacific, We're
advancing by leaps and bounds on the
sto,k exchange. The air was full of
ruraors. some Of them of an alarming
character.