The Cooperstown courier. (Cooperstown, Griggs Co., N.D.) 1902-1913, 1902-10-30

there was nothing to prevent Mr.. Harri-
man from buying more stock Of the
Northern Securities company. II he was
willing to pay the price asked for it by the
owners. He might even buy enough to
have control. but he. Hill. did not think
the owners would be likely to sell 1t, and
so that though he now has some eighty
or ninety millions Of the four hundred
millions Of stock. he did not consider 1t
likely he would ever have control. s-ss's
He explained that the Organization of
the Northern Securities company was to
prevent any such raids as were made in
1901 and would make it very difficult even
1t not substantially impossible for any one
person OF, syndicate to get control Of the
stock Of the roads In the hands of the
holding company. By having the, owner
ship of the roads stable and not likely
to be frequently changed, rates could be
reduced. He thought that no more than
10 per cent Of the business was competi-
tive between the Northern Pacific and the
Great Northern roads; that is, interstate
business. t3 3rs-
Mr.. Hin was examined at length re-
garding the Great Northern mileage. He
explained that the Great Northern scarce
~ absolutely owned any railroad mileage,
but that It operated somewhere from five
to six thousand miles of road under
leases and that It also owned the large
portion OF the stock Of the old Manitoba
road and some other corporations.
He also testified relative to the reduce
ton Of rates made on the Great North
ern since the purchase Of the Burling-
ton system. In response to the question
who directed the reduction on the Great
Northern. he said 1t was q matter Of
conference between the officers and him.
sell. He said the reduction Of rates on
the Great Northern was not a new thing.
but was quite frequent and had been for
number of-years. He said the reduce
ton amounted to 10 or IL per cent on
grain 1t was 10 per cent. It was nearly
that from all places on the Great North
ern which were grain shipping points and
some places more. He thought the re-
duction was substantially the same on
the Northern Pacific. but was not abso-
lutely informed on that point. He dis
claimed having personally made the
changes in the traffic rates of freight, but
when they were matter of great NOM
ent he had been consulted and advised in
the matter. He did not think that the
rates had been reduced on lumber. pig
iron or coal since the purchase Of the
Burlington. because those rates were
abnormally lower before and much lower
than were charged by the Eastern roads.
The gross earnings Of the Great North
ern per ton per mile were stated to be
1863 and the average Of the railroads OF
s4A0 OAtSSu 0khVCS WIGS 660s luOukUS
that the Northern Pacific was higher,
probably In the neighborhood Of 800. On
the Atchison 1t was 1888. Mr.. Hill said
that the rates on the Atchison were
higher than on the Great Northern and
Northern Pacific. and thought that II
they charged the average rate Of the
Atchison 1t would increase their earnings
81, zoo, 900.
Referring to the purchase of a large
amount Of coal land in Illinois, Mr.. Hill
said the Northern Securities company did
not own this land at the time the pres
ent suit was begun. He made this ex-
PLANTATION on the coal question.
Coal Supply.
Witness: do not want to be misunder-
stood, and from the questions I think /
have been. The Great Northern Railway
company and the Northern Pacific Rail-
way company have an interest in this
country and the people living here. and.
tnasmuch as our winters are cold. 1t
would be difficult for them to live here
without fuel. and 1t is very serious mat
ter-it Is very serious matter for the
railways. We don't know now that we
would be able to run. our trains to the
first day Of February, with the lack Of
supply Of COAL, without bringing coal
from Illinois. and we don't know but we
would have to give up portion Of our
freezing before spring-and 1t is not due
by any means to the anthracite strike,
and tried to make it plain yesterday
that 1t was not; but it is due to the in
ability OF the railroads between Lake.
Erie and. the mines In West Virginia,
Pennsylvania and Ohio to move the coal.
They are unable to move the coal up to
get a supply. At this time we have not
been able to get one-haH Of our purchase
for the year. and navigation will close
some time next month. That is the inn
portance Of the control for US Of access
to the coal mines of Illinois, which are
the nearest coal mines to this country,
and the Importance of that will be appar-
rent more and more as time goes on.
Mr.. Hill further testified that when the
Union Pacific desired to get control Of
the Burlington road Mr.. Hartman came
to him while they were negotiating and
wanted to take half interest, but the
was declined. The purchase
of the Northern Pacific by the Union Pa
cific,. he said would have left the Great
Northern in helpless condition because
the Great Northern was jointly and sew
orally responsible. for two hundred mil
Burlington stock. and II the Northern
Pacific owned a joint interest in the deal,
they would be responsible for one-half
c MAJ. n the %ands 'n of riva trana
line with its interest in San
Francisco and from Omaha through the
Platte Valley to San Francisco they could
influence the Burlington to help their
Southern interests and would be in
position to prevent the building up or aid
ing the development of the Northwest
that the Great Northern had worked so
long and hard to establish.
The gist of Mr.. Hills testimony during
the two days he was on the stand was
that the organization Of the Northern Sc
curities company was in no sense a re-
strfction to trade. That the Great North
ern and Northern Pacific and Burlington
were operated separately and fndepend-
emily. That there was no actual merger.
but that their working together was Of
rates had bean reduced as the result Of
this cooperation. and could and would
be still further reduced as tariff increases.
That the whole proposition was within
the law In every respect. That the pur-
chase of the stock, OF the Northern Securi-
ties company was open to any one who
had the money to- pay for 1t and could
agree with the owners as to the price.
That there was no combinattO or agree
ment expressed or implied; but that the
corporation was simply a holding COM
pany. really for the purpose Of making the
II holds. have greater stability
and not likely to be purchased by parties
to use to destroy other property; in fact,
that the whole movement would prove
most advantageous to- the Northwest.
Cost OF the railroad and equipment hav-
ing been incurred. the great. increase Of
Burlington purchase and protecting It
ndvArRa i11fAroRf fsY,foA go