The herald-advance. (Milbank, S.D.) 1890-1922, 1902-10-31

we can get to the coast. or else we must
ADVANCE the rate on the lumber. Now
OUTSIDE or cotton. take nails, wire. arti.'
ties OF that kind, that business has grown
d very low one from Lake Erie to Hong
kon l 1t is 40 cents a hundred. 50 a ton. on
f nose commodities: A line reaching St.
between st: Louis and Chicago puts rs in
a vastly different position; and that is tho
reason why 1t was of such Importance for
US 70 control the situation. We could moi
control it unless we could give a marnot
Tor the production of the lineNprodIctss
raised along our road-whether it was ont
OF the mine or from the farm or out Of thse
forest; If the man who produced If could
not sell 1T, he would stop producing And
mat was the problem we had to meet.
able to meet it.
Oriental Trade.
y. Mr.: Hill. are you able to state the
eomparative growth Of that Oriental traf-
nc SINCE lts inception up to this time?
A. The growth has been very rapid. In
some commodities more rapid thar in
otners' Last year the increase was very
Manufactured and in machinery and in
some other commodities it fell off. The
T III 1 pa stlnk; 9 oii. b considerably snns reduced
has that market largely and we do not
carry the oil we did.
tb =. TT Ta a e the aggregate of the traffic,
A. Well. l should say that in 1ao2-the
year ending June 30, 19O2-the business
was more than twice as great as it was
Wee IN better position to do the business.
=. Gan you give US the quantity of cot
carried esr; edI in cG isoi and 1r P 1892? goods that was
Great Northern.
O. Yes, BY the Great Northern we are
goods "a IN wa 1901 4 a the hs5ss: tas Of s 60 ton piece
against 41.243, 900 pounds the next YEAR.
Continuing his testimony, Mr.. Hill ex-
planned that they made their ships large
Tor the purpose of reducing rates. They
conio carry a cargo equal to what five
Ordinary freight steamers could carry with
only one crew instead of five crews. In
an thcir movements there was no inten-
ton to hinder commerce. but to promote it,
ana " has greatly increased
between tn United States and foreign
hat.ons. Ihese arrangements have only
peeh perfected about a year and the bust
ness has more than doubled on the Great
northern road. He said he thought the
LOLA roaa Oh OF tonnage of the Great Northern
81 per cent, and the foreign business is
increased over 100 per cent. 1--WE have
p oe anle TO reduce rates from 10 to IS
per cent IN a year on the local business
DetWeen the Pacific coast and the Twin
Cities ard Lake Superior" was his an
swer to the question as to what effect
reduction OF rates.
G.. At the tine of the purchase of the
auii,ngton shares, was there any purpose
or intention to restrain or hinder the
t%erstate traffic?
\. No, sir. zone whatever.
" What has been the effect Of that
purchase upon the ira ffic of the Burling-
ton road? Has it hindered it. restrained
IT, or has 1t tncreased it?
"A. l think that the traffic OF the Bur-
fngton road from Billings to the south
west has been very largely increased. and
frcm here to the south the increase has
Q What is likely to be the future eff
feet? Will 1t be to restrain or to enlarge
the Of the road?
A. LII the plan as cont mplated is car
ried out, It should make a very large in
crease in the traffic. For instance, if the
lrol ore from Minnesota can fiEd the fur
paces in Missouri or Southern Illinois or
down in that country where they get
cheap coal, and bring back coal in the
same cars, ears adapted for moving one
rum very soon into millions Of tons. That
is enc. l know Of no place where the
business would not be increased; l know
creased and benefited. l can imagine
none.
He further explained that the reason
why they had not begun this earlier was
because It was a very large undertaking
lor the Great Northern road alone, and
that the Northern Pacific was just en-
msds 1t n from an embarrassment which
r., " ~ w Joll.
The question of a holding company was
not part Of the Burlington transaction. 1t
was not discussed or thought of; neither
secure control of the Northern Pacific
stock.
He said one of the Great Northern d.
as the purpose of the Burlington stock
and the creation of a bond to pay for it,
involved the joint and several liability of
the entire amount Of the purchase, it was
a matter Of consequence to the Great
Northern to know that the Northern Pa
ciic would not pass into the hands OF
directions.
He did not think that any of the officers
of the Northern Pacific company had any,
thing to do with the organization of the
Northern Securities company. The North
ern Securities company simply bought the
stock of the Northern Pacific from the
pepole e. who owned y it; The corporation did
to the Northern Securities company. His
1 friand SAFES fbe ana eIeve those nsrt; of hi his immediate
were absolute without anv condition or
trust or implied agreement or anything
how the Northern Securities company
should vote the condition Of
any kind attached to the sale. The sale
was not the result OF any agreement with
Replying to questions as to whether he.
Hill: solicited parties to buy the stock
q lHC lSoI IlleS COMPANY. MT.
Hill stated that replying to inquiries, he
told them that It was a matter they must
determine for themselves-and he had so
many inquiries that finally he prepared a
circular letter as an answer. in which he
explained that the Northern Securities
operate a railroad. but could only buy
and sell shares Of railroads. and the value
OF it's stock depended upon the profit
made by the railroads the stock of which
the Northern Securities D might
acquire.
He left each INQUIRER to act his own
pleasure without giving advice.
The Second Day.
On the second day of Mr.. Hills testi-
mony he was cr~oss-examined by the at
torneys for the government. 1t was de-
veloped by his testimony that Hartman,
who represents the Union Pacific's inter-
ests is the largest individual stockholder
in the Northern Securities company.
This came about by the large purchase Of
Northern Pacific stock by the Union Pa
cific made during the raid IN May, 1901.
In response to questions Mr.. Hill said
there was nothing to prevent Mr.. Harri-
man from buying more stock of the
Northern Securities company, II he was
willing to pay the price asked for 1t by the
owners. He might even buy enough to
have control, but he, Hill, did not think
the owners would be likely to sell it, and
so that though he now has some eighty
or ninety millions of the four hundred
millions Of stock. he did not consider 1t
---.l1 ~syn~ nvy onn%~A