New-York tribune., 1906-12-15
leN N. P. STOCK ISSUE.
NCRE1SE OF $95,OOO,O0O.
p,uH Grosc!h of Business Reason
Gircn By Roads Directors.


-. eynected financial plan Of the Northern
e, hallway Company was made public late
.,r,sht. II rro,ides for the increase Of the
MI STOCK from S153,ooo,ooo. the present
GU, 10 S25oeoooeo. A special meeting OF
s,ockholders is called for January TO take
4" -, IN tlt proposal TO authorize the issue OF
so.oooonp additional stock, the right TO sub
-. - SqS o0e 600 of which at par. in propor
"a tbeir respective holdings of the present
20, &c % be offered TO shareholders of record
~ close Of business on December 81 Tba
=, ,hst the ulsn contemplated the Immediate
,-.,o NJ 500 100000 OF new stock the payments
- r-hicb would hc distributed over a LONGER
.s,6 than thai allowed the subscribers To the
s,st Northern's S60oe0ooo of new stock. and
.,s, thar : PER ,ent interest would be allowed on
he navnents has already been printed In The
Tribune
PAYMENTS are 10 he made at the office of ]. P
Morgan & Co. fiscal agents of the companv es
,oaous. Five per cent on or before February /.
rea7: - per cent on or before April l. and l2ls
rsr cent every three months thereafter I'D 10
sDa including January J. 1909 The reasons for
making this great stock issue are set forth in a
circular TO the stockholders, which is in part as
follows:
The rapid growth Of population and DEVELOPMENT
n business the great territory served by YOUR
syscr1 al railways have overtaxcd the capacity 81
ii transportation lines, and that OF mons more
Since your company began business in 1895 the
,ammercai tons carried one mile upon YOUR rail-
xsys have increased from 9 PSI TO 5245 $50 go
n the year ended June SO, 1895, IN the period
Esssi SIS gross s5l223475 gross and from SIS
Freight cars have been increased l. SSl passenger
cars S6s and locomotives fZS Increase in capacity
q freight cars and in hauling power Of locomo-
tiges has been much greater than the increase in
their number Nevertheless your railways are un-
abe 10 promptly move all the business urged upon
them, the volume OF which Is continually growing
sDd the required improvements and additions are of
seeded 10 complete them owing to the state Of the
labor market ana the necessarily slow progress of
Improvement work on lines already IN service mov-
IN view of these facts, your directors consider it
duty 20 the public and To the stockholders of the
COMPANY % further considerably increase the COM
pgnys mileage and facilities. Such increase will
require early raising OF large amounts OF fresh
COMPANY would not he available or sufficent Your
directors Of opinion that this can be done to
best advantage Of the public and the stockholders
Q. SIS Gt,l ny So 100000 Of new stock the legal
rEh, Of the holders of the existing stock to sub
holdings being observed
In view of the considerable time that will elapse
before the new stock will be issuable. the board
has recommended 70 the stockholders that the
resolutions be adopted hv them for increase of
stock should contain provision ioT paEment by
the company 70 subscribers not IN default, OF IN
which interest shall be payable quarterly AT the
same rate per cent az the regular quarterly dTi-
from time 70 time shall be declared and be paid
n respect Of its present issue of capital stock out
current transportation business.
The reservation regarding ANY extra divi-
dend" is believed 10 refer TO the probability Of
an extra dividend within the next two years,
representing payment for the Northern Pacif1c's
equity in The Burlington. it being understood
that the plan for the sale Of the Northern Pa
cites holdings of Burlington stock TO the Great
Northern. which has been temporarily shelved.
viii be taken up again wen before the end OF
1905 and carried 10 a conclusion.
Il may be noted that the resolutions recon-
mended by the directors for adoption by the
stockholders recite as the reason for the increase
Q; the capital stock that the stockholders deem
# necessary for the construction, acquisition
and operation OF this company's railways now
IN course Of construction or acquisition. or which
may hereafter be constructed or acquired
No further adviccs from St. Paul were re-
oeived yesterday at the Great Northern offices
n this city concerning the objections raised by
the Attorney General Of Minnesota 10 the pro
posed S6ooto0oo increase in the compang's
capital stock. President Hill says that there Is
absolutely no mystery about the case at all
The circular tells the whole story. II Is a PLAIN
business proposition prompted by the needs OF
me company and the Development OF the coull-
ty.
II is pointed out that i'm any case. even grant
ing everything that the Attorney General may
sHege. stock issue cannot be prevented ex-
tept when Illegal; thai Greet Northern stock
holders may he sure that the company Is not
Issuing stock Tor illegal purposes and that no
person or place viii benefit moro by the ex-
iendnure uf The money than Minnesota Itself.
II Is also pointed out that the proposed issue
m STOCK Is not 10 he made until May. 1908, and
beior' Their there viii he time for everybody 10
~ Satlslel Mr HiH says that 30 per cent Of
NE stock is closely hello. which means that
S5'"FlWb of j. is not for sale.
ihe stock market showed decided improve
mem Yesterday and the FIi stocks which
nso suffered exceedingly severe declines on
IRursdaH lalied With rl.e of the list, after
INITIAL weakness Northern Pacific made net
gam of - points. closing al 2lO;s, after hav
He touched 4@; Great Northern advanced 2i2
points and The ore certificates gained 3a4 points