Show HLL SCORES THE UNION NIO PACIFIC Issues Statement on the North Northwestern N Northwestern rth western Railway Deal ACCUSES HARRIMAN CROWD ms W AS nr IN OP OJ t st SL Paul Dec Dee a President J 3 J 3 Hill HW Ru of the Great Northern railway and of ot the recently organized Northern Securities tIes company this afternoon gave the following statement to the Associated Presa Press I T r have b been en n absent from Minnesota for more than two months and during I that time there has been a question throughout bout the northeastern states called a consolidation or merger mer er of ut the Northern Pacific Great Northern N rail railways railways railways ways and In this discussion statements ha ba e been made which are shown to be different from the fact and I feel called upon uron to make a conservative statement stat ment of just what haa has been done and what will be done in the future When the Northern Pacific failed and the banking house bouse of J 3 P Morgan Co recognized it tt myself elf my and friends were vere holders of a large amount of that s security After the reorganisation reorganisation was as completed we bought about of Northern Pacific stock both common and anc preferred Som of ot this stock was wa afterwards sold BOld but a laige laie amount has haa been held from froni that time to the present Fight For Por Burlington Begina About a year ago ao the Union Path u company bought the Huntington nf an i I othe interests in the Northern Pacific and at al the same time made an effort U tt get the control of the Chicago Burling Bulling Burlington Bullington ton A cI Quiney With these lines Jines in the hands of the Union Pacific both the Northern Pa Pacific and Great Glet Northern would be shut mut shutout shutout out of Nebraska Kansas Missouri South Dakota Iowa Illinois and Win Wis Wisconsin W cousin except by using other lines linen of railway some of which were in the market for sale nale and aDd might at any anytime anytime anytime time pass pans under the control or 01 be com corn combined combined with the Union Unton Pacific interests We then with the Northern Pa Pacific Pacific Pacific made proposals to the directors of the Burlington to buy their entire property When this transaction was about being closed ed the be people who rep represented represented represented resented the Union Pacific company and who had previously tried to buy the Burlington asked to be allowed to shEre re with us in the purchase eC ef t that company this proposal we refused refu for forthe forthe forthe the reason that it would defeat our object in buying the Burlington and further it was against again the law Jaw aw of nov sev several eral of ot the states in which the longest t mileage of o the he Burlington was US located lO ted d dWal Wall WAIL War Declared At that time tilDe against the opposition of the more southern lines Hues both the Northwest Pacific an Great Northern N had put into effect a low colonisation rate rat ra te and were carrying daily thousands of into the northwest many thany of whom were coming from Kansas and Nebraska along the lines fines of the Union Pacific This movement was as at its height in tn the month of ot April and after i we e had bed closed the purchase e of the Bur Burlington lington tile Pacific people under undertook took the boldest effort that ever was wasT T made in this thin country and bought over of the stock of the Northern Pacific In hi the markets of Europe and the United States Staten I was in New York at the time and after fter Mews Mears Morgan Co were aware of the action of o the Ute Union Pacific people it was waa found that together w we held about 3 of ot Northern Pacific common stock and inasmuch as 5 the common stock by right of a 8 contract made with the pre preferred preferred preferred stockholders when the company was reorganised and the stock issued had the TIle privilege p of paying off oft the preferred stock at par on the first day of January of any year until 1917 Morgan A Co then bought bou ht in London and New Ne York about of It the common stock of or the Northern Pacific at the same time the Union Pa Pacific Pacific interests having already so large ai a investment bidding the stock up until there was the largest stock cor corn n IF r ever known the stock tock in three or four days going ping up to 1080 1000 per share Holds Friends In line I explained to my friends how that with control of the Northern Pacific the Union Pacific would control the en entire entire entire tire northwest and the west from Mex lex Mexico ico leo to lie e Canadian line except for the Great Northern So great was wan the ef of effort effort fort to get this control that one of my friends in London who owned own of Northern Pacific common was of ol offered I feted and refused for tor his bin stock stork The result was wu that Mers Morgan Co and ourselves owned out t o of of the Northern Pacific common on with the privilege of paying I oft off 0 M of Northern Pacific pre p pr The Union Pacific people owned of the common and about of the preferred which was wag a acIer clear cIer Ie majority of ot all the stoc of the m Pacific and claimed the ex cx exclusive ext t control of the Northern Pacific I and through that ownership of of the Burlington I When it was known that then theM pre shares sha could and would woul be he paid F cott ff and nd before the annual election mu mutual I negotiations waIted 1 in Mr Kr Mor Morgan Morgan I gan gums giving them a representative in inthe Inthe Inthe the Northern Northe n Pacific board At the thern I same time I T was wan elected a It member of the th tb Northern Pacific board When I Iwas I was WilS advised of my election I 1 notified them that I could not legally act as a director of ot the Northern Pacific and Great Northern at the same name time and I resigned led after the first Arst meeting New Hew Company to te Hold Kold Control Central I Several of ot the gentlemen who have 1 u Jo g 1 been interested int d m ut the Great Northern and its IbI predecessor the St Paul Minneapolis Manitoba and H who ho have always been heen among its lu larg ierg largest est eat at shareholders but not the holders h of a majority of its Us stock TV whose hose e ages I Iare are from 70 to 86 sa years have desired to combine their Individual holdings in incorporate Incorporate InCorporate corporate form and n u that way secure permanent perman nt protection for their inter interests eats ests e Ul and a continuation of the policy polley and management which has haa done so no much for the development of the north northwest northwest northwest west and the enhancement of their heir own property in the northwest and else elsewhere e elsewhere where Out of this thin desire has bu grown j the Northern Securities company It became necessary in in order to prevent vent the Northern Pacific from passing un under under der the of Union enion inter interest est caw