New-York tribune., 1902-10-24
ST. PAUL HEARING ENDS
COLONEL, CLoUGH DEFENDS NORTH
ERN PACIFIC MERGER INQUIRY
TO BE RESUMED HERE.

TO BE RESUMED HERE.
s., Paul. oct 23-The hearing in this city by F.
G Ineerson special examiner appointed 10 take
testimony in the suit Of the United States against
the Northern Securities Company, the Great North
ern Railway Company the Northern Pacific Rail-
way Company and others. under the sherman anti
trust law ended late this afternoon and an
adjournment taken 20 New-York November 10
when the examination Of several witnesses living
IN OF about that city will begin. The hearing in
this city has lasted four days Presidents Hill OF
the Great Northern, Harris Of the Burlington and
Melen OF the Northern Pacific. being the principal
witnesses. The other witnesses were Colonel ". p.
Clough Vice-president and counsel Of the Northern
Securities Company, ana Frederick Neyerhauser, a
lumberman. To-day's witnesses were colonel
Clough and President Mellen, hut nearly the entire
day devoted 10 the former. the government
attorneys paying particular attention TO the matter
of rates and Joint rates various schedules OF tarins
having been introduced into the record.
Colonel Clough Identified for the record a map
~ the territory covered by the railroads interested
for the purpose OF demonstrating that even II II
had been 30 desired. Il would not have been pos
sibe for them 10 control the rates completely on
10 per cent OF the traffic carried I'm the territory
through which they ran. He told I'm some detail
81 the organization Of the Northern Securities
Company and its incorporation. The capital stock
was placed at a high enough figure 10 make pos
sibe the requirement Of any desired railroad or
industrial stock
Joint tariffs" he said. greatly facilitate the
movement Of freight. This arrangement makes a
single route out Of several independent ones, and
is the particular point in which the railroads Of
the United States Tar superior 10 those Of Eu-
rope"
Colonel CIough was cross examined by Assistant
Attorney General J. N. Beck. who sought 10 learn
whether there had ever been any contest with Mr.
il and his associates in their practical control OF
the Great Northern. Colonel Clough said there had
not been any such contest. and admitted that Mr.
Hills policy would probably be supported also in
the Northern Securities Company. He insisted thar
there never had been any real attempt to Conso-
date the Northern Pacific and Great Northern
railroads, and held that the only action taken
had been nothing but the personal acts OF ndiyid-
ual shareholders. Speaking of the Northern Sc
curities Company he said its organizers did not
adopt the idea OF trustee for their stock, they
did not desire 10 lie up their stock tight, the
stock should be such shape that il could be dealt
with The effect Of possible adverse legislative ac-
tion had been influence in the organization OF
the Northern Securities Company, as some Supreme
Court decisions had made the question Of vested
rights little uncertain. and they feared that
their charters might be taken away.
Mr. Beck seeking the reason why the Northern
Securities Company had been incorporated in New
Jersey, Colonel Clough explained that il was be-
the corporation laws Of that State had been
judciaily passed on interpreted. and their validity
established. while the laws of NewNork. under
which it was at one time thought possible to in
corporate. and which similar TO the New-Jersey
statutes, are new laws ana had not Yer neen sls-
Pacihc stockholders had been consulted before the
nled, but admitted that J. p Morgan, large holder
of Northern Pacihc, and ID. Willis James and other
holders in both roads. had been consulted before
articles weTe hled and had consented TO put their
Much time was given TO questions about increases
IN capital stock Of the Great Northern. all Of
to Stockholders for cash It's equivalent. Re in
ern stock bought BY the securities company repre-
scented genuine valuation and not any inflated
for al Northern Pacific and Great Northern stock
deposited he admitted that this was in both cases
election OF Identical boards directors for both
ROADS except the Jaws OF the country, which pos
slbly forbid such action.
The rates given in the various documents present
Mr. Day. attorney Tor the Interstate Commerce
Commission, desiring 10 have various points in the
sCneaules more clearly stated IN the records.
colonel clough said that since he had gone East
severed and he had nothing Dhstever 10 al ,.it5
tarins on either that road or the Northern Pacific.
c. S, Mellen, president Of the Northern Pachc
hs hnl5%aX y ~ C9mpsnS emp, %ss sworn ana was examined
Tor of the northern Pacic sirSe 8Jsi 1o 1s- srd
ne said positively that his company lad not as an
oTganlzation taken amy part IN the formation Of
that the purchase OF the Burlington had promoted
SSGLnmerce, having opened wider markets 10 the
dinerent roads The largest single article Of traffic
Is lumber, minerals being the next largest IN ship
He regarded the lumber business se,,re5S flr ,Se
northern Faoihc and Burlington, jointly. as bust
Joint tariffs were possibility 70 secure such
shipments. but they could never assure a perrna-
nent and positive business. and time rupht
he cancelled by the whims OF the management Of
any one party 10 the Joint trafiC. He said bis
road gave no orders 10 the Burlington thst H.
knew of no authority for issuing orders IA the
ofncias OF that line except the board OF directors
The simple fact Of common ownership tended Ia
greater stability and better feeling between rha
ofncers or the various lines. thereby pronrfed
business - '0-'1e eVd
lhere being no other witnesses ready. and tbs
next Witnesses being most easily accessible In NsvC
York. the hearing was adjourned TO that elm, on
November 10 '' "l'
The examination Of F. \. Saunders which had
been expected to-day Was deferred until such trne
q s M lar