The Savannah morning news. (Savannah, Ga.) 1900-current, 1904-04-04
AIM AT THE PLAN
OF SECURITIES Co,
HARTMAN DOESN'T LIKE 1T.
HE AND HIS ALLIES WANT BACK
THE STOCK PUT IN.

Plan of Making Some other Resti-
tuition Docs Not Please the Inter
ests IniminicnI TO Hill and Morgan.
what Is shown by the Petition
Filed in the United States Circuit
Court at st. PauI-AIlegatiOns
Made by Hartman and Pierce.
st. Paul, Mimi, April 3.-None of the
attorneys for the defendants in the
suit of E. Fl. Hartman and Winslow
Pierce and the Oregon Short Line
Railway Company against the North
ern Securities Company, notice of
which was served yesterday, would
make to-day an extended statement
with reference thereto. 1t was ad-
mitted, however, that the suit was
step in the struggle for control of the
Northern Pacific Railway Company,
which is being waged between b. H.
Hartman and allied interests and
James ]. HILL j. P. Morgan and 9TH
ers.
That some step was anticipated the
attorneys seen admitted, but each
stated that the fling of the petition on
Saturday came as a surprise, and he
would be unable to state what course
would be pursued until the principals
had been consulted. The citation in the
suit is directed to the Northern Secu-
rites Company, the Northern Pacific
Railway Company, the Great Northern
Railway, James j. Hill, j. p. Morgan
and others, and gives notice that on
April IL Hartman, Pierce and the Ore
gon Short Line Railway Company will
apply to the judges of the United
States Circuit Court for leave to file
petition of intervention in the suit of
the United States against the same
defendants with reference to the exc
cution of the final decree of the court
which was filed April 9, 1903.
Their Standing in Court.
The petition itself declares that the
petitioners, Hartman and Pierce, are
now and ever since Nov. IS, 1901 have
been the registered owners and hold
ers of $82, ,491 ,871 per value of the capi-
tai stock of the defendant North
ern Securities Company, as trustee for
the Oregon Short Line Railroad Com
pany."
The Oregon Short Line Railroad
Company, it is stated, on July II, 1902
pledged this stock with the Equitable
Trust Company of New York as trus-
tee for an issue of bonds of like
amount, but under the terms of the
pledge 1.-The stock so pledged and
standing in the name of your petition
ers, Hartman and Pierce is available
20 your petitioners for the purpose of
tender, return and restoration of the
status quo"
The petitioners allege that over 98h
per cent of the outstanding capital
stock of the Northern Securities Com
pany was issued in exchange for shares
Of the capital stock of the North
ern Pacific and Great Northern Rail-
road companies, respectively, and less
than one half per cent. of such stock
was issued for other property; that
about 1882 900 per value of the stock
of the Northern Securities Company
was issued in exchange for $l53, 749, ,425
par value of the stock of the North
ern Pacific Railway Company and
about $212, 900, 600 par value of said Sc
curities company stock was issued in
exchange for $118,l24250 par value Of
the stock of the Great Northern Rail-
way Company.
Part of Original Issue.
The $S2, S71 par value of stock of
the Northern Securities Company now
standing in the names of Hartman and
Pierce, it is alleged, was part of the
original issue of the stock of the North
ern Securities Company, and was is
sued directly to them by the Northern
Securities Company on or about Nov.
Is 1901, in exchange for $37 023, 900 par
value of the common stock and SAL
0s5, 900 par value of the preferred stock
of the Northern Pacific Railway Com
pany and at the time of such exchange
there was also paid to them by or on
behalf of said securities company the
sum Of $8,915,629 in cash. The original
certificates issued to them, 1t is stated,
are still registered in their names and
are now actually in the custody of the
trust company as pledges and availa-
BILE for tender, return and restoration.
At the time of such exchange 1t was
agreed that the $41,085,00 par value of
the preferred stock should be converted
into common stock of the Northern Pa
cihc Railway Company; and there
upon, after the exchange of preferred
stock for stock of the Northern Sc
curities Company, preferred stock was
converted by the Northern Securities
Company into common stock of the
Northern Pacific Railway Company of
the same par value and certificates for
such new common stock substituted in
lieu Of the certificates for preferred
stock and the Northern Securities Com
pany now holds all the common stock
SO originally received from the petit
toners and the common stock into
which said preferred stock was so con-
verted.
It is then stated that on March Ia
last the Supreme Court Of the United
States affirmed the decree entered by
the Circuit Court April 3, 1909, with