The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-11-21
WHAT EFFECT HAS
HILL DONNA TION?.
Interstate Commerce Commission
Said to Be Planning North
western Inquiry.
Complaints Of stifed Competition
Are Denied by the Hill
interests.

! Interests.
| Chicago, Nov. 21.-James J. Hill and
the three great railways he dominates
are to be Investigated by the Interstate
/ commerce commission to determine the
real relations between the Great North
ern, the Northern Pacific and the Bur
lington systems.
The commission will seek to ascertain
what effect the control Of all these line,
by one man has had and, is having,
upon rates in the northwest and con-
sequently upon the agricultural and in
dustrial development Of that section.
| The result will be to bring out the
facts regarding what has taken place
in the northwestern railroad world since
the decision of the United States SUI
preme court in the Northern Securities
case in 1904 and to show what effects
the decision has produced and to what
extent, if any, its intent has been NULL
fed. =. .&.t@.u.. - ~.
The announcement Of the commits
sion s intention to investigate the Hill
lines coming SO closely upon the heels
Of its plans for an inquiry into the
Hartman lines, seems to indicate
Welt and the administration to investi-
gate the various railroad combinations
which have been effected within the
last several years.
In the Hill, as in the Hartman in
vestigation, the commission will act
under the amendment to the Interstate
commerce act passed in 1891, which
provides: "That the commission here
by created shall have authority to in
quire into the management of the bust
ness of all common carriers subject to
the provisions of this act and shall
keep itself Informed as to the manner
and method in which the same is con-
Quoted, and shall have the right to
obtain from such common carriers in
formation necessary to enable the COM
mission to perform its duties and carry
out the object for which it was Gre
ated.'
Is Merger Decision Nullifed?
It was aimed in the Northern secur-
tiles proceeding to prevent the, Bur
lington, Northern Pacific and Great
Northern railroads from being so COM
bined as to prevent effective COMPETE
ton in the northwest. President Roose-
welt and the commission fear that while
the proceeding was successful in the
courts, the effects Of the decision have
been practically nullifed. Fl
James J. Hill owns a controlling in
Northern. Before the Northern Securi-
ties company was formed, he did not
CONTROL the Northern Pacific and it
was the struggle between him and E.
H. Hartman for it that led to the for
nation Of the Northern Securities COM
pany as a peace measure. Following
the dissolution Of this company, Mr..
Hartman disposed of most of his North
ern Pacific stock, with the result that
Mr.. Hill got complete control of this
road. -
It is said he does not own majority
of its stock, but; this does not keep
him from operating it exactly as he
wishes. The Great Northern and North
ern Pacific together own the Burling-
| ton, '.-.- * r.
eage ' of sfsS n @nder VIM Mr. Hi fGf2
dominance, are perhaps even more close
Y allied than they were. before the
Northern Securities decision. It has
been reported recently that it was in
tended to merge the Great Northern
and Burlington. Even as late as Mon
day it was said the Burlington was
soon to lose its identity, even its name,
this. p =
| Darius Miller's Answer. =
| There has been complaint to the COM
| ut!ooAoA LAoi1I ou1ppSIS tudC Gu0 cuocC
of the present arrangement is to stifle
competition in the northwest.
That Mr.. Hill will attempt to show
that the relations between the roads
have had no harmful effects was shown
by a brief statement made by Darius
Miller, vice president Of the Burling-
ton, in charge of traffic, who is, per-
haps, closer to Mr.. Hill than any other
railway official. -
cit was shown by the evidence in
the Northern Securities case,' said Mr..
Miller, "that not more than 1 per cent
of the business of the Northern Pacific
and Great Northern is competitive.
The situation has not changed much,
consequently their common control can
have little effect on rates. Rates are
made by conditions more than by. traf-
fc men, anyway, and there has been a
steady decline in rates in the northwest.
So far as their business is competitive.
the Northern Pacific and Great North
ern. compete for it as fercely as if they
were under separate control. AS for
the Burlington, it is not natural com
petitor, but natural connection of
the other two lines. The traffic rela-
tions are beneficial to themselves and
injurious to no one" .- -.