The pioneer press. (Miller, Hand County, S.D.) 1893-190?, 1902-05-15

reach Denver, Kansas City, Omaha and
Aurora, where are located the principal
sm"iters OF silver-lead ores, such as are
mined near the lines of the defendant
railway companies.
They reach omaha, Kansas City and
Chicago where are the great packing
houses and the great markets for the
cattle and sheep OF the ranges of North
Dakota, Montana, Wyoming, Idaho, Ore
gon and Washington.
They reach St Louis and Kansas City.
connecting them with lines traversing
the cotton states, from which come raw
| and manufactured cotton required for
shipment TO China and Japan.
At Chicago and St. Louis they con-
meet with the lines which reach the
points Of supply of manufactured iron,
steel machinery and other manufactured
articles that find market in Japan and
| China.
Reaches Coal supply.
The Burlington line southwark from
| Minneapolis and St Paul along the Mis-
sissippi river reaches the great coal dep
osits Of Southern Illinois. the largest
west OF Pennsylvania and West Vir-
ginia: and its light gradients and con-
sequent low cost of transportation make
IL possible to supply such coal to points
on the lines of each defendant railway
| company east of the Missouri river, re-
| leving the people and the railways of
| that territory from entire dependence
| upon the Pennsylvania and West Vir-
ginia mines, the supply from which is
yearly becoming most costly and less
| certain.
The price paid for said Burlington
stock was lower per mile of main track
covered by the stock than that for
which the stock of any other large and
well established system, In the same
general territory, could then have been
bought.
The purchase OF the Burlington stock
by the Northern Pacific and Great
| Northern companies in equal parts
served each company as well as II II
were the sole owner Of such stock, while
| such purchase might have been beyond
the financial means OF either company by
itself
The Great Northern and Northern Pa
clfc companies therefore each purchased
| an equal number OF shares of the Bur-
| lington stock as the best means and for
the sole purpose OF reaching the best
markets for the products of the territory
along their lines, and of securing connec-
tions which would furnish the largest
amount of traffic for their respective
| roads, Increase the trade and interchange
| of commodities between the regions ira
| versed by the Burlington line and their
| connections and the regions traversed or
| reached by the Great Northern and
Eecting lines of shipping on the Pacific
coast. These connections and such in
| terchange of traffic were deemed to be,
and are, indispensable to the maintenance
| of their business, local as well as inter-
| state, and to the development of the
| country served by their respective lines,
and of like advantage to the Burlington
lines and the country served by them
and strengthen each company in the COM
pc ition with the more southerly lines to
the Pacific coast, with the Canadian Pa
ihc railway and with European carriers
for the trade and commerce of the Orient
In such purchase there was no purpose
to lessen any competition of the Burling-
ton lines with those of either OF the pur-
| chasers. for they are not competitive, or
to lessen any competition between the
| purchasers. Such purchase was not in
tended toha We. and il cannot have, any
such effect.
The purchase of the Burlington stock
| was not made in view of the formation
of this defendant, but solely from the
| motives and with the purposes already
stated
Origin of Holding Company.
The project of forming a holding COM
| pany OF any kind was not the result, in
| any way, OF the failure of the plan which
was defeated by the decision of the SUI
/ preme court in the Pearsall case. There
was no connection whatever between the
| two.
The project OF a holding company which
finally developed into the formation OF
| this defendant had its inception years be-
fore that date. among several gentlemen
| not exceeding ten in number who had
been large shareholders in the Great
| Northern company and its predecessor,
| the st. Paul. Minneapolis and Manitoba
| Railway company; some of them from the
| original company in 1879 and others from
1 I,tA ,,ltIA ftnr hat Tb.,. Aa.,
never held a majority OF the stock Of the
| Great Northern company. but have taken
| an active interest in its policy and admin
| istration: have aided II when necessary in
| financing its operations; have acted to-
| sether in promoting its interests; have.
| with some exceptions, served from time TO
time as directors and officers (Mr Hill
| having been president OF the successive
| companies since 1882: and by reason of
| their active interest in the company and
services to It.. have influenced, TO a large
degree. it's policy and management. AS
| far back as 1893 most of these gentlemen
| being well advanced and some far ad-
| vanced in years, they began TO discuss
| together 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 be-
| come scattered. and by what means their
| holdings could be kept together, so as to
secure the continuance Of such policy In
| the management of the company. IL was
considered that II a company should be
formed to which they might transfer their
individual holdings, their shares were
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 North
| ern company, be of aid to II In financial
| operations, and maintain the value OF
| their investments. These conclusions were
the result OF various consultations among
the persons mentioned, or some or them,
but no definite agreement was made for
| forming such company or binding any
one to transfer his shares to II II formed.
From time to time beginning with the
| reorganization of the Northern PaciDc
| company in 1896, Mr.. Hin and sale otner
Great Northern shareholders who had
discussed with him the plan OF forming
1 holding company, had made large pur-
| chases Of Great Northern shares, individ-
ually, each for himself without any con-
certed actor, and solely as investments
| About May ], 1901, their aggregate hold
| ings OF the common stock OF the NORTH
ern Pacific company amounted 10 nearly
twenty million dollars &2OVo,oool or the
| eighty million dollars (SsO,OOo,OpO) CONF
mon stock of the company, which also
had a preferred stock, amounting TO sew
entv-fye million dollars @75Oo0.OOO
wit, the same voting power as the COM
mon stock. At this time the nrm OF J.