The Minneapolis journal., 1905-11-08
LAST RITES OYER
DEFUNCT MERGER
TODAY WAS DATE FOR FINAL
SURRENDER OF STOCK.
Small Lots Of Stock Not Yet Presented
for Transfer Year and Eight
Months After Announcement Of Plan
for Liquidation of Illegal Stock
Prevented Closing Up.

Last sad rites were conducted today
in New York over the dead merger
proposition, and the Northern Securi-
ties obituary notice will soon be writ
ten. This was the day for final surren-
der Of stock Of the old $400, 100000 cor
poration, for exchange back into equ-
ties in stock Of companies comprising
the formation.
AS long ago as March 90, 1904, the
company hit by the supreme court de-
cision of some time previous, had pre-
pared its plans for liquidation of the
illegal stock, and made announcement
of the methods to be pursued by hold
ers to regain their proportionate shares
IN the original properties. Altho nearly
year and eight months have passed
since that time, all the stock has not
been presented for transfer. It is not
unusual in the turning over Of big
corporation in scheme Of consolida-
ton, to have q few stockholders stand
rather liquidation proposition and
there was nothing to be gained by hold
ing back.
Despite this, however, some 1000
shares Of the old Northern Securities
issue were still unredeemed week ago,
and later estimate made the number of
shares outstanding 1900. These little
!
Northern Securities affairs. Meanwhile
the Great Northern road made another
and entirely independent proposition to
it's stockholders, underdate Of Oct. 10, by
| which they are permitted to share in
rights in new stock issue, and this, it
is believed, will bring the last Of the old
Northern Securities into the home pock-
ct, for holders who did not surrender
them at the office of the company, at
! lose the rights on Great Northern.
A Famous Incorporation.
When the economic history of the
| northwest is written, the story Of the
rise and fall Of Northern Securities will
stand out in great prominence. The
company incorporated under the laws Of
New, Jersey, Nov. l, 1901. as security
| holding company, to acquire and hold
majority of the stocks Of the Northern
: Pacific and the Great Northern: By ex.
change of stock Northern Pacific went
| in at $1OO for $115 in Northern Securi.
! ties, and every 800 in Great Northern
received the equivalent Of $3.50 in
Northern Securities. -
The Northern Securities acquired
over eo,ooo,ooo of Great Northern
stirred the northwest from end to end
and held the attention of the financial
world. Details are still too fresh in
the public mind to call for summary.
The United States supreme court found
the combination illegal and ordered il
to close it's affairs, and the most ambi
tious plan of James J. Hill was killed
When it came to winding up the affairs
and giving back to holders Of Northern
Securities their proportionate share OF
stock in the original companies, prob
lens harder than any ever encountered
in railroad financing were met. Des;
4 pite all efforts Of eminent counsel te
avoid dissension, suits at law followed
for, while the question Of the legality
Of the holding company was in the
courts, the component roads had beer
doing an enormous business, and there
had been such shifting Of values, OF
basis Of earnings, as made it unsatisfac
tory to some interests to have thu
stock turned back according to the
original plan Of surrender.
} Final Settlement.
All differences found final settlement
however. On April 81, 1904, the North
ern Securities company reduced it's cap
Z ital stock of $40O,000,O00 to $3,953, ,OOO
and return Of collateral held began OF
, the basis of ninety-nine times $39.27
.. or $3,S87.73, in Northern Pacific stocl
for every 100 shares of Northern Secur
J tiles, and ninety-nine times $30.17, O
) $2,086.8S, in Great Northern, for ever
, 100 shares Of Northern Securities, be
, sides which there were some minor con