The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-28
HILLKILLED CREATE. R. TRUST
REFUSED TO HEAD MERGER OF
ALL THE WESTERN LINES.

Plan WA TO Combine All Roads From
Canada to the Gulf Tells Commission
Allotment OF $50, OOO, 900 OF Ore
Property was His GIFT to Stockholders.
MrNNEAPoLIs, Nov. 27.-while James
]. Hill was before the State Railroad Com
mission he admitted that to him was onoe
offered the leadership Of all railroads in
the West between Canada and Mexico
and that by declining the appointment he
prevented such a merger.
Mr.. Hill made this disclosure while testi-
flying before the Minnesota Railroad and
Warehouse Commission. He asserted and
reiterated the honesty OF his purposes in
his great transactions, especially Of the
last few years.
Stockholders Of the Great Northern
road rave received, Mr.. Hill said, the equiva-
lent of LAT per cent. In dividends in the
last year. made up Of 7 per cent. from opera
ton of the road. 40 per e in the form
OF a stock dividend and 100 per cent. from
the ore land deal, the last being almost
a free gift Of Mr.. Hill to his stockholders,
inasnuoh as he could have rightfully held
thai profit for his personal account.
Mr.. Hill further testified that the $780,
900 900 worth OF ore TO use his words. stands
as not costing a cent" The lands were
originally bought by Mr.. Hill personally
with his own money and credit and not a
cent, said Mr.. Hill. of the Great Northern
Company's surplus was used in the deal.
Through skilful management of the ore
lands since obtaining them Mr.. Hill re-
covered every cent they cost him while
holding most OF them. He then placed
these holdings in the Superior company
and distributed that oompany's stock
among his Great Northern stockholders
gratis.
While wrought up by questions of attor-
neys Mr.. Hill limited at a plan for a combina-
ton of all Western railroads with hinpself
at it's head, which plan had not matured
because of his refusal to take charge.
Il could have acce pied" he said, the
management Of all the railroad lines in the
West between the Canadian boundary and
Mexico, but |. refused that l might con-
tinue in charge Of my interests in the North
west and the development OF this part OF
the country"
Mr.. Hill after much cross-examination
admitted that the stock Of the companies
which the Great Northern had purchased
is stiH held by the Great Northern.
You may sell such stocks at any tme,'
said Mr.. Young--1 suppose there is nothing
to prevent you-and thus get double money
for these lines, as Great Northern stock
has already been issued and sold to cover
JIG puASDdbV DtASC
yes, the heavens may fall down and
crush every one on EARTH" replied Mr..
Hill with some heat, but l don't think they
will. h do you suppose would be the
value of Great Northern stock If l sold the
stocks of minor corporations which we
hold2 Besides, l believe any Great North
ern stakeholder could stop such a sale by
Injunction"
Attorney General Young said to-day:
AS a result of the evidence secured in
the examination of Mr.. Hill, showing dupli-
cate issues Of capital stock for the Great
Northern branch lines, l am considering
how to bring proceedings to compel the
retirement of one set of the stock, either
tina of the branch line which is still afioat
and paying dividends, or that Of the main
line issued for the purpose OF building up
the subsidiary companies.
The people are now paying dividends on
this double capitalization, and one or the
other issue is certainly water. believe the
company can be made to retire il. II also
appears that when new branch lines we're
built new stock was issued, but the lines
we're built cut of the Great Northern's 81 r
plus, and the stock is water"
Issues of stock claimed to be duplication
are: For st. Paul, Minneapolis and Mani
toba, $40. 900, 600; for Eastern Minnesota
stocks and bonds, $25, O0o, 900; for Willmar
and Sioux Falls. 100000 C0