The Savannah morning news., 1902-01-08
To PREVENT MERGER
COMPLAINT FILED IN
SUPERIOR COURT.
TO DEFEAT HILL AND MORGAN
INJUNCTION OF NORTHERN COM
DINE SOUGHT.


Purpose of Evading the Laws of
Minnesota, and Asks That IL he
Required to Return All stocks to
Their Original Holders and That
1t BE Enjoincd from Taking Any
Part Whatever in the Manage
ment Of the Companies Named.
Washington, Jan .7.-Attorney Cen
eral Wallace b. Douglas of Minnesota
filed to-day in the United States SUI
preme Court the bill of complaint in
the case of the state of Minnesota,
complainant, against the Northern Sc
curities Company, defendants. 1t is a
long document about 10000 words,
covering 80 pages of printed matter.
The bill first points out the direct
interest the state ha sin the proposed
consolidation and describes the char
tiers of the Northern Pacific and Great
Northern.
Taking UP the Northern Securities
Company it is set forth that it was
organized by ]. J. Hill, w. P. Clough,
]. Pierpont Morgan and other assoc
are the time were continually in con-
ference over means by which the laws
of Minnesota might be successfully
evaded or avoided and that it was so
organized solely for the purpose of eff
fecting consolidation of the Great
Northern and Northern Pacific. The
owners of a large majority of the
stocks of the two companies agreed be-
forehand to transfer to the new conf
pany rs per cent. of said stock on terms
which are set forth in full and to re-
tire the preferred stock of the North
ern Pacific. The Northern Securities
Company it is charged does not intend
to purchase this stock, but simply to
issue its own stock in exchange there
for. This, ii is claimed, 1t Is part of
plan of Hill, Morgan and their asso-
ciates, whereby the two systems are
to be consolidated and placed under the
direction of one man or board of di
rectors, through the defendant COM
pany and thus bring about and perpet-
uate a monopoly in railway traffic in
Minnesota and a complete consolida-
ton of the two systems. One man or
board will thus lit is alleged be en-
abled to fix all rates on lines in the
state, determine what trains shall be
run, remove all competition and pre-
vent the building of lines into new
country or into competitive territory.
This agreement and the contamination
thereof, is claimed to be in restraint
of trade, against public policy and
void" 1t is set up that the Northern
Securities Company is a railroad cor
poration within the meaning of the
Minnesota laws and that it's design is
to eVade, escape and violate these laws
in such way to cause the state ''irre-
parable injury
Perpetual Injunction Sought.
1t is alleged that it is the settled
policy of New Jersey to allow the con-
solidation of only such railroads as
are, or can be, connected to form con-
tinuous lines and not to permit the
consolidation of parallel or competing
lines. The oratrix. claiming to have
no other adequate remedy for relief
except as prayed for in equity, asks
that the defendant be required to show
cause why it should not be perpetu-
ally enjoined and restrained.
First. From voting at any meeting
of the stockholders of the Great North
ern and Northern Pacific. the capital
of these companies and from attend
ing in any manner such meeting.
Second. From aiding, advising, in
terfering with or I'm any way partici-
pating in the management of the two
systems.
Third. From permitting any of its
oAcers, agents or servants from act
ing as representatives, director or Off
Ger or employe or exercising any con-
troll, management, discretion over the
same.
Fourth. From making any arrange
ments or combinations having for their
object such joint control.
Fifth-From holding. owning or con-
trolling any of the stocks of either
company, defendant company being
required to re-assign or retransfer all
such stock to the person from which it
was received, taking i'm return it's own
stock issued in return therefor and
meanwhile, to be enjoined in all re-
spects in relation to said stock as here
inbefore prayed for.
Sixth. From receiving any more
stock of the two companies in case IT
shall appear that the defendant COM
pany has not yet acquired a controll-
ing interest in either.
Seventh. The oratriX prays permits
sion to amend the complaint if neces-
sary and bring in other parties for the
purpose of giving force and effect to
any deere of the court, and ask the
court to issue a subpoena against the
defendant company and set a day for
the hearing