The Saint Paul globe., 1900-06-09
22IlIE 2IIE My OBJECT 70 |I.
RAILROAD COMMISSION WANTS TO
KNOW ABOUT SALE OF ST.
PAUL d DULUTH
DRCIsION IN PEARsALL CASE
1t Is Contended That 1t VIII Pre-
vent the Northern Pacific
From Accomplishing the
Desired Absorption.

Until the Northern Pacific has satisfied
the railroad and warehouse commission
that the consolidation of the st. Paul &
Duluth railway with that system will
rot mean the absorption of a parallel and
competing line, no further steps can be
taken ir the transfer. The most impor-
tant action in months was taken by the
commission yesterday in notifying the
two roads interested to furnish at once
full details regarding the proposed con-
solidation The state law prohibiting
the consolidation of parallel and COM
peting lines IS involved, and there is
prospect that the railway commission
may Illustrate the proposed absorption
of the Duluth.
Yesterday forenoon, at the order of the
commissioners, the secretary mailed to
the officials of the Northern Pacific and
st. Paul & Duluth the following letter
demanding the fullest explanation and de-
tails of the pending plans, The letter
closes with a hlnt that the replies from
the two roads must be sufficiently plain
and explicit as to fully meet the de-
mands of the commission. 1t reads:
This commission is apprised that
consolidation of the Northern Pacific ard
St. Paul & puluth Railway companies
has been recently so effected or cOntem
plated that the management of the st.
Paul & Duluth company has passed, or
is about to pass, under the control of
the Northern Pacific company.
"InaSmuch as the question is one of
great public importance, the commission
desires to be fully informed as to the
nature OF the said transaction, and to
that end 1t hereby requests you to fur
nlsh II at an early date with copies of
all propositions, acceptances, agreements
and other evidences of the same, to-
gether with a statement as to what the
present relations between the said COM
panles now are; and what change, if any,
in the management, official force, dis
position of property rights, or otherwise,
mas been made, or is now contemplated,
IN pursuance Of said transaction with re-
speCt to the St Paul q Duluth company
1t IS expected that your reply hereto
VIII be so explicit as to fully advise the
commission in the premises
The communication was in the hands
of the legal departments of both roads
early in the day. There is little doubt
but that before now the Northern Pacific
attorneys have prepared for just such
action as is expected as a result of the
notification, but this being true, the
letter was none the less unexpected and
unWelcome Little comment was made
yesterday by officials of either road con-
cerning the outcome of the contest just
begun, put there were evidences that in
case the railroad commission will en-
deaVor to frustTate the consolidation, the
ease will be bitterly fought Neither
President Mellen or General Counsel
Bum, of the Northern Pacific, were will
Ing to venture a statement, and in the
other offices almost nothing was known
OF the action taken by the commission
The same reticence is preserved at Du-
luth headquarters and both roads SEEM
ingly prefer to announce their course
first to the railroad commission and then
to the general public
There is not a doubt now but that the
action of the railroad commissioners is
taken with view of upholding the state
law referred to and preventing the con-
sol:datiOn Their case from several pc
culiar circumstances is very strong The
state law governing the matter of the
absorption Of railways is very clear and
has been tested and upheld by the su-
preme court of the United States In
the case Of Pearsall VS.. The Great North
ern Railway Company, the commissioners
have a precedent Of evident weight The
trying feature of tae case fl ON a North
ern Pacific standpoint IS the fact that
the law pl8inlY states that parallel or
competing lines shall not be consolidated
This being true, the road has unwitting-
ly admitted the fact that its line from
the cities to the head of the lakes is a
competitive line with the Easern Railway
of Minnesota and St Paul & Duluth,
which take a more easterly course. The
admission is on record with the railroad
commission in the form of a petition
filed some time since, asking that the
Northern Pacific be relieved from the
long and short haul clause in competi-
tive business to and from the head of
the lakes. The commission denied the
petition, and by a peculiar turn of affairs
the Northern Pacific has now completely
reversed its position, and its greatest
wish in view Of the pending litigation is
to be known by any other designation
than as a competing line.
The action of the railroad commission
is decisive ard clear. No one in rail
road circles doubts but that the notifica-
ton of yesterday Is the opening step in
q contest over the right of the North
ern Pacific to acquire the Duluth's line
and property rights. The Importance of
the move is estimated by the fact that
1t involves the disposition of a property
worth, as estimated on the basis OF its
Btocks and securities, $685. ,S29, a figure
which, IN all probability, is very con-
serVatlve. 1t was intimated without hes
ttation by a Northern Pacific official yes
terday that in the event of a contest.
that road would carry the case to the
United States supreme court, and would
resort to the last means before resigning
fits present position.
There are those in railway circles who
are already confident of the outcome Of
the case. A precedent of almost ident-
zeal details is recorded in the suit of
Thomas w. Pearsall against the Great
Northern, decided in 1885, growing out
of the Great Northerns attempt to coli
soEdate the Northern Pacific, at that
time on the market, with it's system.
Mr. Pearsall owned 500 shares of Great
Northern stock and contested the pro-
posed consolidation on the ground that
the Mort thprn Pacifc