The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-23
MERGER IS DISSOLVED,
STOCK DIVIDEND OF SO
PER CENT. IS DECLARED
James ]. Hill Promptly Complies
with Recent Decision of the
Supreme Court.
ANNOUNCES A NEW PLAN
Holders Of Securities Company
Stock to Receive Stock of Con-
stituent Companies.

NEW YORK, March 22.-Following a day
of great excitement in the stock market
and numerous conferences among the lead
ing financial interests. the new plan of
the Northern Securities Company was made
public this evening. In substance it pro-
vides for a stock dividend of 90 per cent.
this to be effected by a reduction of that
amount in the capital stock of the Securi-
ties Company.
For every share of Northern Securities
stock surrendered the company will de-
liver 1922 stock of the Northern Pacific
Railway Company and S3O.17 of the Great
Northern Railway Company. The shares
of the Northern Pacific Company which
were taken over by the Northern Securities
Company at 115 and those of Great North
ern at $50 will be distributed on this basis
The other assets of the Securities Com
pany, consisting chiefly of it's Chicago.
Burlington & Quincy holdings and North
ern Pacific coal lands. will remain in the
treasury of the company until some plan
for their distribution has been evolved
THE NEW PLAN.
Official notice of a new plan. which is
signed by President Hill. under this date.
was sent 10 Northern, Security stockholders
in a circular letter, which says in part:
"Since the formation Of your company
with a view TO promoting. developing and
charging the commerce and traffic Of the
country served by the Great Northern and
the Northern Pacific Railway Companies
and by the Chicago. Burlington & Quincy
Railroad Company. the traffic and earnings
of the three railways have largely in
creased. The respective railways have been
extended 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 the Great
Northern Railway Companies and other
properties purchased by il. In forming the
company and disposing of it's shares no
commissions were paid. nor has the COM
pany incurred any expenses save those
necessary for obtaining its charter and for
the economical conduct of its affairs
The company's acquisition of the North
ern Pacific and the 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 approval of four
justices of the Supreme Court of
Justice Fuller and Associate Justices
Edward ID. White, Rufus w. Peckham
and oliver Wendell Holmes. in the suit
brought by the United States against the
right of the company TO hold and vote the
shares. However. the majority of the court,
disregarding as irrelevant any beneficial in
crease of commerce, was of opinion that.
as a matter or law, your companys hold
ings of the stocks of the two railway COM
panies in itself constituted restraint Of
interstate commerce prohibited by the So
called Sherman act of 1890. Accordingly.
the railway companies have been forbidden
to permit your company to vote or to collect
dividends the shares held by it.
DISTRIBUTION PLAN.
Therefore. your directors. at meeting
held this day. have. u der the advice. of
counsel. decided that in order TO fully and
promptly comply with the decree in this suit
IL 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. To this
CONTINUED ON PAGE g. COL. p