Milford chronicle., 1904-03-25
new PLAN OF
MERGER COMPANY
Il heludes a Stock Dividend of
SO Per Cent.
OFFICIAL NOTICES SENT OUT


New York. March 2S.-Tollowing 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 has been made public. In
substance it provides for stock divi-
dend Of SO per cent, this to be effected
BY reduction of that amount in the
capital stock of the Securities com
pany.
The other assets of the Securities
company, consisting chiefly of its Chi
cago, 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 a new plan. which
Is signed by President HILL was sent
20 Northern Securities stockholders in Z
circular letter, which says in part:
Since the formation of your com /
pany, with a view Of promoting. de- (
Veloping and enlarging the commerce
and traffic of the country served by the
Great Northern and Northern Pacific
Railway companies and by the Chicago,
Burlington and Quincy Railroad com
pany, the traffic and earnings of the
three railways have largely increased.
The rates paid by the public have been
materially reduced. The respective rail-
ways have been extended, and their I
condition and facilities improved and {
c
THE company's acquisition of North G
ern Pacific and Great Northern shares S
were made in the full belief that such Il
purchases were in no wise obnoxious Il
% any law Of the United States. How fl
eVer the majority Of the supreme court V
ot the United States, disregarding as ir- g
relevant any beneficial increase of A
commerce, was Of the opinion that as n
matter of law your company's hold III
ngs Of the stocks Of the two railway a
in itself constituted a re- fe
tFaint OF interstate commerce prohib- m
ted by the so-called Sherman act of th
$50. Accordingly the railway com bl
anies have been forbidden to permit 70
ouF company to vote or to collect divi- pi
end on the shares held by it. m
Therefore, your directors have. un- bu
er advice of counsel decided that in 10,
rdeT to fully and promptly comply
tth the decree in this suit, it is neces- wi
Try to reduce the capital stock of the
'mpany and to distribute to its share
olders the shares of stock of said rail- w
ay companies now held by it.
TO this end they have adopted reso-
tions recommending to the stock en-,
,ldeTs; Co
'First-That the capital stock of this ma
mpany be reduced from 1884. 900 tee
ares, now outstanding, to $3.50. be- lie;
g reduction Of 80 per cent. ant
'second-That said 80 per cent. of Go,
present outstanding shares be called ayr
for surrender and cancellation. ma
'Third-That against each share of acti
stock Of this company so to be sur II
ldered there will be delivered 1927 Ode
'ck Of the Northern Pacific Railway of
npany SSO.17 stock Of the Great the
rthern Railway company, and pro- 1t
'tionate amounts thereof for each the1
ction Of a share Of stock. sbir
AS required by the laws Of the state inte
New Jersey, under which the com anv
y was created special meeting Of Gov
shareholders has been called for
ril p. 1904. at II o'clock a. M. at
Office Of the company in Hoboken. W
collection Of the May and subse- SuyC
Mt dividend on such sahres being life
)idden by the decree until such dis of hi
ution has been made, the import timo
e OF promptly executing and for hims
ding proxies is obvious. train
The assets OF the company remain Suyd
in its treasury after the foregoing form
ribution is made will consist of voluI
ks and other property in no way home
lived in the suit, producing income. at tn
valued at an amount well
xcess of SS.954,OOO. to which it is self
osed to reduce the stock of the train
pany." well.