The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1902-01-09
FILES COMPLAINT
MiNEsoTA,s ATTORNEY GENERAL
BEFORE THE FEDERAL sU.
PREME COURT.
OBJECTS TO RAIL WAY MERGER

Petition Is a Document of Ten Thou
sand Words and Details at Length
the History of the Proposed consol
idation-Number of Reasons Given
In Support of the Allegation That the
Combine Is illegal.
Washington, Jan. S.-Attorney Gen.
eral Wallace B. Douglas of Minnesota
has filed in the United States supreme
court the bill of complaint in the case
of the State of Minnesota, complain
ant, against the Northern Securities
company, defendant. It is long doc
ument, about 10000 words, covering 80
pages of printed matter The bill first
points out the direct interest the state
has in the proposed consolidation. 1t
still owns more than 100000 acres of
public lands valued at more than $751;
100000 and traversed in part by the
lines of the Great Northern and North
ern Pacific. If the merger is effected,
these roads will cease to build spurs
into these lands or compete for their
business. The value of the lands will
not increase as it has under the spur
of competition and the state will lose
in the taxable value of it's property.
The lands will not be opened for years
and development will be arrested. 1t
is next set up that the state expends
more than 100000 annually in the.
operation and maintenance of its edu-
cational, charitable and other public
institutions, that this is mostly raised
by direct taxation, that the amount
which can be raised and the successful
maintenance of these institutions for
the benefit of it's citizens depend large
ly upon the value of the real and per-
sonal property within the state, which
in turn depends largely upon free rail-
read competition. 1t has been the set
tied Iolicy of the state to encourage
railroad building by grant of lands and
IN this way over 10,500,000 acres have
been granted, nearly all of which has
' - o'a I'D to the Great Northern
and Northern Pacific and their sub
sL-.. o.u Janies. The complainant
alleges that the rates on the immense
shipments of wheat and other mer-
chandise over the lines of the two
companies have been lower than they
will be under any arrangement which
contempIates unity of control. The
bill then recites the charters and in
corporations under which the Great
NJ A 0f
and cites the clause in it's charter pro-
.yiding that it's affairs are to be con-
Quoted by board of directors which
is to do all things necessary "and not
inconsistent with the constitution and
laws of the United States or the laws
of this territory or this act" It is
further alleged that James ]. Hill
Holds Controlling Interest
in the SIPS 100000 of capital stock.
The history and charters of the North
ern Pacific are similarly related, spe-
cial attention being paid to the roads
acquired and built within the state.
BY filing its articles of Incorporation
in Wisconsin with the Minnesota au-
thorities the Northern Pacific became
subject to all the laws, regulations and
q.
to the present personnel Of the direc-
tory, the insolvency of the old COM
parry and it's reorganization in 1893
and the purchase of the st. Paul and
Duluth road in 1899 are recited at
length. 1t is set up that the lines of
these two systems are not only COM
petitfve between points within Min
nesota but that they furnish the only
competitive lines between Minnesota
and Puget Sound and have so furnish
ed for IL years. They are also with
one exception the only lines traversing
Northern Minnesota. A paragraph is
devoted to the Burlington and the
facts as to the terms on which it's con-
troll was obtained by the two systems
Jointly, Charles e. Perkins, it's former
president and present director, being
director in the Northern Securities
company. The certificate of incorpor-
alton of the latter, filed in New Jersey,
Nov. IS, 1901, is quoted in full.
Taking up the Northern Securities
company it is set forth that it was or
ganized by James J. Hill, w. p:
Clough, J. Pierpont Morgan and 10Th
er associates to the oratrix unknown"
who at the time were continually in
conference over means by which the
laws of Minnesota might be success
fully evaded or avoided, and that it
was so organized solely for the pur-
pose of. effecting consolidation of the
Great Northern and Northern Pacific.
The owners of a large majority of the
stock of the two systems had agreed
beforehand to transfer to the new COM
pany Is per cent of the stock of the
two systems on termfs which are set
forth in full and to retire the preferred
stock of the Northern Pacific. In
furtherance of the plan to evade the
laws of Minnesota it was agreed that
pending the delivery of the stock to
the Northern Securities company it
should all be turned over to James J.
Hill or be under his control. The
Northern Securities company, it is
charged. does not intend to purchase
this stock. but simply to issue its own
stock in exchange therefor. For these
unlawful purposes the company is
about to receive, unless enjoined there
from, all the capital stock of the Great
Northern and Northern Pacific. This,
it is claimed, is part of plan of Hill,
Morgan and their associates, whereby
the two systems
80