Omaha daily bee., 1903-03-20
MERGER IS DEFENDED


CONTINUED from First Page.)
oral, IL he considered such combinations
to be infractions OF law, would shut his
eyes TO those doing business at the capital
Of the nation, and should come half way
across the continent in search of n viola
tion Of the act.
Judge Young concluded at 1920 and the
remaining hour was occupied by NJ. d.
Grover in further defense.
After reviewing the premises in the case
Mr.. Grover gave a geographical sketch OF
the location Of the Great Northern and
Northern Pacific lines and declared that
the markets available to those lines were
mesger as compared to the 100 lines east
OF the Mississippi, and that II was neces-
sary for them to put the only thing to sell,
that is. their transportation. at such rates
that the country would be populated and
the market revenues extended.
He denied the purchase OF the Burlington
enabled people in the central portion Of
the country TO ship their goods to the
Orient In competition with shippers from
New Orleans by water.
To secure voluminous traffic low rates
Of transportation had to be maintained Of
the rates OF combination of railroad sys-
TENS.
At 4:2O court adjourned.
Hartman Interests Sell out.
During the evening It was agreed, in or
der to expedite the hearing. that a brief
prepared by Daniel Wilcox and signed by
him and by Francis Lynde Stetson in be-
half Of ]. Pierpont Morgan, Robert Bacon
and Daniel S. Lamont. should be taken as
read. Copies OF It were thereupon dis
trlbuted to all parties interested,
The brief sets forth that during the re-
organization OF the Northern Pacific ]. P.
Morgan & Co. acted as reorganization man
ager, and has ever since been the fiscal
agent OF the company. The firm has ac-
cordingly at all times desired to further
the best interests OF the company and espe-
eially to aid in steadily developing its bus
mess. The firm considered that these re-
suits were accomplished by the policy OF
the company during the existence Of the
voting trust.
Not long after the termination Of the vot-
ing trust, however, the firm became awAr
that unusually large purchases OF stock oil
the company were being made on the Stock
exchange, apparently in a single interest,
The firm was apprehensive that these pur-
chases were for the purpose Of securing
control OF the Northern Pacific and for
some Interior purpose Of which the firm
was not informed. Accordingly the hrm,
prior to May Z. 1901. purchased common
stock OF the Northern Pacific in consid-
cradle amounts. aud their holdings upon
that day amounted to about 200, 900 shares
For some years J. J. Hill and others, who
were interested in the Great Northern, con-
templated forming a corporation TO pur-
chase their separate interests and hold to-
gether, and so insure a continuance Of their
policy In the management OF the road.
About August, 1901, as this plan was APP
preaching maturity. they determined also
TO sell to the new company their interests
in the Northern Pacific. and that the cap
ital Of the new company should be made
sufficiently large 10 enable il to purchase
all the shares OF the Great Northern and
Northern Pacific which the new company
might deem 1t advisable to acquire.
BY this time II had become known tina;
the purchases OF Northern Pacific shares in
May had been made on behalf OF the Ore
gon Short Line. controlled by the Union
Pacific. which interest held about sal 200, OOC
Of preferred stock. which. however. Was tc
be retired on January /, 1909, and $50 600.
900 OF common stock, together making
$50 1900 shares, and constituting a majority
OF the capital OF the Northern Pacific
AuSISuHNus " AAN kNE hNSN VI RInNtNAluA
the Northern Pacific against the possible
control and direction o. the company in ar
adverse interest. defendants determined e
sell their Northern Pacific stock to the new
company.
The Northern Securities company was &C,
eordingly organized.
Ii having become known that the Oregon
Short Line WAS not disinclined to sell II.
holdings upon satisfactory terms. J. P. Nor.
gan & Co. purchased all its holdings o
Northern Pacific stock, agreeing to pa!
partly in cash and partly in shares Of IN.
new company.
After its organization the Northern Sc
curiues company purchased all the share
Of the Northern Pacific and Of the Grea
Northern hereinbefore mentioned. includ
ing those purchased by the firm OF J. P
Morgan & Co. II also was willing 10 pur
chase the shares OF any other shareholder
OF the Great Northern company who desire,
TO sell the same for the price OF $3.50 10
each share OF the Great Northern company
payable IN its own shares, and did setusll
purchase and pay for considerable amount
Of said stock at such price.
! Il is submitted that this action must "a
because the transactions were lawful. an
II the statute applied 10 them Il would b
; unconstitutional because il would depriv
the Securities company Of the right TO puI
] chase property and the stockholders Of n
railway companies OF the right both TO 81
= their own shares and 20 acquire an intere1
3 in the shares OF others
SeabOard President Summoned
RICHMOND. Va. March ls.@John ske.
: ton Williams. president Of the SeaboaI
F. Air Line. has been summoned 70 appear b,
? fore the United States Interstate CONNER,
commission AZ New York Friday week an
l. testify IN the proceedings OF the Kentues
= Railroad commission against the Auant
' Coast Lin aud others.
: To CURE a COLD - ONE Day
: Take Laxative Bromo ouinins Tablets A