The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1901-12-31


for no distant day. This is not because
q + !. ! /. ! !: ! @
carriage of freight and passengers upon
either of their lines of railway.
Hill's Consolidation Scheme.
The petition recites briefly the history
of the Northern Pacific Railroad and the
division of it's stock into common and
preferred. 1t is alleged that the only diff
ference between the preferred stock and
the common stock was that the preferred
stock was entitled to the per cent divi-
dend prior to anything being paid on the
common stock and the bill in this cOnnec-
ton alleges that the preferred stock was
subject to be retired at any time within
twenty years after the time for reorgani-
zation of the company and the issuing
of the stock out of the surplus net earn
ings of the company and not otherwise;
that in other respects the rights of the
preferred and common stockholders were
identical
The bill next recites the organization of
the Great Northern and the Chicago, Bur-
lington and Quincy lines and alleges that
the Northern Pacific Railway Company
and the Great Northern Railway Com
pany are parallel lines to the Pacific Coast
and the Chicago, Burlington and Quincy
Railway Company has parallel line from
Billings, Mont, to Chicago, and that all
such lines are competing lines for the
business of the Northwest.
1t is alleged that the officers of the
Northern Pacific Railway Company dur
ing the last summer and since the plain
tiff became the owner of this stock, and
without any knowledge on his part, went
into combination with the Great North
ern and the Chicago. Burlington and
Quincy, the purpose of which was to con-
centrate and consolidate the three systems
under one management, and, knowing that
it could not be legally effected, the direc-
tors of the three companies, for the pur-
pose Of doing indirectly what they could
not do directly caused to be organized the
Northern Securities Company, a New Jer-
sey corporation with a capitalization of
$500, 900, which, under it's charter, was
authorized to purchase and hold stocks, |
bonds and securities Of other corporations,
the intention being to cause a majority of I
the stock Of all three Of the railway com l
panies to be transferred to the Northern |
Securities Company, and to be controlled |
by it, thereby controlling the three sys-
TENS of railways through the medium of
the Northern Securities Company, sup |
pressing competition, regulating the tariff |
rates and conducting the entire business
Of the three systems as one corporation
It is further alleged that thereupon the |
Northern Securities Company proceeded |
to advertise publicly, upon terms of ex-
change, all the stock of the Great North
ern Company and that the whole scheme |
was illegal, in violation of the law of this |
State and the other States through which |
the railway lines pass, against the public |
laws of the United States and of each of |
the States.
The bill also alleges that under and by |
virtue of the charter of the Northern Pa
cific Railway Company and under the pro-
visions of the reorganization agreement, |
the preferred stock can be paid for and.
retired out of the net surplus earnings