The herald-advance. (Milbank, S.D.) 1890-1922, 1902-05-16

otaNSS SoulI ny Tie ueIenO-
hnts in the suit brought by the attorney
General Of the United States against the
Northern Securities company, h Great
Northern Railway company, the North
ern Pacific Railway company and others.
Each of the three defendant companies
6led it's separate answer. The answer
hre substantially the same in ZACH case.
Except in so far as they are varied to
meet the technical differences in the
hames and organizations of the various
companies.
The answer of the Northern Securities
3 unique n of special interest be-
eause the attorneys for that company,
Gessrs, John w. Griggs and George B.
Roung, have included, in addition to the
technical and legal reply to the PLAINTIFFS
petition, a concise statement of the de-
R%endant's case. They explain the origin
u the so-called merger and the business
policy and purpose which prompted the
Organization OF a holding The
Explanation is the more interesting part
p the answer and is herewith presented
lrst and out of its regular order with the
technical portions following:
COmpany's Explanation.
Answering the petition. this defendant
pp on Information and belief, saws that
the facts as to the purchase of the shares
! the Chicago. Burlington n Quincy
Railroad company Hereinafter called the
burlington company and the planning
Ind formation of this defendant, and the
motives. intentions and purposes Of the
persons and corporations concerned in
hese enterprises. or either of them, were
bot as enormously stated in said petition,
put were. and are, as follows:
When projecting the line of the Great
Northern to the Pacific coast, that COM
amy Its directors contemplated the
recessity of creating for the line not
merely state and interstate. but an inter-
RATIONAL commerce. Nearly all the coun-
ry traversed or reached by his line
vas then but sparsely settled or not set
yled at all. 1t was principally agricultur-
u, grazing or timber land, with mineral
DEPOSITS In the mountain ranges believed
o be large and valuable, but not devel-
Pped or explored. Whatever commodities
ne region might furnish for carriage
Pould be raw material. of great weight
md bulk in proportion to it's value, which
you'd not bear transportation to market
Except at a low mileage rate such as
Pould be made possible only by every
practicable reduction in the cost of trans
fortation. The available market for all
uch products was far from the places of
Production.
In Washington and Oregon are the larg-
(st and finest bodies of standing timber
q the United States, the best market for
Fhich is in the prairie states Of the Mis-
(issippi valley east of the Rocky noun
fains; but the lumber and shingles from
me Pacific coast would not pear the cost
transportation to those states If the
fars carrying them had to be hauled back
Rmpty, or nearly so, for a distance of
Pom one thousand five hundred to two
thousands miles. And the same is true of
me other products. On the other hand,
{he unoccupied or sparsely settled coun-
iry along the line, or reached by it, could
lot furnish a market for commodities
(nough to load the retaining cars; the re-
(ult being that unless the mpa could
}ecure traffic for carriage beyond the Pa
pfc coast no great traffic either way
>ould exist or be created.
Asiatic Trade.
To meet these conditions the Great
Northern company not only went to great
additional expense in the construction Of
IS line to obtain gradients lower than
nose of any other line to the Pacific
(oast, but also made great efforts to Gre
te and increase in the countries Of East
IN Asia a demand for the products Of this
ountry; and soon after the completion Of
IS railway in 1893 it induced a Japanese
ompany to run a line of steamships, con-
ecting with its railway, on the route be-
ween Seattle and the ports of Japan,
Ehina and Russian Siberia, and succeeded
creating and has since been actively
ngaged In building up a in
Phich the -four manufactured along its
ne, cotton Cloth raw manufactured),
on and steel Especially steel rails and
ates), machinery, and such other manu-
Actures Of this country as a market
puld be found or made for in Eastern
STA, have been carried to Oriental ports,
nd return cargoes of such Oriental prod
cts as are consumed in this country have
cen brought back. A large west-bound,
we'll as an increased east-bound, tart
6 has thus been secured by the
nabling 1t to make sue rates on lum-
er and other products OF the country
erved by 1t as permit them to be shipped
Eastern markets with q profit to the
hippers.
One year before the Burlington pur-
base. this Oriental trafic had reached
hch% proportions that the Great Northern
pmpany caused to be begun the construc-
on Of steamships to be run from Seattle
ports in Japan, China and the Philip
mes. which, from their great carrying
opacity (being the largest in the world),
I'll be able to carry at very low rates
I full cargoes can be securely, and thus
liable the company to move the largest
plume Of west-bound traffic (and also Of
~ IAdAAACJ ut IL loWCSt lotSS.
In the interstate and international COM
cree which the Great Northern COM
eny has thus built up. it completes both
this country and on the ocean with the
her transcontinental lines ~(including
le Canadian Pacifc) and at the Oriental
prts It completes for commerce OF the
GRID. It's rates are n must be made
competition with the rates of ocean
rriers and by way Of the Suez canal.
The policy thus followed by the Great
orthern company in building up an In
irrational. and thereby interstate, COM
cree has been followed by the Northern
acihc company since its reorganization
1896.
Placed at = Disadvantage.
IN creating n maintaining this COM
tltive interstate and international COM
cree both the Great Northern company
nd the Northern Pacific company were
ampered n placed at a disadvantage
nth the other transcontinental railways,
we'll as with European competitors, by
e want OF sufficient direct connection
ltn the territory offering the best mar
us for the products of the country
ong their lines, and with the places OF
oduction and great centers OF distribu-
pm from which their traffic must be
pplied. For many months before the
lrchase Of the Burlington shares. n
ID considered the best means Of getting
oser to such markets and sources OF