The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1902-01-17
ATTORNEY GENERAL DOUGLAS
PRESENTS A LENGTHY
COMPLAINT.
MINNfSOTAS INTEREST SHOWN
HELD TO BE AN UNLAWFUL COM
BINATION IN RESTRAINT OF
TRADE.

court the bill Of complaint in the case
of the State of Minnesota, complain
ant, against the Northern Securities
company, defendant 1T is a document
of about 10000 words, covering thirty
two pages of printed matter.
The bill sets up the claim that, in
order to accomplish the purposes of the
Northern Securities company, Mr.. Hill
is now holding the stock which it is
intended to convey to the new corpora
ton, and that for month past Mr..
Hill has exercised control of the North
ern Pacific, changing its officers and
policy at will.
| The state attacks the Northern Sc
curltleS company, first, because it is
| alleged to be an unlawful ombination
in restraint of trade, and as such,
against the laws Of the United States.
Eut, beyond this, facts are set out to
show that the State of Minnesota and
the people of the state have a personal
and special interest in the proposed
merging of the roads, and rights which,
1t is alleged, are in peril with a relief
that can be given only by courts IF
equity.
AS showing the interest of Minnesota
|
that the State of Minnesota now has
| 100000 acres of lands to the value of
over $15.Oo0,000, much of which is To-
Gated in the territory traversed by the
Great Northern and Northern Pacific
| roads That the value of these lands
depends much upon having free and
open competition in passenger and
| freight rates over the two lines. Many
of the lands. as yet unsettled, depend
for settlement upon construction of
branch lines by the two named rail-
roads That. under the proposed con-
solidation Of the two lines, these lands
will not be reached Ky new railroads
for years. if ever. On the other hand,
it these lands are settled they will add
largely to the taxable value of the prop
erty of the state.
States Interest.
The states interest is further sought
to be- shown by setting out the fact
that all the institutions of the state,
to more or less extent, have to use
the Great Northern and Northern Pa
! cific roads for shipment Of supplies, and
the state is thus directly interested in
| competition in freight rates.
| The final count upon which the state
bases its right to begin action is that
of land grants which, from time to
time, have been granted to the North
ern Pacific and Great Northern and
smaller lines controlled by them, which
amount to 10,500, 900 acres.
On behalf of the people of the state
and Its commercial and industrial in
terests, the state alleges that CON-
bination of the competing railroads
would eventually result in serious hard
ship, not only to places within the state
tributary to the two roads, but a hard
ship on merchants who must use these
lines for freight traffic with the Pa
cific coast.
A great portion of the complaint is
taken up with a formal recital of the
histories of the Northern Pacific,
Great Northern and Northern Securi-
ties company. The present officers,
mileage and stock are set forth in de-
tail. The Northern Securities company,
it is alleged. was organized at the re-
quest of j. j. Hill. William P. Clough
]. Pierpont Morgan and associate Joint
stockholders Of the Northern Pacific
and Great Northern roads, who control
most of the stock Of the securities COM
pany for the sole purpose of effecting a
consolidation Of the Great Northern
and Northern Pacific Railroad compa-
MES.
| Question of Control.
The securities company is said to con-
troll rs per cent Of the stock Of the COM
bined railroads, which, pending a deliv-
cry to the securities company, is held
in trust by ]. j. Hill. The securities
company. the state charges, is now il
legally offering 1856 per share for Great
Northern stock and Sis per share for
Northern Pacific stock.
In conclusion. the State of Minnesota
alleged the placing Of control of the
combined railroads under the single
board or directors of the Northern Sc
lctrltles company creates a monopoly
In railroad traffic; that such action is
IN restrain OF trade, against public
policy. and void.
Because of these alleged facts, the
State of MINI asota asks that the
Northern Securities company be per-
petually enjoinei and restrained,
First-From voting in any way at
stockholders meetings of the Great
Northern and Northern Pacific roads.
| Serond-That the Northern Securi-
ties company be restrained from inter.
Ife1fng In any way with the manage
:. H.,
Thfrd-sThat the defendants, it's Of
ieers. attorneys. or representatives.
toe restrained from holding any office
as ernploye or oficia1 of the Great
Northern or Northern Pacific roads.
Fourth-4rhat the defendant he re.
strained from arranging any Joint
management or control. Of The Great
Northern land Northern racihc..
sFifth That the defendant sc en-.
Joined from holding or9cdntrdIink any
stock % the two railroads and trans 9
;,er back to the parties t4sey secured It.
Fesoh1 such, stock Of tise'two lines assthe
ndant now has secured; ~
fssxthDThat the defendant. be he.
STAINED freaa. securing any additional
sock OF any other railroads OF witch
they may own a minor part.
Ssytnth-Rhe complainant desires
permission to amend its bill. IL naees.