The sun., 1902-03-11
NORTHERN SECURITIES TEST.
THE GOVERNMENT NIL FILED
AGAINST THE MERGER.
The Text OF the Complaint That the Con'-
bination Is Against the sherman Law
and the Prayer for the issue OF
Permanent Injunction In the case.

The Text OF the Complaint That the Son'
bination Is Against the sh erman Law
and the Prayer for the Issue OF =
Permanent In junction In the case
WASHINGTON, March lO.-This Is the bill
nj equity filed in the United States Circuit
Court for the District of Mime sofa by the
Government to test the vail dity Of the
'orthem Securities merger and asking
fa permanent injunction against the
No, thern Securities Company and Northern
pach 70 and Great Northern II lilroads from
furtbAr operations under the merger.
s1HE\ 'IRCUIr CorRr or THE NITrD STATES
FOR THE DISTRICT or HISNEsorA-IHB
I'NITnD STATES or AMERICA, COMPLAIN
Ant, Va. NORTHERN SlIC1 RITES COM
PANY. TIE GREAT NORTHERN RAILWAY
COMPANY THE NORTHERN PACIFIC RAIL
WAY COMPANY. AND OTHERS. DEFENDANTS.
'"'. PETITION.
70 me judges Of the Circm: Cou rt Of ihc United
States for the District of MinncSotd;
Vow comes the United STATE OF America.
by Milton d Purdy, tn. INT sd States At
t9rnsy y 'D for tho district Of Mmlies9ta. acting
under direction OF the httorn'X5-' ''eHerdl ro ol
ceeding by way OF petition aEan ~ the NORTH
ern Securities Company c9rpo 'ht on organ
~ New jersey. the Great Nortlcrl Railway
company, a corporation organiH" ana ok
isting under the laws ot ti' 5tue 81 ~ ~n!lni,-
the sYl laws w., 9th Of the Sate of Wsconsn mcs }
Uiu a citizen OF the State Of Minnesota
and a resident OF St Paul. and William +
tloush II. Willis james. John 5 Kennedy,
J. Perpont Morssn hVorrt n'oo i1sns %Go' Gf
he state OF New York and reSdelt, oi New
York oty. and. on Information and bcI"i'
complains ana says.
The defendants. the Northern Pacific Rail-
way Company and the Great No thefi faH
way Company were. at the times hereinafter
mentioned. and now are, common carriers,
employed in the trans pona atiot OF lteiSH 1Hu ,hd
f'nited states and between such states ana
foreign nations, and, a. such curriers' SO tlu1
ployed. were, and are. engaged m TRACE ara
commerce among the several States ana WIN
foreign nations. .
On and prior 20 tho 18th day Of November.
1901. The defendants, James Hill. william
r. Clough, u Willis James aud John Ken
nedy, and certain other persons whose hain'-
are unknown 10 the complainant, but whom
II prays to have made parties to this action
shen asoertained hereinafter referred 90
as James J ilill and , ms associate St%'o or
the capital stock OF the defendant. ihr GrSdi
Northern Railway Company. and the DC.
PENDANTS. j Picrpont Morgan and Robert
bmking Arm of J p Morgan & 90 of New
York city,. George I. Baker and Daniel ;.
lamont and certain other persons whose
names are unknown 20 the complainant,
but whom II prays to have made parties 70
referred aSI'f TO- as Picrpont Morgan and his
associate stockhodcrsl. owned or controlled
a majority Of the capital Nock or the de-
fendant. the Northern Pacific Railway COM
pany
The Northern Pacific Railway Company
and the Great Northern Railway Company. at
and prior To the doing Of the act herrinllter
complained of, owned or controlled ana "p"r5
ated two separate. independent, parallel ana
competing lines OF railway running east ana
west into or across the States Of Wisconsin.
Minnesota. North Dakota. Montana. Idaho
Washington and Oregon, the Northern PhctlC
system extending from Ashland in the STATE
of Wisconsin, and from Duluth and - PAU,
in the state Of Minnesota. through Helena.
