Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1902-03-13
The Dissolution of the North
ern Securities Company
is Asked.
PAPERSFILEDATST.P PAUL
Federal Court to Hear Issues in Which
the Allegation Is Made that the Re-
cent Consolidation of Railroads Is
Illegal and Void.

cent Consolidation of Railroads Is
Illegal and Void.
> y, 4 ~Ia,e
st. Paul, March 11.-By direction of
the attorney general of the United
States a bill was filed in this city
last evening in the circuit court of
the United States for the district of
Minnesota in the cas- of the United
States, complainant, against the North
ern Securities Co., the Great Northern
Railway Co., the Northern Pacific Rail
way Co., and others. defendants, to
test the legality of the alleged combin-
alton of merger of the two roads and
others named in the bill. The action
is brought under the act of July 2,
1890, known as the Sherman antitrust
act.
Statement of Fact.
After reciting the fact that the
Northern Securities Co., is a corpora
ton organized under the laws of the
state of New Jersey; that the Great
Northern Railroad was organized I'M
der the laws of the state of Minneso-
ia, and the Northern Pacific railroad
under the laws of Wisconsin, and that
the two last named companies are
common carriers doing an iterstate
Business, and that these companies at
and prior to the doing of the acts COM
planned of, owned and operated two
separate, independent, parallel and
competing lines of railway a%ggregat-
ing over $500 miles in length, the pc
tition goes on to say that they were
the only transcontinental lines of rail
way extending across the northern
tier of states west of the Great Lakes,
from the Great Lakes and the Missis-
sippi river to the Pacific Ocean and
were then engaged in active competi-
ton with one another for freight and
passenger traffic among the several
States of the United States and be-
tween such states and foreign coun
lIlCS, SdCl oyoICIl 40 Soot
ern terminals, not only with lines Of
railway, but with lake and river steam
ers to other states, and to foreign
countries, and at it's western termin-
ais with sea-going vessels to other
states, territories and possessions of
the United States and to foreign coun-
tries.
Attempted Consolidation.
"That prior to the year 1893 the
Northern Pacific system was owned
and operated by the Northern Pacific
railroad company, a corporation organ
lied under certain acts of congress;
that during that year the company be.
came insolvent and was placed in the
hands of a receiver. While in this
condition, awaiting foreclosure and
sale, an arrangement was entered into
between a majority of the bondholders
of the Northern Pacific Railway com
pany and the Great Northern Railway
company, for a virtual consolidation
of the two and placing the control o.
the Northern Pacific system in the
hands of the Great Northern. This
arrangement contemplated the sale
under foreclosure of the Northern Pa
ciic company to committee of bond
holders who should organize a new
corporation to be known as the North
ern Pacific Railway Co. One-half O.
the capital stock of the new compan!
was turned over to the Great North
ern Co., which in turn was to guaran
tee the bonds of the Northern Pacific
Railway company.
Courts Illustrate 1t.
"The carrying out of this arrange
ment," a y the petition, was defeat
ed by the decision of the United State!
supreme court in the case of Pearsal
against the Great Northern Railwa.
Co., which was decided March 80, 1886
in which it was held that the practica
effect would be the consolidation o
two parallel and competing lines o
railway, and the giving to the defend
ant, the Great Northern Railway Co
a monopoly of all traffic in the north
ern half of the state Of Minnesota, a
well as of all transcontinental traffl
north Of the line Of the Union Pacific
to the detriment of the public and j
violation of the laws of the state c
Minnesota.
Where Burlington Comes In.
"Early in the year, 1901, the defent
ants, the Great Northern and Norther
Pacific Railway companies, in conten
plation of the ultimate placing of tn
Great Northern and Northern Pacif
systems under a common source {
control, united in the purchase of tn
total capital stock of the Chicago, Blu
lington & Quincy Railway Co., of III
nois, giving the joint bonds of til
Great Northern and Northern Pacif
Railway companies.
Say 1t Was Unlawful.
.In this manner the Great Northel
and Northern Pacific Railway COZ
panies secured control of the vast sy
tenn of lines known as the Burlingtc
system, about 5000 miles in lengt
The attempt to turn I'VE a controlli1
interest of the Northern Pacific Ra
way Co., to the Great Northern, havir
thus, in the year 1895, been defeat'
by a decision of the supreme court, tt
defendants, James J. Hill, and his g
sociate stockholders of the Gre
Northern, owning or controlling a m
iojrity of it's stock, and the defendant