New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-26
MERGER BACK TO COURT.
Distribution QUESTION.
Ioyyers Undecided on a Legal Point
-RclatiOnS Harmonious.

.. q. General understanding IN Wall Street
-.e-s,y mas while there was harmony net"e9"
sbo ,ovye-ful interests chiefly concerned lH -. =,
.ru,tfior OF the northern Pacific ai-o 'i'a' -
srn stocks held IN the Northern Secuil'-'s :, -,
-, II would Do found 90 be desirable. for 1he
-,-,+,~+ior az all interests 10 have the Ohlieu
States Circuit Court pass on TIE meIIoa o. N.7'
button The only hitch IN the plan pI'-lSlleN -
the directors 81 the northern SECURITIES -e'lll,-.
Ne said 20 depend legal point not altoee'l,-
clear 90 the lawyers. That is why the court Is
likely 10 be asked 20 pass on the plan.
Tn directors Of the Oregon Short Lire Railroad
cou,pany do not want risk personal liabiliiy TOT
che substitution ~ pro rata amounts OF Great
Northern and Northern Pacific stocks for the
northern Pacific stock which originally was secur-
itv for the per cent bonds OF the railroad com
pauy n such a substitution can be made WITHOUT
danger OF ultimate personal liability the oregon
Short Line directors win have no objection 10 the
outlined plan for distributing the stocks OF the
Northern Securities Company one method OF
avoiding danger would be 10 have the court decide
that collateral equal IN value although not the
identical collateral which had gone into the merger
could be used as security for the bonds
That this legal question does not interfere with
the harmonious action OF the interests having the
largest stake In the Northern Securities was indi-
Gated yesterday by statement made by a director
OF the Union Pacific that F. II. Hartman and his
associates IN the Union Pacific were not holding
the return TO them OF the SS0oeOoo OF North
ern Pacific stock which they turned over TO the
Northern Securities at the time OF the merger. The
plan OF distribution already published would give
back 10 the Union Pacific about equal shares OF
Northern Pacific and Great Northern stocks. and
would leave the Union Pacific without control Of
the Northern Pacific, although having a large In
tarest IN Great Northern.
Union Pacific has made no demand for an IN
creased share Of Northern Pacific stock under the
dissolution plan Of the Northern Securities Com
many" the Union Pacific director said. 1t has
made no demands Of any kind. and IL has made no
threats. We feel sure that the plan Of
dissolution is strictly legal. We want afterclap-
our counsel are not yet satisfied on that point but
there win be no fight. and our differences doubt
less viii be adjusted"
representative OF the EiIl-0Iorgan interests said
that the conference at M MOrgan's Office on
Thursday afternoon was entirely harmonious. that
the whole plan 81 the Northern Securities dissolu
ton was discussed IN the most ITlenolg sllr4t ana
that all interests would be satisfied. re added
Where many diverse interests are represented
81 is natural that some friction should develop
vantage OF the other in this It VIII soon be
seen that Mr.. Hll and Mr.. Morgan are In perfect
accord with The Union Pacific interests
Union Pacific stock active IN the ID
ing the Stock Exchange yesterday. 1880 shares
changing hands At prices ranging from 50 TO S34s
on the curb the Northern Securities stubs" repre-
EeutinE the stock OF the Northern Securities Com
pany which viii remain after the distribution OF the
Great Northern and Northern Pacific shares. sold
VI 10 80. This Indicated confidence OF the brokers
IN he statement that the Northern Securities stock
not affected by the merger had increased much r.
value
James J. Hn was IN Washington Yesterday and
at his Office II was said that ne had gone there 10
advise some Congressme0 about bills affecting
transportation on the Great Lakes His visit
WASHINGTON, y was sai6 had no connection with
the affairs Of the Northern Securities Company.