River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1902-10-30

some other business in lieu Of this. and
we would have to hire some other road
to haul that business from st. Louis here
at the best rate we could get. We could
not control it except through the option
of some other road Might at any time
withdraw the rate; might at any time
refuse to make a joint rate with us, ex-
cept on terms that would be prohibitory
And in that way we could not go very
far We would not be in a position to
compete for that business. We must
either take that business to the coast
we must take all the west bound business
we can get to the coast, or else we must
advance the rate on the lumber. Now,
outside of cotton, take nails, wire arti-
cles of that kind, that business has grown
to very large dimensions, but our rate is
a very low one from Lake Erie to Hong
kong: it is as cents a hundred, SO a ton,
on those commodities. A line reaching ST.
Louis and all the trunk lines of the East
between ST. Louis and Chicago puts us in
a vastly different position; and that is the
reason why it was of such Importance for
US to control the situation. We could not
control it unless we could give a market
for the production of the line-products
raised along our road-whether it was out
of the mine or from the farm or out Of
the forest. If the man who produced it
could not sell it, he would stop producing.
And that was the problem we had to
ourselves able to meet it.
Oriental Trade.
O. Mr., Hill, are you able to state the
comparative growth of that Oriental traf-
fics since it's inception up to this time?
A. The growth has been very rapid In
some commodities more rapid than in
others. Last year the increase was very
large in cotton goods, both raw and
manufa ctured, and in machinery and in
4 -
oil, / think, was considerably reduced.
The Patoum OIL by some arrangement,
has that market largely and we do not
carry the oil we did.
Q. Taking the aggregate of the traffic,
the total amount of 1t.
A. Well, should say that in 1902-the
year ending June &c. 1902-the business
was more than twice as great as it was
the previous year ending June, 1901. We
were in better position to do the business.
o. Can you give us the quantity of cot
ton, raw cotton or piece goods, that was
carried in 1901 and 1902?
A. L can give it to you exactly by the
Great Northern.
Q. Yes, by the Great Northern we are
speaking of.
A. In 1901 the amount of cotton piece
goods was 13, 070 bales; 1902, 81, 542 bales.
Raw cotton in 1901 was 1920, 900 pounds,
against 41,243,000 pounds the next year.
continuing MS testimony Mr. Hill eX-
planned that they made their ships large
for the purpose of reducing rates. They
could carry a cargo equal to what five
ordinary freight steamers could carry with
only one crew instead of five crews. In
all their movements there was no inten-
ton to hinder commerce, but to promote
it, and it has greatly increased commerce
between the United States and foreign
nations. These arrangements have only
been perfected about a year and the bust
ness has more than doubled on the Great
Northern road. He said he thought the
total tonnage of the Great Northern
road will show the increase to be about
33 per cent, and the foreign business is
increased over 100 per cent 1--WE have
been able to reduce rates from 10 to Is
per cent in year on the local business
between the Pacific coast and the Twin
Cities and Lake Superior" was his an
swer to the question as to what effect
the increase of business had had i'm the
reduction of rates.
Q. At the time of the purchase of the
Burlington shares, was there any purpose
or intention to restrain or hinder the
traffic of the Burlington road itself, in
terstate traffic?
A. No, sir, more whatever.
Q. What lIs~ been the effect of that
purchase upon the traffic of the Burling-
ton road? Has it hindered it, restrained
it, or has it increased it?
A. think that the traffic of the Bur-
lington road from Billings to the south
west has been very largely increased and
from here to the south the increase has
been considerable.
0. What is likely to be the future eff
feet? Will it be to restrain or to enlarge
the commerce of the road?
A. If the plan as contemplated Is car
ried out, it should make a very large in
crease in the traffic. For instance, if the
iron ore from Minnesota can find the fur
naces in Missouri or Southern Illinois or
down in that country where they get
cheap coal, and bring back coal in the
same cars, cars adapted for moving one
moving both, that business alone should
run very sooH into millions of tons. That
is one. 1 know of no place where the
business would not be increased. I know
of no place where it would not be in
creased and benefited. 1 can imagine
none.
He further explained that the reason
why they had not begun this earlier was
because it was a very large undertaking
for the Great Northern road alone, and
that the Northern Pacific was just en-
merging from an embarrassment which
made it inexpedient for it to join.
The question of holding company was
not part of the Burlington transaction. 1t
was not discussed or thought of; neither
was there any purpose at that time to
secure control of the Northern Pacific
stock.
He said one of the Great Northern di-
rectors raised the question that inasmuch
as the purchase of the Burlington stock
and the creation of a bond to pay for it,
involved the point and several liability of
the entire amount of the purchase it was
a matter of consequence to the Great
Northern to know that the Northern Pa
cific would not pass into the hands of
people who might be interested in other
directions.
He did not think that any Of the officers
of the Northern Pacific company had any
thing to do with organization of the
Northern Securities company. The North
ern Securities company simply bought the
stock of the Northern Pacific from the
people who owned it. The corporation did
not own any stock that he was aware of
and at any rate, it did not sell any stock
to the Northern Securities company His
own sales and those of his immediate
friends, the eleven parties he had named
were absolute without any condition or
trust or implied agreement or anything
else. There was no understanding as to
how the Northern Securities company
should vote the stock-no condition of
any kind attached to the sale. The sale
was not the result of any agreement with
each other.
Replying to questions as to whether he,
Hill, solicited parties to buy the stock
of the Northern Securities company, Mr..
Hill stated that replying to inquiries, he
told them that it was a matter they must
determine for themselves-and he had SO
many inquiries that finally he prepared
circular letter as an answer, in which he
explained that the Northern Securities
company did not operate and could not
operate a railroad, but could only buy
and sell shares of railroads, and the value
of its stocks dependent upon the profit
made by the railroads the stocks of which
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