The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-05-21
: $50 49,
PROTEST AGAINST
HARRIMAN'S SUIT
Continued From First Page.

Short Line bondhoIders against the suit
! brought by Hartman and Pierce
3gai1lsts the Northern Securities COM
Hpa110Bssj sskElot a.. surprise to u.s." said
- Hdgeas9eQrge B. Young, one of the
Northern Securities counsel when seen
last night regarding the report that the
bondho1ders had entered protest
against the suit, brought against the
Northern Securities company in New
Jersey, and which vas commenced in
the BnfteEe Sta te eetIrt Newark yes
terday. * 81. ES
THE onlyeinforI1ation I have regard
ing the ma1erss.a said Judge Young, ''is
what l have learned by reading the
telegraph reports but it is not sur
pHising thai the kohdneiders have en-
tered such a protest. It simply means
that. they. as the. parties most inter-
ested, desire to protect Their rights;
that they are satisfied With the distri-
button Of the Northern Securities stock
as planned by the Northern Securities
company"
What effects their protest likely to
have upon the case now in the courts?"
Judge Young was asked.
THAT cannot be told at this time
said Judge Young, but since the bond
holders and not the trustees are the
ones most vitality interested, it will no
doubt have a bearing favorable to the
Northern Securities company"
In what aranner are these Oregon
Short Line b6ndholders interested in the
distribution of the NoEthern Securities
stock?' was asked.
'They are interested because this
Northern SECURITIES stock is pledged as
security for the Oregon Short Line
bonds held by the people protesting.
Messrs. HarBinlan and Pierce, trustees
of the oregon Short Line, hold Northern
Securities stock, which they have
pledged, as trustees of the Oregon line,
to secure millions of dollars in bonds
issued by that line. This Northern Sc
curities stock, pledged as it is, is really
The property of the Oregon Short Line
bondholders, although Messrs. Harri
man and Pierce, as trustees, have con-
troll of it."
Argues for Plaintiff.
NEWARK. N. J., May 20.-Arguing
for the plaintiffs today in the suit of
E. H. Hartman and Winslow S. Pierce
against the Northern Securities and
Northern Pacific, before United States
Judge Bradford Francis V. Lindabury
said that the Northern Securities COM
pany was never properly in possession
of the Northern Pacific and Great
Northern stocks, because it obtained
them in a manner which the courts had
declared to be illegal.
Mr.. Lindabury said the Oregon Short
Line had acquired $7S.000,000 of the
5000, 600 stock of the Northern Pa
cific, a majority of the whole. But of
this stock only $37,000,000 was COM
mon while the full issue of common
stock was $50 goo, 900. Under the char
ter of the Northern Pacific, it was later
learned the common stock had the
right to retire the preferred stock at
any time.
Messrs. Morgan and Hill, having ac-
qufred S42. 000,0D0 of the common stock
in the meantime, notified Mr.. Hartman
and the Oregon Short Line company
that they proposed to retire the pre-
ferred stock and issue common in its
place, but that no holder of the pre-
ferred stock would be allowed to sub
scribe for the new issue of common
stock. At the same time Morgan and
Hill announced that they were about
to organize the Northern Securities
company and that Hartman and the
Oregon Short Line people could put
their stock of the Northern Pacific into
the new corporation on the same basis
as Morgan and Hill We're putting theirs.
Mr.. Lindabury said that his clients
were thus forced into the combina-
ton. He declared that they had moth
ing to do with the organization of it
and they claimed that now they have
a right to their stock deposited.