The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-10-20
He Says Conditions Are Worse Than
Believed and Likely to Re-
cur Another Year.
His Purchase of the Burlington In
tended to Relieve the North
west With Fuel.
This Testimony Given at st. Paul To-
day in the Federal Anti
Merger Case.

ture of the examination Of James J. Hill.
president of the Great Northern and OF
the Northern Securities company. before
Special Examiner Frederick Ingersol at
the federal building In st. Paul this fore
noon.
In enumera ting the reasons for purchas-
ing the Burlington, MI. Hill predicted
serious coal famine in the northwest TINS
winter and gave 1t as his belief that every
year the shortage would be greater be-
cause the people Of the older eastern
states would see to 1t that their wants
were supplied first The Burlington, he
said. was the key to the situation. De-
Tense of Its purchase by the northern
roads as an entirely phlanthropic propo-
siton was interesting to those present at
the hearing.
Mr. Hill said that he always studied the
coal situation. He said he had been in
the business and added with touch Of
pride that he had brought the first coal to
st. Paul that was sold there. The situa-
ton in the northwest he considered very
serious, and it was little understood by
the public.
The Northern Securities Hearing.
Mr.. Hill's examination was in connection
with the case of the United States VS.. the
Northern Securities Co., the first hear
ing having been adjourned from New York
to st. Paul. Solicitor General j. X. Rich
ards and w. A. Day. attorney for the in
terstate commerce commission, and j. M.
Beck and Special Attorney John l.. Latt,
represented the government. while for
mer Attorney General J. w. Griggs. Da-
vid Wilcox. Of New York; George B.
Young, G. w. Bum and NJ. D. Glover of
ST. Paul appeared for the defendant.
The New York hearing substantially
completed the governments presentation
OF its case and the testimony given to-day
was on behalf Of the defendants, the
Northern Securities company, the North
ern Pacific railway, the Great Northern
railway and the principal officials Of those
companies
The examination of Mr.. Hill, conducted
by George B. Young. at first covered his
official connection with the Great North
eril and the companies Of which it was
the outgr0wth.
He told of his first connection with the
Old st. laul q P,,cific and st. Paul Min
n"nlois Manitoba railways. explaining
tiIDt the dire ctors Of those companies, be
1rg nearly all non resident, the policy and
methods Gf the old Manitoba company
W"rn 'cft almost entirely with him. and
tn RESPONSIBILITY was sometimes heavy
Tho policy Of the Great Northern ST; ce
It's or :aniZation Lad been large.r il..cord-
III" I" his a!';ce, but IN recent wears
more directors had been residents Of the
west. These directors made frequent
trips over the line and were ready with
good advice.
Reviewing the history of the roads COM
posing the Great Northern SYSTEM Mr.
Hill went on to tell Of the traffic that
could be depended along the lines Of
the road, especially the lumber from the
Pacific coast, the rate on which had prev
1ously been prohibitory. but which was
reduced from 80 cents to 40 cents g. 100
after his line was completed. The lum-
1. 4 H..
country north and west Of the Ohio. This
lumber east bound saved the expense of
returning empty cars and consequently
reduced the rate on west-bound traffic.
Balancing Up Trade.
This lumber trade grew very rapidly,
but the new Alaska trade and that to
Honolulu balanced the car service be-
tween east and westbound traffic Mar
kets for westbound traffic were sought
everywhere-in Japan and China and
wherever cargoes were to be had, or
where there any likelihood of any
business. He told in detail of the growth
of the Pacific coast lumber industry and
of the development of the oriental trade
1t had become evident that greater per-
manence in rates to the orient was nee
essary and some control Of the rate was
necessary in order to make a profit possi-
BILE for the shippers
AS compared with the other roads the
burlington reaches Denver, the south and
southwest and nearly all points west of
Chicago. touching all Illinois manufacture
Ing centers. 1t connects with all roads
reaching the cotton fields, and the north
ern lines, having the lumber were the
only ones having return shipment for
cars carrying cotton to the west en- route
to the orient.
His Ideas on Coal
In answer to other questions he said
that on the west end Of his line the local
supply OF coal was sufficient for business
but within the past two years the diff
Guilty Of getting coal from PENNSYLVANIA
to Lake Erie was very great his COM
pany being unable to secure a sufficient
supply in 1900 for its own use at either
Lake Erie or Lake Superior ports. Coal
Tor domestic use was also understandable
the terminals being unable to handle ali
the cars. The case was even worse this
year. less than half the proper supply
being now on hand for the season, II
was even worse In the case Of coal for
domestic The situation he seid ia
serious this year, and will constantly,
grow worse. File referred particula rIv to
pituminOus coal and then spoke Of the
use Of the Burlington line as a means ~
supplying northwestern needs for fuel. it's
connection with the soft coal fields ire
low grades and the consequent possibility
Of large loads, making lower rates posi-
BILE. From the use Of the Burlington for
coal business over that and the northern
tines in unbrolen loads, lower coal prices
will result The Puget sound coal fields
would furnish a supply east of Spokane;
the British Columbia coal-an excellent
quality--is nearly as far away and can
not be brought profitably this far east
Recent developments have given them
coal shipments north from st. Louis to
northern Minnesota and the return load
will be iron ore from the Minnesota iron
ranges.
Value of the Burlington.
The direct connection with the Bur
bngton makes possible a lower and more
certain rate on this class Of business
trunk line to Chicago. st. Louis and
stner centers makes it possible to control
return shipments and keep down the rates
The Burlington connection gives greater
uniformity in service and In cars. making
possible the handling Of unbroken train
oad'. e.. FL
All conditions affecting the Great
Northern would naturally affect the
Northern Pacific similarly, as applied to
the same business. Both roads must
handle business both ways In order Tn