New-York tribune., 1906-12-13
GREAT NORTHERN MELON
S60,O0O,OOO NEW STOCK.
Northern Pacific to Increase, Too
Market Not Impressed.

Announcement was made yesterday of the de-
cision of the directors Of the Great Norlnern
Railway Company to offer 10 the STOCKHOLDERS
for subscription al par 100000 shares OF ne"
stock bringing the total capital stock up from
s15o 900 600 TO s210.O0O.0OO an increase Of 40
per cent. AT d meeting Of the directors OF Ine
Northern Pacific Railway Company yesterday
afternoon. IL was said late in the day. on what
should be good authority, that resolution was
a5ontad 70 increase the capital stock OF that
Hill-Morgan road so per cent from Slo9'oou''oo
TO S24S 100000.
Payments on the $60000,0O0 new Great North
ern stock are TO be distributed over a period
of sixteen months, 10 per cent being paya''7
monthly from January to April. 1907 inclusive
and per cent each month from May i9U'' 10
April 1905 inclusive. novel feature oI tle
rlan is the allowance of interest at per cent
on payments to May l. 1908. the interest 10 De
maid se1nf-annualIy on May / and November
of each wear beginning May l. 1907 The CIR
cular to stockholders is, in part as IoHo"s'
The continued rapid development. parucu-
larlv in the last year, Of the business OF IAe
section served by your system OF rs44MayS Las
created a marked public demand Ior liioI 9S'7eO
and improved transportation faclnLIes. IA,
To nav for the additional equipment Tor ad1l-
tions TO and improvements of existing nneS anu
for ACQUISITION by purchase OF JhelI sscLl4AIiSS
or otherwise of such lines as your directors may
uuires an increase in your capital
Your directors have therefore adopted resolu-
tions, subject TO your ratihcauon, pT9IilLnS
for the issuance at par of 10000 addiJlohtLl
shares Of capital stock. of 500 each. similar In
all respects to that now outstanding.
This stock is offered 10 stockholders who
may appear of record at the close Of business
January t. 1907, for subscription pro rata OF
their holdings, at par For TINS purpose lhe
stock transfer books VIII be closed at > D. m,
January T. 1907 and viii be reopened at 10
q. m, January 10, 1907
Stockholders Of record upon the companys
books at the close Of business January /, 1907,
viii be entitled to subscribe for $40 new stock
for each share Of their holdings on that date.
Subscriptions or assignments of right 70 sub
scribe will be accepted by the company as as
sents to the issuance OF the new stock and as
equivalent to a resolution Of the stockholders to
that effect, but no subscription or assignment Of
right to subscribe will be deemed binding or
effective until the holders of three-fourths OF
the present stock shall have filed their subscrip
tions assignments.
Subscriptions must be made upon the form
furnished herewith by the company and must
be filed at once and in no event later than Janu-
ary 4. 1907.
Although ii is Well understood that the bust
activity and prosperity OF the Northwest
is so great as to make il inperatively neces-
sary for the Great Northern TO increase very
largely its equipment and facilities for hand
ling the flood of traffic offered to it. the stock
market failed TO greet the appearance Of the
ment of the $600OOO00 new stock. following
closely the increases by the Atchson ard
other large systems. and with d big Northern
Pacific issue in immediate prospect, and the
money market in its present unsatisfactory
condition. Great Northern stock began to de-
cline going from 231 early in the day to 2221l
and closing at 2231a. q net loss OF 6la points.
The rights We're traded in on the curb sales
OF 5000 being made at from 30 TO 331a. AT the
closing price OF the stock value Of the rights"
figures out at about SO
The last increase in the capital stock OF the
Great Northern was in November. 1909 when
stockholders subscribed pro rata at par for SD
100000 The company has paid per cent divi-
dends each year since 1902. The present stock
increase, with it's valuable rights" represents
the second Great Northern melon within u few
weeks the first having been on the ore deals tine
certificates of beneficial interest IN which are
selling on the Stock Exchange at around S3.
II is expected that formal announcement of the
action taken yesterday afternoon by ths North
ern Pacific Board will be made to-day, although
there hey De soma delay, Ths financial plan