Omaha daily bee., 1902-09-02
ANSWER IN MERGER SUIT
Hill and Defendant Reads Answer State
Of Minnesota.
DENY THE PRINCIPAL PROPOSITIONS
Amrm that Securities Company Has No
Place of Business In MinnesOtS
aad that railways Are
Not Competitors.

ST. PAUL., Mluu.s otpNs A-Auo uoAohu-
ants in the merger suit brought by the
state Of Minnesota nled their answers to-
day with the clerk OF the United States
court.
The suit was brought by the state
against the Northern Securities company.
James J. Hill, as president OF that COM
pany; J. ]. Hill, as an individual; the
Great Northern Railway company and the
Northern Pacific Railway company. There
IN one answer for the Securities company
and Mr.. Hin, one for the Great Northern
and one for the Northern Pacinc. Tho an
swer Of the Securities company and OF
Mr.. Hill sets up all the matters in the
defense and the railways In their pleading
simply follow the Securities company's
answer, with som changes OF phraseol-
ogy, as are required by their diverse char
acters.
The main answer, that OF the Securities
company, is more than usually direct aud
plain for q legal pleading. 1t reads In
part:
No Place of Business.
Defendants deny that the Northern Sc
curities company has ever conducted any
business In Minnesota OF mao any pace Sd
state, and the railways, the property OF the
Eastern ,sd { I'm J Taiiwag y al ,e M,nnes Tbs;y s sIso S aeny
that James J. Hin has ever been the
owner OF or In the possession or control
ject to his control or disposition more than
a matter OF minority or a portion far less
Great Northern company. They deny that
the Northern Pacific Railway company
ever became a corporation OF or within the
state OF Minnesota or that It ever became
subject to the laws thereof, except by Ming
state and complying with the statutes re-
lating to the admission to the state of rail-
way companies organized under the !aTs OF
They also deny that the Northern iLri4c
company,S lines since the organization I
Deen operated subject to the jurisdiction
or control of the officers Of that company
Northern Pacific company. when the bill
was filed or at any time since, have been
trary, the board OF directors Of said com
pany was. when the bill was filed and ever
eie 9 nf T. BAKER Sfem E Sd%RGsf H. az Ha lGlGsn,
William p. GioLshs Brayton Ives ID WI
Lamont, william RocRefeiier, Charles
Steele, Samuel Spencer. James Stiilman.
st. Paul.. samuel Rea, Philadelphia.
They admit that. cities and towns named
lines Of railway, but deny that the lines
between these points are parallel or that
ger trafic LCtvFe;. said points in any dit
ferent manner OF by any greater extent
Company than they have at ali times done
since the formation Of that company, and
deny that the lines Of the defendant com.
panies between the state Of Minnesota and
ever been competing lines, except at a few
points,, at nearly all OF which. points he
competed and still compete With he Ia =
Railways Are Not Competitors
They deny that the defendant. companies
have competed with each other for passen-
ger or freight traffic in any other or diff
thSan they have cSonti1uoussly done since thu
formation of the securities company, and
init that the lines are the only Anes OF a
single railway company trayerstng east
west OF the Mississippi river: They deny
that these lines are the only lines crossing
P fHs fts' ocean ca M by raii VIM afS f polnts in s shs
state or that they are the only lines con-
of stRses 'H os t Yer tsrTito OF t iTibn northern tnsr tier
by rail with the Pacific ocean.
nth, They rt deny tSyr,t that spur or branch lines
between the companies, or that the IiiiI-
been or will be prevented or lessened or
deferred or in any way affected by the
swap lands the grants BY the state in aid
the territory and state w Of M maSe 9s
merely In execution of trusts reposed in
granting iands Of the Tn fSsi States Ss sOp aS siS
In the construction of such railways.
er fS"e Of q said iid'O territory an4tS ~e or s state. 'H each rOS Of
whom was a mere conductor to transfer
States to the respective corporations, by
which such were built and said
or state. were solely In consideration OF
the construction and not OF the malnte-
nance mar G Of such rail- railways ~ Snd mons Of said
PENDANT railway companies.
Grants Are Not n Gift.
None of such grants nor either of said
swamp-land grants was a gift TO the COM
sheraton furnished the company receiv-
They admit making large shipments Of
wheat and other products from and to the
Competition between the defendant com
panies for trafic between said places was
company any sharper or more active or
more productive Of lower rates for freight
81 shIncSss 's sseE ors saSh Il Ss' s Sssn sit. ct az Il. 'i% aSd
deny that such rates have been at any
iies company or now or viii Be s sns f% hiSsRhrer
than u said company had not been formed.
fo 1n ne c OF s1C they they say that since the
already, been largely reduced and are now
snd VII e;SSntSnIrne to be lover than those
the sharp and active competition therein
They admit that after the formation OF
the securities company and on November
q. 1901. that company did request OF the
Great Northern company to purchase such
Of their shares as should be offered within
sixty days from the date at $3.50 per share
and pay therefor In shares OF its own cap
ital stock at par. Except as aforesaid,
they say that the securities company has
not offered OF sought to purchase any stock
OF either of said railway companies in ex-
change for Its own shares. They say that
the securities company has also purchased
for cash a large amount OF the shares OF
the defendant railway companies and OF
other companies.
they deny that James ]. Hill was at any
time the principal or controlling stock
holder OF the Great Northern company and
say. tnat while said James J. Hilf was for
a short time nominally a director OF the
Northern Pacific company, he never cast
any vote as director. The defendants deny
unlawful combination and confederacy.