The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-09-28
TEXT Of IHE CONTRACT
H. ssses@-s
NORTHERN PACIFIC RAILWAYS
AGREEMENT REGARDING ST.
p & ID. BRANCH
STATE INTERESTS PROTECTED
Gov. Lind Discusses History Of Suit
Instituted by State and Advan-
tages That Have Result
ed From 1t.

The contract entered into between the
state of Minnesota and the Northern Pa
cific Railroad company, in pursuance OF
the order made by the state railroad and
warehouse commission, upon their dis
missal of the recent suit pending against
the Northern Pacific, involving the pur-
chase of the st. Paul & Duluth road, has
been legally executed and filed by Gov.
Lind in the Office OF the secretary of
state.
1t reads as follows:
Whereas, The Northern Pacific Railway
company Is a corporation, incorporated
under the laws of Wisconsin, which, hav-
ing complied with the statutes of Min
neSota, is duly entitled to transact BUSH
ness in the last-named state, and exer-
else it's powers therein the same as if 1t
were incorporated originally in Mime
sofa; and at various Judicial sales it ae-
quired, prior to Sept. /, 1885, the railway
formerly belonging to the Northern Pa
cific Railroad company, winch is a cor
poration incorpored under the act OF con-
gress of July 2, 1864; and,
Whereas, Said Northern Pacific Rail
road company built it's railroad through
the state of Minnesota, under and pur-
Minnesota approved March g. 1865, in
which 1t expressly provided:
THAT should the said company elect to
make the eastern terminus Of said rail-
road east of the eastern boundary Of the
state of Minnesota, then, and in that
case, they shall construct, or cause to be
constructed, line of railroad from the
said main line to the navigable waters of
Lake Superior, within the state OF Min
nesote, of the same gauge as said main
line, for which purpose the same powers,
rights and privileges are hereby granted
to SAID company as they have or may
have to construct said main line within
the state of Minnesota
And Whereas, The Northern Pacific
under
and requirement of said act of March z,
1865, constructed or acquired railroad
from Carlton to Duluth, in the state of
Minnesota, and acquired large terminal
facilities at Duluth, and half interest In
large portion of the terminal FACILITIES
in that city Of the st. Paul & Duluth
Railroad company hereinafter referred to;
And Whereas, The Northern Pacific
Railway company, on or about the 10Th
day of June, 1900 purchased all the rail-
way of the ST. Paul & Duluth Railroad
company, which has heretofore been OPP
Grated as an independent line between
ST. Paul and Minneapolis and Duluth and
Superior, and which included the interest
CT said ST. Paul & Duluth company in
the railroad above referred to, extending
from Carlton to Duluth, and the termi-
nal property and all the interest IN term
inal property at and near Duluth, then
belonging to said st. Paul & Duluth
company; and,
Whereas, A suit was recently COM
menced by the board of railroad and
warehouse commissioners of the State OF
Minnesota, in the name of the state OF
Minnesota against the Northern Pacific
Railway company and the St Paul &
Duluth Railroad company, in which suit
it is sought to set aside the said pur-
chase, and which suit IS now pending in
the district court of Ramsey county;
Now, Therefore, In consideration of the
state of Minnesota causing said suit to
be dismissed without prejudice, the
Northern Pacific Railway company does
hereby solemnly bind itself and Its sue
cessors and assigns unto the state OF
Minnesota forever to comply with and
carry out the covenants and obligations
hereinafter, expressed to wit:
'"The Northern Pacific Railway com
pany acknowledges and Covenants that 1t
holds the said railways purchased from
the St. Paul & Duluth company, subject.
to all the public Obligations in favor of
the state of Minnesota, the people of the.
state or the board of railroad and ware
house commissioners of The state, wh Oh
would exist in favor of said state, sors the
people or the board of railroad and
warehouse commissioners with respect to
said railways and the traffic thereof as
against said ST.. Paul & Duluth Railroad
company, ii said Sale had not been made
and the said Northern Pacific Railway
company further covenants and agrees
that 1t will forever operate and maintain
the said line of railway wholly within
the state of Minnesota, between the cities
of ST Paul and Duluth with a branch to
Minneapolis, in connection with the term
rifials referred to-
The Northern Pacific Railway COM
pany further acknowledges and cove
nants that its predecessor, Northern Pa
Gifts Railroad company, built its said
railroad through the State of Minneso-@
IA subject to all the obligations express
ed in said law of the state, approved
March 2, 1865, and that the obligations
imposed by said law are now In full OPP
Grafton and force against the under
signed Northern Pacific Railway compa-
way company will forever operate and
maintain a lire of railroad extending
from its main line (Which main line eX-
tends from Ashland. Wis, to Puget
Sound and the Columbia river to the
nayigable waters of Lake Superior, with
in the State of Minnesota, of the same
gauge as said nam llne, ana viii Tor
ever maintain and operate, for the bene-
fit of the people of Minnesota and the
Northwest, first-claSs, complete and ade-
quate terminal tracks, yards and appur-
tenant facilities in Minnesota on Lake
Superior in Duluth and in its vicinity,
for the transfer from boats and other
connecting carriers and the receipt and
shipment over the former st. Paul &
Duluth lines, the Northern Pacific lines
and its connect ons, of all freight orig
mating at the head of the lake or COM
ing into the state from outside, and the
transfer to boats and other connecting
carriers, and the receipt and shipment
of all freight shipped to the head OF
the lake or via the head of the lake
s out of the state: that said terminal
tracks, yards and facilities so to De
maintained shall never be less efficient
adequate IMAM terminals at pres
ent operated by the Northern Paci1fS
Railway company i'll and about Duluth,
and that the people OF the State of Min
nesota shall always have as favorable
rates on incoming and outgoing freight
to, from, through or via Duluth are
given by the Northern Pacific company
on similar freight to, from, through or
on the Northern Pacific lines in Wiscon-
sin.
In all questions arising as to the rea-
sonableness of rates over the said rail-
ways so heretofore purchased by the
Northern Pacific Railway company from
the ST. Paul & Duluth Railroad compa-
ny, the lines so purchased shall be treat
ed as a distinct and separate entity.
GOV. LIND'S EXPLANATION.
Speaking of the agreement, Gov. Lind
1.-THE real considerations that inf1l-
enced the railroad and warehouse COM
miSSionerS In instituting the suit for set
ting aside the transfer of the ST Paul
& Duluth railroad to the Northern Pa
cifc was not the fear that the consoli-
dation would affect rates, because as q
matter of fact there has never been any
practical competition between the DID,
luth road and the Northern Pacific the
Northen Pacific line being too long and
eircuitous to justify it in carrying much
freight between Duluth and the Twin
Cities at the rates fixed by the shorter
line, the ST. Paul & Duluth. But the
Northern Pacific line had rates in force
between the Twin Cities and Duluth, and
part of the distance-that is from Clo- |
Quet to Duluth-the two lines are paraI-
lei, SO that the commission deemed that |
the sale was at least technical viola
ton of the statutes which prohibits the
consolidation of competing and parallel
lines.
..rhe st. Paul & Duluth was the only
railroad whose charter had been granted |
by our legislature and whose lines Were
wholly within the state, and consequent
ly subject at all times to supervision |
and regulation by the state Commission |