The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-01-08
DOUGLAS Tiles HIS !
BILL Of COMPLAINT.
First Formal Proceedings Taken In
Case of State of Minnesotavs.
Northern Securities Company.
ATTEMPT TO INTEREST PRESIDENT

poration Of the latter filed in New Jersey.
Nov. 13, 1901, is quoted in full
GENESIS OF NORTHERN
SECURITIES COMPANY.
Taking up the Northern Securities COM
pany, it Is set forth that it was organ
lied by James J. Hill, W. P. CIough, J.
Pierpont Morgan and "other associates
to the oratrix unknown who at the time
were continually in conference over
means by which the laws of Minnesota
might be successfully evaded or avoided,
and that it was organized solely for
the purpose of effecting a consolidation
Of the Great Northern and Northern Pa
clhc The owners of a large majority Of
the stock Of the two systems had agreed
beforehand to transfer to the new COM
pany 70 per cent of the stock of the two
systems on terms which are set forth I'M
full, and to retire the preferred stock of
the Northern Pacific. In furtnerance of
the plan to evade the laws Of Minnesota
II was agreed tAat pending the delivery
OF the stock to >-e Northern Securities
company it should all be turned over to
James j. Hill, or be under his control .t
The Northern Securities company. it is
charged, does not intend to purchase this
stock, but simply to issue its own stock
in exchange therefor. For these unlawful
purposes the company is about to re-
ceive, unless enjoined therefrom, all the
capital stock of the Great Northern and
Northern Pacific. This, it is claimed is
part of a plan of Messrs. Hill, Morgan
and their associates, whereby the two
systems are to be consolidated and placed
under the direction of one man or board
of directors, through the defendant COM
pany, and thus bring about and perpetu-
ate monopoly in railway traffic in Min
! nesota, and a complete consolidat ton OF
hA fxHyn Cl,,.@
thus it is alleged, be enabled to fix all
rates on lines of the state, determine
what trains shall be run, remove all com.
petition and prevent the building of lines
into new country or into competitive ter
! ! ritory.
THE PUBLIC SAFETY IN
GRAVE PERIL
This agreement and the consummation (
thereof are claimed to be 'in restraint OF
trade, against public policy and void. ,
Under its terms the directory OF the
Northern Securities company may change
it's own rules or may delegate all it's au-
thority to an executive committee. 1t Is
pointed out that Hill, the president; w.
p Clough, the vice president, and E. T.
Nichols, the treasurer ard secretary of
the company, were all at the date of it's
organizations officers of the Great North
ern, and that a majority of it's directors
were also directors of the Northern Pa
cific. 1t has been the settled policy of
the state to prohibit consolidation of par
allel Or competing lines, and the law Of
1874, in which such prohibition is made,
is quoted in full, as well as the amplify-
ing act of 1881 and the antitrust law
of 1899, prohibiting any combination In
restraint of trade. 1t is set up that the
Northern Securities company is a rail-
road corporation within the meaning of
the Minnesota laws, and that it's design
is to evade, escape and violate those laws
in such way as to cause the state 'irre-
parable injury 1t is not the owner Of
any other property or stock or securities,
and is engaged in no other business save
that of management and control of the
Great Northern and the Northern Pacific. 4
Already, so it is alleged, James ]. Hill,
as president Of the Northern Securities
company, has dictated, changed and con-
trcIled the policy of the two constituent
roads, and during December, 1901, it is
alleged, the general managing officers OF
the Great Northern, acting under his di-
rection, took charge of and are now en-
gagged in managing large portion Of tho
business of the Northern Pacific. IT is al
legged that it is the settled policy of New
Jersey to allow the consolidation of only
such railways as are, or can be connect
ed to form continuous lines, and not to
permit the consolidation Of parallel CT
competing lines. The oratrix claiming TO
have no other adequate remedy or relief.
except as prayed for in equity, asks that
the defendant be required to show cause
why it should not be perpetually enjoined
and restrained.
ONLY SEVEN LITTLE
THINGS ASKED FOR.
First-From voting at any meeting OF
the stockholders of the Great Northern
and Northern Pacific the capital stock
Of these companies and from attending
in any manner such meetings.
Second-From aiding, advising, interfer-
ing with, or in any way participating In
the management of the two systems.
Tnird-F'rom permitting any Of its Of
ficers, agents or servants from acting as
representative, director, officer or en-
ploye or exercising any control, manages
ment or direction over the same.
Fourth-From making any arrange
ments or combinations having for theln
object such joint control
Fifth-From holding, owning or con-
trolling any of the stock of either COM
pany, the defendant company being re-
/ quired to reassign or retransfer all such
stock to the person from whom it was
received, taking in return its own stock
issued in exchange therefor and mean
while to be enjoined in all respects in re-
lation to said stock as hereinbefore pray
ed for
Sixth-From receiving any more stock
of the two companies, In case it shall
appear that the defendant company. has
not yet acquired controlling interest in
either.
Seventh-The oratrix prays permission
to amend the complaint if necessary and
bring in other parties for the purpose OF
giving force and effect to any decree Of
the court, and asks the court to Issue
a subpoena against the defendant COM
| pany and set day for the hearing.