The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-11-09
RAILROAD NEWS.
Sideline Profits of Northern
Pacific Are Large.
Subsidiary Company Earns 500
Per Cent.
DIVIDEND DECLARED.
Capital Stock Increased From
2 to IL Millions.
Other Items of Interest in Rail-
way Circles.
DIVIDEND DECLARED.

stockholders of the Northern Pa
cific have received the announcement
of the declaration of a dividend of
$11.26 a share to be paid to them by
the Northwestern Improvement COM
pany, subsidiary concern, through
which the Northern Pacific has car
ried on operations in coal mines,
irrigation works, and investments in
lands.
The distribution calls for the pay
ment of $17,453, 900 by corporation
with capital stock of only $2,775,O00.
This is equivalent to a dividend of 529
per cent on the improvements COM
pany's stock. The dividend is pay
able Only on Northern Pacific full paid
old stock.
Until today's announcement the
profits and extent of operations of the
Northwestern Improvement company
were unknown to all but a few of the
10000 stockholders of the Northern
Pacific railway.
In explanation of the accumulation
of this large surplus by a company
which is a creature of the Northern
Pacific, though legally a separate cor
poration, it was said by a director of
the railway 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 profited by the enormous
increase of values 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 Pa
cific. 1t also is interested in irrigation
and other land investments. A num-
| Der of years ago it took over the lands
| of the st. Paul and Duluth railroad
and has at intervals purchased from
Northern
! of the roads grant lands.
The $17, As, 600 distribution represents the
plus of the Improvement company, barring
| enough working capital to carry on the
| however. leaves intact the coal mines the
Improvement company is operating and
also further large tracts of land.
1t is noted that the declaration of this
large extra dividend to the Northern Pa
cific- stockholders occurred when James j..
Hill chairman of the Great Northern and
one of the largest stockholders of the
Northern Pacific is absent from the city.
i with the understanding there that Mr. Hill
opposed the distribution. According to a
report recently in circulation. however,
his opposition had become passive. if, in
deed. it had not been actually overcome:
Reports that such a payment would be
made before the new stock had a right to
participate in any extra distribution had
been persistent for nearly two years, but
during all this time there had been a
steady undercurrent of opposition on the
part of the holders of new shares, who
felt that. no matter what the disguise
might be, such a payment would be mere
ly turning over the money they had put
into the property to the holders of the old
stock.
Criticism suggests itself that if the
Northern Pacific company had been as
careful in the past to make reports to its
stockholders concerning this mysterious
but wonderful asset as it now is to avoid
any direct responsibility for today's extra
sible reason for such circuitous proceed
ingS.
The average Northern Pacific stockhold-
er may we'll wonder what his position
would have been today had this develop
ment company accumulated a deficit in
the place of the surplus. The entire affair
is a curious commentary on the campaign
for corporation publicity which has been
waged for the last five years.