Omaha daily bee., 1902-03-11
MERGER BILL FILED
CONTINUED from First Page.)

CONTINUED from First PRge)
converted into an interest in the property
and franchises of the Northern Securities
company.
Pooling the Earnings.
The individual stockholders Of the North
ern Pacihe Railway company were no
longer to hold an interest in the property
or draw their dividends from the earnings
Of the Northern Pacihc system, and the in
diyidual stockholders Of the Great Northern
Railway company were no longer to hold
an interest in the property or draw their
dividends from the earnings of the COM
pany, but having ceased to be stockholders
in the railway company and having become
stockholders in the holding corporation,
both were to draw their dividends from the
earnings Of both systems, collected and
distributed by the holding corporation. In
this manner, by making the stockholders OF
each system Jointly interested in both sys-
TENS and by practically pooling the earn
ings of both systems for the beneht OF the
former stockholders of each and by vest
ing the selection Of the directors and ON
GERS Of each system in q common body, to-
wit: the holding corporation, with not only
the power, but the duty TO pursue a policy
NOaAa ~ eAASA1 49,
one system at the expense Of the other. but
of both at the expense Of the public, all in
ducements for competition between the two
systems was to be removed. a virtual con-
nolidation effected and q monopoly Of the
interstate and foreign formerly
carried on by the two systems as indepeno-
ent competitors established.
Next step the Securities Company.
sIn further pursuance of the unlawful
/ combination or conspiracy aforesaid, and
solely as an fundamentally through which
to effect the purposes thereof, on or about
the 18th day OF November. 1901, the North
srn Securities company was organised by
the election Of q board Of directors and tbs
selection Of a president, James J. Hill, anc
other ofhcerE, who, with their associate
stockholders of the Great Northern REilwa,
company, assigned and transferred TO tbs
Northern Securities company q large amount
Of the capital stock Of the Great Northern
Railway company, constituting a control
ling interest therein and complainant be
Ieves a majority thereof. upon the agrees
basis Of exchange of $50 par value Of th'
capital stock OF the Northern Securities
company for each share Of the capital stool
Of the Great Northern Railway company
and the defendant ]. Pierpont Morgan AM
his associate stockholders Of the Northern
Pacific Railway company, assigned ant
transferred to the defendant, the NOrtherI
Securities company, a large majority OF tn
capital stock OF the Northern Pacific Rail
uny eompAny upon the agreed basis Hf en-
change of ais par Yalne Of the capita
stock Of the Northern Securities cOmpan.
for each share Of the capital stock Of tn
Northern Pacific Railway company; an
thereafter the Northern Securities oompanl
offered 10 the stockholders Of the dsfendan
railway companies TO issue and exchGnsi
its capital stock for the capital stock o
each railway company upon the basis Of az
change aforesaid. ne other consideration be
ing required
Tn DESCENDANT, the Northern Securitie
company, has acquired an additional amour