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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Dec. 22, 1901)
THE SUNDAY OKEGONIAN, PORTLAND, DECEMBER 22, 1901. HILL'S VIEW OF IT Circumstances of Formation of Northern Securities. HARRIMAN WAS AGGRESSOR Northern Lines Bought BnrlInfirton, Hill .Says, to Keep From Being- Bottled Up by Union Pa cific Combination. ST. PAUL., Dec. 2L President J. J. Hill, of the Great Northern railway and of the recently organized Northern Se curities Company, this afternoon gave the following statement to the Associated Press: "I have been absent from (Minnesota for more than two months and during tnat time there has been a question through out the Northwestern States, called a con solidation or merger of the Northern Pa cific and Great Northern Railways, and in this discussion statements have been made which are shown to be different from the facts, and I feel called upon to make a conservative statement of Just what has been done and what will be done in the iuture. "When the Northern Pacific failed and the banking house of J. P. Morgan & Company reorganized It, myself and friends were holders of a large amount of that company's security. After the re organization was completed wo bought about 126,000,000 of Northern Pa cific stock, both common and preferred. Some cf this stock was afterwards sold, but a large amount has been held from that time to the present. Union Pacific "Wanted Barllngrton. "About a year ago, the Union Pacific Company bought the Huntington and oth er Interests in the Southern Pacific, and at the ame time an effort was made to get control of the Chicago, Burlington & Qulncy. "With these lines In the hands of tne Union Pacific, both the Northern Pa cific and Great Northern would be shut out of Nebraska, Kansas, Missouri, South Dakota, Iowa, Illinois and Wisconsin, ex cept by using other lines of railway, some of which were in the market for sale, and might at any time pass under the control or become combined with the Union Pa cific interests. "We ihen, with the Northern Pacific, made proposals to the directors of tne Uurllngton to buy their entire property. "When this transaction was about being closed the people who represented tfte Union Pacific Company and who had pre viously tried to buy the Burlington, asked to be allowed to share with us in the pur chase of that company. This proposal we refused for the reason that it would de feat our object in buying the Burling ton, and further It was against the law or several of the states In which the longest mileage of the Burlington was located. "At that time, against the opposition of the more Southern lines, both the North ern Pacific and Great Northern had put Into effect a low colonization rate ana were carrying dally thousands of people into the Northwest, many of whom were coming from Kansas and Nebraska along the lines of the Union Pacific. This move menu was at is height in the month ot April, and after wc had closed the pur chase of the Burlington, the Union Pa cific people undertook tne boldest effort that ever was made in this country and bought over ?60,C00,O00 of the stock of tne Northern Pacific in the markets of Eu rope and the United States. 1 was in New York at the time, and after Messrs. Morgan & Co. were aware of the action of tne Union Pacific people, it was found tnat together we held about 526.000.000 of North ern Pacific common stock, and inasmuch as the common stock, by right -of a con tract made with the preferred stockhold ers when the company was reorganized and the stock Issued, had the privilege of paying off the preferred stock at par on the first day of January of any year until 191", Messrs. Morgan & Co. then bought in London and New York about 516,000,000 of the common stock of the Northern Pacific. No Stock Was Cornered. "At the same time the Union Pacific in terests, having already so large an invest ment, bid the stock up until there was the largest stock corner ever known, and the stock in three or four days went up to $1000 per chare. I explained to my friends how that, with con trol of the Northern Pacific, the Union Pacific would control the entire North west and the West from Mexico to the C anadlan line, except for the Great North ern. So great was the effort to get this control that one of my friends in Lon don who owned SJ.WJ.COJ of 2Orthcrn Pacific common, was offered and refused H.WO.WH) for this stock. The result was tjat Messrs. Morgan fc Co. and ourselves owned $12.XXtfKX) out of 50.000,000 of the Northern Pacific common with the privl.cge of paying off the S75.000.0C0 of Northern Pacific preferred. The Union 1 acific people owned $37,000,000 of"the com mon and about 542.0&0.000 of the preferred, which was a clear majority of all the t jck of the