The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-05-06
To AID COMMERCE
BIG MERGER A GREAT CONFETTI
TIVE ENTERPRISE.
so HILL AND MORGAN REPLY.
OWNERSHIP OF MAJORITY sToCE
DENIED.

To Aid Interstate and Interna tional
Commerce Their Object-They De-
ny Conspiracy and Also Owner
ship of Majority of Stocks of the
Two Big Northern Lines-The Bur-
HnGtOn's Purchase Experimentation
cal Traffic Furnishes Only Two Per
Cent of Business-Rates Already
Reduced $1,000, 1000 Annually.
st. Paul. May 5.-"An enterprise in
aid of great competitive interstate
and international commerce." is the de-
scription of the Northern Securities
Company given in the answer filed by
the attorneys for that corporation, in
the suit brought by Attorney General
p. C. Knox, on behalf of the United
States, to enjoin the so-called merger
of the Northern Pacific and Great
Northern Railways. This answer was
filed late this afternoon in the United
States Circuit Court in this city and
at the same time individual answers
were also filed by ]. ]. Hill, j. Pier
pont Morgan and others. These various
papers follow the same lines. The an
swer of the Northern Securities Com
pany is divided into two parts. The
first is largely a denial of the petition,
respecting any charge of conspiracy,
and respecting the purposes of the or
ganization of the securities company.
Instead of owning a majority of the
shares of the Great Northern
or of the Northern Pacific Company. it
is stated that those who are interested
in the organization of the Securities
company did not own within $26, 900, 900
of a majority of the Great Northern
shares and little more than e-quarter
of the Northern Pacific shares.
This part of the answer also states
that the Securities company has ac-
quired by transfer on the Great North
ern books. about five-twelfths of that
company's stock. has negotiated for
about four-twelfths of the total of
such stock. which has not been trans
ferred and as to which ii has at pres
ent no voting power.
In the second part of the answer,
the purchase of the Chicago, Burling-
ton and Quincy Railroad Company is
taken up, the reasons for such pur-
chase having been, it is alleged, "er-
! roneously stated in the petition"
The answer says:
The Great Northern and North
ern Pacific companies each
purchased an equal number OF
shares of the Burlington stock
as the best means and for the
sole purpose of reaching the best mar
kets for the products of the territory
along their lines, and of securing con-
nections which would furnish the larg-
est amount of traffic for their respec-
tive roads, increase the trade and in
terchange of commodities between the
regions traversed by the Burlington
lines and their connections and the re-.
gions traversed or reached by the
Great Northern and Northern Pdcirc
lines and by their connecting lines of
shipping on the Pacific coast"
1t is claimed that "in such purchase
there was no purpose to lessen any
competition of the Burlington lines with
those of either of the purchasers, for
they are not competitive, or to lessen
any competition between the purchas-
ers."
1t is stated that since the Securities
Company was formed both lines have
voluntarily so reduced rates as to de-
crease their earnings by upwards of
ever a million dollars annually. 1t is
claimed that the total amount of all
traffic between points common to the
two roads. is less than two per cent
of the total interstate traffic of the two
companies"
1t is maintained that the Securities
Company is not a railroad, and has no
power to operate railways or control
rates or restrain traffic.