The pioneer press. (Miller, Hand County, S.D.) 1893-190?, 1902-10-30

TO very large dimensions, bur our rate 10
a very low one from Lake Erie to Hong
tbosss aon ~ - AIMS hundred ~ ton on
Louis and all the trunk lines of the East
between 81: Louis and Chicago puts us in
a vastly different position; aud that is the
reason why il was OF such Importance for
us 70 control the situation. We could moi
control II unless we could give a market
raised along our road-whether it was out
OF the mine or from the farm or out OF the
forest; IL the man who produced it could
not sell II. he would stop producing. And
that was the problem we had TO meet.
ana hd with the Burlington we find ourselves
Oriental Trade.
Q. Mr.. Hill, are you able to state the
comparative growth of that Oriental traf-
nc since It's inception up to this time?
A. The growth has been very rapid. In
some commodities more rapid than in
others. Last year the increase was very
large In cotton goods, both raw and
Some other commodities IL fell off. The
OIL, think, was considerably reduced.
The Patoum oil, by some arrangement,
mas hs mat market ma largely and we do not
q. Taking the aggregate of the traffic,
the total amount Of H.
A. Well, / should say that I'm 1o02-the
year ending June 30. 1902-the business
was more than twice as great as It was
the previous year ending June, 1901. We
wece In better position TO do the business.
q. Can you give us the quantity of cot
ton. raw cotton or piece goods that was
carried in 1901 and 1902?
A. l can give IL to you exactly by the
Great Northern.
@. Yes. by the Great Northern we are
speaking Of
A In 1901 the amount of cotton piece
goods was 1000 bales; 1902, Ga ,542 bales
Raw cotton In 1901 was 10 230 900 pounds
against Al $4,000 pounds the next year.
Continuing his testimony, Mr.. Hill ex-
planned that they made their ships large
FOR the purpose OF reducing rates. They
could carry cargo equal 10 what five
ordinary freight steamers could carry with
only one crew instead of Ave crews. In
all thclr movements there was no inten-
ton TO hinder commerce. but to promote it,
ana ~ has greatly increased commerce
between the United States and foreign
nations. These arrangements have oniy
n ne,n bestTc6ea soout XSaT and the bust,
Northern road He said he thought the
total OF tonnage of the Great Northern
road VIII show the Increase to be about
80 per cent, and the foreign business Is
increased over 100 per cent I'VE have
been able to reduce rates from 10 to Is
per cent In year on the local business
between the Pacific coast and the Twin
Cities ard Lake Superior" was his an
swer 10 the question as to what effect
the increase OF business had had in the
O.. At the tine Of the purchase of the
burlington shares, was there any purpose
or intention to restrain or hinder the
terstate traffic?
y, NO, sir, rome whatever.
q. What has been the effect OF that
purchase upon the traffic OF the RurIing-
ton ROAD? Has it hindered II, restrained
1t, or has IL inereased it?
y. | think thar the traffic of the Bur-
ington road from Billings to the south
west has been very largely increased, and
from here to the south the increase has
q What is likely to be the future eff
fect? VIII II be 10 restrain or to enlarge
the commerce OF the road?
hn MA
ried out, Il should make very large in
crease In the trnfie. For instance, III the
IRON ore from Minnesota can fiEd the fur
naces I'm Missouri or Southern Illinois or
down in that country where they get
cheap COAL and bring back coal in the
same cars, cars adapted for moving one
moving both, that business alone should
run very soon into millions of tons THAT
is enc. / know of no place where the
BUSINESS would not be Increased; l know
creased and benefited. / can imagine
none.
He further. explained that the reason
why they had not begun this earlier was
because II was a very large undertaking
for the Great Northern road alone, and
that the. Northern Pacific was just en-
merging from an embarrassment which
made II inexpedient for Ii to join
The question of a holding company was
not part OF the Burlington transaction. 1t
was not discussed or thought Of; neither
was there any purpose at that time TO
secure control Of the Northern Pacific
stock.
He said one of the Great Northern d.
rectors raised the question that inasmuch
as the purpose of the Burlington stock
and the creation of bond TO pay for 1t,
involved the joint and several liability OF
the entire amount Of the purchase, IL was
q matter OF consequence to the Great
Northern TO know that the Northern Pa
cine would not pass into the hands Of
directions.
He did not think that any of the officers
~ ha pa rffi
thing TO do with the organization of the
Northern Securities company. The North
ern Securities company simply bought the
pepole who owned II. The corporation aid
not own any stock that he was aware OF
and at any rate. It did not sell any stock
own sales and those OF his imnediate
friends. the eleven parties he had named.
We're . absolute without any condition or
else. There was no understanding as to
how the Northern Securities company
should vote the stock-no condition Of
any kind attached to the sale The sale
was not the result OF any agreement with
Replyln~ to questions as to whether he.
Hill. solicited parties to buy the stock
of the Northern Securities company Mr.
Hin stated that replying TO inquiries. he
determine for themselves-and he had so
many inquiries that finally he prepared a
eirsnar letter ter as ,S an answer in which he
company did not operate and could not
operate a railroad. but could only buy
and sell shares OF railroads and the value
of its stock depended upon the proft
made by the railroads the stock OF which
the Northern Securities company might
acquire.
He left each INQUIRER TO act his own
pleasure without giving advice.
The second Day.
on the second day of Mr.. Hills testI-
mony he was cross-examined by the at
torneys for the government. IL was de-
yeloped by his testimony that Hartman,
who represents the Union Pacific's inter-
ests is the largest individual stockholder
in the Northern Securities company.
This came about by the large purchase OF
Northern Pacific stock by the Union Pa
cific made during the raid in May. 1901.
In response TO questions Mr.. Hill said
there was nothing to prevent Mr., Harri-
man from buying more stock of the
Northern Securities company, II he was
willing TO pay the price asked for It by the
owners. He might even buy enough to
| nave control. but he, Hill, did not think
| the owners would be likely TO sell Ii, and
so that though he now has some eighty
or ninety millions of the four hundred
millions OF stock. he did not consider 1t
likely he would ever have control
He explained that the organization or
prevent any such raids as were made in
ioo1 and would make 1t very difficult even
| n not Substantially impossible for any one
nerson or syndicate to get control of the
| stock of the roads IN the hands or the
| holding company. BY having the owner
| ship OF the roads stable ana not nkeIy
| 10 Be frequently changed, rates could be
| reduced. re thought that no more than
| 10 ner cent of the business was competi-
i've bet ween the Northern Pacific and the