The Butte inter mountain., 1903-12-23
CONSOLIDATION IS
THE REAL RESULT
ATTORNEYS FOR PLAINTIFF FILE
CROSS BILL ON THE NOR
THERN SECURITIES.
COMPETITION is DESTROYED
Claimed That Two Roads Have Practi-
ealIy Agreed Net to Undetbid Each
Other for Business.
ny ASSOCIATED rRtss.

Washington. Dec. 15--AftorneNs tor the
plaintiff filed n cross-bil in the United
States supreme court yesterday in the
Northern Securities case.
After stating that the action Was brought
TO enjoin the consolidation of the two
railroad companies because they arc paral-
lei ard competing lines within the state Of
Minnesota. and that the circuit court Of
the United States FOR the Eighth district
decided the case contrary to the contcn-
zion OF the state; the attorneys present
their assignment OF errors on the part OF
the circuit court.
There are 20 OF these assignments. but
the principal ones are that the decree is
erroneous III holding that the Northern
! Securities company was not organized
| for the purpose OF consolidating the two
| appellee railway companies: in holding that
| the owners of the stock Of the two railway
companies by the Northern Securities com
pany does not amount to a consolidation
within the meaning OF The acts set forth in
| appellants bill in holding that the North
| efn Securities company does not, III fact.
| control the two railway companies by viz
! tie Of its ownership Of the stock OF such
| railway companies and in not holding that
the Northern SECURITIES company was in
tended by its ineorporators to be and
| is a device for evading the laws OF the
| state.
| Competition Killed.
In the course Of the relating oi the facts
OF the consolidation Of the two roads.
reference is made to the joint circular
OF the freight agents OF the Northern Pa
cifc and the Great Northern roads on
| January 20. 1909. and it is declared that
the effect OF this circular letter was 10
| wreck all competition for business between
the railroads within the state Of Mime
sofa and to compel the shipper to ship
freight via the road having the shorter
route, or else pay TO the road having the
longer route a greater freight rate. and
not only" they say. was all competition.
so far as rates were concerned Withdrawn
or destroyed bu, all effort 10 secure busi-
ness and all the benefits resulting theretrom
10 shippers on the line Of said railroads
| within the state OF minnesota were apso-
lutely destroyed"
| In their arguments on the facts i'll the
case. counsel contend that the two lines
are both parallel and competing and that
the Northern Securities company was or
panzcd solely for the purpose Of consoli-
dating and unifyinG the control OF the
Great Northern and Northern Pacific Rail
way companies and as a means OF evadng
|
hibitiug such consolidation.
After presenting the authority for these
statements the attorneys presented the fol-
lowing conclusions:
Charge Conspiracy.
at is clear that the controlling stock
holders Of the Great Northern railway in
Guiding Mr.. Hill. and the controlling stock
holders of the Northern Pacific company.
.t,..
summer and fall Of IooI To organize the
Northern Securities company for the pur-
pose Of turning over to that company the
absolute control Of both railway companies
and thus TO place the property OF the two
railway companies under single or uni
fed management and TO prevent either
company doing any act hostile 10 the i'll
tcrcst Of the other or entering into COM
petition with the other so as to lower rates
or solicit business in other words as Ia
effectively stitle competition and destroy
whatever benefit might result thcrcfrom 10
the public, as though the entire system oi
railroads of each company within the state
of Minnesota were owned and controlled
by single operating railroad corporation
or individual
Practically Consolidation.
Arguing the law point in the case, they
say:
THE inquisi,ion OF majority Of the
capital stock of the Great Northern anc
Northern Pacific Railway companies by tht
consolidated and III a perpetual control Sc
complete a consolidation Of the property
and franchises OF such corporations ~
though one had purchased all the propcrt,
and franchises Of the other"
The attorneys declare that the fact tha
these two railway companies have bcer
consolidated in and perpetual control Sc
cured by single corporation is not dis
proved by word Of testimony in this cast
and adds:
The only defense interposcd is pie;
that such consolidation was necessary il
order to preserve the united control tina
Mr.. Hill and Mr.. Morgan and their asso
ciates urgently desire, followed by dccla
ration OF good intentions their part
framed in allurine visions Of benefits the
: intend to bestow upon this and othe
states, The court must bear in mind tha
seven states are practically dependent upoi
; the railroads controlled by the Northcr
. Securities company for their transportato
facilities and that these seven states EN-
brace nearly one-twellth Of the area of tn
, United States and contain within their boz
ders nearly one-tenth OF the total popula
tion OF the United States"
State Sovereignty at Stake.
They conclude by calling attention to tn
, magnitude of the case, and say:
: The judgment of this court therco
Z must determine whether sovereign stat
d OF this union is powcrlcss to yindicate III
majesty Of its own laws
!,
d rarity anywhere is Buffalo mea
4 "a, b, oh,aiupd at NCtrnn11tgn Marie