The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-27
SUES TO BREAK
UP HILL MERGER
Illinois Man Assails the Joint
Ownership of the Burling- -
ton Road. Y
Hill, Hartman and the Northern
Securities Lines Are ..
Defendants.
journal Special Service.

journal Special Service
Chicago, March 27.-The reappear-
ance of Clarence Fl. Venner as COM
plainant against railroad corporations,
in litigation which assails and seeks
the annulment of most important agree
railroads and in which he makes SEN
sational charges. is watched with keen
interest by railroad men and financial
interests turnout the country.
Counsel for the railroad corporations
involved in the new litigation announce
that the action which Venner has
brought as a holder Of PIT shares Of
stock Of the Burlington Railroad com,
pany of Illinois in the circuit court of
La Sale county at Ottawa, Ill, and
to which demurrers and exceptions have
just been filed, will be replete with
sensational developments.
Against Merger Roads.
The bill which Venner filed in court,
with B. F. Lincoln Of Ottawa as his
solicitor, is directed against the Bur
lington Railroad company of Illinois,
Iowa, the Northern Pacific road Of Wis
consin, the Great Northern of Mime
sofa, the Union Pacific Of Utah, George
B. Harris of Cook county, Illinois;
James J. Hill Of St. Paul, Mimi, and
E.. H: Hartman of New York city.
It is the recollection among the rail-
road lawyers of the trouble and annoy
ance which previous litigation of Mr..
Venner as q stakeholder of the Rock
Island road caused to the organization
tered the interest Of the railroad and
financial circles upon the new litigation
at Ottawa. 1t is conceded that Mr..
Venner worried the Rock Island people
greatly by his action in court and that
he is one of the best-posted itigants
which the railroad lawyers have had to
oppose.
Merger Still in Effect.
According to the complaint contained
in the bill which is the basis Of his
action against the Burlington, Great
Northern, Northern Pacific and Union
Pacific companies and Messrs Hill, Har-
riman and Harris, the combination,
which the decision OF the United States
supreme court in the Northern Secur-
titles case has declared to be dissolved.
while nominally and in form out OF
existence, is still continued in effect by
an agreement between the stockho!ders
controlling q majority of the Great
! Northern and the Northern Pacific. This
! agreement between these holders OF the
majority Of the stock is declared to
be to the effect that the business OF the
Great Northern, Northern Pacific and
Burlington railroad companies shall De
conducted tremendously and to suppress
all competition between them.
venner's Charges.
In the bill Of complaint, Venner de-
clares that the various lines OF the
Northern Pacific and Great Northern
| parallel and are In competition with
lines Of the Burlington railroad and the
Union Pacific in connecting the Great
Lakes and the Missouri river with the
Pacific ocean points.
Because Of this paralleling and com
petition, it is declared. the Great North
ern and Northern Pacific interests pur
chased in June, 1901, $1O7. 100000 o.
the $11O,577, 700 Of the then total stool
issue of the Burlington Railroad com
pany, thereby acquiring control OF tn
road, exercising it jointly with tn
Union Pacific. Since the purchase tn
stock of the Burlington has been IN
creased to Sill ,l42,SOO.
The Merger "Plot''
It is charged that after the purchas
of June, 1901, the Great Northern an
the Northern Pacific, with the un1o1
Pacific interests which owned larg
amount Of stock in the Northern ia
cifc, "intending to restrain trade o
commerce among the states and to mo
nopolize same and to prevent compet1
ton between them, entered into con
spiracy to effect virtual consolida
ton Of these roads, and that it wa
for this purpose that the Northern Sc
stock sar ik'e Of 500 800, COO, was formed: It
charged that these three railroad COZ
porations, or persons controlling ma
1ority of the stock in them, controlled
the Northern Securities company,
So far as the Burlington Railwa
company of Iowa is concerned, Mr.. Ven
ner charges that altho organized with
capital stock of $1OO,OOO,OO0 in October
1901, only a trii1ing portion of the stoc]
has been paid in and that it was so IL
tended.