The herald-advance. (Milbank, S.D.) 1890-1922, 1902-10-31
MERGER TRIAL
resident Hill on the Witness Stand Tells of the
Organization of the Great Northern and Its
Agency in the Development of the Northwest
Reasons for the Purchase of the Burlington.

r.o emit brought by the United States
Inc nt under the Sherman law to
Vent the consolidation, o r so.called
re ever of the Great Northern with the
U oll lead 20 the taking of a large amount
kes stiuony The taking Of testimony
Ian in New York some little time ago,
r6 was continued in St. Paul this week
eeaminer, ]. j. Hill was the chief witness
e. Paul. and his testimony tells the
az story of the so-called merger IN a
.nre connected way than has heretofore
q devs to complete 1t, 1t was very VOL
nirous. We append a sufficient portion OF
Da evidence to give a connected STORY "
la transaction and the reason LOT MAKING
W. Hill told in a general way OF the
Md,ne of a great railway system, or the
Mnslonment OF the trade In the orient
nj of the coal situation or the country,
~ Yin largely told his story In ms own
~ none of the learned counsel having
ssyosition to throw out a hint that Mr..
MI might better tell it some other way.
He began by relating briefly the organi
tsnitoba road, and later it's r~eorganlza,
IN into the Great Northern road, AND
cmitted without very much pressing tHal
! had very largely. determined tne polacy
snding the lines. This was. however, he
rnlained, largely due to the tact ina
nany of the other directors had oeen
Built for Keeps.
rvnlaining how the Great Northern had
con pushed through to the coast IN 1898,
#. Hill said that $4,000 had been Sdx -
ended for surveying alone, as ne ae-
H. road on thu best possible locations.
Il dropped in a little side lemark at TINS
Ioint BY saying that while riding along
he Pennsylvania system once ne op-
- that yyGfn I
|silt on the fourth right OF way, and, ne
aid, Il wanted to avoid all that sort OF
The traffic of the Western country con-
isfed mostly OF lumber, and IT was es-
cntial for the Great Northern to handle
Ma lumber If it was to do business at
III The rate at that time was 10 cents
hundred pounds which was prohlbitlve.
ND they thought that If they a a rate
az cents they could send lumber East.
knew they couldn t do it with a rate
igher than ~ cents, SO we MADE II Az
ants. and the lumber trade began TO ue-
elop rapidly.
I'm order to make a low rate on East
I'm lumber shipments 1t was essentlal 20
rst have a Western movement OF cars 10
reyent The necessity of bringing empty
ars West to ship the lumber in: Within
our years we had so developed TINS trade
nd trade with Alaska and the Eastern
Hands that we were enaplea 20 he 9 ORR
SIX koooo ~ wiz
Mt, and thus to keep a movement OF
ars which mean a shipment OF lumber
last again at a rate making the shipment
)ossible and profitable.
transportation across the Paclnc. ana
that relation did that have to your pur,
(hase Of the Burlington road stock'
)Sked Mr.. Young.
ave found that the lumber supply Of
he United States east of the Rockies and
|orth of the Ohio river was more and
nore dependent upon the Washington n
oregon forests, and that the time was
apidly approaching when the states
khich were furnishing lumber to the
Cast would not have enough lumber for
heir own needs michigan, for instance,
(ow consumes more than she can manu-
%Acture): was especially interested in
he lumber traffic, because if there was
lumber for us to carry from the West
n our road. l saw that it was only a
uestion Of time when Washington and
oregon would supply all the umber of
pc country. 1t is soon to be 80. In order
onnage, and have markets to which we
ould send anything made in the East,
lnd thus have a continual Eastern affic
eastward l Influenced the japanese to
tead OF the Belgian and English rails,
md later l induced them to buy American
(otton, on a guarantee that if it was not
etlsfactory would pay for it.
AN SoltoH has Decu STOWlIS
cry rapidly ever since. We chartered
hips to take this cotton and these rails
Q Japan. We can make a rate to Hong
kong which will enable the Minneapolis
an get the Chinese trade"
Coal supply.
Y. What advantage II any. did you ex-
ect TO derive and have you derived from
kne burlington purchase In regard to the
upply Of coal for he country traversed
y your line?
Replying to the above question Mr.. Hill
(nought that on the west end they had
local supply of coal and on the east end
gay IN the past has come from Pennsyl-
ana and West Virginia and some from
pnio; but now it was apparent that they
Foulo no longer rely On the previous re-
uarces IN the east, and it is consequent
Y OF vital interest to use the supply they
IN OBTAIN not only for themselves but for
ne public as we'll from the Illinois coal
mus Inc grades of the Burlington road
aooieu .nem to carry an enormous ton
IaSe and the public would soon be COM
Rvlen to rely upon the bituminous coal
uppIy instead Of on the anthracite from
kne east, This coal is a necessity to the
Lsv ye OF me northwest, which would
aontns IN the year if they could not get
~ AT reasonable prices, and they can
~ gel IL from the east at a reasonable
ue T. ne ne ana not claim that this was
NY W. 20 the strike and the local situation
ns year, but this was the ermanen
, - the northwest had got to face,
~ = N the future they could not bring
oa. from the western end Of their line
cause the haul was too far to furnish
q moderate prices.
Ore Trade with st. Louis.
xm naon the last week we had advices Of
h, !" Or lo0,OW tons OF iron ore to go
y N SoEh the winter from the iron mines
H. Nortnern Minnesota to st. Louis to load
NJ coal cars back. The fact that the
oi mas TO come north or that there is
wIL 70 come north makes 1t possible to
4ncstha lower rate on the iron ore, and
steener the iron ore rates and the coal
=. are both affected and are both re-
ars su TO the extent that we car load the
al al ooth ways. This is a matter we
"'o under consideration: this iron mat
: w nave had under consideration may
Gao. q couple of months, but it has cuI-
banated within the last week. We hope
pring. o o" ~
o y IN reference to shipments of cot
y especially, and other articles, what
y saSSuvantage was there in it's being car
= uyet separate lines under a joint tar
Mnch you did not have, where it is
o ny where both roads are under the
hrse enhtrol, for instance. in the matter
hi Mft'eahing bulk or anything Of tina kind,
NAilns from cars?
Z; Well. it is almost a necessity. If
(hlan rs Is TO be at all permanent, to be
ieb - control a rate. The rates on the
"a ~ seds vary according to the supply
4 ~ to Iemand for ships, and we, in order
ositinuu TINS business west must be in a
nj Sni 70 compete to take the traffic.
mother rc mtSn another It may he that
lot IL nha st. Louis. il the Burlington was
d cnn d position to work with us and
Ind sonaaue 70 work with us, thew might