The daily morning journal and courier., 1902-03-11
BIG RAILROAD SUIT. Government Files Its Bill in Equity Against Northern
 Securities Company.
GRAVE CHARGES ARE MADE
RAILROAD MAGNATES 4CCUSED OF
 GIGANTIC OoNSPIRACY.

4 6IU<A tOFcf AhA SA
 The Question of Controlling Interest
 Bni Declares if the Defendant Conn
 pauy Has Not Acquired Majority oi
 the Stock 1t is Because, Through Feal
 of Litigation, a Large Amount of the
 Capital Stock Has Been WIthheld-Ths
 Pubiic Interest Threatened.
 St. Paul, Minn., March 10.-By direc-
 ton of the attorney general of the Unit ed States bill in equity was filed at St,
 Paul late this afternoon in the circuit
 court of the United States for the dis
 trict of Minnesota in the case or the
 United States complainant, against the Northern Securities company, the Great Northern Railway company the North- ern Pacific Railway company and oth-
 CTS. defendants to test the legality ot
 the alleged combination or merger or
 the two roads and others named Tn the
 bill. The action is brought under the act of July 2, 1890, known as the Sher-
 man antitrust act.
 After reciting the fact that the Northern Securities company IS cor
 poration organized under the laws or
 the state of New Jersey that the Northern Railway was organized uhoer the laws of the state of Minnesota, ana the Northern Pacific railroad under the laws of Wisconsin, and that the TWO last named companies are common car riers doing an interstate business ana that those companies at and prlor to the doing of the acts complained or owned and operated two separate lhue- pendent, parallel and compettlns mes of railway aggregating over 5,5oo mlies in length, the petition goes on 10 say that they were the only transcontlnen- tai lines of railway extending across the northern tier of states west of the treat Lakes. from the Great Lakes and the Mississippi river to the Pacific ocean, and were then engaged in active com netition with one another for freight and passenger traffic among the sev- eral states of the United states and be- tween such states and foreign coun- tries. each system connecting at it's eastern terminals, not only with lines or railway, but with lake and river steam CTS to other states and to foreign coun- tries. and at it's western terminals with sea-going vessels to other states. terri tories and possessions of the United States and to foreign countries.
 "That prior to the year 1893 the Northern Pacific system was owned and
 J1opi6a Pail road company, corporal ton organized under certain acts of congress- that during that year the company became insolvent and was placed in the hands of a receiver. While in this condition, awaiting foreclosure and sale an ar rangenlent was entered into between a majority of the bondholders of the Northern Pacific Railroad company and the Great Northern company for vir- tual consolidation of tlre two, and plac- ing the control of the Northern Pacific system in the bands of the Great North ern. This arrangement contemplated the sale under foreclosure of the North ern Pacific Railroad company to com- mittee of bondholders who should or 1 ganize a new corporation to be known | as the Northern Pacific Railway com pany. One-half of the capital stock of the new company was turned over to the Great Northern company which, in turn. was to guarantee the bonds of the | Northern Pacific Railway company.
 "The carrying out of this arrange ment," says the petition, was defeated | by the decision of the United States supreme court in the case of Pearsall | |against the Great Northern Railway | lcompany which was decided March 3G | l1S96 in which it was held that the prac- Stical effect would he the consolidati ton | lof two parallel and competing lines of ! hallway and the giving to the defend- Fant. the Great Northern Railway com Ipany. a monopoly of all traffic in the | |horthern half of the state of Minnesota, lAs well as of all ans-continental traf- f1c north of the line of the Union Pa hf1c, to the detriment of the public and | kn violation of the laws of the state of sainnesota.'
 "Farly in the year 1901, the defend- Ants, the Great Northern and Northern Pacific Railway companies, in contem- (slation of the ultimate placing of the Ntreat Northern and Northern Pacific Eystems under a common source of con- Fsol united in the purchase of the total apital stock of the Chicago, Burling- Een and Quincy Railway company of lnois giving the joint bonds of the Esreat Northern and Northern Pacific ailwav companies
 |&fIn this manner the Great Northern | d the Northern Pacific Rqilwav com n'es secured control of the vast sys- In of lines known as the Burlington | stem. about 5000 miles in length. The empt to turn over controlling in- lest of the Northern Pacific Railway npany to the Great Northern. having Els in the year 1896. been defeated by decision of the supreme court, the I Iendants. James ]. Hill and his asso- te stockholders of the Great North 1 E owning or controlling a majority of l stock, and the defendants. J. Pier t Morgan and his associates owning E controlling a majority of the stock { he Northern Pacific company enter snto an unlawful Combinat tion or con- F lacy to effect virtual consolidation | the Northern Pacific and Great | /, lContinued on Third Page.) .4i