Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-05-06

has been alleged to be the reason for
the oganlaation Of the holding COM
pan.
At the time j. Pierpont Morgan &
Co held about $4,000 900 of the common
stock. In the fall Of 1900 Mr. Hil and
these Great Nothern shareholders as.
cussed the question OF putting their
holding company, as well as the Ques.
ton of giving the same RICH 10 the
other Great Northern stockholders.
The answer then continues. at the
time Of the purchase OF the Burlington
shares II was not contemplated by
either the purchasing company or Ity
shareholders that any alliance between
the purchaser companies or among
their shareholders was needed 10 urc.
serve to each company It's fair share
OF the advantages secured by the rur.
chase. II was thought that the mani
fest interest OF each company rendered
any further guaranty or security need
less. But, pending, or just after the
conclusion OF the negotiations FOR The
Burlington stock parties acting I'm the
interest Of the Union Pacific railway
system did buy No,hern Pacific
shares, both common and preferred. TO
the amount Of about $4,000 700. being a
clear majority OF the entire capital
stock Of that company"
IL Is denied specifically and generally
that any stock thus secured is 10 be
held or used FOR the purpose Of com.
bining, CONSOLIDATING or placing under
one common management or control
the railways Of the Great Northern and
Northern Pacific companies or the
business therefor; for the purpose Of
monopolizing or restraining compeu-
ton between the said railway com.
panies or for any other purpose than
the election by each Of said railwaycom-
| panles OF a competent and distinct
board OF directors able and intending
TO manage each Of them Independently
OF the other and for the benefit Of
their shareholders and Of the public"
IL is said that every share OF stock
issued Is in good faith for value re-
| ceived and In accordance with law.
that no agreement limiting or CON
: trolling the individual shareholder IN
| voting his own stock has been signed
or required, and that the owners and
holders OF stock OF this defendant are
| more than 1906 in number, and the
ownership Of stock is being changed
from day to day by sales and trans
fers In the usual course or dealing.
The said persons who formed or were
otherwise concerned in the formation
OF this defendant have never all to-
gether, held, owned or otherwise con-
trolled an amount Of stock Of the said
company equal to so much as e-third
OF the whole amount therefor now out
standing"
II Is explained that the capital was
fixed so as to incldue all the stock Of
the two companies, II its holders so de-
sired, but II is said that "this defend
ant was not formed as a scheme or a
device 10 evade the act OF Congress
known as the antitrust act or any
other law whatever, but solely for the
purpose hereinbefore stated"
II is further stated that the securities
company was not formed for the pur'
pose OF restricting trade or muzzllng
competition between the two railway
companies, nor would such results fol-
low from It's organization, for In point
of fact, since the securities company
was formed, both lines have voluntarily
so reduced rates as TO decrease thelI
earnings 10y more than 100000 annual
ly. II is claimed that for all interstate
commerce the rates are fixed by join
tariffs with connecting lines and 1t 4
stated further that 'in respect 20 al
such traffic neither Of the defendant
companies has ever had,or can haye,anl
independent rate making power or con
troll Of traffic or rates
All joint tariffs with other companies
to or from points common TO the line'
Of the defendant railway companies