The Saint Paul globe., 1902-09-02
Northern Securities Company and
Roads Concerned Set Forth
Their Case
RECENT REDUCTIONS IN
FREIGHT RATES QUOTED
It Is Declared That While Both Parties
to the Consolidation Reach the Same
Points, They Traverse Entirely Diff
ferent country-cIaim No Laws Are
Violated by the Combination.

Answers were filed yesterday Win
the clerk of the United States court
by the defendants in the suit brought
by the state of Minnesota against the
Northern Securities company, James j.
Hill, president; James ]. Hill, as an
Individual, and the Great Northern
Railway company and the Northern
Pacific Railway company.
One answer is filed by the Securities
company and Mr.. HILL as an indi-
Vidual and as president, one by the
Great Northern company and one by
the Northern Pacific company. In all
principal points the answers are prac-
ucally identical.
In the answer of the Securities COM
oany and of Mr.. Hill all matters of
the defense are set up and the railroad
companies follow the Securities COM
pany's answer, with a number of
changes in phraseology, required by
their respective charters. The answers
are not long and are exceedingly clear.
Are Not Parallel Lines.
A denial is entered to the state
ment that the roads concerned, the
Great Northern and Northern Pacific,
are parallel or competing lines and
cites the fact that while the roads
reach the same points, they traverse
different territory in reaching these
points.
1t is also said that rates have been
decreased since the consolidation and
further argues that the consolidation
ts not in violation of any state laws
existing at the time the company was
formed.
The answer states that the two roads
are at present competing as much as
they ever did. That Mr.. Hill never ex-
.rcised his office of director Of the
Northern Pacific road.
Stock Retirement Is Legal.
Regarding the retirement of the
korthern Pacific stock, the answer Of
he Securities company says that this
was done in accordance with the
agreed articles of incorporation. This,
the answer says, was the understand
Ing when the preferred stock was Is
sued.
Following is the full answer filed by
the Northern Pacific company, which
In everything, save where the phrasing
has been altered to meet the require
ments of the defendant company, Is
Identical with the answers filed by the
other defendants
This defendant, reserving to itself
all right of exception to the said bill
Of complaint, for answer thereto says:
Has Never Done Business Here.
1t admits the matter stated in sub
divisions l., II. and III. of said bill, ex-
cept that it does not know and has not
been informed save by said bill and
cannot set forth as to its belief or
otherwise whether the Northern Secur-
tiles company has ever conducted any
business in the state of Minnesota or
owned any property in said state, or
how the railways or property: of the
Eastern Railway Company of Mime
sofa are operated or controlled by the
Great Northern company, or as to
whether the defendant, James J. Hill.
was on Nov. 13, 1901, or at any other
time, the owner of or in possession or
control of, or had on said day or at any
time subject to his direction or diSpo-
sition more than a majority or any 9TH
er amount of the capital stock of
said Great Northern company; 1t de-
lies that it, this defendant, ever be-
came corporation of or within the
state of Minnesota, or that it ever be-
came subject to the laws thereof, eX-
cept in SO far as it became subject to
said laws by filing a copy of it's arti-
cles with the secretary of the state of
Minnesota and by complying with the
statutes of Minnesota relating to the
admission into the state of railway COM
panies organized under the laws of 9TH
states, and denies that it's lines have,
since the organization of the Securities
company, been operated subject to the
dictation or control Of the officers of
that company; and denies that it's
board of directors when the bill was
01tx.< - H11O
persons stated in said bill; on the con-
trary, the board of directors of said
company was, when the said bill was
iled and ever since has been, COM
posed as follows: George F. Baker, Ed
ward H. Hartman, William P. Clough
8rayton Ives, d. Willis James, John S.
Kennedy, Daniel S. Lamont, William
Rockefeller, Charles Steele, Samuel
Spencer, James Stillman, Eben B.
Thomas, Hamilton Mex Twombly all
Of New York City; Charles S. Mellen
Of ST. Paul, and Samuel Rea, of Phil
adelphia.
Business Methods Are Unchanged.
1t admits that the cities and towns
IN the state of Minnesota named In
subdivision ". of said bill, are points
On the lines of each of the two de-
tendant railway companies, but denies
that the lines of said two railway COM
oanies between said points were or
are parallel, or that said lines competed
,or freight or passenger traffic between
said points in any different manner or
10 any greater extent prior to the for
nation of the Northern Securities COM
oany than they have at all times done
zfnce the formation of that company
and will continue to do in the future.
1t denies that the lines of said de-
sendant railway companies between
The state of Minnesota and Puget
sound were or are parallel to each 9TH
Continued on Fourth Pace.