Omaha daily bee., 1902-10-22
HILL IS AGAIN EXAMINED
Explains How and Why Freight Rates
Are Reduced.
INCREASED TRAFFIC MEANS LOWER DUES
As Business Increases Charges De.
crease, hut Merged Roads Lead
shippers to Hold Produce
Back from Market.

Back from Market.
ST. PAUL, Mimi, Oct. 21.-Today at the
merger inquiry Solicitor General Richards
resumed the ross-examination of Presi-
dent Hill of the Northern Securities and
Great Western Railway companies.
How does II come about that the Union
Pacific holds about $50, 900, 900 OF the North
ern Securities company stock?' asked
That is a matter that does not concern
us. but 1t does concern you," replied Mr..
Hill.
Pressing the same line of question. Mr..
Richards was told that Mr.. Hartman or
anyone else VINO wished might buy North
ern Securities stock. He did not know that
shareholders willing to sell could not be
found. Any stock might be bought and
purchasers usually could find those willing
to sell. II others desired to buy Northern
Securities stock they could only do so by
offering a high enough price. 1--WE have
tried" he said. Ito make it as difficult as
we could fairly for such raids to prove sue
cessful.
II can't decide who shall or might own
the stock, he added. Some Of the owners
who usually work together would be slow
to sell without consulting their associates.
Out OF 1,1OO or 1900 Northern Securities
shareholders l know probably twenty-five
or thirty. The largest single holder Of
Northern Securities stock, understand, is
Mr.. Hartman. The outstanding stock on
the Northern Securities company is some
where near $S6O.OO0,000. Hartman might
double his holding, but he would have to
pay fair price for 1t. The real protection
is the union Of effort to develop the great
northwest business"
The next questions pertained to the mat
ter of Joint rates and was gone into in de-
tail.
Mr.. Hill insisted in answer to one OF the
questions certain suggested rates could not
be considered and, so far as he knew, never
were considered because they we're un-
lawful
owns No other Lines.
In answer to questions by w. A. Day, at
torney for the Interstate Commerce Com
mission, Mr.. Hill said the Great Northern
railway owned no additional lines Of rail-
way, but had more lines under lease. The
composition and extent Of these various
lines was gone into at some length. and also
the forms Of lease by which the Great
Northern controls the lines OF the St. Paul,
Minneapolis & Manitoba and other lines.
The total mileage operated is between $500
and 5000.
He spoke positively in saying the Great
Northern had frequently reduced rates, and
he believed the Northern Pacific had also.
The reduction on merchandise had ynried
in different sections and on different
classes. but ranged from 10 to 1b per cent.
Asked as to specific dates when certain
rates went into effect and on what articles
reductions applied, he referred counsel to
the schedules, saying they could be better
depended on than his memory. He gave a
similar answer to numerous other specific
questions as to classification Of rates.
Mr.. Hill said his coal rates had for several
years been lower than those of the Reading
or the Lackawanna railroads and Mr.. Day
said he believed there had been some com
plant to that effect in the east, whereupor
Mr.. Hill suggested: II wondered for a lonl
time that the gentlemen in charge of such
matters have not taken some action in re-
gard to it,"
Speaking generally, he said rates were
always reduced as traffic increased, fac
which accounted for the new schedules
| which followed the Burlington purchase
He haG made no attempt to influence rate.
| on that road.
Mr.. Day next went into the coal tram,
and drew out the statement that better
rates on coal were possible because Of tn,
control OF the Burlington. He feared tina
there might be a fuel famine in the north
west, not because of the anthracite strike
but because Of the inability to railroads t
transport sufficient coal from the Ohio an'
West Virginia fields to supply all needs.
The acquisition of the Burlington had no
diverted traffic from other lines to tn
Northern Pacific and Great Northern, bu
had actually created new trafic for them
All railroads had recently increased thei
business, but no others had developed TO s.
great an extent as his line.
The effect, II the Burlington had becom
the property Of the Union Pacific, woul
have been so severe on the Great Norther
that he would have recommended a sale a
once. 1t would not have given hard compe
tition, but would have absolutely prevente
business being obtained in the middle west
II was necessary to reach that section an
the Burlington was the best means Of reach
ing it.
Asked to define the word raid" used 4
his testimony, Mr.. Hill said 1t was the pur
chase Of stock in the open market, but in
sisted that the purchase Of the Burlingto
by the Northern Pacific and Great Norther
was not raid" but simply a sale by an
with the approval of the directors.
In answer to questions by Mr.. Young. Nj
Hin said he could not purchase the Bur
llngton or contract to do SO. and that
corporate act of the Great Northern an
Northern Paehc was necessary.