The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1904-03-24
PROVIDES FOR A DIVIDEND OF
NINE7Y-NINE PER CENT OF
ITS HOLDINGS.
AIR FULL OF WILD RUM0RS
SECURITIES SHARES AND AFFll.
lated STOCKS BOOM ON THE
NEW YORK CURB.

uoy u great eXclCemenC IN the stock
market and numerous conferences
among the leading financial interests,
the new plan of the Northern Securi-
Ties company was made public last
evening. In substance it provides for
a stock dividend of 80 per cent, this
TO be effected by reduction of that
amount in the capital stock of the
Securities company.
For every share of Northern Securi-
ties stock surrendered the company
will deliver 1927 stock of the North
ern Pacific Railway company and
$30.17 of the Great Northern Railway
company. The shares of the North
ern Pacific, which were taken over by
Northern Securities at lis, and those
of Great Northern at $50, will be dis
tributed on this basis.
The other assets of the Securities
company, consisting chiefly of it's Chi
cago, Burlington and Quincy holdings
and Northern Pacific coal lands, will
remain in the treasury of the COM
pany until some plan for their distri-
button has been evolved.
Official notice of a new plan, which
is signed by President Hill, under
date of March %, was sent to North
ern Securities stockholders in a cir
cular letter, which says, in part:
Rates Materially Reduced.
"Since the formation of your COM
pany with a view of promoting, de-
Veloping and charging the commerce
and traffic of the country served by the
Great Northern and Northern Pacific
Railway companies and by the Chica-
go, Burlington and Quincy Railroad
company, the traffic and earnings of
the three railroads have largely in
creased. The rates paid by the pub
Lie have been materially reduced. The
respective railways have been extend
ed and their condition and facilities
improved and increased.
1.-THE stock of the Northern Securi~
ties company was issued solely for the
shares of the Northern Pacific and
Great Northern railway companies,
and other properties purchased by it.
In forming the company and dispos-
ing of it's shares, no commissions were
paid, nor has the company incurred
any expenses, save those necessary for
obtaining its charter, and for the
economical conduct of it's affairs.
"The cOmpany's acquisition of
Northern Pacific and Great Northern
shares was made in the full belief that
such purchases were in nowise OBJ
noxious to any law of the United
States-an opinion which has receiv-
ed the approval of four justices of the
supreme court of the United States 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 increase
Of commerce, was of the opinion that
as matter of law your company's
holdings of the stocks of the two rail-
way companies in itself constitute
restraint of interstate commerce pro-
hibited by the so-called Sherman act
of 1890. Accordingly, the railway
companies have been forbidden to per-
NIT your company to vote or to collect
dividend on the shares held by it.
Necessary to Reduce Stock
Wherefore, your directors, at meet
ing held this day, have, under the ad-
vice of counsel, decided that in order
to fully and promptly comply with the
decree in this suit, it is necessary to
reduce the capital stock of the COM
pany, and to distribute to it's share
holders the shares of stock of said rail-
way companies now held by it,
The letter then says the stockhold-
ers resolved upon the plan of stock
cancellation as before stated. A spe-
c1al meeting Of the shareholders has
been called for April Fl, 1904, at II
o'clock a. M, at the Office of the COM
IN
of this meeting, the stock transfer
O'clock.
The letter says holders of the COM
pany's stock to large extent have al
Ready expressed their approval of the
recommendations of the board, but the
laws of New Jersey require a two
thirds vote of shareholders to permit
the company to reduce it's capital
stock. Such vote is the first step
necessary for the proposed distribu-
ton of the railway companies shares.
The collection Of the May and subse-
quent dividend on such shares being
forbidden by the decree until such dis
tribution has been made, the i'm
portance of promptly executing and
forwarding proxies is obvious.
The new plan was formally adopted
at meeting Of the directors which be-
gan in the morning and lasted until
well into the afternoon. There were
present at this meeting President Hill.
c.. F. Baker, w. P. Clough, E. H. Harri-
man, D. w. James, D. S. Lamont, J. S.
Kennedy, G. W. Perkins, N. Terhune
and other directors.
Alarming Rumors Afloat.
Throughout the day, when Northern
Securities shares were booming on the
curb and it's affiliated stocks and the
Pacifics, chiefly Union Pacific, were
advancing by leaps and bounds on the
Stock Exchange, the air was full Of