Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1902-05-16

iiues, anu vi Ike advantage TO tht
Burlington lines and the country
served by them, and strengthen eacl
company in the competition with tn,
more southerly lines to the Pacific
coast, with the Canadian Pacific rail
way, and with European carriers, fol
the trade and commerce of the Orient
In such purchase there was no pur
pose to lessen any competition of the
Burlington lines with those of either
OF purchasers, for they are not compel
tive, or to lessen any competition be
tween the purchasers. Such purchase
was not intended to have, and it can
not have, any such effect.
The purchase of the Burlington
stock was not made in view of the for.
nation of this defendant, but solely
from the motives and with the pur.
poses already stated.
| The project of forming a holding
company of any kind was not the re.
suit, in any way, of the failure of the
plan which was defeated by the deci.
sion of the Supreme Court in the Pear.
sail case. There was no connection
whatever between the two.
The project OF holding company
which finally developed into the form
alton of this defendant had it. incep.
ton years before that date, among
several gentlemen, not exceeding ten
in number, who had been large share
holders ia the Great Northern com.
pany and its predecessor, the st. Paul,
Minneapolis and Manitoba Railway
company; some of them from the
original company in 1879, and other.
from dates not long after that time.
They have never held a majority of
the stock of the Great Northern Com.
pany, but have taken an active inter.
est in its policy and administration
have aided it when necessary in financ-
ing its operations; have acted together
in promoting its interests; have, with
some exceptions, served from time to
time As directors and officers (Mr. Hill
having been President of the success
sive companies since 1882; and by
reason of their active interest in the
company and services TO it, have in.
huenced, to large degree, its policy
and management. As far back as
1893, most OF these gentlemen being
we'll advanced, and some far advanced,
in years, they began to discuss togeth-
er what would be the effect upon the
policy, which under their influence
the company had pursued with great
benefit to its shareholders and the
public, should their holdings by death
or otherwise become scattered, and by
what means their holdings could be
kept together, SO as to secure the con-
tinuancc of such policy in the man
agement OF the company. 1t was con.
sidered that If company should be
formed to which they might transfer
their individual holdings, their shares
we're likely to be held together, so
long as the majority in the holding
company should SO wish, and this
would tend to give stability to the
policy OF the Great Northern company,
be of aid to it in financial operations,
and maintain the value OF their in
vestments. These conclusions were
the result of various consultations
among the persons mentioned, or some
of them, but no definite agreement
was made forming such a company or
binding any one to transfer his shares
to it il formed.
From time to time, beginning with
the reorganization of the Northern
Pacific company in 1896, Mr.. Hill and
said other Great Northern sharehold-
ers who had discussed with him
the plan of forming holding COM
pany, had made large purchases OF
Northern Pacific shares, individually
each for himself without any concert
ed action, and solely as investments
About May l, 1901, their aggregate
holdings OF the common stock of the
Northern Pacific company amounted
to nearly twenty million dollars $780,
600 O.OOO) Of the eighty million dollars
$50, 600, ,OO0) common stock OF the
company, which also had preferred
stock, amounting to seventy.five mil
lions dollars ($75. .OOO,OOO), with the
same voting power as the common
stock. At this time the firm of J
P. Morgan & Co. held about six mil
lion dollars $4,000 .OOO) OF the com
mon stock. In the fall of 1900, Mr.
Hill and said Great Northern share
holders discussed the question of put
} ting their holdings of Northern Pa
!, cific stock into the proposed holding
company, As we'll as the suggestion
that all the other stockholders OF tn,
Great Northern company should b.
given the opportunity of selling ant
: transferring their shares to the hold
ing company, and that the capita
, stock should be large enough to en-
. able it to buy such holdings, though
! it was not known that the holders Q
, any considerable amount of Grea
: Northern stock, other than thos
above named, would desire to max
. such transfer.
At the time OF the purchase OF tn
Q Burlington shares, it was not con
: templated by either purchasing com