New-York tribune., 1905-04-19
SHARP DECLINE IN n. S.
BREAK OF NINE POINTS.
Heavy Selling of Union Pacific and
st. Paul FoUozced.

Northern Securities stock suffered a sharp and
sudden break in the curb market yesterday
morning. selling down in the first few minutes
q trading from ISL. an advance OF q per cent
over Mondays closing price. 70 l65. and then
raIying almost as speedily 10 la. a second
break. IN the late afternoon, carried the stock
down 70 III at the close. a net decline for the
day OF more than points. When the news OF
the initial break in Northern Securities reached
the Stock Exchange. heavy selling orders in
Union Pacific and St. Paul were pressed for
execution. the two stocks being forced down
respectively from 134 TO 132 and from 1915 TO
Isl. Al these levels large buying orders ap-
peared. and the stocks made partial rallies. IN
The last hour Union Pacific touched 1895 clos
ing AT 1905 a net loss of Is points for the
day; and ST. Paul sold down to 1921. closing
5ss points under Monday, at lSS.
There was no actual news to explain the early
break. which was attributed in some quarters
10 apprehension lest the returning TO the market
OF the vast amount OF Northern Pacific and
Great Northern stocks which have been tied up
IN the Northern Securities Company would make
II next 10 impossible 10 maintain the high levels
OF these stocks which. because OF the extremely
small floating supply Of each have been easily
marked up 10 figures more than double those
prevailing before the Northern Securities Com
pany was formed. The enormous borrowing de-
mand for Union Pacific stock, which has at
fracted marked attention. has been generally
attributed 10 the desire for its use for proxies
a the meeting to authorize the S1O0O00O00 pre-
ferred stock increase. The books close for this
meeting to-day and there seemed a sudden
realization that this might mean release TO
The market OF large amounts of this borrowed
stock
Apart from these considerations. it be-
lieved that not a little of the urgent selling Of
Northern Securities in the first hour was due to
q raisapprehension over the situation OF the
stock in view Of the fact that the transfer books
were 10 be closed az 3 o'clock yesterday after
noon An officer Of the company later explained
however that stockholders desiring to deposit
their stock under the plan need not first have
their holdings transferred.
The following circular 10 stockholders Of the
Iorthern Securities Company was sent out
yesterday afternoon:
A copy Of the circular addressed 10 you on
March %. 1904. is inclosed.
The resolutions therein recommended, prOvld-
Ing for reduction Of The capital stock OF the COM
pany and ratable distribution Of the shares of
stock Of the Northern Pacific and Great North
ern Railway companies owned by II, were
adopted at your special meeting, April y, lSU4
Stockholders should at once deposit their stock
At this Office. Immediately upon transfer on the
books OF the respective railway companies TO
YOU or 10 your nominees OF me snares OF STOCK
Of the railway companies 10 which you are en-
Titled those companies viii pay 10 you or TO
your nominees the dividends that have been de-
clared payable by them follows:
Northern Pacific Railway Company-May .,
1904, I = per cent; August I. IL. November /,
IA: February l. 1905. ia. Great Northern Rail-
way Company-May ., 1904 ia per cent;
August ]. "a: November J. q; September l.
1905, Ia.
No dividends have been declared by this COM
pany since that paid February !. I90s.
In depOsiting your Northern Securities stock
be careful 10 observe the requirements Of the
circular Of March %, 1904.
The circular referred TO. the plan recommend
ed in which ratified by the stockholders on
April 2l. 1904. provided that for each share of
Northern Securities stock surrendered there
should be delivered S39 - stock of. the Northern
Pacific and $50 II stock of the Great Northern
At the time the pro rata distribution was first
proposed the Union Pacific Railroad Company.
through its subsidiary the Oregon Short Line.
held 2.491.0 600 Of Northern Securities stock.
For this, under the plan il would receive S32.-
$4,000 Of the outstanding Sl55,OO0OO0 North
ern Pacific stock and S24 SS7Oo0 Of the out
standing Sl24 1S050O Great Northern stock
II is reported that !. H Hartman and other
Union Pacific interests may soon retire from
the Northern Pacific directorate. as James J.
En some time ago retired. because the laws OF
certain States of the Northwest prohibit direc-
tors Of railways operating within their borders
from acting as directors Of parallel and COM
pedng roads.