The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-02-22
Some Interesting Figures of
Northern Securities Matter.
Gossip and Matters of Interest
in Railway Circles.

panic may be taken as a fair criterion
of the cost of Northern Pacific. The
stock had ranged from Tx Jan. 81
to 1914 April 20. At no time in the
week preceding the panic did it touch
11S- Monday, May 6, it sold at ia.
The average price of Northern Pacific
| to the, Hartman interests was prob
ably not over 500 per share and was
certainly not over $110. The price of
| 500 is stated to be conservatives The
preferred stock range for the year
was from ssh to 113H, the latter be-
ing the high price May 9.
Taking par as the average price, the
cost to Union Pacific may be figured
readily:
Northern Pacific com. SO. 230 ss7. o23. 900
Northern Pacific, pfd.. ...41O,S50 Al, 0S5, 600
Total $3.50. ...................$7 SIS, los, 600
! When the retirement of the pre-
ferred stock and the exchange for
/ Northern Securities had been accom-
plished the Union Pacific heritage
from the 1901 campaign was as fol-
lows:
Northern Securities stock S. Isl. 81
Total ....-... .........-.........s9 1, S91, S78
Since that time the Northern Sc
curities stock has gone through vari-
Gus vicissitudes. but is nevertheless to-
day in the hands of Union Pacific and
must be taken as the basis of all cal
culaions as to actual profit on the
famous Northern Pacific transactions.
Taking this stock at las together
with the cash. the results are as fol-
lows:
Northern Securities, S24, 919 shares
at 40 SIP 6dS 80
Cash -----. -.....-.'...--....--...-- e,SO0,Uof
Total .....- Observation-Disclosures 12s, 513. 262
cost $1,000 ..'--.--.--.--.---...--- 7S,1o8,OOO
Profit $3.50 .......-.......s 5O.5O6. 26s
1t is unnecessary to compute inter
est, because dividends balance fairly
well against interest charges incurred
in financing the original purchase.
This is a profit "on. paper" because
no one suppOses that the Hartman
interests are selling their Northern
Securities at current prices.
If converted into Northern Pacific
and Great Northern stocks, the value
of the assets at current prices works
out as follows:
800. 7O4 shares No. Pac. at 160 IS 49, 312, $40
246.sS7 shares ct. Northern at $50 Sc. 669, 010
,24S shares stub at 275.-.------...- 2.267, 475
cash ...--. OBSERVATION-DISCLOSURES S,S00,O01
Total ...... Sill. 149, 1872
Profit ACKNOWLEDGEMENTS 1901, 1872
This appears to be the actual net
profit on the speculation so far as the
principal is concerned, and on the
basis of market value.
In interest there is still a further
concealed equity, because the Union
Pacific. since Northern Securities divi-
dends were enjoined. has been paying
interest on the bonds without getting
any dividends. On the pro rata basis
this dividend plum figures out about
as follows:
On 800, 204 No. Pac. since February
1903 Ia per cent 81 489, S56
On 246,ss7 Ct. Northern since Feb
ruary. 1903. IA per cent ............. g. 449 as
On stub ESTIMATED one year, 80. 50, $50
-ro+,, 60 oo7 -e-
This amount, of course, should not
be included in profits. 1t belongs in
the list of assets in the balance
sheet of Union Pacific as of current
date, though technically not entitled
to be. called an asset at all, because
legally, under the supreme court de-
cision, the company is not entitled to
receive it.
concealed assets of Union Pacific come
to view, so far as regards the North
ern Pacific-Northern Securities trans
action The amount concealed is the
difference between the book value of
the assets and the real. tangible
value 1t shows as follows:
Actual value of stocks and cash. s117, 149, 1872
Accrued dividends ................. S,021, 764
Book value Of stock - s2,4siS7i
Cash ........................ OOOO7
Total -...... ..-..-..........$e 81, 80. SIS
Concealed assets. .............-. 3779O1s
Thus. in the one item of $S2.491.871
representing Northern Securities in
the accounts, there is concealed an
equity amounting to over 81 per cent
on the outstanding common stock.
OPPOSE TRAINS ON SUNDAY.