The times. [volume] (Richmond, Va.) 1890-1903, 1901-11-26
TuEpAy. NOVEMBER 20, 1901.
CORPORATIONS AND THE LAW.

Tho Northern Securities Co. through
James !. Hill, its president, has issued
an official circular. addressed to all per-
sons wishing to sell their stock IN the
Great Northern Railway Company. Inc
circular reads as follows:
Tho Northern Securities Company. m
corporated under the laws OF the STATE
of New Jersey. with an authorized capl-
tai stock Of s4e9, 900, and with power u
invest in and hold the securities OIL oth-
or companies. has commenced business
md mas acquired from several large hoic-
ers of stock of the Great Northern Rais-
way Company considerable amount Oh
that stock.
uniform price has been paid OF $50
per share in the fully paid stock OF this
company, at par. This company is reaoy
70 purchase additional shares OF the same
stock at the same price, payable IN tn,
same manner. and will accept oilers nane
on that basis If made within the neA'
sixty days.
offers Tor sale of stock OF the Great
Northern Railway Company should be
made upon the inciosed form, and should
be accompanied by the certificates OF the
stock offered with transfers duly exc
cutcd having United States stamps for
transfer tax Of cents per share aft1Xed.
Unon receipt of any such offer. SO ac-
couapanie;i, the Northern Securities Com
many Will deliver to the seller of the
stock of the Great Northern Railway
Company certificates of its own stock
to the amount Of the purchase pTlce ABOVE
named, or, il such certificates are not tnea
ready for delivery. its negotiable receipt,
oi1liging il to issue and deliver such Ger
titicates as soon as ready. For fractional
parts of shares scrip certificates convert
,,t,1f iy1a ~
given.
This is the company which the Cover
nor Of Minnesota and other Governors in
the West and Northwest propose to at
tack They claim that the purpose OF
the company is to consolidate the Great
Northern and the Northern Pacific rail
roads, which are parallel lines, and that
as these railroads are forbidden under
their respective charters to consolidate.
the Northern Securities Company cannot
carry out its purpose. But just how these
Governors propose to proceed against Ire
Northern Securities Company does not
appear.
The Northern Securities Company Is
New Jersey corporation, with powers nm
der its charter 20 purchase the stocks and
bonds of other corporations, to operate
railroads. and SO on. 1t is generally IN
derstood that the company has already
secured a controlling interest in the Great
Northern and the Northern Pacific rail-
roads, and while it is not proposed, rs
we understand it, to consolidate these
roads, it is proposed by the company
which controls them to operate them mar
1noniously and to maintain rates.
We do not see how it is possible for the
: Western Governors to prevent this They
certainly cannot prevent stockholders
from selling their stocks to the Northern
Securities Company, and We do not see
how they can prevent those who own a
controlling interest in the two roads from
directing the policy of the roads. 1t all
goes to show what this paper has SO often
affirmed, that wherever the principle Of
incorporation is recognized in law, it is a
most difficult thing to draw the line.
Certain it is that the various so-called
antitrust laws that have been enacted in
the various States, and even tho Federal
statute, have been practically of non-effect
SO far as preventing combination is con-
cerned.
There has been a great deal of talk
about an antitrust law for Virginia, but
for our part we do not believe that such
q law would do any good. and we do be-
lieve that it would do harm, for it would
be construed as hostile to enterprise.