Northern Pacific, and claimed the exclusive control of the Northern xfa. citlc and through that the ownership of one-half of the Burlington. "When it was known that these pre ferred shares could and would be paid off before the annual election, mutual nego tiations resulted In Mr. Morgan giving them a representative In the Northern Pa cific board. At the same time I was elected a member of the Northern Pacific board. When I was advised of my elec tion 1 notified them that I could not legal ly act as a director of the Northern Pa cific and- Great Northern at the same time. O C F ils vr-rL. 1 9 1 - - "KwJn TL .S fiS&S -" -zc&XiSrttZ?Z&W r Q IfesisslII Sterling Silver Hair Brushes and Dainty Toilet Articles S) J Diamond Merchants and 31anf. Jewelers On the Cor. of Third nnd "Washington S3 TY and I resigned after the first meeting of the board. "Several of the gentlemen who have Ions been interested In the Great North. ern Railway and its -predecessor, the St. Paul, Minneapolis & Manitoba, and who have always been among Its largest shareholders, but not the holders of a majority of its stock, whose ages are from 70 to SG years, have desired to com bine tholr Individual holdings in corpo rate form, and in that way secure perma nent protection for their Interests and a continuation of the policy and manage ment which has done so much for the de velopment of the Northwest and the en hancement of their own property In the Northwest and elsewhere. Out of this de sire has grown the Northern Securities Company. It became necessary" (In order to prevent the Northern Pacific from passing under the control of Union Pa cific interests, and with It the Joint con trol of the Burlington) to pay off these J25.000.000 of Northern Pacific preferred. The enormous amount of cash required for this purpose, from a comparatively small number of men, made It necessary for them to act together in a large and permanent manner through a medium of corporation, and the Northern Securities Company afforded them the means of ac complishing this object without the ne cessity of creating a substitute capital to finance the transactions for the North ern Pacific while at the same time the credit of the Northern Securities Com pany would be much stronger, as It would also hold a considerable amount of Great Northern and other securities. Purpose of Northern Securities. "The Northern Securities Company Is organized to deal in high-class securities: to hold the same for the benefit of Its shareholders and advance the Interests of the corporations whose securities It owns. Its powers do not include the operation of railways, banking, mining, nor the buying or selling of securities or properties for others on commission: It is purely an In vestment company, and the object of Its creation was simply to enable those who hold its stock to continue their respective Interests in association together and to prevent such Interests from being scat tered by death or otherwise: to provide against such attacks as have been made upon the Northern Pacific by a rival and competing Interest whose main Investment was hundreds of miles from the North west, and whose only object In buying con trol of the Northern Pacific was to benefit their Southern properties by restraining the growth of the country between Lake Superior and Puget Sound, and turning dway from the Northern lines the enor mous Oriental traffic which must follow the placing on the Pacific Ocean of the largest ships In the world. "The foregoing is a brief and absolutely correct statement of the whole subject, and its truth can "easily be verified by the State of Minnesota and any other state or person having sufficient interest to investigate the affairs, which are all matters of record. "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 man to answer for himself: AhIcm Sundry Questions. "Did the Union Pacific people with their railway lines extending from Omaha and New Orleans to California and Ore gon, through the several states In the Middle West and South, purchase a ma jority of the stock of the Northern Pa cific Company for the purpose of aiding that company and Increasing the growth and prosperity of the Northern country, or was It for the purpose of restricting such growth and aiding the development of their enormous Interests hundreds of miles to the south? "Did they purchase the Northern Pa cific and Its Interest In the Burlington for the purpose of building up the Asiatic trade lying In the Northern zone from St. Paul and Minneapolis to the Pacific Coast, or in order to control the Oriental trade for their own Southern railroad lines, through their own seaports, over their own ships? "In defeating their control of the North ern Pacific and retaining it In the hands of those who ha1 built