The Savannah morning news., 1904-03-23
SECURITIES co.
HAS A NEW PLAN
CAPITAL STOCK REDUCTION
OF 30 PER CENT. is RECOMMENDED
TO STOCKHOLDERS.

Company Will Surrender Northern
Pacific and Great Northern shares
for Its Own-Basfs ON which the
ciers Hold Conference Over the
P1an--Heavy Market Transactions
In Union Pacific.
New York March 22.-Following a
day of great excitement in the stock
market and numerous conferences
among the leading financial interests,
the new plan of the Northern Securi-
ties Company was made public this
evening. In substance it provides for
a stock dividend of SO per cent. this
to be effected by reduction of that
amount in the capital stock of the Sc
curities Company.
For every share of Northern Securi-
ties stock surrendered the company will
deliver $50 27 stock of the Northern Pa
cific Railway Company, and $S0.17 of
the Great Northern Railway Company.
The shares of the Northern Pacific
Company, which were taken over by
Northern Securities at lis. and those
of the Great Northern at 1870, will be
distributed on this basis.
Official notice of 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:
1.-THE company's acquisition of North
ern Pacific and Great Northern shares
was 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 APPROX
al of four justices of the Supreme Court
of the United States in the suit brought
by the United States against the right
of the company to hold and vote the
shares. However, the ma jority of the
court disregarding as irrelevant any
beneficial increase of commerce, was
Of opinion that as matter of law your
conpany's holdings of the stocks of
the two railway companies in itself
constituted a restraint of interstate
commerce prohibited by the so-called
Sherman act of 1890. Accordingly the
railway companies have been forbid
den to permit your company to vote or
to collect dividends on the shares held
by it.
therefore, your directors at meet
ing held this day, have, under the adj
vice of counsel, decided that in order
to fully and promptly comply with the
decree in this suit. 1t is necessary to
reduce the capital stock of the COM
pany and to distribute to its share
holders the shares of stock of said rail-
road companies now held by IT.
Recommendations Made.
"To this end they have adopted reso-
buttons recommending to the stock
holders:
First, that the capital stock Of this
company shall be reduced from 1854, 900
shares now outstanding, to S9,54O, be-
ing a reduction of 80 per cent.
"Second, that said SO per cent. of
the present outstanding shares be call
ed In for surrender and cancellation.
Third, that against each share of
the stock of this company so 10 be
surrendered there will be delivered
500 "a stock Of the Northern Pacific
Great Northern Railway Company and
proportlonate amounts thereof for each
fraction OF a share Of stock.
"As required by the laws Of the state
Of New Jersey, under which the COM
pany was created. a special meeting OF
the shareholders has been called for
April "a. 1904. az the Office Of the COM
pany In HobOken.
''The assets Of the company remain
ing IN ~ treasury after the f0rego-
Ing distribution IL made VIII consist ~
stocks ami other property IN no way
involved in the suit, producing income
and cOneervafively valued ~ ar amount
IN excess ~ s3.9bf.600 ~ which it u
proposed f0 reduce the stock ~ the
company"
Tile new piaB W8e formally adopted
~ 4 meeting ~ the directors which be-
gan ig ths morniu6 and lasted Until well