Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-10-21
HILL TALKS OF MERGER
Says Northern Securities Company Was
Formed to Stop Stock Bonds.
NO ONE CONSIDERED RESTRICTING TRADE
Fight for Ocean Control Seemed
Likely TO BeneHt by Formation
of Holding Concern, but
No One Need Sell.


aminer r. G. Ingersoll today in the United
States circuit court continued the examina-
tion OF witnesses in the case Of the United
States VS.. the Northern Securities COM
pany, the first hearing having been ad-
journed from New York to this city. So
licitor General J. X. Richards and w. A.
Day were attorneys for the interstate com
merce commission, j. NJ. Beck represented
the government, while former Attorney
General ]. w. Griggs, David Wilcox OF
New York, George B. Young, G. w. Bum
and NJ. d. Grover OF St Paul appeared for
the defence.
The New York hearing substantially COM
pleted the governments presentation of its
case and the testimony to be given today
was on behalf Of the defendants, the North
ern Securities company, the Northern Pa
ciic railway, the Great Northern railway
and the principal oficials. Of those COM
panies.
The entire day was given to the testl-
mony Of ]. J. Hill for the defendants. He
went over much OF the ground previously
covered In his testimony before the Inter-
state Commerce commission and in other
suits similar to this, but today he brought
out more fully that the exchange Of Great
Northern stock for that OF the Western Sc
curities company was the act of individual
shareholders. He dwelt at length on his
statement that the purpose Of the Northern
Securities company was the protection OF a
great commerce with the Orient which the
northern lines had sought to develop in
competition with the world.
Must Act on own Initiative.
The circular Of the Northern Securities
company TO shareholders Offering to ex-
change stock had heretofore been placed In
evidence, but today the attorneys, through
Mr.. Hill. brought in a personal circular
letter sent by him to numerous Great
Northern shareholders in answer to in
quiries, telling them that any action Of
theirs in changing their stock must be
their own individual action and not be in
huenced by him. Mr.. Hill will be on the
stand again tomorrow, and will be followed
by Colonel w. P. Clough. Frederick Weyer-
hauser and other defendants or directors
Of the defendant companies.
1t was FIVE minutes after IL o'clock when
Examiner Ingersoll administered the oath
to ]. ]. Hill, president OF the Northern Sc
curities and Great Northern Railroad Com
pany. The examination was conducted by
George B. Young.
The testimony at first covered Mr.. Hills
ofhcial connection with the Great Northern
railway and the previous companies Of
which 1t was the outgrowth. Mr.. Hill told
of the traffic that could be depended on
along the Great Northern, especially the
lumber from the Pacific coast, the rate on
which had previously been prohibitory, but
was reduced from 80 cents to 40 cents
hundred after his line was completed He
also told in detail the development OF the
oriental trade.
In reply to a question Mr.. Hill said that
on the west end OF his line the local supply
of coal was insufficient. Within the past
two years the dificulty OF getting coal from
Pennsylvania to Lake Erie was very great,
his company being unable to secure suf-
hcient supply in 1900 for its own use at
either Lake Erie or Lake Superior ports
Coal for domestic use was also unobtainabIe
the terminals being unable to handle all
the cars. The case was even worse this
year, less than half the proper supply being
now on hand for the season. It was even
worse in the case Of coal for domestic use
The situation is serious this year and will
constantly grow worse.
Burlington Aids Fuel Supply,
He referred particularly to bituminous
coal and spoke OF the use OF the Burlington
line as a means of supplying northwestern
needs for fuel, its connection with the soft
coal fields, its low grades and the conse-
quent possibility OF large loads making
lower rates possible.
BY the use of the Burlington for coal
business over that and the northern lines in
unbroken loads lower coal prices will re-
suit. The Puget Sound coal fields would
furnish a supply east of Spokane, the Brit
ish Columbia coal is nearly as far away
and cannot be brought proftably this far
east. Recent developments have taken the
coal shipments north from St. Louis to
Northern Minnesota, and the return load
will be iron ore from the Minnesota ranges.
The direct connection with the Burlng-
ton makes possible lower and more GER
tain rate on this class of business. They
must take all business possible to the coast
or else it would be necessary to raise the
rate on the east-bound lumber. A trunk
line to Chicago. st. Louis and other CEN
ters makes 1t possible to control the re-
turn shipments and keep down the rates
The Burlington connection gives greater
uniformity In car service and also makes
possible the handling OF unbroken train
loads.
All conditions affecting the Great North
ern would naturally affect the Northern
Pacific similarly, especially so in the mat
ter OF coal supply. Both roads must hancle
business both ways in order to compete with
everything that floats and 10 compete with
the SueZ canal route but they were doing IL
successfully. They compete with Germany
and Great Britain In transportation apd
production and with Norway and Sweden
in transportation alone, in a less degree
with the Panama route.
Manufacturers from Ohio and even some
parts OF Pennsylvania must have a rail haul
In either direction and can be transhiopad
either across the Atlantic or Pacific. Rail-
road competitors to the Pacific coast are
the Canadian Pacific, Union Pacific and
Southern Pacific and a new line unds sr con-
struction. His chief competition however.
was with the conditions all over the world
and not alone with these western RAILWAYS.
Speaking Of the new line OF steamships
he said the first ship would be launched I'm
December with tonnage OF 2s 900. or 10 600
tons more than the Celtic, which Is the
largest ship now afoat.
Cotton and machinery showed remarkahl,.
Increases in oriental trafnc within the last
year, while oil and some other commodities
decreased. The year ending June, 1902.
showed about double the oriental shin
ments Of the previous year.
Fail to Get Burlington.
At the afternoon session the questions
were directed mainly toward the sd-ca1Iad