it up and with it the entire Northwest, did we injure or benefit the people of the Northwest? "Did I, by inducing my friends to hold their Northern Pacific common stock. and act jointly with me. Messrs. Morgan & Co.. when this stock was selling at $300 and $1000 a share, thus preventing the Union Pacific from controlling the North west, injure or aid the business of the country between Lake Superior and the Pacific Ocean? "Had we sold our $20,000,000 of Northern Pacific, even at $300 a share, amounting to $60,000,000, or nearly $i0.C00,000 more than Its value, and then transferred to the Union Pacific control of the entire country between Canada ind Mexico, what law of Minnesota would we have violated? "Could we not legally have put the money in our own pockets and let the country learn what it was to be domi nated by a parallel and competing rail road? When Van Sunt Sat Still. "Why did Governor Van Snnt sit still from May until November 20, while a majority of the etock of the Northern Pacific Company was controlled by a par allel and competing railroad company, in clear opposition to law, and wait until myself and friends have, by our efforts and with our own money, relieved the Northwest, not as a rival parallel or competing railway, but doing what we clearly have the right to do as Individuals, or working together for greater perma nency and security as a financial cor poration? "Has thore ever been a case in the his tory of this country when men have dropped their money profit and stood as lirmly by the Interests of the communi ties which have grown up with their own and largely by their own efforts and cap ital? "The public is Interested In having a good railroad service and at fair and rea sonable rates. The past is one and 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. tI11 enable the com panies to reduce their rates In proportion orChristmas WE HAVE NOT the time to go into details. You will have to inspect our stock for yourself. We can only say that it embraces the newest, richest and most varied pro ductions of the jeweler's art. ff af j to the volume of such traffic; the devclop- ment of the country will increase with greater Increase In population between Minnesota and the Pacific. No merger or consolidation of the Northern Pacific and the Great Northern Is contemplated. Each company will be operated separately In the future as In the past. "I greatly dislike to discuss my matters In the newspapers, but during my ab sence an attack has been made upon my self and friends which has been persist ently supported by both political and riv al business Interests. All I ask Is fair play, and let time determine whether the public will be benefited or injured by what we have done and will continue to do. JAMES J. HILL." ROGERS IS DIDACTIC AXD POLITIC. National Administration lias Power to Move Agnlnst Railroad Trnst. OLYMPIA, "Wash., Dec 21. In response to numerous requests for an interview regarding railway matters, Governor Rogers today gave out the following: "The question presented by the forma- f SCHLEY'S DETRACTOR NAVAL EDGAR S. 3IACLAY, THE HISTORIAN. WASHINGTON, Dec 21. The following order was xnadft public this afternoon: "Navy Department, Washington. D. C. Dec 21. Roar-Admiral A. S. Bark er. Commandant. Navy-Yard. New York Sir: I am directed by the President to ask Edear S. Maclay, special laborer, general storekeeper's ofllce. navy-yard, New York, to tnd In his resignation. Very respectfully, "JOHN D. LONG, Secretary." Secretary Root was designated to make public tho request for Maclay's resig nation at a conference with the President, and It was given to tho press by him. tion of the Northern Securities Company and the practical consolidation of several railroad companies as a result Is perhaps the most momentous question that has been precipitated upon the country for a number of years. The matter has, how ever, been incubating for a long time, in reality the country Is face to face with the great trust problem; this time a rail road trust. When Governor Sayers, of Texas, a year or two ago, attempted to call a convention of Governors to take Into consideration the trust problem, 1 examined the matter quite fully. I was then convinced that the dominant party desired to throw dust In the eyes of the general public by attracting attention away from Congress and Its powers. "As a matter of fact, the President of the United States, by directing his Attorney-General to proceed against the Northern Securities Company, could quash proceedings. Under the Sherman anti-trust law he has full power and au thority in the premises. No Governor or State Legislature has euch power, it will be noticed that the President, in his message to Congress, practically tells Congress that it must be very