The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-09
RESULTS OF THE
HILL VICTORY
Actual Control Of the Three
4 Northern Securities Roads
in Hills Hand.
HE DAN AND WILL
MAKE ALL THE RATES
Wall Street View Of the Outcome
Of the Long-Fought Merger
Battle,
Special to The Journal.

Special to The Journal.
New York, March GA local author
aty on railroad matters makes the fol-
lowing statement OF the Hill victory
In the Northern Securities case: He says
it will result in putting the absolute con
troll of the Northern Pacific, Great
of j. j. Hill. The policy that Mr.. Hill
advises will be followed without the
least hesitation by all of these roads.
His control is no less perfect now that
it has been thrown into form entirely
legal to the smallest iota.
The net result of all the litigation
over the Northern Securities matter is
began. The Hill Morgan faction con-
trolls all but about $30,0OO,O 900 of North
ern Pacific stock; all but about $780,
100000 Of Great Northern stock and all
the stock of the Burlington.
This is accomplished thru the sys-
tenn of proxy voting that is now rec
ognized as legal by hundreds of deci-
slons. The twelve men who form the
Hill-Morgan group only own about $780,
100000 out of a total of $l24,0OO,O0O
Of Great Northern, and total Of about
$38, 100000 out Of a total capital of
$l55, 100000 for the Northern Pacific.
But they have only to send out their
call for proxies and at any meeting
of either company they will be able to-
vote over 60 per cent of the stock. This
IS actual control They can name every
board Of directors, nominate every off
Ger, every executive committee, make
every rate, pass every resolution, make
every alliance, declare every war.
Hill Will Make the Rates.
It was to destroy this power in the
hands Of these men that the state of
Minnesota brought suit. 1t was osten-
supreme court handed down it's deci-
sion. They are no longer combined. They
are separate and distinct. They can
60 ahead and do exactly the same things
they have always done.s. Mr.. Hill can
make thru rates over the Burlington
and Northern Pacific, OF over the Bur-
ington and Great Northern. He will
undoubtedly do it. =.
The northwest, in the persons of it's
governors, and it's great lawyers, has
made long and successful war upon
the Northern Securities. Now the
northwest has won it's case and the dis.
solution Of the Northern Securities rs
at hand. But it will be apparent in
three months that the form of the
Northern Securities company was of nc
vital Importance from traffic OF
operating standpoint. 1t was the sub
stance and not the form that was i'm
portant. The substance is with lin
Hill today, Just as always.
Stockholders Loyal to Hill.
The every loyal stockholders o.
Great Northern will send their proxies
to j. J. Hill just so long as the old MAJ
asks for them. That may seem strange
but it does not need proof. 1t wa
proved in the very darkest hour o
Jim Hills defeat. Without singl
exception the stockholders of Northern
sent to Hill their proxies when he aske,
for them last April. A month after h
had been declared breaker of the law
the great mass Of his stockholders cam
to his call without question. "W
don It know what you want us to vot
Will the Northern Pacific stockholder
be less loyal? Is not that railroad
product of the Morgan genius7 Are nc
Ats people rich because the great pr
moter raised it out Of the dust in 1889
protected it, built it up to wealth an
calls for Northern Pacific proxies til
house Of Morgan will get those proxie
Outside Of the Hartman stock, 80 pt
cent of the stock of Northern Pacif
would answer Morgan call tomorrow
or the day after the dissolution of tt
Northern Securities company.
Where then is the power that wi
prevent the control of these two cor
panies by the Hill-Morgan clique
Does any one imagine that the days :
'free competition will return to tt
northwest by reason of the dissolutit
of the Northern Securities? Those da,
are as dead as the proverbial doorna
There will never be another traffic W;
between the Great Northern and tt
Northern Pacific until some other pow
steps in. and takes the bodily control
one out of the hands Of the Hill part
That day is far off.
The Canadian Pacifc's Attitude
A prominent director of the Canadi;
Pacific, the day the supreme court fns
ly confirmed the Hill plan, put the sit
alton clearly when he said:
"We never had any quarrel with t
Northern Securities. That compa1
carried no freight, made no rates, h
Jim Hill and his two railroads that '
have to fight. We are fighting them I
day. All thru this year and half
litigation they have been working
gether against us, and they are going
keep at it, What difference does
make to the Canadian Pacific wheth
they are one company, or two co
panies, or three or four companies,
long as they work together7 VIII
difference does it make to the Spoka
shipper9. He won't get the Northe
Pacific to shade the rates made by t
Great Northern. They are all in O
family, and, from traffic standpoi
they are closer today than they we
under the Northern Securities befe
that corporation was made an outla
We find it harder to get their traffic
Hill Roads Fight Together.
=.
When these remarks were quoted
one of the Hill directors, he repli
rather bitterly: IF we didn It CO,
upon the two Hill railroads to work
gether, our Canadian Pacific frie1
would make both Of us look silly in
Continued on Cd Page, 9th Column.