New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-14
GUTHRIE ACCUSES HILL.
BOUND TO CONTROL N. p.
Stock Bought Since the Decree Was
Issued, LQ7Cyer .Sags.

81. Pau. April 13.-w. S. Guthrie created
fensatton in the Northern Securities case TO-
DAY ey making the charge that the Eill-Morean
combination had secured some Northern Pacific
o. Great H-crShe-u stock improperly since the
granting % tle decree against the Northern Sc
c=rities Company. "a order 70 make certain their
contro, o. TIE TWO roads under the plan Of dis
solution CT tire securities company that they pro-
posed 20 put through Mr.. Guthrie made the
dosing argument for the Hartman interests.
and It after he had said, If we are permit
ted 20 examine these books we can show that
the effect Of this plan OF distribution IS, and
has been from the first to perpetuate the con-
troll OF the Northern Pacific IN the hands of Mr..
HILL" that he charged the Hin-Morgan inter-
ests with acquiring the stock OF the two lines
improperly.
No immediate attention was paid TO the
charge. but Mr.. Guthrie closed his argu-
ment Elihu Root, with permission or the court,
replied to it. He said:
I think counsel hardly appreciates the grav-
tty OF the charge he has made. II means ~ sus-
tanned, that these gentlemen have been guilty
Of criminal contempt Of court am authorized
20 state that neither Mr.. Hin nor Mr.. Morgan
has acquired one share Of either OF these stocks
since the decree was handed down.
Mr. Guthrie. in brief rejoinder. stated that
the petitioners had nothing to go by except the
records OF the court and testimony OF the de-
PENDANTS, and. II that were ulegftimate he
would apologize If given an opportunity To
prove what they believed to be true. he Thought
It would be disclosed that additional stock had
been acquired. II not after. at least on the eve
o. the decree and in anticipation Of It, so that
the pro rata method OF revision OF assets might
be furthered.
The court announced that Il would take the
matter under Amusement and adjourned until
tomorrow. The decision as TO the right OF z K
Hartman and Winslow Pierce as trustees for
TIE oregon Short Line, TO file an intervening De-
ution IN the case Of the government against
the Northern Securities Company and Others
viii be handed down then. The arguments on the
motion OF Hartman and Pierce for permission
20 file their petition were concluded today. 7
G. Johnson addressing the court on behalf OF
The Defendants and ". d. Guthrie closing for
the petitioners
Mr.. johnson assailed Harrfman's cause as a
ridiculous effort, and sarcasticaIly referred TO
him the eleventh hour penitent who came
into court confessing his wrongdoing and say
Ing that he was ready to take his punishment
but wanted TO tell the court how to administer
that punishment The doctrine Of constructive
possession" Of the affairs Of the Northern Sc
cur1ties Company he said. was a new idea, but
a very absurd one. He declared that Il would
be impossible to identify the stock originally ex
changed for Northern Securities shares.
Answering Mr.. Evartss argument that ~ the
proposed plan Of distribution were carried out
Mr.. Hill and his associates would haze stronger
control than before Mr.. johnson quoted from
the report Of Secretary Nichols Of the Northern
Securities Company, to the eject that Mr. hin
would have only 247O per oeat OF the Northern
Pacific stock after the distribution The dan
ger was, he declared, that hundreds Of small
stockholders would become frightened and sell
1nelr shares, and the Harrimans would buy them
up and get control OF the road
William D. Guthrie followed In behalf Of Mr.
Hartman. He said IN part:
I wish to call specific attention TO the fact that
or made any denial whatever OF the claim made b
Nortber oacif s 9Is 9 1 goes into effect the
Sun closer control than before The onlv forr, ~
OF Secretary Nichols to the eject tef - me report
uon IS made under the plan Mr.. Hill win have Ieft
bae 2 naHc {aat and Is S9mmqa practice
Of stocks by making them over to clerks yy5e5
ana aEy one whom they can conveniently use for
anime the books OF the securities COMPANY TO traca
1grE INDIVIDUAL ceruncate OF stock from its origi-
st has gone through hundred transfers e'iie'
II We are permitted TO examine these books
We can snow that the effect of this plan Of dis
trbution is, and has been from the arst 70
perpetuate- the control Of the Northern Pacific
IN the hands OF Mr.. Hill.
NJ Anls point MI Guthrie made the charge
against the Hill-Morgan interests. He con-
tinued:
We want our Northern Pacific stock hack
ne 40 not want any Great Northern. II is the
simplest thing TO understand that IL we are
forced to take interest in both we Will nat
uraly not care for competition II we take
only Northern Pacific, must have and will
seek competition with the Great Northern II
mere Is one thing which Mr.. Hfll and HIS asso-
GATES dread Il is competition, and II there is
one thing which the Northwest VIII be given
the advantage OF, II the Union Pacific is sue
cessful IL is that competition which does not
now exist
Mr.. hin is not a philanthropist whose chief
care is the good Of the Northwest. He comes 70
this court prompted by his own practical inter-
est but, II there is anything to be said about
advantages TO be secured. I show ten that
VII come through the Union Pacific 70 one that
can be secured through the Burlington alliance.
Judge sanborn asked as TO the form Of order
Desired.
AR. Guthrie replied:
We ask that the permissive decree be made
mandatory and that the court direct the dis
tribution OF the stock TO the original holders.
Governor Van SAINT issued a statement to-
Day with reference to the recent decision OF the
United States Supreme Court in the case Of the
State Of Minnesota against the Northern Securi-
Ties Company The Governor intimates that
no further legal proceedings will be taken by
The State unless the attempt 10 consolidate the
Northern Pacific and Great Northern roads is