New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-11-06
HUGE N. ?. MELON CUT
Dividend, 111-4 PER CENT.
Swplus of Subsidiary Com p0ny Dis
fributed Pro Rata.

dividend on the present capital stock or the
Northern Pacific Railway Company was mace
yesterday. q dividend in cash and larger tran
expected being declared. not. however by the
railway company directly but by a subsidiary
corporation The statement issued by the NoItn-
err Pacific directors as follows;
The Northwestern Improvement Company, me
stock of which is owned by the northern FaclL,7
has declared an extra dividend out or It's accu-
rnulated surplus. which at the request oi lIe
Northern Pacific Railway Company VII pe g Sas
or, December 8 1908, ratably TO the sloCAnolEeIe
Of the Northern Pacific OF record al the 1lose
OF business November ~ 1908, rms s. VIII ne
equal TO 81 &c per share upon the ou's'A41N1i-e
7-ba s,1rnIms assets Of the Northwestern I'm
yrovement Company from when TINS o. soiee
Is Maid have been acquired by 1t through $50
~ wears in the course of its business as earnings
and profits from fits investments, NO par .,o =.
them has been derived from the trahspoi 'a'ioA
business.
The Northwestern Improvement Company 'ie
directors and officers Of which are Northern Pa
cifc men. has So. 775.oO0 stock and S1,oooooo
bonds ali owned by the Northern Pacific Ran
way Company. The Improvement company
which has been in existence for about ten years,
owns coal mines and coal lands and lanos OF
other character. and also holds investments
which the railway company could not holo' II
IS also understood TO be the holder OF the IRON
ore properties controlled by the Northern Pa
35ep00o0 to 100000 tons OF ore.
The outstanding stock OF the Northern Pacific,
on which alone the extra dividend will be paid.
is 55.O00.Oo0, so that the disbursement OF
81 % a share will call for the payment by the
Improvement company Of S17,453OOO which is
equivalent to g dividend OF more than 600 per
cent on its SITS 600 capital stock. The dec
laration OF this enormous dividend recalls the
''ore CO tifcate'' disbursement TO the share
Pat
pany also controlled by Mr.. Hill. two years ago,
when the Lake Superior Corporation, about
which Wall Street had known little or nothing.
it has known little about the Northwestern
Improvement Company. transferred to trustees,
for the benefit Of Great Northern stockholders,
lands estimated TO contain upward Of 100000
600 tons Of iron ore, which lands had been &C
quired by Mr. Hill in the course Of many years,
with the ultimate object Of transfer to the
stockholders Of the railway company.
TIE stockholders OF the Northern Pacific in
January, 1907. subscribed for S93,000O00 new
stock payment for which was to be made IN in
stalments the last OF which is due on January
/ next In the announcement Of that
issue the directors said that interest on the in
stalments paid would be allowed the stock
holders az the same rate quarterly as the reg
ulsr dividends. mot including any extra divi-
dend." which should be paid during the period
fun paid Ever since that time, as each regular
quarterly dividend period approached, there
have been rumors OF an extra dividend. and the
stock has often advanced on those reports
II was at first believed that a stock dividend
might be expected. and until recently the
pectation that the extra disbursement
would be made out Of the proceeds Cf the sale
Of the Northern Pacifc's equity in the Burling-
ton The plan for that sale, however. was def
nitely announced not long ago TO have been
abandoned. and only a few weeks ago Mr.. Hill,
in answer TO question TO the probability
OF an extra dividend on Northern Pacific re-
marked that 2 guess that there would be 10
such disbursement would probably be correct.
There have been reports that Mr. Hill has been
opposed 10 an extra dividend.
Northern Pacific interests yesterday were in
clined resent the criticisms which the Street
passed upon the dividend action. taking the po-
sition that the payment by the Improvement
company. which IS not engaged in the Transport
taton business and is not an integral part Of the
Northern Pacific has no bearing on the ques-
lion OF the necessity Of issuing as much as s93-
100000 new stock by the railway company
Northern Pacific stock yesterday advanced to
1904, a new high level for the year. but declined
after the dividend announcement probably on
selling on the good news" and closed at 1881,
q net loss Of s per cent. The part paid stock,
which has al along sold under the old stock the
difference representing the probability Of an ex-
ira dividend the latter, closed yesterday at
137, the difference between the two issues be
ing II per cent, or about the amount of the
dividend just declared for the benefit Of the old
stockholders.
GENERAL ELECTRIC TO SPEND s5,OoO,OOo