and with Use te e joint control of the Burling on to ply pay off these the of if Northern preferred The enormous amount mount of cash required r for forr r this tM purpose from a comparatively small mall number of men made it necessary necessary sary nary for them to act together in a large and permanent manner through throughout out a movement of corporation and the Northern Se company af at afforded afforded forded for ed them the m means ans of f accomplish accomplishing lug ing this the f of t rent n a 11 t capital 1 pital to the transactions f fur tvr r the Northern Pr Pf cl while at the same time the cre t of the Northern Sort hem Securities would woud he e much stronger as a it h iM f a considerable amount of Gi G I t N rth rn and other oth r Securities Th rh ort 11 rn n s company is to deal in m sect e un II c I J ir z c c ot ties to hold the same for the benefit of its tin shareholders ers and aDd to advance the interests ta of oi the corporations whose se no securities t owns owna Its powers do not in include include include clude tee t operation of railways bank bankIng bankIng Ing mining nor the buying ur or selling seiling of securities or properties for others on commission c it is purely an investment nt company and the object of its crea creation creation tion was simply to enable those who hold bold h ld its ita stock to continue their teepee re pec five tive interests in Q association together and lid to prevent such interests from be being lug ing scattered by death or otherwise to provide aga st attacks as has been made upon the Northern Pacific by a arival arival arival rival and competing Interest whose main investment was hundreds of ot miles from the northwest and whose who e only object in iL buying control of the North Northera Northern era ern Pacific o was to benefit their south southern era ern by restraining the growth of the country between Lake Superior and Puget sound and by turning away awal from the UIe northern lines Jines the enormous Oriental traffic which must placing on the Pacific ocean ocean of the largest ships in the world The foregoing is In a brief and absolutely absolutely absolutely correct statement of the whole subject and its Ita truth can easily be verified by the state of Minnesota and any other state or person having suf sufficient interest to investigate l the af Sf affairs fairs which are all matters of record Scores the Union Pacific Now as to the effect of what has been done upon the public interests let me ask a few questions which I want every candid and honest mast man to for fOt himself Did the Union Pacific people with their railway lines extending from Omaha and New Orleans to California and Oregon through the several states in the middle west and aad south BOuth purchase a 3 majority stock of the Northern Pa Pacific company for the purpose of aid ald aiding aldinI lag ing that company and increasing the growth and prosperity of the northern country or was it for the purpose of restricting such growth groth and aiding the development of their enormous inter interests Interests ests eats hundreds of mites miles to the south Dd D they purchase the Northern Pa P and its interest in the Burlington for tor the purpose of building up the Ute Asiatic laUe A trade lying between the north northern era ern oue ne lying from front St Paul and Min Minneapolis Minneapolis Mm neapolis to the Pacific coast or In n or order order ordot der dot to control the Oriental trade tra e for their own owl southern railway lines through their own seaports over ever their own ships In defeating their theil control of the Northern Pacific and retaining It in the hands of those who had bad built it up and with it the entire northwest did we injure or benefit the people of the northwest Did I hy by b inducing my friends to hold their tl ir Northern Pacific J common stock and act Jointly with me and this stock r Morgan It Co whop ws was selling Belling at and 1000 a share the Union from thus preventing pl venting controlling the northwest t Injure or 01 oraid oraid aid t 1 e business of the country be between between between I tween ocean Lake Superior and the Pacific Big BiB Profit is Refused of Had we sold our twenty millions Northern rn Pacific even at WO a share amounting to or nearly 41 more mol than its ita value and then transferred to the Union Pacific control of the entire country between Canada Capada a and Mexico what law of Minnesota Minne os would we have violated Could we not legally lepUy have put the money into our pockets and let the country learn what it was to be dominated by a parallel and competing railroad Why did Governor Van Sant Sent sit still from May until Nov 30 O 0 while a 8 ma majority majority majority of the stock of the Northern Pacific company was controlled by a parallel and competing g railroad com corn company pany in clear opposition to law and wait walt until myself and friends have bave by our out efforts and aBd with our own o rn money relieved relievE the northwest t not as a rival parallel or competing railway but do doing doing ing leg what we clearly the Ute right to todo todo do 40 as 88 individuals or working together for greater permanency and security as a financial corporation Has there ever been a case in the history of this country when men have bave dropped their money profit and stood as ag firmly by the inter of or the com corn communities communities which had grown up with their own and largely by their own ef efforts efforts efforts forts and capital capitalI Promises lower Bates Rates I The public is interested in having havinga g ga a good railway service and at fair and reasonable rates The past is gone and aDd speaks for itself I can speak for the future and have no hesitation whatever in saying that the increased volume of traffic both through and local will enable the tIte companies to reduce their rates in proportion to the volume of such traffic and that in the near near fu future future future ture le Ie public will have ba a chance to see ee jor br itself this feature of what I have ave said ald The development of f the country will increase with greater In Increase Increase Increase crease in population between Minne Minnesota sota SOUl and the Pacific merger or Northern Pacific and the Great North Northern Northera era ern is I contemplated Each company will w l be operated separately in the fu fit future future ture tore as in the past pastI I greatly dislike d Uke to discuss my mat matters matters matters in the newspapers but during my ray absence enee an aft attack has ba been made upon myself and friends which has hu been per persistently supported by both political and rival interests ts All AU I ask uk is fair fairplay fairplay fairplay I play and let time determine whether the t public will wUl be benefited or injured by y what we have done don and will con COR continue continue to do JAMES JAMBS J VES J 3 HILL |