St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-08-31
ATTORNEYS IN THE GREAT
NORTHERN CASE COMPLETE i
THEIR ARGUMENTS. :
HORN THE LAST TO speak,
THE COURT SAYS 1T WILL TAKE
SOME TIME ON QUESTIONS 4
INVOLVED. ~
just What Is mt Stake I'M thS
Greatest Railway Case of
Modern Tine ~


the contemplated deal between the
Great Northern and the Northern
Pacific systems from being carried
into effect, which was concluded yes-
terday, is of interest to every reader
In the Northwest. Probably very
few of them have been able to fol-i
low an argument that proceeded at
such great length and involved so
many collateral questions; and, for
those who could do this, it is diff
cult to disentangle the primary and
vital issues, and get an idea of the
exact points disputed, and the sub
stance of what is contended for and
against. The Globe presents.
therefore, below a short summary5
Of this celebrated case. 1t includes
every material fact and issue, andI
will tell the public exactly what the
court must pass upon and what is
at stake
The Great Northern Railway come
pany was organized in another name
under an act of the territorial legis- [
lature of 1856. This, it claims, gives
posed arrangement in reference to al
reorganization of the Northern Pal
cific Railway company in the pend
ing foreclosure proceedings. The ar
rangement, in short, is this: A traf-3
flc agreement is to be executed, pro-
viding for an interchange of traffic
and cars and for through billing and
ir,r Of ;,,J
order that the Great Northern mayi
reach Tacoma, Portland, Winnipegl
and Canadian points; and avoid, es.l
pecially in Washington and .Oregon,i
the construction of lines substantial-I
ly parallel with the Northern Pa-I
cific for the purpose of reaching Tai
coma, Portland and other active and'
growing cities on the coast.
1t contemplates also the joint Nsef
of depots and terminal facilities at
Spokane; as a union depot; Also att
other points where such an ar
rangennent may be of mutual adj
vantage; also the use of parallel
tracks as double tracks, all trains
for each road in the same direction
ing business, rendering the move-
ment Of trains more safe, and in-
ducing great Ill
ECONOMY IN OPERATION; N
especially on tracks where, as be>
tween st. Paul and st. Cloud, a.
large traffic is concentrated on sim
gle lines. For this arrangement andi
in consideration Of it, the Great
Northern is to guarantee the pay-I
ment OF bonds of the reorganizedi
the interest on the entire bond debit
to the amount of not exceeding $6,T
100000 per year, being about perl
cent on s10O,O00,O0 which is a largel
reduction in the existing Interest,"
charge. !
The Great Northern claims that fts
charter authorizes this arrangement
and also the transfer, as is contem-!
plated, of one-half Of the capitaIl
stock, full paid. Of the reorganizedi
company to it's shareholders. The
Great Northern is not to become
the owner of the stock, or to consoIsi
idate with the Northern Pacific COM
pany; but the guarantee and the
transfer of stock to it's stockholders {
is the consideration for the traffic
arrangement, and the mutual right
of interchanging cars and traffic at1
all junction points. !
The plaintiff in the action, being
opposed to the arrangement, for3
himself and other stockholders enter
tanning the same view, claims that
the acts of the legislature Of this
STATEN 1874 and 1881 prohibiting any
railroad company from purchasing
the stock or consolidating with any,,
other road, so modified the charter
as to prevent the Great Northern
from legally carrying out this ar
rangement. The Great Northern
claims that its charter has not been
altered, that there was no power
to amend it so as to impair it's vest
ed rights, and that the acts Of 1874
and 1881 cannot be construed as in
any way modifying any right grant,
ed by its charter. 1t holds that, un-
der the acts of 1874 and 1881, the pro-
posed arrangement is lawful, because
1t does not purchase the stock, or
consolidate with a parallel line on
become the owner Of 1T, or
ACQUIRE THE RIGHT II
to control 1T; that it's individual
stockholders have a right to acquire
stock i'm any other railroad company.
and that it has a right, for the
consideration stated in the arrange
ment, to execute the guarantee and
to have its stockholders secured
against the risks they run in conse-'
quence OF the guarantee and the pos
sible impairment of their receipts
by transfer to them, or in trust
for them, of one-half the stock of the
reorganized company.
The case turned on the construc-
ton to be given the Great Northern
charter, and upon the question as to
whether the acts of 1874 and 1881 in
any way modified the charter; and
as to whether, under the provisions
OF those acts, the proposed arrange-
ment is not valid as a traffic arrange
ment; the consideration, instead of
being paid in fixed sum annually,
TO be paid conditionally upon a guar.
anfee OF bonds. and. interest of tha
reorganized company.
The plaintiff 4Pearsall, opposing the
contemplated deal, contends that in
Continued on Eighth Page.