Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-10-24
MERGER CASE ADJOURNED
Hears Further Evidence and Win Meet NEXT
Month in New York.
COMBINED TO MAKE CHARTERS QUITE SAFE
Vice President CIouEh Says Company
Was Formed Because Fears Were
Entertained of Possible Ad-
verse Legislation.

ST. PAUL MINI. Oct 23.-The merger
case instituted against the Northern Sc
curities company. the Great Northern and
the Northern Pacific was continued today
and an adjournment taken TO New York.
Today's witnesses were Colonel Clough
and President Mellen.
Colonel W. P. Clough, vice president and
counsel tor the Northern Securities com
pany was recalled to the stand to testify
and in the course Of his testimony he iden-
tilted for record a map Of the territory COW
cred by the railroads interested, for the
purpose Of demonstrating that even II it
had been so desired II would not have been
possible for them to control the rates COM
pletely on 10 per cent Of the traffc carried
il the territory through which they run.
Witness told OF the rganization Of the
Northern Securities company. The capital
stock was placed high enough TO enable the
directors TO acquire any desired railroad or
industrial stock.
Joint tariffs" he said later, greatly
facilitated the movement Of freight. This
arrangement makes a single route out Of
several independent ones and is the par
ticular point in which the railroads Of the
United States are far superior 70 those Of
Europe"
Colonel Clough. on cross-examination,
admitted that Mr.. Hills policy would prob
ably be supported in the Northern Securi-
ties company. He insisted that there had
never been any attempt to consolidate the
Northern Pacific and Great Northern, and
held that the only action taken had been
the personal acts of individual sharehold-
ers
The effect Of possible adverse legislation
had been one influence in the organization
Of the Great Northern Securities company
as some supreme court decisions had made
the question of vested right little uncer-
| tain and they even feared that their char
ters might be taken away.
stockholders Not Consulted.
He denied that Northern Pacific stock
| holders had been consulted before the arti-
| cles Of the Northern Securities company
| were filed, but admitted that ]. Pierpont
Morgan, a large holder of Northern Pa
cific, d. Willis James and other holders il
both roads had been consulted and had con-
sented to put their stock in a holding com
pany.
Much time was given to questiots abou
| increases in capital stock of the Grea
Northern, all Of which Colonel Clorgf salt
have bean sold at par to stockholders. H
| insisted that the $92. 900, 900 par value o
Great Northern stock represented a genuine
| valuation. The Securities company he'll
proxies for all Northern Pacific and Grea
Northern stock deposited. He admitte'
ThHf this was-in botH cases majority AM
there was nothing to prevent the election o
identical boards OF directors for both road
except the laws of the country, which posi-
| lively forbid such action.
c. S. Mellen, president Of the Northern
Pacific railroad. stated positively that hi
company had not. as an organization, take1
any part in the formation OF the Norther1
Securities company. He believed that tn
purchase OF the Burlington had promote
commerce. having opened wider markets
He regarded the lumber business secure
for the Northerl Pacific and the Burling
ton jointly as business made.
His road gave no orders to the Burling
ton, but the fact of a common ownershi
tended 20 better feeling between the on
eials Of the various lines and thereby pro
NOTED business.
The hearing will be resumed in New Yor
on November 10.