New-York tribune., 1904-10-26
UNION PACIFIC RUMORS.
STOCK MARKET LEADER.
Indications of N. S. Agreement
J. J. Hills Offer.

Union Pacific and St. Paul were the central figures
yesterday in a stock market which fell only 22494
shares short Of the 100000 share mark; while
the curb Northern Securities shot UP to 1854, new
high level although in the last hour the gains in
both markets were largely lost Two related re-
ports were apparently among the melting causes of
the excited speculation and rapid advance in Union
Pacific and the group OF securities allied to it. One
Of these rumors was that an agreement had been
reached between the two parties in the Northern
Securities Company, under which the Great North
ern would be secured In sole control Of the Burling
ton. while the Northern Pacific would pass under
the control Of the Union Pacific which would also
take over the ST Paul. opposition to the latter
move being offered by the Morgan-Hin party.
This arrangement the story went on, would not
be announced until after the pending Northern
Securities litigation had its unimpeded course.
Tho other report had that the Oregon Short Line
collateral trust and participating per cent bonds.
which have recently risen sharply in value. would
soon be retired. The $s,10sOOO of Northern Pacific
stock purchased in the interest of the Union Pacific
prior 10 the panic Of May g. 1901. turned
to the Northern Securities Company In exchange
for So, 9iS7l of the stock Of that company and
IS OOO7 in cash The $ 491 S1 Northern Securities
stock deposited collateral for equal
amount of Oregon Short Line I per cent partci-
pating bonds of which $36.5O0O0O now in the
hands of the public and the remaining $i5,991 600
in the Union Paci1cs treasury. In the bond mar
ket yesterday the participating bonds sold
nlgh as IVA. IHe eutiIe issue OF any part IS
subject retirement at 1921 and interest.
three months notice to bondholders before any
February 1 or August I, the interest days, and
already noted the report is current that plans for
such retirement under consideration.
The payment OF dividends Northern Securities
stock being enjoined, the interest the partci-
patng bonds cannot be paid from that source and
must for an indefinite period be met by the Union
Pacific Retirement OF bonds. if it be arranged.
will leave the Northern Securities stock q free
asset Of the Oregon Short Line, and thus easy Of
division and distribution in such manner may
be eXpedent under the terms of the agreement
which It is believed has virtually been reached for
the dissolution Of the Northern Securities combina
ton and the reaignnent of its present constituent
corporations.
Another interesting report. which came from the
West, was that the Union Pacific negotiating
for the acquisition of the Chicago Great Western.
No confirmation OF this story could be obtained
here, but Il was not discredited in good quarters.
Much interest taken by Wall Street in the
announcement yesterday that Barring Brothers &
Co. OF London. had October 10 issued behalf
OF James J. Hill, president OF the Northern Securi-
lies Company. individually, and not n repre-
sentative Of the company circular offering to ad-
vance g % 10 all British stockholders of the
Northern Securities Company whose registered
holdlngs are 1000 shares less. The advances.
which represent two of the deferred quarterly div
dends Of the Northern Securities are to be without
interest and among the conditions of the offer are
the Northern Securities Company shall distribute
~ Hholo OF IN part, the surplus earnings accrued
on the shares Of the Northern Pacific Railway Com
pany and OF the Great Northern Railway Company
oI When II may distribute return TO the holders
OF It's own stock the railway shares; that the
amount advanced may, the option of the bor-
sI. a0WeI. be repaid at any time prior 70 the time
epeclned, and that all persons accepting the ad-
vance shall present their certificates OF Northern
SeGuriues Company's stock TO have the necessary
ihdoisement stamped thereon.
A stock certificate on which the advance IS made
- 10 have record OF the transaction stamped on
II. and cannot be transferred until after the loan
shall have been repaid. Mr. HllIs oner, il is ex-
pIalned, Is limited 20 Great Britain, because the
proportion of stockholders in that country who aTe
dependent solely their income from stock hold
lhss Is much larger than in the United States
=, n the first thrty-five minutes or business on
me New York Stock Exchange yesterday l0s C3O
shares OF Union Pacific stock were dealt in within
a range Of "a per cent This II believed 10 hs a
record In the history Of the stock EXCHANGE foI
dealings in any stock at q uule ana for mar
EoNness OF fluctuations ~ such an amount
The total sales of Union Paclne for the day Wera