The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-04-05

Should this be done the Oregon Short Line
would unquestionably acquire legal title
to majority Of Northern Pacific stock
and would control that system
The Union Pacific company owns all the |
stock Of the Oregon Short Line, and Is
significant to note, would thru the latter |
line acquire a majority of Northern Pacific |
shares The Union Pacific now owns
controlling interest of $4,000 900 OF south.
ern Pacific stock. It owns the stock OF
the Oregon Railway & Navigation COM
many and should it acquire the stock of
the Northern Pacific, as 1t asks by the pc
tition, it would control the Southern Pa
cihc. Union Pacific and proprietary lines,
reaching Portland in Oregon, Spokane in
washington Butte In Montana, and the
Northern Pacific which touches these
points. In addition it would have thru
the Northern Pacific control Of half the
shares Of the Burlington system.
G. NJ. In Lonely Independence.
The resulting situation is briefly that
the Great Northern would be left abso-
.1utely the only independent transcontlnen-
ltal line from the gulf to the international
boundary, and that the Hartman inter-
tests would control practically everything
in the west but the Great Northern sys-
tenn.
The Northern Securities stock held by
pledged to secure bonds issued by the
Union Pacific in payment OF the purchase
price of Northern Pacific shares. 1t may
be that the petition is filed with view OF
having the process of distribution def
nitely settled and for the purpose Of de-
termining its right to withdraw its pledge
and substitute railway shares received by
it as another form Of pledge.
Now arises the important questlon
whether the Oregon Short Line can law
fully hold Northern Pacific shares under
the laws Of Montana and other states and
whether it can lawfully own and vote
them under the decision In the Northern
Securities case. This is a question that
NAV arise in the disposition Of the petit
ton.
Interests of Outsiders.
The stock of the Northern Securities
company is now held by over 1850 people,
many Of whom bought for cash and IN
good faith on the market and from many
Individual holders. Whether they should
not have the right to a ratable d1stribu-
ton and whether the Oregon Short Line
and Hartman should have the benefit Of
all the increase In value OF Northern
Pacific stock as against such holders as
have been making purchases from month
to month, with the knowledge Of Harri-
man and the Oregon Short Line and with
out any objection, may also be ques-
ton Of Importance for the consideration OF
the court.
of property amounting to so many mil
lions Of dollars could not be made with
out bringing on a challenge from some
party or interest. Should Hartman sue
coed the Union Pacific would not only
acquire control of the Northern Pacific
but would gain all the enormous profits
from the increase in value Of Northern
Pacific shares, to the injury Of hundreds
Of bona fide purchasers Of Northern Sc
curities shares.
Under the plan proposed by the com
pany these purchasers would share equal
1y with Hartman and the Oregon Shor
Line. Under the claim of Hartman, al
stated in the petition to the United States
circuit court, they would get no share O.
the profit from the increase in value O.
Northern Securities property. &C. e..
Securities Stock Bunched.
Shareholders Of corporation are en-
titled on it's dissolution to share ratabl.
in all Its assets. The Northern Securitie
company regards all its stocks as assets t.
be distributed among all Its shareholders
so that the one will derive no special ad
vantage over the other.
1t IL easy to see what Hartman and tn
Oregon Short Line would gain should tn
petition be granted, and also what hun
dreds Of other shareholders would los
thereby.
This phase Is Of Importance and ma
nave some weight ASIDE from the queS
tion Of the right of the Oregon Shor
Line or Union Pacific to own or contrc
q majority Of the shares Of the Norther
Pacific. o..
A Picture of Distress.
Another railroad official quoted il
the same article calls attention to tn
fact that "seventy-seven per cent o
all the cotton shipped from the Unite
States to Japan, China and the orien
has gone west thru Puget Sound port
and has come north to st. Paul. an
equally blind to the tremendous in
crease of traffic brought into Mime
sofa and the northwestern and ives,
ern states by this same merger. TIL
increase has been amazing, and cor
tinuing, promised to be in time tn
greatest of blessings to the state. in
creasing 1t wealth and vastly enlare
ing it's business thru the building u
of the trade with the orient. TIL
traffic was not carried before.
II Hartman secures the Norther
Pacific, where will it go? Every to
that 1t Is possible to route that will e
x via Chicago, and st. Paul and Mime
apolis will be absolutely cut off from
tremendous traffic they now enjoy"
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