The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-01-07
Through His Attorney General
the Minnesota Cove
Files His Complaint Against
Northern Securities Company.
CITES MANY REASONS
Why the Merger Should Be
Forever Prevented.
Lays States Woes at the Door
of j. j. Hill.

Washington, Jan. 7.-Attorney Cen
| eral Wallace B. Douglas of Minnesota,
filed today in the United States supreme
court the bill of complaint in the case
| of the state of Minnesota, complainant,
against the Northern Securities COM
pany, defendant
| 1t is a long document, about 10000
words, covering 81 pages of printed
| matter. The bill first points out the
direct interest the state has in the pro-
posed consolidation. 1t still owns more
than 100000 acres of public land valued
at more than SIS 000 900 and traVerSed
in part by the lines OF the Great North
ern and Northern Pacific railroads.. If
the merger is effected, these roads will
cease to build spurs into these lands,
or compete for their business The value
of the lands will not increase it has
under the spur of competition and the
state will lose in the taxable value of
it's property. The lands will not be
opened for years and development will
be arrested.
1t is next set up that the state ex-
pends more than 100000 annually in
the operation and maintenance of it's
educational, charitable and other public
institutions; that this 10 mostly raised
by direct taxation; that the amount
which can be raised and the successful
maintenance of these institutions for
the benefit of it's citizens depend large
ly upon free railroad competition. 1t
to encourage railroad building by grant
of lands and in this way over 10, 900
acres have been granted, nearly all of
which has been granted to tho Great
Northern and Northern Pacific and
their subsidiaries.
The complainant alleges that the rates
on the immense shipments of wheat
and other merchandise over the lines of
the two companies have been lower
than they will be under any arrange
ment which contemplates unity of con-
troll hc hon -aGif fha cha 1~feart1
and interpretations under which the
Great Northern operates over 500 miles
of road and cites the clause in it's char
ter providing that it's affairs are to be
conducted by board of directors which
is to do all things necessary "and not
inconsistent with the constitution and
laws of the United States, or the laws
of this territory, or this act"
STRIKES AT HILL
1t is further alleged that James ].
Hill holds controlling interest in the
$125. 100000 of capital stock.
The history and the charters of the
Northern Pacific are similarly related,
special attention being paid to the
roads acquired and built within the
state. BY filing it's articles of incorpora-
tion in Wisconsin, with the Minnesota
authorities, the Northern Pacific be-
came subject to all the laws, regula-
tionS and provisions of Minnesota The
facts to the present personnel direc-
tory, the insolvency of the old company
and it's reorganization in 1898, the pur-
in 1899, are recited at length 1t is set
up that the lines of these two systems
are not only competitive between
points within Minnesota, but that they
furnish the only competitive lines be-
tween Minnesota and Puget sound and
have so furnished for eleven years.
They are also, with one exception, the
only lines traversing northern Mime
sofa.
A paragraph is devoted to the Bur-
lington and the facts as to the terms
on inf 0frO nj tai 7nd hXf
the two systems jointly, Charles E
Perkins, its former president, and pres
ent director, being director in the
Northern Securities company. The GER
tif1cate of Incorporation of the latter
filed in New Jersey November IS, 1901
is quoted in full.
Taking up the Northern Securities
company it is set forth that it
ganized by J. ]. Hill, w. p. Clough, J
Pierpont Morgan and ''other associates
of to the oratrix unknown" who at
the time were continually in confer
ence over means by which the laws OF
Minnesota might be successfully evad-
ed or avoided, and that it was so
ganized solely for purpose of effectine
a consolidation of the Great Northern
and Northern Pacific. The owners of a
large majority of the stock of the two
systems had agreed beforehand to
transfer to the new company 75 per
cent of the stock of the two systems on
terms which are set forth in full and
to retire the preferred stock of the
PLAN TO EvADE LAW.
In furtherance of the plan to evada
the laws of Minnesota it was agreed
that pending the delivery of the stock
to the Northern Securities company it
should all be turned over to James J
Hill, or be under his control. TIE
Northern Securities company it is
charged, does not intend to purchase
this stock, but simply to issue it's own
stock in exchange therefore. For these
unlawful purposes the company is
about to receive, unless enjoined there
from, all the capital stock of the Great
Northern and Northern Pacific. This il
is claimed, is part of plan of Hill,
Morgan and their associa ties, whereby
the two systems are to be consolidated
and placed under the direction of one
man, or board of directors, through the
defendant company and thus bring
about and perpetuate a monopoly in
railway traffic in Minnesota and
TENS. One man, or board will thus, it
is alleged, be enabled to fix all rates
on lines of the state to determine what
trains shall be run, remove all COM
petition, and prevent the building of
lines into new country or into COM
petitive territory. This agreement and
the conSumnatiOn thereof, is claimed to
be sin restraint of trade, against pub
lie policy and void"
Under its terms the directory of the
Northern Securities company may
change its own rules, or may delegate
all its authority to an executive COM
mittee. It is pointed out that Hill, the
president, W. P. Clough, the vice presi-
and secretary of the company, were ali
at the date of its organization, officers
of the Great Northern and that ma
jority of its directors were also direc-
tors of the Northern Pacific 1t has
been the settled policy of the state to