Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-01-25
HILL E[LS Of MERGER
Moving Spirit in the Big Com
bine Explains the Merger
Methods.
Rates Will Not Be Raised by
Community OF Interests
Plan.
"
Believes Law to Punish Rail.
roads For Unreasonable
Charges Necessary.


railway system with the Great North
ern and Northern Pacific.
Mr.. Hill appeared before the inter
state commerce commission in Chicago
in answer to subpoena, and spoke a
president of the Northern Securitie
tCompany, which controls the stocks o
1.-The Great Northern, Northern Pacif
and Burlington roads. His evidence
carried the weight that attaches to tn,
words of railway king, maker o
railroad presidents, and a recognized
genius among the worlds financiers. HI
occupied the witness stand from unit
$50 p. m.
The conclusions reached by Mr.. Hill IL
| his testimony may be thus summar
| lied:
| Combinations of railroad companie!
can never keep freight rates at exces'
sive figures. The public always has re-
course to the courts when charges are
too high, and sane management viii
never allow rates to reach q figure
which will destroy business.
The effect of large associations OF
railroads has tendency to keep the
freight tariffs down to a reasonable
basis This is possible because railroads
in a cornbina ton collect full tariff and
pay no rebates. This allows the tariff to
be reduced materially.
Tariff freight rates are not lowered
by competition; freight rates to large
shippers are always cut, but the gen
eral public does not share in the bene-
fit.
THE purchase of the Chicago, Bur-
lington & Quincy railroad by the Great
Northern and Northern Pacific railroad
companies was made for the purpose of
securing better eastern connections for
the two railroads.
The Northern Securities Company,
altho holding the power over the three
railroads thru the possession of large
blocks Of the capital stocks, has not
made any attempt to influence the d.
vision of traffic or earnings or the
maintenance of freight rates.
THE financial safety OF any railroad
ies in doing bushes at q rate that will
keep out competition-to regulate
freights so that the other fellow does
not like the taste OF your tariff"
It developed from his testimony that.
While Mr.. Hill has succeeded In secur
ing complete control Of the Burlington
and Northern Pacific roads the worst
competitors the Great Northern had,
thru the formation Of the Northern Sc
curities Company. yet the control of the
Great Northern itself has not passed out
Of its own hands. His statements that
~, ~, Al ~ Ao ha, al
ways voted unanimously with him on
every project and that a controlling
amount of stock was not sold to the Sc
curities company showed his plans for
disposlng of Objectionable rivalry and
at the same time securing valuable per-
nanent connections.
While protesting strongly that there
had been no effort on the part Of the
Northern Securities Company TO Influ-
ence the operation of the roads with d
view of raising rates and apportionine
traffic. yet 1t was apparent that the
railroad magnate saw TO II that men
We're put in responsible positions who
could he trusted to see what would be
the best interests of their leaders. and
that failure to read the signs correctly
would usually lead to the selection of
men of more acute discernment.
At the same time Mr.. Hill showed
plainly that his plans We're to build UP
business by fair rates and good treat
ment fer shipper on the principle that
In the prosperity of the shipper rested
the success OF the railroad
AT the close of the session, Chairman
Knapp of the commission asked Mr..
Hill is he could remain in Chicago I'M
til thie morning for further evidence.
Mr.. Hill replied that he had come from
New York for the sole purpose of testi-
flying before the commission, and would
remain In, the city as long as he could
be OF service
II am particularly anxious that every
question in this matter should be open
to the light OF day he declared
Following Mr.. Hill on the stand this
morning the commission Will examine
E. H Hartman, who organized the
Southern Pacific Union Pacific combin-
alton. w. S. Mellen, president CT the
Northern Pacific, and George B. Har-
ris. president Of the Burlington, will
also take the stand.
In addition to Mr.. Hill, j. C. Stubbs, |
Traffic manager for the Hartman COM
bination, and Darius Miller, who was to
have taken a similar position for Mr. |
Hill. were questioned IN the morning |
session yesterday.
Mr.. Hills story was the feature of the |
days business. and the little United |
States court room In the Monadnock |
building was crowded to the doors with |
prominent railroad officials, who stood |
all day that they might hear from the
man who built the great northern rail
road and who has now found hostility |
governors OF the northwest.
He was a willing witness. and fire.
quently when the questions Of Attorney |
Day and the commissioners did not
bring out facts as quickly as he wished
to furnish them, he asked permission to
proceed, and spoke eloquently on the |,
various phases Of twentieth century
finance.
There was hardly feature of impor-
.ance that not taken up. M. D. Grover,
attorney for the Great Northern, and
Frank B. Kellogg. attorney for the
Northern Pacific accompanied Mr.. Hill
nto the court room and sat near the
chair. They were not needed,
5owever. and they took little part in the
Mr.. Hill worked nervously with the
lord to his eye glasses as he talked. and
soon it was broken. His face expressed
Ills feelings In an unusual degree, and