The news & observer., 1902-01-08
THE STATE AGAINST
THE RAILROAD POOL
Minnesota fiFes Her Bill of
Complaint.
A MONOPOLY IN TRAFFIC
Seeks to do the State IIreparabIe
Injury.
TO CONSOLIDATE 4 COMPETING LINES
Such Are the Designs Ct the Phi csots Of This
Scheme, It is Declared, and Prayer
is Made Ttat il be
Checked.
TO CONSOLIDATE /, COMPETING LINES
(By the Associated Press.)

Washington, Jan. 7.--Attorney General
Wallace B. Douglas, of Minnesota filed
today in the United States Supreme
Court the bill Of complaint in the case
of the State of Minnesota, complainant,
against the Northern Securities Com
about 10000 words, covering 32 pages of
printed matter. The bill first points
out the direct interest the State has in
the proposed consolidation and. describes
the charters of the Northern Pacific and
Great Northern.
Taking up the Northern Securities Com
pany ii is set forth that it was organ
lied by J. ]. Hill, W. O. Clough, J. Pier
pont Morgan and "other associates to
the oratrix unknown who at the time
were continually in conference over
means by which the laws of Minnesota
might be successfully evaded or avoided
anc that it was so organized solely for
the purpose of effecting a consolidation
of the Great Northern and Northern Pa
clflc The owners of a large majority
of the stock of the two systems had
agreed before hand TO transfer to the
the two systems on terms which are set
forth in full and to retire the preferred
stock of the Northern Pacific. The
Northern Securities Company it is charg
ed does not intend to purchase this stock
but simply to issue it's own stock in
exchange therefor This, it is claimed is
part OF plan of Hill. Morgan and their
associates, whereby the two systams are
nj
direction of one man. or board of direc-
tors, through the defendant company and
thus bring about and perpetuate monop-
Oily in railway traffic in Minnesota and
a complete consolidation of the two sys-
TENS. One man or board will thus, it is
alleged, be enabled to fix all rates on
lines In the State, determine what trains
snail be run, remove all competition and
prevent the building of lines into new
country or into competitive territory.
This agreement and the consummation
thereof. is claimed to be 'in restraint of
trade. against public policy and void"
1t IS set up that the Northern Securities
company is railroad corporation with
IN the meaning of the Minnesota laws
ana That its design is to evade, escape
and violate these laws in such way as
10 cause the State 'irreparable injury"
lt is alleged that it is the settled
policy of New Jersey to allow the con-
sondatlon of only such railroads as are
OF can be, connected to form continuous
lines and not to permit the consolidation
OF parallel or competing lines. The ora
trix. claiming to have no other adequate
remedy or relief. except as prayed for in
equity, asks that the defendant be re-
quired to show cause why it should not
be perpetually enjoined and restrained:
FIRST. from voting at any meeting of
the stockholders of the Great Northern
ana Northern Pacific the capital OF these
companies and from attending in any
manner such meetings.
Second, from aiding advising. interfer-
ing with, or in any way, participating in
the management of the two systems
Third, from permitting any of its off
GERS. agents or servants from acting as
representative, director, officer or en-
pioye or exercising any control, manage
ment or direction over the same.
Fourth, from making any arrangements
or combinations having for their object
such Joint control
Fifth, from holding, owning or controll-
ing any of the stock of either company.
The defendant company being required to
reassign or retransfer all such stock to
the person from whom it was received
taking in return it's own stock issued
in exchange therefor. and to be enjoined
in all respects in relation to said stock
as herein before prayed for.
Sixth, from receiving any more stock
OF the two companies in case it shall ap-
pear that the defendant company has
not yet acquired a controlling interest in
either.
Seventh, the oratrix prays permission
to amend the complaint, If necessary and
bring in other parties for the purpose of
giving force and effect to any decree of
the court, and asks the court to issue a
subpoena against the defendant company
and set a day for the hearing