The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-03-11
Continued From First Page.

in the state of Washington, and to Port
land, in the state. of Oregon, with
branch to Helena, in the state of Mon
tana, thus furnishing to the public two
parallel and competing transcontinental
lines connecting the great lakes and the
Mississippi river with Puget sound and
the Pacific ocean. At the times men
toned, these two railway systems, which
will hereafter be referred to respectively
as the Northern Pacific system and the
Great Northern system, each of which,
with it's leased and controlled lines, main
and branch, aggregate over $500 miles n
length, We're the only transcontinental
lines of railway extending across the
northern tier of stat es west of the great
lakes. from the great lakes ard the Mis-
sissippi river to the Pacific ocean, and
were then engaged in active competition
with one another for freight and passen-
ger traffic among the several states of
the United States and between such
states and foreign countries, each sys-
tenn connecting at it's eastern terminals,
not only with lines of railway, but with
lake and river steamers to- other states
and TO foreign countries and at its West
ern terminals with seagoing vessels to
other states, territories and possessions
of the United States and to foreign coun-
tries.
Insolvency of N. p.
Fourth-Prior to the year 1893. the
Northern Pacific system was owned and
controlled and operated by the Northern
Pacific Railroad company, corporation
organized and existing under certain acts
and resolutions of congress. During that
year the company became insolvent and
the line was placed in the hands of re-
ceivers by the proper courts OF the Unit
ed States. While in this condition.
awaiting foreclosure and sale, an ar
rangement was entered into between a
majority of the bondholderS of the
Northern Pacific Railroad company and
the defendant, the Great Northern Rail
way company, for a virtual conSolida-
ton of the Northern Pacific and Great
Northern systems and the placing of the
practical control of the Northern Pacific
system in the hands OF the defendant,
the Great Northern Railway company.
This arrangement contemplated the sale,
under foreclosure, of the property and
franchises of the Northern Pacific Rail
road company, to committee of the
bondhoiderS who should organize new
corporation, to be known as the Northern
Pacific Railway company, which was TO
become the successor OF the Northern
Pacific Railroad company; one-half of
the capital stock of the new company
was to be turned over to the Shareho!d-
ers of the defendant, the Great Northern
Railway company, which in turn was to
guarantee the payment of the bonds of
the Northern Pacific Railway company.
An agreement was to be entered into for
the exchange of traffic at intersecting
and connecting points and for the d1Vi-
sion of earnings therefrom. The carry
ing out of this arrangement was defeat
ed by the decision of the supreme court
of the United States in the case of Pear
sail VS.. The Great Northern Railway
company (Which was decided March 50,
1885, and is reported in the one hundred
and SiXty-hrSt volume of the reports OF
said court, beginning on page 646, to
which reference is made) in which it
was held that the practical effect would
be the consolidation of two parallel and
competing lines of railway and the CIV
ing to the defendant, the Great Northern
Railway company, monopoly of all
traffic in the northern half of the state
of Minnesota, as Wen as of all transcon-
4 ,4,I II 10 ~
Union Pacific, to the detriment of the
public and in violation of the laws of
the state of Minnesota.
Purchase of Burlington.
Fifth-Early in the year 1901, the de-
PENDANTS, the Great Northern and North
ern Pacific Railway companies, acting
for the purpose of promoting their joint
interests and in contemplation of the ulti-
mate placing of the Great Northern and
Northern Pacific systems under a COM
mon source of control, united in the pur-
chase of the total capital stock of the
Chicago, Burlington & Quincy Railway
company, of Illinois. giving the joint
bonds Of the Great Northern and North
ern Pacific Railway companies, payable
in twenty years from date, with inter-
est ar per cent per annum, for such
stock, at the rate of $500 in bonds, in ex-
change for each 800 in stock, and in this
manner purchased and acquired about
$l07 900, 900 of the $112, 000 600 total capital
stock of the Chicago, Burlington & Quin-
cy railway company, or about So per
cent thereof In this manner at the
time stated, the defendants, the Great
Northern and Northern Pacific Railway
companies, secured control of the vast
system of railway lines known as the
burlington system, about 5000 miles in
length, extending from st. Paul, in the
state of Minnesota, where it connects
with the Great Northern and Northern
Pacfc railway systems, through the
states of Minnesota, Wisconsin and ILL
noIs, to Chicago, in the state of Illinois.
and from these two cities through said
sta tes and through the state of Iowa,
missouri Nebraska, Colorado, South Da-
kota, Wyoming and Montana, to Quincy,
in the state of Illinois; to Burlington and
1jes Moines, in the state of Iowa; to st.
LOUIS, Kansas City and st. Joseph, in
ire state of Missouri; to Oma ha and
Lincoln, in the state of Nebraska: to
EenVer, in the state of Colorado: to
cheyenne, IN the state of Wyoming, and
To Bliilngs, in the state. of Montana,
Wnere II again connects with the North
erh racine railway system, these states
lying west of Chicago and south Of the
states crossed by the Great Northern
and Northern Pacific systems. and con
shutting the territory occupied in mart
by what is known as the Union Pacifc
railway system, which has been and is a
Parallel and competing system within
system iiii 3 eoi
SiXth-The attempt to turn over a con-
ironing interest in the stock of the
M no. H Pacific Railway company to
the Great Northern Railway company
ana thus effect virtual consolida ton
oI the Two railway systems, having thus
IN uhe year 1886, been defeated by d de-
clslon or the supreme court of the United
states, the defendants James J. Hill and
the associate stockholders of the de-
1endant, the Great Northern Railway
company owning or controlling a ma
and the defendants j. Pierpont Morean
ana his associate stockholders of the de
fendant, the Northern Pacific Railway
company, owning or controlling a maiori-
" OF the stock of that corporation act-
ing for themselves as such stock holders
ana on behalf of the said railway COM
pahleS In which they owned or held .
C con interest, on and prior to the
Iotn DAY of November, 1901, contriving
ana intending unlaWfully to restrain the
trade or commerce among the several
states and between said states and for
eIsh countries carried on by the North
ern racine and Great Northern systems,
ana continuing and intending unlawfully
10 monopolize or attempt to monopolize
sucn trade or commerce, and contriying
ana intending unlawfully to restrain
CIV prevent competition among said
! railway systems in respect to such in
terState and foreign trade or commerce
| ana continuing and intending unlawfuly
| to deprive the public of the facilities and
| advantages in the carrying on of such
interstate and foreign trade or commerce.
| heretofore enjoyed through the indie
| pendent competition of said railway sys-
| TENS, entered into an unlawful comblna-
| ton or conspiracy to effect a virtual
consolidation of the Northern Pacific
and Great Northern systems. and to
| place restraint upon all competitive in
| terstate and foreign trade or commerce
carried on by them, and to monopolize
! or attempt to monopolize the same and
TO suppress the competition Heretofore
existing between said railway systems in
said interstate and foreign trade or COM
meree, through the fundamentally and
| by the means following. to-wit: A hold