The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-11-04

595s5i.aslsg.sA OR the past FIVE years,
Eszzs5S5ss ever since their con-
~ A test to obtain control
of transcontinental
.:: railroad traffic began,
James J. Hm and
ElnTHHHHTHn# Edward II. Hartman
have been public fig
ures of vital interest Previous to 1900
neither OF them was especially we'll
known outside Of railroad circles
When the memorable struggle began
the public at once demanded to be
made wise concerning these warning
rivals and their schemes for securing
railway precedence.
When it was built, the Northern Pa
cidc had the aid of immense land grants
from the government but for long
time it was not profitable, having been
I'm the hands of the courts at least
twice and having become involved in
a network of litigation. 1t was in this
degenerate condition when Mr.. Hill
and his friends got possession of a ma
ioritv Of its stock and proceeded to
readjust matters. The new owner could
not consolidate his purchase with his
Great Northern. for that was forbidden
by the law. He operated both roads
tremendously for awhile and looked
about to see what he could do
In those days it was Mr.. Hills princi-
pal object in life to secure the con-
troll Of some line that would feed the
Great Northern and connect it with
Chicago He tried his best to acquire
the Chicago. Milwaukee and St. Paul,
but holdings of the stock of that road
were so concentrated that he could not
get control Then he turned to the Chi
cago. Burlington and Quincy and found
that the chances were better. He kept
under cover and went to Boston and
bought stock in the open market and
in the course OF time achieved his pur-
pose.
Then the quarrel began. Until then
Mr.. HilIs property had not been in
active competition with the Union Pa
cific and the Southern Pacific routes,
the lines traversing widely separate
territory. The Burlington, however,
Hiu's new purchase, was in lively oppo-
sition to the Union Pacific throughout
its entire course, the lines being prac-
tically parallel Edward H. Hartman
had obtained the ascendency in Union
Pacific and Southern matters, and he
made up his mind to head off this
threatening invasion. His first step
was to adopt HITS trick of buying in
the open market. He bought Northern
Pacific until Hill discovered the scheme
and began buying in competition
Shares of Northern Pacific stock Went
up to 1000, and the excitement grew
so intense that there were symptoms
Of a panic.
J. Pierpont Morgan, then abroad
heard of the impending crash and
counseIed moderation by cable. Finally
both sides agreed to stop buying and
the panic was averted. When the at
mosphere cleared it was found that
one party held majority of the COM
mon stock and the other majority OF
the preferred. Neither side had actual
control Affairs were in that unset
tied and unsatisfactory condition when
a scheme for the operation of the
Northern Pacific. the Great Northern
and the Burlington was Matched by a
Minnesota lawyer, who drew UP char
ter under the law of New Jersey for
a new organization called the North
ern Securities company. Mr.. Harri-
man and his supporters did not have
much faith in the arrangement, fear
ing that it would not pass muster in
the courts, but they We're obliged tc
accept it.
The supreme court of the United
States did not take kindly to the new
organization. 1t decided that it was
contrary to the Sherman antitrust law
and that it must be dissolved and al
the stock of the three roads returned
pro rata to the original owners. Their
there arose a great dispute as to how
the stock should be returned. Hill
proposed to redistribute the stock sc
that he and his friends would retair
control of the Great Northern and the
Northern Pacific roads. Hartman anC