The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-11-28
MANITOBA CHARTER
OPEN TO ATTACK
ATTORNEY GENERAL HAS EVIL
< DENcE TO BRING SUIT.
f. I. harrington Before Railroad Com
mission All but Admits that Great
Northern Is Holding Company
Counsel for Road Corrects Statement
and Rescues Witness from Sensational
z ~, -. -
Admissions.

Ln1nk GAe evidence IN mana, CnaC
the Manitoba railroad has been leased
to the Great Northern road for 800
years, is sufficient to prove to the sat
Minneapolis & Manitoba company is
no longer railroads. said Edward T.
Young, attorney general, today, ssand
accordingly that its charter should be
revoked. AS soon as some letup to the
work Of the present hearing on general
commodity rates comes, intend to
draw papers for such an action
The Manitoba is the main line Of the
Great Northern system, extending from
St. Paul to Everett, and the revoking
Of it's charter would result in complete
humiliation Of the Great Northern as
system. = -. ztfE-'.-.< -
two statements that the Manitoba line
is leased for 99e years to the Great
Northern company, one by that COM
pany's president, James J. Hill, and the
other by it's vice president, F. I. Far
rington. ~-... ~.
Hours of Work.
Mr.. Young spent several hours of his
examination Of Mr.. Earring ton today
in trying to; get an admission from that
gentleman that new lines Of road which
the Great Northern has Indirectly ,built
thru organization of subsidiary compa-
MES were all constructed out Of adj
vances from the tremendous SURPRISES
the Great Northern carries, and that
after being built, stock for the new
company was issued and went into the
Great Northern treasury. Mr.. Young
desired thus to. show that new lines,
stockholders nothing, but came OUT Of
the surplus Of the tremendous incNne
of the road, indicating that freight
rates must be excessive. ~
MIR. harrington proved shrewd wit
ness. He knew what the attorney gen
eral was aiming at; he knew what a
fatal admission it would be on his part
to agree with this line Of questioning.
He insisted that $25,0O0,0O0 in addition
al Great Mort hern stock was Issued in
1909, and that the advances for con-
companies came out of this contributed
capital, and not out Of the surplus.
Explains the Leases.
In his evidence Mr.. Harrington said:
"The Great Northern has under lease
for 500 years the st. Paul, Minneapolis
& Manitoba road, and owns the stocks
Of the Minnesota & Northern, Dakota
& Northern, Montana & Northern
and Washington & Northern roads.
'The Great Northern doesn't. own
any raiiway,p was the concluding state,
here corrected Mr.. harrington with "a
statement that many, years ago the
Great Northern itself did build a little
line from St: Cloud to Hinckley, which
correction Mr.. Harrington accepted.
1t was a timely correction, for as
the statement stood it would have
shown the Great Northern was not a
railway company, and the attorney gen
eral would have been given the >op-
portunity to have brought proceedings
for forfeiture Of the Great Northern S
railroad charter. -
i. Seven per Cent Fair.
In regard to rights of stockholders,
Mr.. harrington said: owe consider
az per cent dividend is a fair re-
turn to the stockholders, provided it
is continuous and REGULAR Mr.! Far
rington thought it was fair not to pay
heavier dividends because it is neces.
sary to prepare a surplus for contin-
gencies and Hoff - years, especially. in
view Of the fact that .the road cannot
increase rates when it, desires. $50
'Isn It it also true, the public cam
IiotE Hdfe fdCeS Icuuceu WHeH IL do-
sires9'' asked Mr.. Young. =.
"That is only true theoreticaNy,''
was the answer. E, 11f>f1s3 :
Mr.. Young then went into details on
the Great Northern road the past year,
especially referring to the fact that
$23, 100000 income remains in the treas
ury after paying operating expenses.
The total bonded indebtedness of the
system roads is $100,000,000, and
$4,900,000 is being paid out annually
as interest on bonds AS rent for sub
sidiary roads, in addition to paying
bond interests, dividends are paid on
the stocks. The sum of SIS, 130, 900 was
set aside last year for improvements.
About SIS, 800, 900 was paid in dividends.
Mr.. harrington explained in detail the
difference between the Great North
ern 8 road maintenance account and the
ing if a fifty six-pound rail is replaced
by a seventy .fve.pound rail, 56.75 is
charged to maintenance account, the
balance, 1886, is charged to renewal
fund expenditure.
Where Public Pays.
THE cost Of any Improvement to add
to. dispatch and safety Of transporta
ton is properly charged to the public, .
said Mr.. Harrington, for these expen.
ditures do not add to the income of the
road For instance, / would say equip.
ment of the road with block signals
simply adds to the safety Of the road
and IS chargeable to the public.
Suppose you started out with an
81 900 mile. and the company pays