In the state of Montana. and spokane, IN the
State of Washington. to Seattle and Tacoma,
in the State Of Washington, aud Portland. in
the State OF Oregon, and the Great Northern
system extending, from superior. W tne SttfH
in the state of Minnesota, through spokane.
in the state Of Washington. to Everett and
Portland in the State of Oregon with branch
line 10 Helena, in the State of Montana, thus
furnishing to the Pq6t tTo & p@raies noInactn 1ng
the Great Lakes and the Mississippi River
with Puget Sound and tho Pec nc Ocean.
Al the times mentioned, theS" two railway
systems. which will hereafter be referred to
respectively as the Northern Pacific system
and the Great Northern system, cach ol
which, with its leased and controlled lines.
main and branch. agTegqtes over $500 mile;
In length, were the only trnnScontlnenthl
lines OF railway extending across the northern
tier Of States west Of the Great Lakes. from
the Great Lakes and the Mississippi River TO
In active competition with one another FOR
freight and passenger Taihc among th'
tween such States and foreign countries.
each system connecting at it, eastern ter
rninals, not only with lines Of railway, but
with lake and river steamers to other States
and 10 foreign countries. and az IL western
terminals with sea-going vessels 10 other
states Territories and possessions Of the
United States and TO foreign couutrle~.
'' "
Prior TO the year iso3 the Northern Pacific
System was owned or controlled and operated
by the Northern Pacific Railroad Company.
a corporation organized and existing under
certain acts aud resolutions OF Congress
During that year the company became in
solvent and the line was placed in the hand.
OF receivers by the proper courts OF the nit"d
States while in this condition, awaiting
foreclosure and sale. an arranEement wa-
entered into between majority Of TIE bond;
Comrany and the defendant, tho Great North
ern Railway Complny, Tor virtual Isoli-
Northern Systems and the. placing Of The
Dractical control of the Northern Pacific
Svstsn in tho hands Of the defendant. the
Grent Northern Railway Company.
This arrangement Contemplat'd d the sale,
undrr foreclosure. OF the rropctty and fran
chisos Of the northern PariNc Railroad Com
rsny % a committee Of the hondholdors
who should organize a new CORPORATION 20
ia known ne the Northern Pacific Railway
Company. which was 20 bcCom" the successor
nf tho Northern Pacific Railroad Company:
one-half of the Cauital stock Of the new com
nuny was to he turned over 10 IN" share
koldors OF the defendant N" Great North
crn Railway COMPANY, which IN turn was
In guarantee the payment Of the h. nds OF the
Northern Pacific Railway Company.
An agreement u was To "" entered into for
tile exchange of tratllc al lut"r~"Cting and
connecting points and Tor N" division OF
earnings therefrom The CARRYING ont OF
this arran cement was defeated hy the decision
Of the supreme Court Of the United states
IN tho case OF pearsall " the Great North
crr Railway Company which was decided
March 30. 1894. and Is reported in the lGl-t
voiune OF the reports Ot said court, bcriu-
Ming on "a re Gao. to which reference H. made.
in which II was held that the practical oGcot
would ha the consolidation Of two parallel
and competing lines Of RAILWAY. aud the
giving to the defend ant. N" Great northern
Railway Company. y monopoly 0t all trInlr
II the northern half of tho state of Mime
sota. as we'll as Of an trausroutilcntal traOIc
porth Of the lin" OF N" Union Pacific. TO the
detrimcht Of the public and iu violation Of
the law. OF the state Of Minnesota
Early in the ycnr 1901 tho Dc fcudart- the
Gre,t Northern and Northern Pacific Railway
rompanies acting for the purpose Of tro-
noting their JOINT interests, and ia cor
temrlation Of the NIT mate placing of tie
Great Northern and Northern Pacific sv--
tens under common source Of control