careful not to interfere with the trusts, for fear of destroying that American pre-eminence In the matter of trade balances now begin ning to be prominent The people gener ally are shrewd enough to see that the President Is insincere in this matter. They eee that the Republican majority In Con gress, having power over trusts, doe3 not intend to use it, and. further, as a matter of facf, will use National power to protect them. Dishonesty arises from tho fact, clearly apparent, of pretended opposition to the trusts. Now, If the party In power Is able to throw dust m the eyes of the pcopl by attracting at tention toward some harmless proceed ings on the part of Governors and State Legislatures, It will, by adroitness and chicanery, temporarily at least, achieve a much-desired end. "But one force In this Nation Is suffi ciently powerful to curb the enormous power of the trusts, and that Is the Na tional Government. Government owner ship is the only and final end of that tre mendous concentration of wealth which, so far, has proceeded without let or hln- DIAMONDS Our Stock of DIAMONDS, MOUNTED and UNSET, is simply SUPERB In WATCHES, JEWELRY, STERLING SILVERWARE, IMPORTED POTTERY, FINE LEATHER GOODS and BRIC-A-BRAC, Nothing approaching them has ever been shown In this city. drance. Whether this Is In truth a reme dy may possibly be an open question. But that it Is the only effective and really In evitable end, no Intelligent man can deny," GOVERNORS TO CONFER AT HELENA Will Consider the Railroad Trust at Meeting: December 30. HELENA, Mont, Dec. 2L The proposed meeting of Governors and Attorney-Generals of tho Northwestern States to dis cuss a plan of preventing the Northern Securities Company from bringing about the practical consolidation of the North ern Pacific and Great Northern will be held In Helena, Mont., Monday, December 30. This was agreed upon today by Gov ernor Van Sant, of Minnesota, and Gov ernor Toole, after an Interchange of tele grams. The Minnesota executive asked Governor Toole If the date and place named would be acceptable. Governor Toole re plied In tho affirmative. In discussing the decision that had been reached today, Governor Toole said: "Governor Van Sant, of Minnesota, has hod under consideration for some time a t DISMISSED SERVICE FROM THE the Advisability of calling a conference of Governors of the Northwestern States at some central and convenient place to con sider the scheme of railroad consolidation manifestly contemplated by tho organiza tion of the Northern Securities Company, a corporation lately organized under the laws of New Jersey. I am advised by Governor Van Sant that such a conference is expected to bo held at Helena on the 30th of this month. "I have wired him that, so far as I am concerned, the time, place and purpose of tne conference Is agreeable, and asked him to assure the distinguished gentlemen whom he has invited of a cordial welcome to Montana. "I do not know who will be here, but am advised that the conference Is ex pected to Include Attorney-Generals of tho several Northwestern States, as well as Governors.' Van Sant Holds His Ground. ST. LOUIS, Dec. 21. Governor Van Sant, of Minnesota, who attended the world's fair ground-breaking ceremonies, said In regard to his war on the Northern Securities Company that he was proceed ing against the proposed consolidation as fast as possible. "As Governor of Minnesota," he said. "I shall do all that Is In my power to prevent the consolidation. I have turned the whole matter over to the' legal de partment of the state, and when the nec essary papers are prepared proceedings will be Instituted, as I believe the con solidation is an attempt to violate our laws." TO SHIP CREAM 205 MILES. Ashland Asks for Special Rates But ter Routes That Cross. Some time ago tho Southern Pacific made a special low rate for shipment of cream to creameries at Albany, the rato being made to apply within 200 mlle3 of that town. Now tho company has re ceived an application for a special rate for cream from Ashland to Albany, the distance being 263 miles and, therefore, not covered by the previous order. It S?!Sv SSitJL --es-SKiSk SISTERS OF CHARITY RELY ON PE-RU-NA TO FIGHT CATARRH, COUGHS, COLDS, G Peruna for coughs and to Ids m children S i ... iuu--iH Vs? rs LC y3lll l V iZ H V4 p,rsv Ml SISTERS OF CHARITY All Over United States Use ru-na for Catarrh. From a Catholic Institution In Ohio comes the following recom mend from the Sister Superior: "Some yeari aj?o a friend of our Institution recommended to us Dr. llortman's Fernna as an excellent remedy for the Influenza, of which, Tve then had several cases, vrhlcli threatened to be of a serious char acter. "We began to use It nnd experi enced such Tronderful results that since then Peruna has