The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1904-01-29
HEIR TO MERGER.
Wall Street Believes the Erie Road Will
Succeed the Northern Secur-
ties Companv.

tiles Company.
New York, Jun. 26.-The directors OF
the Erie Railroad company declared a
dividend of 2 per cent. on the first pre-
iNferred stock Of the yester-
day, making 4 per cent. for the fiscal
year. BY this action the great system
passed automatically out OF the hands
Of j. Pierpont Morgan, Louis FitZger-
aid n Sir Charles Tenant. the vot-
Ing trustees, in whose hands 1T had
been since the reorganization was COM
pIeted August 20, 1895. Under the
terms Of hat organization all of the
! stock Of all classes must now be issued
by J. p. Morgan e. Co. to the stock
holders in exchange for the voting trust
| certificates, which they have held since
December !, 1895.
Wall street believes that great devel-
opments are in store for the road.
| Many people believe it is to become the
!, successor Of the Northern Securities
company If the United States supreme
court compels it's dissolution and the
distribution of the stock of Great
Northern. Northern Pacific and Bur
llngton, which it WINS.
What Lawyers Think.
Eminent lawyers, it is said, have tolu
Mr.. Morgan that the legal objections to
the Northern Securities company cam
not be successfully made against the
Erie, whose entire system has been
built up by the absorption of Compel
ing and c~ontributory lines, which has
been unquestioned. They ave pointed
out to Mr.. Morgan and Mr.. Hill that the
absorption by it of the western roads
would have a legal precedent in the
absorption of the Lake Shore and the
Michigan Central by the New York
| Central, in accomplishing which the
New York Central exchanged it's own
3A per cent. bonds for the securities
Of the other roads,, which were de-
posted in it's treasury as collateral. 1t
is said on very good authority that just
such a scheme is now being worked out
in the office of j. p. Morgan & Co,
| contingent upon the decision of the
United States supreme court next
month, which, it is said, MI. Morgan
expects to be unfavorable.
In connection with these reports, it is
| significant that several months Mr..
Hartman, who is o at peace with
Mr.. Morgan. was elected a director of
the Erie, in which he has acquired a
very large interest. 1t is also sig
nihcant that Kuhn, Loeb & Co. have
also bought heavily of the stock. This
places the control of the road In the
hands of j. P%ierpont Morgan, James j.
Hill, e. II. Hartman and Jacob Schiff,
the men who controlled Northern Pa
cifc, Great Northern and Burlington
before the great fight which precipi~
tated the Northern Pacific panic. 1t is
plain that the redistribution of the Sc
c~urities of Northern Pacific in obedi-
ence to the mandate Of the supreme
court would return the securities into
the hands of these four men who con-
troll the Erie railroad.
Probable Plan Of Absorption.
1t is believed that the absorption OF
the roads by the Erie would be accom-
plished by an issue of collateral trust
bonds of the exact amount Of the hold
ings of the Northern Securities COM
pany in Northern Pacific and Great
Northern, both roads controlling Bur-
lington. h Northern Securities COM
pany holds practically all the stock of
the Northern Pacific railway company
and over 500, 900, 900 Of the stool of the
Great Northern railway. 1T is said that
this plan can be carried out without re-
quiring one dollar in cash.
j. p. Morgan e Co. would say yester-
day only that the Erie voting trust
would be dissolved as the result of the
action Of the directors yesterday.