The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-10-21

world, ana not alone with these western
railways.
Speaking of the line OF steamships,
he said the first ship would be launched
in December, with tonnage OF 5000. or
10000 tons more than the Celtic, which
Is the largest ship now afioat
Cotton and machinery showed re-
rnarkable increases IN Oriental traffic
within the last year, while oil and
some other commodities decreased. The
year ended June. 1902. showed about
double the Oriental shipments OF the
previous year. The hearing was ad-
Journed until o'clock
The afternoon sessions were directed
mainly toward the so-called merging
OF interests. Mr. Hin said that in 1897
the project of securing the Burlington
was considered. but the Great North
ern was unable TO do this alone, and
the Northern Pacific had Just been or
ganized and was not in a position TO
join such a scheme. He did not know
of any Great Northern directors max
ing any purchases of Northern Pacific
stock In order 10 control that line. At
the time of the fight for the control he
and his friends held from s33. 000.0 00 TO
SS5.00o,000 OF common stock OF the
Northern Pacific.
IsdlO on NOTLutI1 E6C1uC.
On the Sd of May. after the prices
were above par and It was evident
that an attempt 10 secure control was
under way. he called the attention OF
his associates 10 the matter and no
more stock was sold by them. The
Morgans up 10 that time had no sus-
picion of any attempt to raid the
stock. He explained that the Northern
Pacific holdings mentioned did not in
clude those Of J. p. Morgan & Co. He
told how at this time he and his asso-
states first thought of placing their
Northern Pacific stock with a holding
company as was being done with their
Great Northern stock. Nothing def
mite, however, was decided on. At that
time his party held some $40, 900, 900 and
Morgan held about the same amount.
The capital of the proposed general
holding company was first placed at
| $780, 600 ia the preliminary discus
sion. Only few individuals were at
| first interested and there was much
hesitation over any holding company
/ in which all Great Northern share
holders might not participate on an
/ equal basis. Such action would mean
/ that the Great Northern holdings
would amount TO $225, 600 900. The Nor
/ gan and Hill interests in the Northern
Pacific controlled that company after
| the redemption of the preferred stock.
Then. in estimating the Northern Sc
curities capital. they thought 100000
| would suffice, but the amount was
finally fixed at 100000. although the
small figure was still considered suffi-
Gent as late as December, 1901. 1t was
| intended. however, to cover everything
and to avoid amending the articles.
Free From Raids.
The purpose, after the purchase of
the Burlington company and of the
large blocks of Northern Pacific stock
in the formation of the Northern Sc
curities company, was to put the stock
where ii could not again be raided
This was preferably not a railroad
company. Railroad charters. he said
seldom provide for buying other COM
panies, and the organization Of a sep
arate holding company would be free
from the possibility of raids, intended
TO destroy or hamper the company
Any other sort of plan for controlling
the great Oriental traffic would result
in loss and possibly the wrecking Of the
whole enterprise.
Mr.. Hill was taken again over th'
ground of competition with the trans
pOrtation companies Of the whole eartl
on the high seas, and then, recurring
to the holding company. he reiterated
that the whole intent and purpose wa;
to protect the companies interested
and that there was absolutely no in
tent or thought of restricting trade
He insisted that the Great Northern
railway was now carrying bushes!
lower than any of the southern lines
adding that the actual rates now il
effect on the Atchison and Union Pa
eific, If applied to the present bushes
on the Great Northern, would raise tn
earnings fully $5,500,090.
There was never-so far as he knew
any intention or purpose OF destroy
ing competition between the NOrtherl
Pacific and Great Northern Railwa!
companies by the organization of tn
Northern Securities company. Yer!
little business on those lines, he said
is not affected by competition with still
other lines, so that even if they wishe,
to destroy competition their utmOs
efforts could not affect 10 per cent o
the business. He believed the compe
titiOn was as free and full as at an,
time in Twenty years.