become our favorite medicine for Influenza, en, tarrh, cold, coiirIi nnd bronchitis. "SISTER SUPERIOR." qtnSo Ifailt!nn rec(lIvcs man' otters - .. .... iwuuuiiKuu rccenuy Mich., reads as follows: received n.. -n tt , Detroit, Mich., Oct. S, 1001. JJr. S. B. Hnrfman, Columbus, Ohio: Dear Sir: "The young girl who used the Peruna was suffering from laryngitis and loss of voice. The result of the treatment was most satisfactory. She found great relief, and after further use of the medicine we hope to be able to say she Is entirely CUr; SISTERS OF CHARITY. TVUn? Slw Yat under tne care r the Bisters of Charity and used fesUfles. thrat WUh gd reSUlta a3 the above letter Another recommend from a Catholic In stltutlon of one of the Central States written by the Sister Superior reads as follows: "A number of years ago our attention was called to Dr. Hartman's Peruna, and eince then we have used It with wonder ful results for grip, coughs, colds and catarrhal diseases- of tho head and stom ach. "For grip and "Winter catarrh especial ly It has been of great service to the Inmates of this Institution." SISTER SUPERIOR. A prominent Mother Superior says: "I can testify from experience to the efficiency of Peruna as one of the very best medicines, and It gives me pleasure to add -my praise to that of thousands who have used it. "For years I suffered with catarrh ot the stomach, all remedies proving value less for relief. Last Spring I went to Colorado, hoping to he benefited by a change of climate, and while there a friend advised me to try Peruna. After using two bottles I found myself very much Improved. The remains of my old disease being now so slight, I consider my self cured, yet for a while I Intend to continue the use of Peruna. "I am now treating another patient with your medicine. She has been sick with malaria and troubled with leucor- Is represented that several cans a day will be shipped if a satisfactory rate shall be made. This is one of many instances In which the transportation companies get In creased tonnage by reducing rates. The carriage of butter In Oregon has come to be quite an Important Item and some odd movements are recorded. For ex ample, the Independence Creamery has Just sent a large lot of butter to tho Pendleton market, while butter from the Grand Ronde Valley, and even from the Uklah Creamery, In Umatilla County, Is brought to Portland and marketed In tho Willamette Valley. It is all good but ter, but Individual tastes call for tho exchange that gives the transportation companies a haul of 600 miles that they would not get 1 each community con sumed its own butter. Railroad Notes. President Stickney, of the Chicago Great Western, announced that his company will How It reddens the sfein, itches, oozes, dries and scales I iSorae people call It tetter, milk craat or oalt rheum. The suffering from it Is sometimes In tense; local applications are resorted to they mitigate, but cannot cure. It proceeds from humors inherited or ac quired and persists until these have bee: removed. Hold's SarsapariiM positively removes them, has radlcall and permanently cured the worst cases, cv. is without an equal for all cutaneou. eruptions. tooD'a l'lixs are the best cathartic. IVlc Ui con DIAMONDS "fsiig$$!k. CSujULien. ' MK. .nJz: a&ra a Mkm ss ssssfcvm " jjr.," K.ruT' nrfmr4K Jum -15 1 jF.mi wmzzz in- m -p.- v&vjj from Catholic Sisters all over the United from a Catholic Institution in Detroit, i rhea. I have not n. rJrmhf hnf ., . -win he Knpedliv attar. "MOTHER SUPERIOR." These are samples of letters received Dr. Hartman from the various orders of Catholic Sisters throughout the United States. The names' and addresses to these let ters have been withheld from respect to the Sisters, but Vrill be furnished upon request. In every country of the civilized world the Sisters of Charity are known. Not onty ao tney minister to the spiritual and intellectual needs of those with n.-hnm they come In contact, but they also mln- inf i the,r ,bod,1 needs. They are as mnt ofadisJi2ennnf,UrSeS,lne,r treat- ment or disease, and are looked unon ai messpne-Ar nf 'nnA -.' v.. .