Omaha daily bee., 1902-05-06

the Northern Pacific railway. These va
rious papers follow the same lines.
The answer OF the Northern Securities
company is divided into two parts. The
first part is largely a denial Of the petit
ton as respecting any charge Of con-
spiracy and as respecting the purposes of
the organization OF the Securities COM
psny.
Amount of stock Owned.
Instead Of owning a majority Of the
shares Of the Great Northern or Northern
Pacific companies, II is stated that those
who are interested in the organization OF
the Securities company did not even own
within ;16, 900, 900 of a majority Of the
Great Northern shares and a little more
than one-fourth OF the Northern Pacific
shares.
This part Of the answer states that the
Securities company has acquired by trans
fer on the Great Northern books about
nve-twelfths Of that company's stock. has
negotiated for about f~our-twelfths OF the
total Of such stock, which has not been
transferred, and as to which 1t has at
present DO voting power. and has paid on
account Of Great Northern and Northern
Pacific shares purchased over $40, 900, 900 in
cash; that many stockholders have not and
may not sell shares and that neither COM
pany. by any act or suggestion, has So
licited shareholders to sell to the Sc
c~urities company.
Purchase of Burlington
In the second part OF the answer the
purchase Of the Chicago. Burlington &
Quincy Railway company is taken up. the
reasons for such purchase having been, 1t
is alleged, enormously stated in the petit
ton.
Attention is called to the sparsely settled
or unsettled nature Of the country through
which the Great Northern lines pass; the
abundance Of raw materials to be hauled
at a low mileage rate; the great timber
wealth in the Pacific northwest and the
necessity Of a return load for the cars
taking this timber to the prairie states;
the development Of trade with eastern
Asia as a means of securing such return
loads and the establishment Of a connect
ing steamship line for that purpose.
It is stated that 'in the interstate and
International commerce., which the Great
Northern company has thus built up, IL
completes both In this country and on the
ocean with the other transcontinental
lines Oncluding the CapedjAn Pacihc), and
at the Oriental ports It completes for the
Of the world"
Composition of Rates.
Its rates are and must be made In COM
petition with the rates OF ocean carriers
and by way Of the Suez canal. The policy
thus followed by the Great Northern COM
pany in building up an international, and
thereby an interstate commerce, has been
followed by the Northern Pacific company
since it's reorganization In 1896.
1t is said that both roads we're placed
at a disadvantage with other trsnsconti-
mental railroads, as well as with European
competitors, by the want of suficient rail-
road connection with the territory Offering
the best markets along their lines and with
the places of production and great centers
of distribution from which their trafic
must be supplied. The lines Of the Bur-
lington, better than those Of any other
company. fulfilled the requirements Of both
roads in respect to markets for eastbound
and freight for westbound trafhc. The
answer recites these various markets and
their products, and continues:
Price Paid for Burlington.
The price paid for said Burlington stock
was lower per mile than that for which
the stock Of any other we'll established
system in the same general territory could
The purchase of the Burlington stock by
s t6s GTsss n So s9SsT ps aHs s MpTsde zach Pe eomo
pany as we'll as II II were the sole owner
OF the entire stock.
The Great Northern and Northern Pacific
companies therefore each purchased an
equal number of shares Of the Burlington
stock as the best means and for the sole
purpose OF reaching the best markets for
| the products of the territory along their
lines, and of securing connections which
would furnish the largest amount of traf1c
for their respective roads, increase the
trade and interchange OF commodities be
tween the regions traversed by the Burling-
ton lines and their connections and the
regions traversed or reached by the Great
their connecting lines Of shipping on the
Pacific coast.
OF Old Origin.
The history Of the formation Of the hold