Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1908-11-19
cur A BIG MELON.
Northern Pacific TO Distribute SfI.20
. Share In Dividends.

Northern Pacific 70 Distribute 8iI.20
Share In Dividends.
NEW YORK, Nov. Is-Northern
Pacific stockholders Of record at the
close Of business today will share
In one Of the iuciest melons ever cut
BY an American railroad company.
This is 3 dividend OF s11.2e a share
TO be paid to them by the Northwest
ern Improvement company, a subsi-
diary concern through which the Hill
road carries on operations In coal
mines, irrigation works and invest
ments In bonds. The aggregate
amount of the distribution win be
sl7,453.000. The Northwestern I'm
provement company's capital stock
Is only S2,775.OO0, so that the divi-
dend Is equivalent to 629 per cent
on the capital OF the corporation. It
ID stated that this dividend IL paid
from a surplus acquired through a
series of years. and that none of It
was derived from the transportation
business.
Until the dividend announcement
the profits and the extent of the
operations Of the Northwestern Inn
proyement company were unknown
to all but few Of the 10000 stock
holders Of the Northern Pacific rail-
way.
In explanation Of the accumulation
OF this large surplus by q company
which IL creature OF the Northern
Pacific railroad. though legally a
separate corporation, 1t was said by a
director of the Northern Pacific that
the Improvement company, which
was incorporated in 1897 soon after
the reorganization of the Northern
Pacific, has carried on land and other
operations on a large scale, and had
profited by the enormous increase In
value In the Northwest during the
last ten years. The company owns
large coal mines in Montana and
Washington, operated along the line
Of the Northern Pacific. 1t Is also
interested in irrigation and other
land investments. A number OF years
ago 1t took over the lands Of the st.
Paul and Duluth railroad, and 1t has
at intervals purchased from the
Northern Pacific itself large tracts
OF the roads land grants lands.
In reference to the latter transac-
tions II was said that when the
Northern Pacific needed to sell land
for which there was not a ready out
side market at the time the North
western Improvement company has
frequently purchased such lands,
thus supplying funds to the railroad.
II was admitted, however, that all
the capital of the Improvement COM
pany had been supplied by the rail-
way The Northern Pacific owns
not only all the $2,775, 900 stock of
the Improvement company. but also
all OF Its S7,O0O.OO of first mort
gage bonds. These are the only Sc
cuRltles Of the Improvement company
outstanding.
The S17.45S.OO distribution rep
resents the full amount, director OF
the railway said, of the surplus OF
the Improvement company barring
enough working capital to carry on
the business of the company. The
distribution, however, leaves intact
the coal mines which the improve
ment company is operating, and also
further tracts OF land.
The Northwestern Improvement
Company Is oficered by officials OF
the Northern Pacific Railway, but
the boards of the two companies are
not identical, not all of the railway
directors being members of the i'm
prOvement company board Howard
Elliot and James N. Hin. respective
ly president and vice-presldent of the
Northern Pacific railway. hold SINH
lar positions In the Improvement COM |
pany.