Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1902-03-13
TWEEDLE DEE AND TWEEDLE
DUN ~.

dunn
Pioneer Press: For several years
before the organization of the Northern
Securities company a large portion OF
of the stock Of the Northern Pacific
company was owned by leading stock
holders of the Great Northern, repre-
scented by j. j. Hill. During the same
time the majority of the stock OF the
Northern Pacific was held in trust for
its owners by j. Pierpont Morgan.
BY reason doubtless of this community
of interests the two roads, although
each acting under an independent man
agement, were operated in harmony
as to rates and other particulars. The
stockholders were well satisfied with
this arrangement, under which the
roads were prospecting and earning
money enough to pay their dividends
with a good surplus to put into i'm
provements, and-~there was no COM
plant on the part of the public either
or higher rates OF poorer service. Then
came the attempt of Harriman and
Others to- capture the Northern Pacific.
With some difficulty apparently this
attempt was defeated, but it suficed
to alarm the stockholders both Of the
Great Northern and Northern Pacific
as to the permanent security Of their
investments, Hence the Northern Sc
curities company was formed with
which they could deposit their stock
where it could be permanently held
and kept together, with no doubt the
incidental but unavowed purpose Of
insuring the permanent continuance of
the policy which had proved SO advan-
tageous to the two roads without any
known r apparent detriment t the pub
known or apparent detriment to the
public.
Now comes the attorney general Of
the United States with a suit against
the Northern Securities company to
compel it to return the stock Of the
Northern Pacific and Great Northern
deposited with it to its owners and to
cease to act as their agent or trustee.
1t appears to be the general opinion
of lawyers that the court will not
grant the Injunction applied for. But
in case it should and the stock went
back to it's owners the result would be
to simply restore the situation as it
existed before the Northern Securities
company was formed. r. J. Hill would
represent the majority, probable near
~ all the stock of the Great Northern
and a large part of that of the North
ern Pacific; ]. Piefpont Morgan would
represent as before the great majority
of the remainder of the stock of the
Northern Pacific. The roads would
continue to be operated as they had
been for several years before the
Northern Securities company existed,
on a friendly and harmonious basis.
There is no antitrust law or any other
possible law which Ear prevent an in
dividual stakeholder of one road from
buying or holding all the stock of an
other road he can acquire. The suit
of the United States against the North
ern Securities company is brought os-
tensibly foG the purpose of restoring
the active competition-that is to say,
the rate wars which it is the professed
object of another department of the
government to discourage. But there
had been no hostile competition CT
this sort for nearly four years before
the Northern Securities was organized.
II it was dissolved the parties to it
would simply return to the Status quo
ante they will still control the cleo
tion of the directors and officers of the
two roads and practically exercise tie
same powers as they did before-that
is to say, the same that were vested
in the Northern Securities company.
While therefore the suit to test the
legality of the Northern Securities
company should be and probably is
welcomed as heartily by those friend1.
to the ~so-called merger as by those
who are hostile to it-for it is Il the
first importance to them that this qles.
ton be promptly and finally settled
1t is plain that the result, even If ad.
verse to the Northern Securities COM
pany, can and will in no way affect
the control of the two roads by the
stockholders thereof. I they find ii
to their mutual interests to operate
the roads in a friendly spirit they will
continue to do SO. No court can com.
pei them to fight il they don't want to.
J. Pierpont Morgan, who makes few
mistakes in finances, says the Chicago
Tribune, told Judge Taft that he would
be willing 70 take Philippine bonds al