The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-10-21
HILL DEFENDS
THE N. P. MERGER
Entire Day Consumed in Taking
His Direct Testimony.
REHASH OF FORMER EVIDENCE
ELABORATION OF SOME OF THE
POINTS BROUGHT OUT.
REHASH OF FORMER EVIDENCE

r T. PAUL. Mimi, Oct. 2O.-The ad-
, journed hearing OF the govern
ment suit against the so-ealled
railway merger was called to order by
Special Examiner IngersOll at the cir
cult court in this city today, and the
entire day was given to the direct tes-
timony OF President J. ]. Hill for the
defendants, the eross-examination hav-
ing just begun when the court ad-
journed for the day. Mr.. Hill went over
much of the ground previously covered
by him in his testimony before the IN
terstate commerce commission IN other
suits similar 10 this. but today ne
brought out more fully that the ex-
change OF Great Northern stock for
that of the Northern Securities COM
pany was the individual act OF the in
dividual shareholders. and dwelt at
length on his statement that the whole
purpose of the organization of the
Northern Securities company was for
the protection of a great commerce
with the Orient, which the northern
lines had sought to develop in compe-
tition with the transportation compa-
MES of the whole world.
Mr.. Hills Circular.
The circular of the Northern Securi-
ties company to shareholders, offering
TO exchange stock, had heretofore been
placed in evidence. but today the at
torneys, through Mr.. Hill, brought IN
a personal circular letter sent by him
to numerous Great Northern share
holders in answer to inquiries, telling
them that any action of theirs in eX-
changing their stock must be their own
individual action and not be Influenced
by him. Mr.. Hill will be again on the
stand tomorrow morning. and will be
followed by Colonel w. P. Clough
Frederick Weiherhouser and other de-
| PENDANTS or directors of the defendant
companies.
| Solicitors ]. X Richards and w. A
Day, attorneys for the interstate COM
merce commission, and ]. NJ. Beck re-
/ resented the government, while former
Attorney General Griggs, David Viii
cox Of New York, George B. Young, G
| W. Bum and NJ. D. Grover OF ST. Pau
appeared for the defense.
| The New York hearing substantially
completed the governments presenta'
| ton of the case, and the testimony u
| be given today was on behalf Of th'
defendants, the Northern Securities
company, the Northern Pacific Rail
way company, the Great Northern Rail
way company and the principal OH
Gals of those companies
1t was five minutes after IL o'cloci
when Examiner Ingersoll administered
the oath to ]. j. Hill, president of th'
Northern Securities company ant
Great Northern Railway company. TIT
examination was conducted by Georg'
B. Young.
Traffic Question.
The testimony at first covered Mr.
Hills official connection with the Grea
| Northern railway and the previous
companies of which it was the out
growth. Mr.. Hi told of the trafh
4 TIL could be depended on along tn
/ Great Northern especially the lumbe
| from the Pacific. the rate of which
had previously been prohibitory, bu
was reduced from 80 to 40 cents
hundred after this line was completed
He also told in detail the develop
ment of the Oriental trade. In an
swer to questions, Mr.. Hill said tina
on the west end of his line the loca
supply of coal was sufficient for bust
1 ness, but within the past two year
the difficulty of getting coal from Penn
4 syiVania to Lake Erie was very great
/ his company being unable 10 secure
| sufficient supply in 1900 for its owl
use at either Lake Erie or Lake Su
perior ports. Coal for domestic us
was also unobtainable, the terminal
being unable to handle all the cars
The case was even worse this year
less than half the proper supply beinl
now on hand for the season It wa
even worse in the case of coal for do
nestle use. The situation is seriou
this year, and viii constantly grow
worse.
Use of Burlington Line.
He referred particularly to bitumin
Gus coal, and spoke of the use of tn
Burlington line as a means of supply
ing northwestern needs for fuel, II
connection with the soft coal fields
its low grades and the consequent pos
/ sibility of large loads making lowe
rates possible. By the use of the Bur
hngton for coal business over that an
the northern lines in unbroken load
lower coal prices will result The Pu
!
nish a supply east of Spokane, tn
British Columbia coal is nearly as ia
away and cannot be brought profitabl
this far east. Recent development
have taken the coal shipments mort
from st. Louis to northern Minnesot
and the return load viii be iron or
from the Minnesota ranges. The direc
connection with the Burlington make
possible a lower and more certain rat
on this class of business. They mus
take all business possible TO the coas
or else il will be necessary 10 raise IN
rate on the eastbound lumber. A trun
line to Chicago, st. Louis and othe
centers makes il possible to control tn
return shipments and take down tn
rates. The Burlington connection give
greater uniformity in car service an
also makes possible the handling 9
unbrol1en trainloads.
All conditions affecting the Grea
Northern would naturally AFFECT IN
Northern Pacific similarly, especially s
In the matter of coal supplies. Bot
roads must handle business both way
in order to compete with everythin
that floats and 10 compete with tn
Suez canal route, but they were dom
it successfully. They compete wit
Germany and Great Britain in trans
portation and production and wit
Norway and Sweden in transportation
also in a less degree with the Pana
ma route.
Matter of Competition.
II Manufactures from Ohio and eve
some parts Of Pennsylvania must hav
rail haul in either direction and ca
be transshipped either across the Al
lantic or Pacific Railroad competition
to the Pacific coast are the Canada
Pacific. Union Pacific, Southern Pa
cific and a new line under eonstruC