Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-03-13

of the capital stock of the Northern
Securities Co. and have purposely dis
couraged and prevented the transfer
and exchange OF such stock for the
stock of the Northern Securities Co,
all for the purpose of concealing the
real scope and object of the unlawful
combination or conspiracy, and of de-
ceiving and misleading the state and
federal authorities. and of furnishing
a ground for the defense that the
Northern Securities Co. does not hold
a clear majority of the stock of the
Great Northern Railway Co.
Not Organized in Good Faith.
The Northern Securities Co.was not
organized in good faith to purchase
and pay for the stocks of the Great
Northern and the Northern Pacific
Railway companies. 1t was organized
solely to incorporate the pooling of
the stocks of said companies and to
carry into effect the unlawful combi,
nation or conspiracy aforesaid. The
Northern Securities company is a
mere depositary, custodian holder, and
trustee of the stocks of the Great
Northern and the Northern Pacific
railway companies and its shares of
stock are but beneficial certificates is
sued against said railroad stocks to
designate the interest of the holders
in the pool. The Northern Securities
company does not have and never had
any capital sufficient to warrant such
a ~stupendous operation. Its sub
scribed capital was but 100000, and
its authorized capital stock of $400.-
900. 900 is just sufficient, when all is
sued, to represent and cover the ex-
change value of substantially the en-
tire stock of the Great Northern and
Northern Pacific railway companies,
upon the basis and at the rate agreed
upon, which is about S122. 100000 i'll
excess of the combined capital stock
of the two railway companies taken
at par.
Points Out Evil.
"If the government fails to prevent
the carrying out of this combination
or conspiracy, not only will a virtual
consolidation of two competing trans
continental lines, with the practical
pooling of their earnings, be affected,
and a monopoly of the interstate and
foreign commerce formerly carried on
by them as competitors be created and
all effective competition between such
lines in the carrying of interstate and
foreign tratfice be destroyed, but
thereafter. to all desiring to use it,
an available method will be presented
whereby, through the corporate
scheme or device aforesaid, the act OF
congress of July 3, 1890. may be cir
cumvented and set at naught, and all
transcontinental lines, indeed the en-,
| tire Il 1j1uvnv cpcfon,c Of tho nn1intrv
may be absorbed, merged n con
solidated, thus placing the public a
the absolute mercy of the holding cor
poration."
Prays for Injunction.
The petition prays, that the North
ern Securities Co., its stockholders
officers, ETC., be perpetually enjoinet
from purchasing, voting, etc, any o
the shares of the capital stock of eth
er the Northern Pacific or Grea
Northern companies and that a mar
datory injunction may issue requirini
the Northern Securities Co. to REGAL
and cancel any certificates of stocl
issued by it in purchase of or in eA
, change for any of the shares of tn
capital stock of either of the said raj
way companies surrendering in retur
therefor the certificates of stock i
the respective railway companies j
= lieu of which they were issued. 1t
also asked that the defendants, tn
Northern Pacific and the Great Nortl
: ern railway companies, their officers
: stockholders, etc, be perpetually Ell
? joineu from in any manner recogni:
/, ing or accepting the Northern Secu
| tiles Co. as the owner or holder of an
: of the shares of their capital stool
etc.
!, Individuals Who Act for Government
/ The petition is signed by Milton
Purdy, attorney of the United State
t for the District of Minnesota; Phila'
der G. Knox, attorney general of th
United States, and John X. Richard
e solicitor general of the United State