Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-12
CUTS ANOTHER MELON
Another issuance of Great
Northern Stock Announced.
600, 900 SHARES OF STOCK
Allotment More Noteworthy Than the
Certificates of Interest.
VALUES APPROPRIATELY OF $3.50
Stockholders Of the Company Have
Received This Amount in the
Last Month.
GOO, 900 SHARES OF STOCK
VALUES APPROPRIATELY OF $3.50

Special Dispatch to The Star.
NEW YORK, December 1.-THE second
melon was cut by the Great Northern Rail-
road Company this morning. The propo-
stion is to issue 100000 additional shares
of capital stock, to be replicas of those al
ready extant. The terms under which hold
ers of the company's present stock are to
be permitted to subscribe to the new issues
are given with explicitness in the circular
letter to stockholders issued this morning
by the company. This allotment in some
ways is more impressive than the certifi-
Gates Of interest in royalties to be paid to
the Great Northern by the United States
Steel corporation. One remarkable feature
of the plan for the issuance of the new
stock as above Is the length of time in
which payments may be made-namely,
from January Z, 1907, to April Z, 1908. The
value of these rights, it was said this morn
ing. was about $37. AS the ore certificates
are selling In the neighborhood of $S4, the
stockholders Of the Great Northern Rail-
way Company will have received within
the last month rights of total value Of
approximately $3.50.
The circular letter referred to above Is
dated December II. 1905. and is as follows:
''The continued rapid development, par
Of the section served by your system Of
railways has created a marked public de-
mand for increased and improved trans
portation facilities.
Increase Of Capital.
ITO pay for the additional equipment for
additions to and improvements Of existing
lines, and for acquisition, by purchase, Of
their securities or otherwise, of such other
lines as your directors may decide to be
necessary to meet this demand, requires an
increase in your capital.
Your directors have therefore adopted
resolutions. subject to your ratification,
providing for the issuance at par of 600, OOO
additional shares of capital stock Of $lOO
each. similar in all respects to that now
outstanding.
This stock is now offered to stockhold-
ers who may appear of record at the close
of business January 4, 1907, for subscrip-
ton pro rata of their holdings at par For
this purpose the stock transfer books will
be closed at o'clock pm, January 4, 1907,
and will be reopened at 10 o'clock am,
January 10. 1907.
Stockholders Of record upon the COM
pany's books at the close of business on
January 4, 1907, will be entitled to subscribe
III
holdings on that date. Subscriptions or as
signments of right to subscribe will be ac-
cepted Dy the company as asSents to the
Issuance Of the new stock and as equiva-
lent to resolution of the stockholders to
that effect. But no subscription or assign
ment of right to subscribe will be deemed
binding or effective until the holders of
three-fourths of the present stock shall
have filed their subscriptions or assignments.
Arrangements for Subscriptions.
subscriptions must be made upon the
form furnished herewith by the company
and must be fled at once, and in no event
later than January A. 1907. Forms for as
signment Of right to subscribe are inclosed
herewith. Such assignments must be filed
on or before January g. 1907. at II noon
Payment for the new stock must be
made as follows: Ten per cent on January
7. February Z, March and April 8, and
per cent on May T. June Z, July 8, August
z, September 6, October Z, November and
December 6. 1907, and 5 per cent on jan
uary Z, February 8, March and April Z,
1908, making total of 100 per cent
Negotiable receipts will be issued for the
first payment. on which receipts subsequent
payments of installments will be in
dorsed. Interest will be allowed on
rate of 5 per cent per annum. and will
be paid semi-annually on the first days of
May and November in each year, beginning
May 1. 1907. These receipts will be trans
ferable on the company's books at such
times as will be shown upon their face, af-
ter completion of payments the receipts
will be exchangeable certificates of stocks
which. when issued will take rank with ex-
listing stock from May l. 1908. Fractions
will be adjusted by scrip. Stock not sub
scribed or paid for as herein provided will
be DISPOSED of as the directors may deter
ninen