Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1902-10-23
THE MERGER CASE
TESTIMONY OF PRESIDENT HILL
is BEGUN.
Explains a Little More in Detail
the Organization of the North
ern Securities COmpany.-.AlsO
Tells How Merger Makes Lower
Rates Possible.

St. Paul, Oct. 21.-J. J. Hill was
the only witness examined before
Special Examiner Ingersoll in the mer-
ger cases. The examination was con-
Quoted by George B. Young.
Mr.. Hill went over much of the
ground previously covered by him in
his testimony before the interstate COM
merce commission in other suits SINH
lar to this. but he brought out more
fully that the exchange of the Great
Northern stock for that of the Northern
Securities Company was the individual
act of the individual shareholders, and
dwelt at length on his statement that
the whole purpose of the organization
of the Northern Securities Company
was for the protection of great COM
merce with the Orient which the
Northern lines had sought to develop in
competition with the transportation
companies of the whole world.
The circular OF the Northern Securi-
ties Company to shareholders. offering
to exchange stock had heretofore been
placed in evidence, but the attorney,
through Mr.. Hill. brought in personal
circular letter sent by him to numerous
Great Northern shareholders in answer
to inquiries, telling them that any &C.
ton of theirs in exchanging stocks must
be through individual action, and not
be influenced by him.
Mr.. Hill told of the traffic that could
be depended on along the Great North
ern, especially the lumber from the
Pacific: the rate of v hich had previously
been prohibitory, but was reduced from
80 to 40 cents hundred after his line
was completed. He also told in detail
the development of the Oriental trade.
In answer to questions, Mr.. Hill said
that on the west end of his line the
local supply of coal was sufficient for
business, but within the past two years
the difficulty of getting coal from Penn
sylvania to Lake Erie was very great,
his company being unable to secure a
sufficient supply in 1900 for it's own
use at either Lake Erie or Lake Supe-
rior ports.
Coal for domestic use was also unob-
tainable, the terminals being unable to
handle all the cars. The case was even
worse this year, less than half the pro-
per supply being new on hand for the
season. 1t was even worse in the case
of coal for domestic use. The situation
is serious this year and will constantly
grow worse. He referred particularly
to bituminous coal. and spoke of the
use of the Burlington line as means of
supplying Northwestern needs for fuel,
it's connection with the soft coal fields,
it's low grades and the consequent pos
Utility of large loads making lower
rates possible. By the use of the Bur-
lington for coal business over that and
the Northern lines in unbroken train
loads lower coal prices will result. The
Puget sound coal fields would furnish a
supply east of Spokane; the British
Columbia coal is nearly as far away and
cannot be brought profitably this far
east.
Recent developments have taken the
coal shipments north from st. Louis to
Northern Minnesota and the return
load will be iron ore from the Mninne-
sofa ranges. The direct connection
with the Burlington makes possible
lower and more certain rate on this
class of business. They must take all
business possible to the coast or else it
will be necessary to raise the rate on
the east-bound lumber. A trunk line
to Chicago, St. Louis and other centers
III 30
shipments and take down the rates.
All conditions affecting the Great
Northern would naturally affect the
Northern Pacific similarly, especially
so in the matter of coal supplies. Both
roads must handle business both ways
in order to compete with everything that
floats and to compete with the Suez
canal route, but they were doing it sue
cessfully.
Manufacturer from Ohio, and even
some parts of Pennsylvania. must have
rail haul in either direction and can
be trans-shipped either across the At
lantic or Pacific. Railroad competitors
to the Pacific coast are the Canadian
Pacific, Union Pacific, Southern Pacific
and new line under construction.
His chief competition, however, was
with the conditions all over the world,
and not alone with these western rail-
ways.
Speaking of the line of steamships,
he said the first ship would be launched
in December, with tonnage of $4,000,
or 1000 more tons than the Celtic,
which is the largest ship now afoat.
Cotton and machinery showed re-
markable increases in Oriental traffic
within the last year, while oil and some
other commodities decreased. The year
ending June, 1902, showed about double
the Oriental shipments of the previous
year.
Mr.. Hill will be on the stand again,
and will be followed by Col. W. H.
Clough, Frederick Weyerhauser and
other defendants or directors of the de-
PENDANT companies.
No Decisive Result.