-?.?..? patient sufferers - ----. j vvuiicm One-half of the diseases which ar fllct mankind are due to some catarrhal derangement of the mucous membrane lining some organ or passage of the body. A remedy that would act Immediately upon the congested mucous membrane, restor ing It to Its normal state, would conse quently cure all these diseases, ctata. t- catarrh wherever located, whether It be in I -.. ....., ....ludi, muss, siomacn, Kidneys or pelvic organs. A remedy that will cure It In one location will cure It In all lo cations. double-track 100 miles of its line next Spring, operations beginning as soon as the frost Is .out of the ground. The Chicago, Burlington & Qulncy has issued orders that no printed matter Is to be displayed on the walls of the depots on the system, except framed copies of the rules and regulations governing the purchase and use of tickets. Manager R. Koehler. of the Southern Pacifies Oregon lines, returned yester day morning after an ansence of three weeks In California and Arizona. He w-as in the wreck that caused the death of four persons In Monterey County, Cali fornia, last Friday morning, but received no more than a shaking up. the official car in which he was traveling being on the rear end of the north-bound train. The round-trip rate from Missouri River territory to Portland for the annual con vention of the Travelers' Protective As sociation, to be held here next June, has been fixed by the railroads at U5. with limit of 60 days. The insistence of Gen eral Passenger Agent Craig, of the O. R. & N., that Portland have the same rate that Is given for similar gatherings in California finally brought this figure. The Christmas number of Sunset, the Southern Pacific's magazine, has a time ly article on Ch istmas In the City of Mexico, with attractive Illustrations. Perhaps the most notable matter in this number, however, is a paper on Luther Burbank, of Santa Rosa, the horticultur al scientist, whose name Is familiar wherever potatoes are grown and eaten. There Is a retrospective view of the Episcopalian Convention and a variety of other matter and the usual wealth of pictures. Captain Francis A. Cook 111. WASHINGTON, Dec. 21. Word was re ceived at the Bureau of Navigation just before the office closed for the day that ForChristmas rNLY TWO DAYS MORE. Mon-- day and Tuesday in which to make your selections for CHRISTMAS. Our stock is so complete and so ele gant that every purchaser can be satis fied both in selection and price. sf ffijuvricts csuuiisn. tfiie- 5 ST is such a The Sisters of Charity know this. "When catarrhal dis eases make their ap pearance they are not d 1 s c o n c erted, but know exactly what remedy to use. These wise anc prudent Sisters have found Pe. runa a never-falling safeguard. They realize that when a disease is of catarrhal nature Peruna Is the remedy. Dyspepsia and fe male -weakness are considered by many to be entirely different diseases that dys. pepsla is catarrh of the stomach and fe male weakness is due to catarrh of the pelvic organs the Sisters are fully aware, consequently Peruna is their remedy In both these very common and annoying diseases. Catarrh, of Throat and Stomach. Mr. J. C. Metcalf. No. 3826 Elmwood avenue, Chicago, III., -writes: "I am 72 years old, have been troubled with catarrh of the throat and stomach a great deal, and have tried almost every kind of medicine, but none has done me so much good as Peruna. I was a traveling salesman for 27 years, and this Is the cause of my trouble. Today I am feeling better than I have for the past five years. I can heartily recommend Pe runa to all who suffer from like diseases, as a sure and complete cure." J. C. MET CALF. Pelvic Catarrh. Mrs. Ella Martin, No. 706 Monroe street, Toledo, O., writes: "I had catarrh of the womb, and could obtain little or no relief, and a friend of mine who had been benefited by Peruna i advised me to give it a trial. I never had any faith In patent medicines, but I decided to give Peruna a fair trial. I hava ued five bottles, and now I do not feel , ,. .. ! a pang or pain such as I had contlnu- ally undergone, and my general health is very much Improved. I think Peruna is a God-send to suffering humanity." MRS. ELLA MARTIN. If you do not derive prompt and satis factory results from the use of Peruna, write at once to Dr. Hartman, giving a full statement of your case, and he will be pleased to give you his valuable ad vice gratis. Address Dr. Hartman, President of The Hartman Sanitarium, Columbus, O. Captain Francis A. Cook was lying dan gerously 111 at the Naval Hospital, In this city. At the Naval Hospital It was stated late tonight that Captain Cook's condition was much Improved. His aliment Is an affection of the heart. He has been In the hospital for several weeks past. B. B. RICHFOR PIPES. Wo have the largest line in town. B. B. RICH FOR CIGARS. You can get a guess with each purchase. Benham I'm KOlnp to church tomorrow. Mra. Benham Don't forget to take the alarm clock. Judse. When Prof. Munyon says his RhenmatUiM Care will cure rheumatism there isn't any guess work about it there isn't any false statement about It. Itcures without leaving any ill effects. It is a. splendid stomach and nerve tonic, as well as a posi tive cure for rheumatism. All the Munyon remedies are just as reliable, 35c vial. The Guide to Health is free. Munyoa, New York and Philadelnhia. xuxro.vs iMiiLEn cubes cataebh. s n TO S3 3