The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-10-21
HILL DEFENDS THE MERGER.
shareholders Exchanged Their
Stock Uninnuenced NV Him.

shareholders Exchanged Their
stock UninfIuenced by Him.
st. Paul, Oct. 20-The adjourned
hearing of the government suit against
the so-called railway merger was CALL
ed TO order by Special Examiner In
gerson at the Circuit Court room in
this city to-day and the entire day
was given to the direct testimony of
James ]. Hill for the defendants, the
cross-examination being just begun
when the hearing adjourned for the
day.
Mr.. Hill went over much of the
ground previously covered by him in
his testimony before the Interstate
Commerce Commission and in other
suits similar to this, but to-day he
brought out more fully the fact that
the exchange of the Great Northern
stock for that of the Northern Securi-
utles Co. was the individual act of the
individual 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-
utlon with the transportation COM
pan1es of the world
The circular of the Northern Securi-
ties Company to shareholders offering
to exchange stock had heretofore been
placed in evidence, but to-day the law
yers, through Mr.. Hill, introduced a
personal circular letter sent by him to
numerous Great Northern sharehold-
ers, in answer to inquiries. telling them
that any action of the holders 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 fol-
lowed by w. P. Clough, Frederick
Weyerhauser and other defendants or
directors of the defendant companies.
Mr.. Hill described at great length the
conditions of traffic on the Great
Northern and Northern Pacific lines,
maintaining rates were kept down in
order to obtain business. Railroad
competitors to the Pacific coast, he
said, are the Canadian Pacific, Union
Pacific and Southern Pacific and a
new line now under construction. His
chief competition, however, was with
the conditions all over the world, and
not alone with these Western railways.
markable increases in Oriental traffic
within the last year, while oil and some
other commodities decreased. The year
ending June. 1902, showed about double
the Oriental shipments of the previous
year.
At the afternoon session Mr.. Hill
went into the question of merger. Mr..
Hill said the purpose, after the pur-
chase of the Burlington company and
of the large blocks of Northern Pacific
stock in the formation of the North
ern Securities Company, was to put the
stock where it could not again be
raided, as it had been. 1t was prefer
ably not a railroad company"
Railroad charters almost always dc
not provide for buying other COM
panies and the organization of a sep
arate holding company would be free
from the possibility OF raids intend
ed to destroy or hamper the company.
Any other sort OF plan for controlling
great Oriental traffic would result in
loss and possibly wreck the whole en-
terprise. He went over again the
ground of competition with transporta-
ton companies of the whole earth on
the high seas. and then, recurring to
the holding company, he reiterated
that the whole intent and purpose
was to protect the companies interest
ed and there was absolutely no in
tent or thought of restricting trade
On the contrary it was looked on as
the most effective way of developing
the great Oriental trade"
There was. so far as he knew, never
any intention or purpose of destroying
competition between the Northern Pa.
cific and Great Northern Railway Com
panies by the organization of the
Northern Securities Company. He be-
lieved the competition was as free and
as full as at any time in twenty years