The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-04-05
SERVED UPON HILL
He Receives the States Complaint
in Merger Suit.
PERPETUAL INJUNCTION ASKED
Court Asked to Restrain Northern Sc
curities From Holding North
ern Lines stock.


the railway merger were served yester-
day on James ]. HILL Service was made
by Deputy Sheriff Reichow, of Ramsey
county. PSI. One service was made on Mr.
Hill as president of the Great Northern
one as president Of the Northern Securi-
ties COMPANY. and one as an individual.
The COMPLAINT had just been received
from the arinter. and was served sooner
than intended sa order to catch Mr.. Hill
while in Minnesota. Service will be-
made on the Northern Pacific later, and
the complaint will be filed in the district
court of Ramsey county, where the suit
lis to be brought
Attorneys for the defense are given the
usual twenty days in which to serve a
copy OF their answer upon Attorney GEN
eral Douglas.
The complaint Of the state asks that the
Northern Securities be perpetually en-
Joined from acting in any manner as a
stakeholder of the Great Northern or
Northern Pacific railway company; that
the railway companies be enjoined from
recognizing or accepting the securities
company as the owner or holder of their
capital stock; and that James J.. Hill be
enjoined, individually, and as an officer
or director of the Great Northern, from
allowing any dividends to be paid on stock
held by the securities company, from al
lowing any stock of these held by the Sc
curities company to be voted. and as an
officer, director or stakeholder of the Sc
curities company from directing the BUSH
ness affairs of either of the railway COM
panies.
Senator George P. Wilson, former attor-
ney general, and associate counsel in the
merger proceedings, drew the complaint
In it's allegations of fact it follows close
ly the lines of the former complaint of the
state, and of the one to be presented
Monday by the state Of Washington It
covers thirty seven printed pages.
Twelve Allegations Made.
l. In brief the complaint alleges:
That the Great Northern and Northern Pa
cifc are parallel lines, and were competing
until the contamination Of the merger.
That the state of Minnesota possesses lands
to the value Of SIS OO0, 900, whose value de-
ponds largely upon railway competition, and
| upon extension of rival lines into the unoc-
cupied territory.
That the state, as supporter OF various
charitable and penal institutions. would be
directly affected by the absence Of railway
competition. e
That upwards OF 10. 800, 900 acres Of land has
| been granted the two railroad companies and
| their subsidiary lines.
That the absence of competition will work
oSeetS SAS
lines Of these. railroads. a@=tt
! That the settled policy of the state of Min
| nesota, as indicated by Its laws, prohibits
consultations and monopolies. &
THAT the. Northern Securities company was
organized by the defendant, James y. Hill,
and others, to effect such Illegal consolida-
ton. = i*
| That at the time of his election as the
president of the Northern Securities company,
lam T ia l.
dent of and the principal and controlling
| stakeholder in the defendant, the Great North
ern Railway company, and was at that time
| one OF the directors Of the defendant, the
| Northern Pacific Railway company; that Will
| liam P. Clough, fourth vice president of the
| Northern Securities company, was the first
vice president of the Great Northern Railway
company, and, at the time Of said organize
| ton, was a large stakeholder in said Great
| Northern Railway company; that e. T. Mich
OILS, the secretary and treasurer OF the North
| ern Securities company, was, and still is, the
| secretary and assistant treasurer Of the Great
Northern Railway company; that the follow
4 ing named officers and directors of said North
ern Securities company Were at the time OF
| the organization Of said company. and ever
/ since have been, directors of the defendant,
the Northern Pacific Railway company-yiz.
Robert Bacon, E. il. Hartman, George +.
Baker, Daniel S. Lamont James Stillman,
D. Willis James, John s. Kennedy; that the
| following named officers and directors of the
said Northern Securities company were, at
the time of the organization thereof, directors
| of the defendant, the Great Northern Railway
| company-viz. James J. Hill. William P.
Clough, Jacob H. Schin, E. T. Nichols.
! That Through j. Pierpont Morgan and his
associates, upward of 80 per cent Of the stock
Of the Northern Pacific and rs per cent of the
stock Of the Great Northern, have been actu-
| ally assigned and delivered to the Northern
Securities company, with the intention to vest
\ in this company the complete management
! and control of both roads, and the direction
I of their policy, as well as the power to fix
rates for the transportation of freight and
passengers.
! THAT capital was contributed in the organ
ization Of the Northern Securities company;
| that it has NO property or assets of any
kind, save as acquired by the interchange OF
| the capital stock of the railroads for stock
| in the company itself.
That the effect Of this consolidation has
! been to destroy competition and create a
monopoly in railroad traffic.
| That, unless restrained by the court the
defendant Northern Securities company will
! continue to control the affairs Of the Great
Northern and Northern Pacific, and to sup
| press competition between them, to the irrep-
arabic damage Of the state and the people
thereof.
| HAS A LARGE BAL ANCE