The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-03-10

formed Northern Pacific was paying 4
per cent. The advance in both stocks
is the same, around so per cent.
The problem is the competition for the
control of both properties. Will Union
Pacific interests seek to repurchase
Northern Pacific on the market? Have
they been buying Great Northern re-
Gently and Northern Securities to COM
pei the surrender of Northern Pacific?
Will there be a renewal of the old con-
test or will there be a peaceful division
of territOry2 These features, which
may give an artificial value on the two
stocks, maintain them at present prices
Both are too high in comparison with
similar stocks, so compared with each
other Great Northern is too high or
Northern Pacific is too low.
Control undoubtedly now rests with
the Hill-Morgan people in both proper
ties. as shown by the effect of the dis
tribution in the following:
Union Pac All others. Total.
No Pacific. $32 on 900 S122 92S 600 S155, 0C0 600
CT. Northn "a $4,000 80. 442,500 124, 1S0, 500
In the following tabulation is given a,
succinct record Of the Union Pacific's
interest in the Northern Securities COM
pany and of the fluctuations in the val
ne of the assets claimed as the Union
Pacific's share under the Hill plan:
All formation of Northern Sc
curities Co. Union Pacific turn
ed in Northern Pacific at par
Reeeiye9 d in exchange Northern '0iO'OOO
Securities stock of a par value
of - sz.4sl, wv
Oregon Short Line participant
ing bonds at rate of dollar for
Retired participating bonds of
Oregon Short Line for nonpar-
ticipating bonds with privilege
Of collateral .....,....,....,... 81. 49,, 900
treasury about ........ .$45, S91, 600
Leaving outstanding 6,500.0OO
On pro rata or Hill plan Union
Pacific will receive $32,O12,UOO
IN Northern Pacific stock of
present market value at $50 Of. 81, 729, 500
And $24, $4,000 in Great Northern
preferred OF present market
value at 300 of-...--.....--.-...... 7S.s14OOO
Making ..........................$ ls1. 644, 900
Add for back dividend at re-. 1858 zoo
at Sc 80 ''- SUI 2.474,7ao
Value at present prices of
Union Pacihc's share under
Original value with Northern
securities at par.-.-.......-...-.- 81, 491, 900
Excess of assets back Of ore
gon Short Line bonds. 55.59s GO
The effect of the distribution on IN
ion Pacific revenues follows:
Dividends Of per cent on $50
10000 combined stock .........s 1883. 700
Int Oregon Short Line bonds. 1.46O 900
Baidnce .--r-- OBSERVATION-DISCLOSURES. 2,5O9, 700
This is equal to IL per cent on Union
Pacific stock and outstanding converti-
BILE bonds.
In the Securities distribution for each
share of stock there will be delivered
1927 stock of the Northern Pacific
Railway company, $3O.17 stock of the
Great Northern Railway company and
propcrtionate amounts thereof for each
fraction of a share of stock of the
Northern Securities company so to be
surrendered. OF course, the distribution
of the assets will involve the distribu-
ton in turn of the dividends of the
Great Northern and Northern Pacific
companies, which except for the injunc-
ton would have been paid regularly to
the Northern Securities company, and
also the distribution of the dividends of
the Northern Securities to it's stock
holders, which have been similarly re-
strained.
Each shareholder will receive 1 per
cent in the remnant of Northern Sc
curities, represented by some holdings
Of coal property.
What may prove to be the ultimate
value of the stubs is, of course, a
matter Of uncertainty It will. however
bear no relation to the bulk of Northern
Securities stock to be retired by the
exchange for it of Great Northern and
Northern Pacific, for the stock so turn
ed in is to be Cancelled for good and
all. The value of the stubs will de-
pend entirely upon the value of. the
assets of the Northern Securities com
pany other than the two stocks
named The present market value of
the stubs is about 300.