Evening star., 1902-05-06
OBJECT OF MERGER
THE NORTHERN SECURITIES
COMPANIES FILE ANSWER.
Purpose Of Deal Alleged to Benefit
Shareholders and the Gen
eral Public.

A dispatch from st. Paul, Mimi, yester-
day says 'An enterprise in aid Of a great
competitive interstate and international
commerce. is the description Of the North
ern Securities Company given in the an
swer, filed by the attorneys for that corpo-
ration. in the suit brought by Attorney Cen
eral P. c. Knox. on behalf of the United
States, to enjoin the so-called merger Of the
Northern Pacific and Great Northern rail-
ways. This answer was filed late this af-
ternoon in the United States circuit court.
in this city, and at the same time individual
answers were also filed by James J. Hill,
William P. Clough. Dr. Willis James, John
s. Kennedy, George F. Baker and the Great
Northern railway, and by j. Pierpont Nor
gan, Robert Bacon. Daniel 8. Lamont and
the Northern Pacific Railway Company.
These various papers follow the same
lines. The answer of the Northern Securi-
ties Company Is divided into two parts. The
first Is largely a denial Of the petition re-
specting any charge Of conspiracy and re-
specting the purposes Of the organization
of the securities company. Instead Of own
ing a majority of the shares of the Great
Northern or Of the Northern Pacific Com
pany, it is stated that those who are in
terested in the organization Of the securi-
ties company did not own within $26, 600, 900
of a majority of the Great Northern shares
and little more than one-quarter Of the
Northern Pacific shares.
This part of the answer also states that
the securities company has acquired by
transfer on the Great Northern books about
fve-twelfths Of that company's stock, has
negotiated for about four-twelfths Of the
total of such stock, which has not been
transferred and as to which 1t has at pres
ent no voting power, and has paid, on ac-
count of Great Northern and Northern Pa
cific shares purchased. more than $40, 600. 600
in cash; that many stockholders have not
sold and may not sell shares, and that
neither company, by any act or suggestion.
has solicited shareholders, to sell to the
securities company.
In the second part Of the answer the pur-
chase Of the Chicago, Burlington and Quin-
cy Railroad Company Is taken up, the rea-
sons for such purchase having been. 1t Is
alleged, Enormously stated In the peti-
ton
1t is said that both roads were placed
at a disadvantage with other transcontinen-
tai roads. as well as with European COM
petitors, by the want Of sufficiently direct
connection with the territory offering the
best markets for the products of the coun-
try along their lines and with the places Of
production and great centers Of distribution
from which their traffic must be supplied.
The lines OF the Burlington, better than
those of any other company fulfilled the
requirements Of both roads in respect Of
markets for east-bound and freight for
westbound traffic. The answer recites these
various markets and their products
1t is denied specifically and generally that
any stock thus secured is to be held or
used for the purpose Of placing under
one control the railways Of the Great
Northern and Northern Pacific companies,
or their business; or to restrain competition
between the companies; or for any other
purpose than to manage each of them for
the benefit Of their shareholders and of the
public.
THE antitrust act was not intended to
prevent or defeat an enterprise in aid of q
great competitive interstate and interna-
tional commerce merely because such enter
prise may carry with it the possibility of
incidental restraint upon some Commerce
trifiing both as respects territory and vol
ume"