The Aberdeen Democrat. (Aberdeen, South Dakota) 1???-1909, 1903-08-07

20 OF the Great Northern comnany ware
iin nemsse az alarmed tha by such attempt in the
obtain control of the Northern Pacific
ana through It of the Burlington system,
a result which they apprehended would
G Gsu,to Nny, anect the property Of the
afaversed by 1T and by the Northern Pa
cho US a holding company. to pur-
the Northern Pacific COMPANY thew ioined
for the purpose of selling to such holding
company and placing therein their own
nsogn N n IN tne Great Northern company and
same company who might choose to do
nkeWise and thus accomplish their pur-
pose above stated of giving p~ermanency
70 me management and policy of the
Great Northern company.
Not Done by Companies.
The incorporation of the Northern Sc
curllles company under the general laws
Of NeW Jersey and with a capital Of
500. 900, 900, was completed Nov, il. 1901.
Neither the Great Northern company nor
the Northern Pacific company, by any
had had al any its a'f re- dn a,t1 or any corporate.
SUBSEQUENT action of the Northern Sc
curltles company; but Mr.. Morgan, Mr..
Hill and other stockholders of the North
company, We're individually the promoters
who caused and procured the incorpora-
ton OF the Northern Securities ompan
for the purposes above stated.
The Northern Securities company
When formed offered and agreed to pur-
chase and to pay for in it's w stock at
par par Ssl0e per shared any stock Of the
$ll5 per share and any stock Of the Great
Northern company at the price Of $3.50
per share. and large amounts of the
stock stock OF Of, said two railroads We're at such
said promoters and other stockholders
OF said two railroad companies by said
northern Securities company.
& Co. all the Northern Pacific company
stock which they had purchased as afore-
said-both common and preferred,
said j.. p. Morgan & Co. at the same
time sold all the same stock to the North
ern Securities company. who paid the
consideration therefor directly to Mr..
Hartman and his associates; a part OF
such consideration being something more
than $50, 900, 900 of the stock Of said
Northern Securities company. That pur-
chase was completed on Nov. Is. 1901.
sOn Jan. l, 1902, the Northern Pacific
company paid off and retired its preferred
stock, having raised the money, for that
made convertible. and were converted
into common stock of that company. 9th
er stockholders of each Of said two rail-
road companies sold their stock to the
a ANoAI 1lCA1l 10 1SSdAASlSSL IA AAe
in payment or exchange therefor at the
rates aforesaid, stock Of the last named
company so that by Dec. l. 1901, sale
the owner OF considerable more than 6
!, majority of the stock of the Northern
Pacific company, and a large amount. blu
less than a majority dtn1 Of the s st9ik Of n tn
chases from stockholders continued. am
at the time of the commencement of thi
suit the Northern Securities company hat
: So per cent of all the stock of the North
| ern Pacific company and of about 70 pc
cent of all the stock of the Great North
ern company.
: Conclusions of Law.
"First-It is obvious from the fore
! cling facts that the Northern Securitie
company was Incorporated with the pur
pose n intent on the part of It's pro
moters that it should acquire by purchase
by exchange for it's stock, and Nshoult
. own and control a considerable majorit.
+ Of all the stock Of the Northern Paclfi
Company, and thus secure that compan!
against the danger OF any future raj
upon its stock which might place it's man
agement and the resulting controi OF IN
g rival railroad corporation whose interest,"
might, be hostile to the development an
property Of the Northern Pae I an saa
: board terminals, and of the region Q
country traversed by their faliroao sys
q TENS. - u,o nc M,
> N1orean and his associates who acte'
with him in this matter; i n1auEH e : ~ W.
n Great Northern company. VINO aiso hen
large amounts of stock in the Mortimer
pa eeilc company and were apprehensiv
that any hostile control of the Nortner
pacific company which might saGflnc
c it's interests to a rival, %o QUIZ n "
~ the Great Northern company: And a
the very time when the Nortnern Sc
c%urities company was t t6n ,are anh hoIding
~ INorthern Pacific company stock 3
it 81 1imssIf and his associates acting wit
q him mi by the then pgrcnase og boIdtn
II ~ ~ Such stock, said ]. P. Morgan wa
able at once to transfer and have trans
d ssrred to the Northern Securities com
n pany a large and and % eSn5lolansP atafS!' com a
Many as was done; thereby accompilsnin
las was believed) the purpose q secur ~
!e that stock against hostlle ia"S ~ -
~ future.
it "with respect to the stock Of the s Grea
3 Northern c ON MoSrthern Securities com
lie nany Was.incorporated it was the purpos
ppna' intent Of Mr.. Hill and other la ar
Z stoekh msn act Of t WITH e'f him to nG sell and d:
POSE Of to the Northern Securities con
le any for its stock, their several nov
inas of stock in the Great NortaeEnn o Go ~
,ag a~ggreeatingI then about S3o.OVo,V
!" fhe end that such large amounss
a Great Northern company $ s.ucn isnnel
A. he kept together, and las II y yo aupt
= aid in giving permanency 70 snG an
ie ~ and policy which had controliem ~
re was controlling the railway ano uest tha
a w n,an+ Of that company. And It was t1 =
men, ,rnosa that all other s~tockhoMers OF u
pumnapt Northern company VINO ME
G. : TO do so. should be permils
+ cnoo oaii or exchange their stock OF "a
70 a se for stock of the Northern ~
IN eouurities company on the same Terms n o.
q vas hoped and. expected that ma
at would do SO. 1y;u .nd his associat,
n had no power or control Whlcn seu 10 : i
II. nnhie them to transfer OF cause ec.r;ti Il
Of a 40 nsferred to the Northern Hec ~ I,
IN onrmnany so much as one-Iourtn nonon
c u ~ the Great Northern conp pha
an s,Ioe audience. therefore, Iails ~ =
he I LIZ the Northern Securltles cu
ed Ina Im1as formed for the purpose 81 aGa ~ i i
I'd wa, WaS holding a majority OF the stGf . : ~
Greaf Northern company, as wei rv 4
n Grea The Northern Pacific company: q, =
OF ,,.r1h that result followed soon aattti e
~ tngu nav have been desired anu aA NJ
pated' state Antitrust Law.
). 40. one question in 4 th rs f Morthe
WIl6SA.S in the manner dDO