The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-06
Organization of the Northern Securi-
ties Company and Purchase of the
Burlington Explained.
NOT A HARMFUL COMBINE
THE MERCER WAS CARRIED OUT
FOR BENEFICENT PURPOSES.
1t Is an "Enterprise I'm Aid of a Great
Competitive Interstate and Inter-
national Commerce"

ST. PAUL, Mimi. May 5.-"An enterprise
in aid of a great competitive interstate and
international commerce. is the description
of the Northern Securities Company given
in the answer filed by the attorneys for
that corporation in the suit brought by At
torney General Knox on behalf of the
United States to enjoin the so-called merg-
er of the Northern Pacific and Great
Northern railways. This answer was filed
late this afternoon in the United States
Court in this city and at the same time
individual answers were also filed by James
j. Hill, William P. Clough. D. Willis James,
John G. Kennedy, George F. Baker and the
Great Northern Railway and by ]. Pierpont
Morgan, Robert Bacon. Daniel S. Lamont
and the Northern Pacific Railway. These
various papers follow the same lines.
The answer of the Northern Securities
Company is divided into two parts. The
first part is largely a denial of the petit
tion as respecting any charge of con-
spiracy and as respecting the purposes of
the organization of the securities company
Instead of owning majority of Northern
Pacific or Great Northern stock, it is stated
that those who are interested in the secur-
tiles company did not own within S26 000 900
of a majority of the Great Northern shares
and a little more than one-quarter of the
Northern Pacific shares. The answer also
states that the securities company has
been acquired by transfer the Great
Northerns books of about five-twelfths of
that company's stock, has negotiated for
about four-twelfths of such stock which
has not been transferred and as to which
IL at present has no voting power and has
paid on account of Great Northern and
Northern Pacific shares purchased over
SO 100000 in cash. that many stockholders
have not and may not sell shares and that
neither company by any act or suggestion
has solicited shareholders TO sell TO the
securities company.
PURCHASE OF THE c., B. & Q.
In the second part of the answer the
purchase of the Chicago. Burlington &
Quincy Railroad is taken up, the reasons
for such purchase having been, i, is al
legged. enormously stated in the petition"
Attention is called to the sparsely settled
or unsettled nature of the country through
which the Great Northern runs. The
abundance of raw materials to be hauled
at a low mileage rate: the great timber
wealth in the Pacific Northwest and thu
necessity for return load for the cars
taking this timber TO the prairie States; the
development OF trade with eastern Asia
as means Of securing such return loads
and the establishment of a connecting
steamship line for that purpose II is
stated that in the interstate and interna-
sional commerce which the Great North
ern has built up IL competes both in
this country and on the ocean with the
other transcontinental lines, including the
Canadian Pacific, and at the Oriental ports
u competes for commerce OF the world
Its rates are and must be made in com
petition with the rates OF ocean carriers
and by way Of the Suez canal The policy
thus followed by the Great Northern Com
pany in building up an international and
thereby an interstate commerce has been
followed by the Northern Pacific Companv
since its organization in 1895 -
IL Is said that both roads were placed at
a disadvantage with other transcontinental
railroads well with European com
petitors by the want of sufficient direct
connection with the territory Offering the
best markets for the products of the coun-
try along their lines and with the places
OF production and great centers of distri-
button from which their traffic must be
supplied The lines OF the Burlington, bet