The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-05-15

/ 10000 additional shares of the Southern
Pacific stock.
In 1904 the Southern Pacific created an
issue of preferred stock. and the Oregon
Short Line, exercising its right, received
$50, 600 shares of the preferred. 1t is de-
MED that the Union Pacific controlled the
management operation of the bust
ness affairs of the Southern Pacific or
exercised any control except such as may
have resulted from voting upon the stock
of the Southern Pacific owned by the
Oregon Short Line for the election of di-
rectors of the Southern Pacific. BY rea-
son of its holdings and with the help of
other stock the Oregon Short Line was
able to elect the directors of the South
ern Pacific. The stock was not voted at
the dictation or instance OF the defend
ants.
1t is denied that competition between
the Union Pacific and Southern Pacific
with their steamship lines has been de-
stroyed.
In Northern Pacific.
It is denied that in the spring of 1901
or at any other time the defendants caused
the Union Pacific to acquire a majority
of the stock of the Northern Pacific or
any other amount in pursuance of con
spiracy in restraint of trade. II is admit
ted that in 1901 the Oregon Short Line
purchased SS1 600 of the value of COM
mon and AL0S5,OO0 Of preferred stock of
the Northern Pacific when the total stock
of the Northern Pacific was $155.000,009.
The Incorporation of the Northern Sc
curities company is admitted and the re-
tirement of preferred stock by the addi-
uOnal issue Of common. The sale and
transfer TO the Northern Securities COM
pany of S2,49l.S1 represented by certifi-
Gates issued in the name of f. II. Har-
riman and Winslow S. Pierce is admitted.
Neither of these had any personal inter-
est in the shares, but 1t is denied that the
sale was caused by these defendants or
by them acting for any other parties
The Merger Suit.
The answer admits the commencement
of a suit by the United States against the
Northern Securities company and the de-
cision in that case. 1t admits also the
beginning of a suit by Hartman and the
Oregon Short Line and Winslow s. Pierce
and the Equitable Trust company The
relief sought was denied but the decree
approved the distribution by the Northern
Securities company of the stock of the
Northern Pacific and Great Northern. The
Oregon Short Line, in the distribution re-
ceived. 1918 per cent of Northern Pacific
and 1872 per cent of Great Northern. The
defendants were not party to the suit
The Oregon Short Line. from time to
time sold Northern Pacific and Great
Northern when the sales could be made
adVantageously.
The Salt Lake Route.
The defendants declare that they had
no hilo"iSuSS u w; 80 '7eitt 4 euto' Los
Angeles x Salt Lake was Incorporated
They brought no suits for the purpose Of
harassing or injuring the Salt Lake Route
and not make any threats or cause inter
ference.
1t is denied that the defendants made
big purchases of Santa Fe. aggregating
$50 900. 900. They did not demand the cleo
ton of directors. and deny that Rogers
and FTiCk were elected directors Of the
Santa Fe in pursuance to any conspiracy
in which the defendants were parties.
Furthermore. il is stated that the de-
PENDANTS did not in the summer of 1906
cause the Union Pacific or the Oregon
Short Line TO purchase Sl0600001 of the
value of Santa Fe stock, OF any other
amount
The defendants ask that they be dis
missed as parties TO the suit and that they
be given costs and charges. The answer
was filed by Farley l.. Williams