The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1902-01-28
ORIGINATED FOR PROTECTION
OF OLD STOCKHOLDERS.
PLAN WAS GOOD AND GREW
President Hill of the Northern Secur.
tiles Company Before Interstate
Commerce Commission.

chicago, Jan. Z4.-JameS j. f1lll,
president Of the Northern Securities
company and president of the Great
Northern railway, testified for three
and a quarter hours before the inter-
state commerce commission here to-
day. In answer to questions tending
to show the effect of the community of
interests plan on rates, the veteran
railroader declared that competition
does not lower rates, but on the con-
trary, he believed that it advanced
them. He declared that in the north
west, where for 20 years the Northern
Pacific and Great Northern have been
at peace, where one road has agreed
with the other on rates and maintain
ed the agreemtns, rates were lower
than in any other part Of the country.
In regard to the purchase of the Bur
lington by the Northern Pacific and
Great Northern, Mr.. Hill declared that
the purchase was a matter of neces-
sity and was not due to any move
ment in line with the trust idea" He
testified to the formation Of the North
ern Securities company and in doing
SO gave a reason far more simple than
has generally been conjectured. Dol
"There are some old men, some
very old men, interested in the man
agement of the Great Northern" said
he. 1.-TWO of them are over 80 and
several over 70 years of age. They
wanted to form a close corporation
into which they could confide their
interests with assurance that the road
would be managed along the lines
which nave made it a success. 1t was
to have taken over one-third of the
stock of the road. The plan seemed
to be a good one and then it was post,
poned to let all of the stockholders
in, not alone the few owners of the
one-third, but all of them. The plar
met with approval and then it broad
ened into the idea Of taking in the
Northern Pacific also. The roads nae
worked in harmony for 20 years ant
d CIdASS Ill liz Ao1NC1" VI IL
tiles would make no difference. L
ian make no difference and will make
no difference"
Mr.. Hill talked vigorously and earn
estly. At the close of the session whel
Chairman Knapp offered to allow Mr.
Hill to leave for New York if the lat
ter felt that staying in Chicago woul'
inconvenience him seriously, Mr.. Hill
decided that his time belonged to tn
commission and that he desired il
every way to aid them to the exten
of his ability. Chairman Knapp there
upon said that Mr.. Hill would be agai
called to the stand tomorrow morr
ing. m.. ..
In explaining his reasons for tn
purchase of the Burlington, Mr.. Hi
went back to the time when he foun
it necessary to offer a low rate o
timber from Oregon and Washington
in order to get loads for cars whic
had originally gone west laden wit
merchandise. He said:
'In order to put ourselves in a sal
position we had to buy the Burlingto
road; it gave us a merket for IL ives
ern stuff that we had to bring bac
and it afforded us connection in TT
east with all producers, and it compile
ed conditions necessary"
He also dwelt on the paramou1
-~-1 ~Il
connection with railroads. I'VE were
he said, '.far from coal Inc far fro
a market for u timber. We we,
at the mercy of a possible coal famin
such a famine would be existing no
were it not for the unusually mi
weather. We needed more than co
nection, we needed a connectit
which we could control. | knew tn
the Burlington reached pralries whe
timber is needed and | knew that
the Burlington VIZ could ave come
ton with coal mines, which won
put us on safe ground in respect
fuel.
Y Furthermore, the Burlington COT
be purchased cheaper than any 9th
granger road, everything considere
A friend of mine, a neighbor, told I
that for a lumber market he wor
rather have the state of Iowa tn
any other five states. Perhaps y
a tell me of a road which reach
Iowa points better than the Burlil
ton. / know of none."
Mr.. Day attempted to show by
long line of questions that the r
reason for taking over the Burlingt
was to form a sort of trust. where
northwestern rates would be absolu
ly in the hands of Hill and his frien