The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-03-20


those gentlemen became concerned IN
the welfare of both companies.
Ia April, 1901, the Northern racine
and the Great Northern made the joint
purchase of the stock of the burlington,
and in payment for it issued their joint
bonds This indicated a very close re-
latiOnShip, and a perfect confidence by
each company in the cooperation OF the
other IN the broad policy Whlch the
purchase Of the Burlington was intend
ed to make possible and to carry OUT.
That policy was to fit the Great North
ern and the Northern Pacific to enter
into competition for transconT1nental
traffic as rivals of the other transcon-
tinental lines. 1t was an arrangement
in favor, and not in suppression, OF
competition. How splendid have been
the results of this policy. not only to the
companies themselves, but to the vast
extent of country penetrated by the two
parallel lines, appears from the evidence
of MI. Hill and others. A new com
mercial empire has been thereby Great
ed in the northwest. and it mas become
possible for the products of that region
10 be prohtably transported and mar
keted in the east and middle west to an
plished in many years without the joint
purchase of the Burlington
This mutually of interest possessed
by Mr. Hill and his associates in the
two companies, and this mutually Of
interest of the two companies in the
Burlington system. and their joint obli-
cation upon the bonds, required that
the relations between the two companies
should not only be friendly but intimate
in all matters of policy that did not re-
late merely to local traffic arising and
ended upon their own original ana
proper lines.
The so-called raid" upon the stock
of the Northern Pacific in May, 1901,
threatened the stability of the structure
so carefully and beneficently erected, and
it was this that fastened to final con-
summation the old conception of a plan
of placing the stock owned by Mr.. Hill
and his associates in such position
that it could not be dislOdged by any
ordinary assault thereby securing per
manency and stability of management,
and the continuance of the policy which
looked to the development of both the
roads and the country which they traV-
ersed through the operation of the Bur
ingtOn as a joint property, constituting
one united system toward the east, of
which the Great Northern and Northern
Pacific were two radiating lines toward
the Pacific coast.
This original purpose. limited to the
participation of Mr.. Hill and his i'm
mediate associates, grew naturally and
justly into a plan. which out of cOnsid-
erations of fair dealing only, extended
to all the other stockholders the oDpor-
tunity to come in upon the same basis.
Thus every step of the proceeding
which is set forth and explained in de-
ldll Dy THESE gentlemen III EuGlI EVIL
dence without the gainsaying or contra
dictiOn of any person, was natural and
progressive and consistent with the or
iginal honest and benehcent purpose of
the parties
When the Northern Securities com
pany had acquired q majority of the
stock of the two railroad companies it
did not any more certainly or firmly
control the policy of the two railroads
than did Mr.. Hill and his associates
under the former conditions. It Is per-
fectBy credible that no idea of any pool
ing or merger in the sense charged in
the bill of complaint ever entered the
head of any of them. Whatever lnflu-
ence they desired in both companies
they already possessed. There existed
mutually of interest and so far as con-
troll that depends upon moral and not
upon legal conditions was concerned,
tives and purposes of the parties were
entirely different. from the criminal ones
charged by the government. Those mo-
tives and purposes are reasona BILE. in
+ telligent, creditable to the hearts and
! consciences of the actors. and in no
wise injurious to the public. They did
not change in any practical way the sit
uatiQn so far as competition between
/ the two companies was concerned They
did not change the legal status of one
: company toward the other. nor in any
wise interfere with the internal Organi-
cation, rights privileges. or duties Of
either company.
If it be said that the arrangement put
it in the power of the Northern Securt-
! ties company to control the policy and
management of both companies, the an
swer is, that that is an incidental result
and not the direct object of the trans
/ action
Neither of the railroad companies Is
such participated in any way in the forma-
ton Of the Securities company, and neither
of the railroad companies had any more
relation to the matter than has corpora
ton to the daily purchases and sales o.
its outstanding stock in the public market
In answer to the allegation Of the gov
eminent in its bill Of complaint. that thi:
is practical pooling of the stocks of the
two companies we answer that the wore
pooling as used by the complainant is
intended to have an offensive meaning ana
an application which cannot be derived
from the lawful acts which the defendant:
have done The stocks are not pooled I'M
der any trust arrangement or agreemen
whatever and that term is no more applr
cable to the arrangement than it would TX
if one natural person had purchased in hi
own right. OF course, IT IS natural con
sequence of the ownership of the stool
that the dividends declared and paid there
on 90 to the owner and this IS no mor'
true with reference to the Northern Secur
tiles company as owner than II would o.
as to any other holder.
We ask the court to keep IN Sl2nf TN
fact that the cooperation ct these I'VE
railway companies both before and ate
was intended. not for the purpose Of mo
nopolizing trade and commerce. but TO
the purpose OF strengthening. aQSnleltlns
and extending the trade and business o
the two companies in both transcontinen
tai and worldwide competition with cthe'
public carriers The result IS not PERM
ciOus but beneficial. and should be marked
with public approval. rather than by leg
islative- and governmental obstruction
FTDDLERS AFTER PRIZES
More Than 100 Contestants in Unique
Entertainment in Terre Haute.
Terre Haute. Ind, March 2o.-An ole
fddlers' contest was held a the Crane
o-,a.a hn1asa NTH zaae.ra than 100 nartici