The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1902-11-07
THE MERGER TRIAL
President Hill on the Witness Stand Tells of the
Organization of the Great Northern and Its
Agency I'M the Development Of the Northwest
Reasonsfors the Purchase of the Burlington.

government under the Sherman law to
h fbe Tsa.
Northern Pacific and Burlington. systems
has lead to the taking of a large amount
o. Se, test \, %Gy, The taking ot testimony
and was continued TN st. Paul this week
before Frederick lngersoll, the special
examiner. J. y. Hill was the chief witness
whole story of the so-called merger in
more connected way than has heretofore
been given to the public. AS 1t required
two days to complete it, 1t was very vol
the evidence to give a connected story Of
the transaction and the reason for making
Mr.. Hill told in general way of the
b'iilding Of great railway system. Of the
development of the trade In the Orient.
ana s Of the coal situation Of the country.
Mr. Hill largely told his story In his own
way, none Of the learned counsel having
disposition to throw out a hint that Mr..
Hill might better tell it some other way.
satson 81 the st. Paul. Ir, MiSp aaS
Manitoba road. and later its reorganiza-
ton into the Great Northern road. and
he had very largely determine de the policy ss
OF the roads, especially the policy 3f eA-
tending the lines. This was. howe, er. he
many Of the other directors hat been
non-residentS.
Built for Keeps.
Explaining how the Great North~rn had
Mr.. Hill said that $500, 900 had leen ex-
pended for surveying alone, as he de-
sired to- be certain that he was building
He dropped in a little side remark at this
point by saying that while riding along
the Pennsylvania system once, he OBJ
i seIXed t portion fant OF that system 6ehg
thing
The traffic of the Western country con-
sential for the Great Northern to handle
this lumber If it was to do business at
all. The rate at that time was 80 cents
II conferred with lumber Manufacturers
enc they thought that if they Rad a rate
Of &c cents they could send lumber East.
knew they couldn't do it with, rate
higher than ~ cents, SO we made 1t 40
cents, and the lumber trade began to de-
velop rapidly.
ern lumber shipments it was essential to
first have a. Western movement of cars to
prevent the necessity of bringing empty
cars West to ship the lumber IN. Within
four years we had so developed this trade
and trade with Alaska and the Eastern
islands that we were enabled to secure
Eastern goods for the markets of the ORR
cars which meant a shipment Of lumber
East again at a rate making the shipment
possible and profitable.
transportation across the Pacific, and
what relation did that have to your pur-
eh hilse Of the Burlington roaa stock, F"
I'VE found that the lumber supply of
the United States east of the Rockies and
NORTH north OF The Ohio river was more and
more mraso dependent upon the and
rapidly approaching when the states
which were furnishing lumber to the
Fast Fast would not have enough lumber for
now consumes more than she can manu-
facture): 1 was especially interested in
the lumber traffic, because if there was
there was nothing at ali for us to carry
on our road. l saw that 1t was only a
question of time when Washington and
the country. 1t is soon to be so. In order
to have low rate we must have a large
tonnage, and have markets to which We
could send anything made in ,the East,
and thus have continual Eastern traffic
westward. l influenced the Japanese to
purchase a trial lot of American rails in
stead of the Belgian and English rails.
cotton. on guarantee that if it was not
satisfactory would payfor it,
1.-THE cotton trade has been growing
ships to take this cotton and these rails
to Japan. We can make a rate to Hong
kong which will enable the Minneapolis
can get the Chinese trade"
Coal Supply.
@. What advantage if any. did you ex-
nect to derive and have You derived from
the Burlington purchase in regard to the
by your line?
:, Replying to the above question Mr.. Hill
thought that on the. west end they had
local supply of coal and on the east end
coal in the past has come from Pennsyl-
vania and West Virginia and some from
OHIO; but now it was apparent that they
sources in the east, and It is consequent
ly of vital interestto use the supply they
can obtain not only for themselves but for
the public as we'll from the Illinois coal
fields. The grades Of the Burlington road
enabled them to carry an enormous ton
mage and the public would soon be COM
PEELED to rely upon the bituminous coal
the east. This coal is a necessity to the
people Of the northwest, which would
have to: abandon the country for five
months in the year p;a If they could not get
not get 1t from the east at a reasonable
price. He did not claim that this was
due to the strike and the local situation
situation the northwest had got to face,
and lin the future they could not Bring
coal from the western end of their line
because the haul was too far to furnish
1t at moderate prices. ."
Ore Trade With St. Louis.
Within the last week we had advices of
Il, 900 or 100000 tons Of iron ore to go
through the winter from the iron mines
of Northern Minnesota to ST. Louis to load
the coal cars back. The fact that the
coal has to come north,or that there is
coal to come north makes it possible to
make lower rate on the iron, ore, and
together the iron ore rates and the coal
rate are both affected and are both re-.
duced to the extent that we can load the
cars both ways: This is a matter we
have Under consideration; this iron. mat
ter we have had under consideration may
be for a couple of months, but it has cul-
minated within the last week. We hope
that it will reach 10000 tons before
spring.
ton especially, and other articles, what
was there In it's being car
rled over separate lines under joint tar
iff which you did not have, where it is
carried where both roads are under the
same CONTROL for instance. In the matter
Of breaking bulk or anything of that kind,
shifting from cars? "a
B IA. Well, it is almost a necessity, II
business is to be at all permanent, Is be
able to control a rate. The rates on the
high seas vary according to the supply
and demand for ships, and We. In order
to take this business west must be in q
position to compete to take the traffic,
one daN with anoth her It may be that
here and St. Louis, If the Burlington was
not ina position to> work with us and
to continue to work with u.s. they might
finds some other connection that would