The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-03-23
yesterday Was a Day Of Great
Excitement on The Stock
Market
UNION PACIFIC GOES UP
BY LEAPS AND BOUNDS
President Hill Sends Out Statement to
the Stockholders Defining the
\ Steps That viii Now
IL Be Taken. IEll-

kL '@NS"' -LEltll
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 Securities company was
made public this evening.
In substance it provides for a stock divi-
dend of 80 per cent, this to be effected by
a reduction of that amount in the capital
stock of the securities company.
For every share of the Northern Secur.
tiles stock surrendered the company will
deliver 1927 stock of the Northern Pa
eific Railway company and $90.17 of the
Great Northern Railway company. The
shares of the Northern Pacific company
which were taken over by the Northern
Securities company at LIS. and those of
Great Northern at 1SO, will be distributed
on this basis.
The other assets of the securities COM
pany, consisting chiefly of its Chicago,
Burlington and Quincy holdings, and
Northern Pacific coal lands will remain
In the treasury of the company until some
plan for their distribution has been
evolved.
Official notice of new plan which IS
signed by President Hill under this date
was sent to Northern Securities stock
holders in a circular letter, which says
in part:
Extract From Hill's Letter.
"since the formation of your company,
with a view of promoting, developing and
enlarging the commerce and traffic or
the country served by the Great North
ern and Pacific railway companies, ana
by the Chicago, Burlington and Quincy
Railroad company, the traffic ana earn
ings of the three railways have been ex-
tended and their condition and facilities
ifnpro.ea and lLcreasecf Z, = ~
.'The stock of the Northern Securities
company was issued solely for the share
of the Northern Pacific and Great North
ern Railway companies and other proper
ties purchased by it. In forming the COM
pany and disposing of its shares, no coin
missions were paid, nor has the company
incurred any expenses, save those neces-
sarv for obtaining it's charter, and for the
economical conduct of its affairs.
'rhe company's acquisition of Northern
Pacific and Great Northern shares WAS
made. In the full belief that such pur-
chases were in no wise obnoxiosu TO any
law of the United States-an opinion
justices of the supreme court OF the Unit
cd states, namely: Chief Justice Fuller,
and Associate Justices Edward D. Whlte,
Rufus w. Peckham and Oliver Wenael
Holmes. in the suit brought by the Unitep
states against the right of the company
to hold and vote the shares.
Disregards Commercial Benefits.
"uoweyer. the majority of the court
disregards as irrelevant any benehcial IN
crease of commerce, and was of the opin-
ion that as a matter of law, your COM
nanvs holdings of the stocks of the two
raIlwav companies in itself constituted
restraint of interstate commerce pro-
tihitad nv the so-caled Sherman act OF
1890. Accordingly, the railway compa-
MES have been forbidden to permit your
company to vote or to collect dlvldenos
on the shares held by them.
s,rherefore your directors at meet
ing held this day. have sought the ad-
vice of counsel in order to FUZZY ana
nromptly comply with the decree IN tnis
suit. 1t is necessary to reduce the cap
ital stock of the company and TO dlstfl-
butte to its shareholders the snares Oh
stock of such railway companies now
held by it.
ITO this end they have adopted resolu-
lions recommending to the stockholders;
81 THAT the capital stock of this COM
many he reduced from s954.000 shares now
outstanding to $3.50, peing reduction OF
"a per cent. 80 -. 80 .ha
nressnt outstanding rhares be called in
for surrender and cancellation.
'"Third That against each share or the
stock of this company so TO De renuereo
there will be delivered s39.27 stock Of the
Northern Pacific railway; $3O.l7 stock OF
the Great Northern Railway company,
and proportionate amounts thereon Tor
Of ufn
.4As required by the laws of the state
~ New Jersey, under which the company
was created, a special meeting of the
shareholders has been called for April
21 1904, at IL o oclock a. m. at the office OF
the company In Hoboken.
..For the purpose of this meeting the
stock transfer books will be closed April
IS at o'clock.
For the purpose of this meeting the
stock transfer books will be closed April
IS at o'clock.
Have Expressed Approval.
..Holders of this company's stock to a
large extent have already expressed their
approval of the recommendations OF the
board but the laws of New Jersey require
two-thirds vote of shareholders to per-
NIT the company to reduce its capital
stock. Such vote is the first step neces-
railway companys shares. The collection
of the May and subsequent dividends on
such shares being forbidden by the de-
cree until such distribution has been
made. the Importance of promptly exc
cutting and forwarding proxies is obvious.
ssThe assets of the company remaining
In its treasury after the foregoing dis
tribution is made will consist of stocks
and other property in no way involved In
the suit, producing an income conserva-
lively valued at an amount in excess of
S39540O0 to which 1t is proposed to re-
duce the stock of the company"
The new plan was formally adopted at
a meeting of the directors which began In
4 the morning and lasted until well into
3sthe afternoon. There were present at this
meeting President Hill, George F. Baker,
William p. C1ough. Edward H. Hartman
and d. VILLAS James, Daniel 8. Lamont.
John Q. Kennedy. George w. Perkins. Ter
hume and one or more other directors
Throughout the day when Northern Sc
(continued on Second Pane)