The Savannah morning news., 1902-09-02
REPLY FOR MERGER
ANSWER NORTHERN SECURITIES
COMPANY FILED IN MINNESOTA.
ADMISSIONS AND DENlALS
ARE MADE BY THE SEVERAL DE-
PENDANTS TO THE SUIT.


Against the Northern Securities
Company. james j. Hill, as Presi-
dent and Individual, the Great
Northern Railway and the North
ern Pacific Railway to Prevent the
Consolidation of the Properties.
What the Defendants Reply to the
Claims of the State-securities
COmpany's the Principal Answer.
st. Paul, Mimi, Sept. 1.-The defend
ants in the merger suit brought by
the state of Minnesota filed their an
swer this afternoon in the Office of the
clerk of the United States Circuit
Court The suit was brought by the
state against the Northern Securities
Company, James ]. Hill as president of
that company, James ]. Hill as an in
dividual. the Great Northern Railway
Company and the Northern Pacific
Railway Company.
There is one answer for the Securi-
ties company, and Mr.. Hill in his char
acter as president and individually;
one for the Great Northern. and one
for the Northern Pacific.
But the answer of the Securities
company and of Mr. Hill set up all the
matters of defense, and the railways
in their pleadings simply follow the Sc
curities company's answer with such
changes of phraseology as are required
by their diverse characters.
The main answer, that of the Sc
curities company, is more than usually
direct and plain for legal pleading.
No Business In Minnesota.
Defendants deny that the Northern
Securities Company has ever conduct
ed any business in Minnesota, or ever
had any place of business or owned
any property in the state, and the
railways the property of the Eastern
Railway Company of Minnesota, are
operated by virtue of a lease to the
Great Northern Railway Company.
They also deny that James j. Hill
was on Nov ID, 1901, or that he has
ever been, the owner of, or in the
possession or control of, or had on
said day, or at any time, subject to
his direction or disposition, more than
a majority, or more than portion
far less than a majority of the CAPT.
tai stock of the Great Northern Rail-
way Company.
They deny that the Northern Pacific
Railway Company ever became cor
poration of, or within the state of
MINNESOTA, or that it ever became
subject to the laws thereof, except
by filing a copy of it's arti-
Giles with the secretary of state and
complying with the statutes relating
to the admission to the state of rail-
way companies organized under the
laws of other states. They also deny
that the Northern Pacific Company's
lines have since the organization of
the Securities Company been operated
subject to the dictation or control of
the officers of the company.
Lines Are Not Parallel.
They admit that cities and towns
named in the bill are points on each.
of the two lines of railway, but deny
that the lines between these points
are parallel or that the lines Compel
ed for freight or passenger traffic be-
5 tween said points in any different man
ner or by any greater extent prior to
the formation of the Securities Com
pany than they have at all times done
since the formation of that company,
and will continue to do so in the flu
ture.
They deny that the defendant COM
panies have competed with each other
for passenger or freight traffic in any
other or different manner or to any
greater extent than they have con-
tinuously done since the formation of
the Securities Company, and will con-
tinue to do in the future. They adj
NIT that the lines are the only lines
of single railway company travers-
ing, east and west, all the northern
tier of states west of the Mississippi
river. They deny that these lines are
the only lines crossing the state of
Minnesota and connecting the Paciffc
ocean by rail with points of said state,
or that they are the only lines con-
he far1. Of fhn
tier of states or the territory tributary
thereto by rail with the Pacific ocean.
Did Not Affect Competition.
They admit making large shipments
of wheat and other products from and
to the places named in the bill. They
deny that competition between the de-
PENDANT companies for traffic between
said places was prior to the organiza-
ton of the Securities Company, any
sharper or more active or more produc-
tive of lower rates for freight or pas
sengers than it has been at all times
since such organization, and still is,
and deny that such rates have been at
any time, since the organization of the
Securities Company, or now are, or will
be, any higher than if said company
had not been formed.
On the contrary, they say that since
the formation of said company such
rates have already been largely re-
duced, and are now and will continue
to be lower than those stated in the
bill to have been secured by the sharp
and active competition therein al
legged
They admit the organization of the
securities Company and that it was
organized for the purposes set forth
IN its articles. and for no other pur-
poses whatever.
The stock Transactions.
They admit that after the formation
of the Securities Company, and on
Nov %, 1901, that company did re-
quest of the Great Northern Company
to purchase such of their shares as
should be offered within sixty days
from the date at $3.50 per share. and
pay therefor in shares of its own CAPT.
tai stock at par. Except as aforesaid,
they say that the Securities Company
mas not offered OF sought to purchase
any stock of either of said railway
companies in exchange for it's own
SHARES. They say that the Securities
company has also purchased for cash
large amount of the shares of the
defendant railway companies, and of
the other companies.
They deny that James J. Hill was
II any time the principal or controll-
ing stakeholder of the Great Northern
Company, and say that while the said
James ]. Hill was for short time
nominally a director of the Northern
Pacific Company, he never cast any