New-York tribune., 1901-11-19

Wall Street is that such contingencies as the
opposition Of the executives OF States traversed
by the two Northern roads must have been
foreseen by the eminent attorneys who prepared
the charter Of the Northern Securities Company.
and that their handiwork will stand the scrutiny
Of the courts If an appeal should be made to
those tribunals
FORMER COMBINATION RECALLED.
The dispatch from Winons Minn in yester.
days Tribune. which said that Governor Van
Ssnt would request Attorney General Douglas
OF that State to bring suit IN the OF the
State 10 prevent. If possible. the consolidation
OF the Great Northern and Northern Pacific
Railway Companies. recalled tbs Philadelphia
and Reading Railroad combination which was
broken up by the Court OF Chancery or New
Jersey. lawyer CT high standing. who oas
seen by a Tribune reporter yesterday. said that
the two combinations differed. The Philadelphia
and Reading agreement had had for IT. purpose
the control OF the transportation of coal. which
was strictly prohibited by law. whereas this new
combination was an agreement among the
stockholders of three four railroads to place
the control of the roads in one concern. and had
nothing TO do with the monopoly OF particular
commodity
The Reading combination" he continued.
was lease OF a large majority Of the coal
pany of New-Jersey. and II declared to be
null and void as opposed to public policy. be
cause its object to secure monopoly in the
transportation OF coal. which is Of the
necessities OF life, and thereby to increase the
price. That is the ordinary common law OBJ
lection to an unlawful combination which has
as It's purpose the restraint Of trade In neces-
sity OF life
The Minnesota combination is an arrange
ment not made within that State. but is a pool
ing Of the stock OF several corporations in the
hands of another corporation in a different
State. 1t is the in principle If the
stockholders of three four companies turned
their stock to their representa-
tive. Some of the roads affected run through
Minnesota, but others operate through other
States. The Northern Pacific Is a Wisconsin
corporation.
1T is different from the Reading in that
there is purpose to control the traffic in
particular article of merchandise. This
bination includes general transportation. How
could the Governor break it up? The combina-
ton to break up would be the Northern Sc
curities Company. in New-Jersey. which n
trolls the stock. He can't bring suit against
stockholders in New-York. The railroad COM
panies still separate companies, and they
will run the same as ever, and If they are
merged according to law I don't how the
Governor Of Minnesota, under the law Of the
State any common law against monopolies.
can interfere. Whether not it be broken
up as a combination contrary to the Sherman
act is a question but don't that the Gov
ernor is going to use Federal proceedings. If he
had said that he going to appeal to the
Federal courts, l could understand what he is
getting at. 1t is probable that he would have
a case with some foundation.
1T is pretty hard to see the difference between
the control of three four competing lines of
railroads by a combination Of the stockholders
interests, and a contract agreement between
the roads themselves. and yet there differ
ences. The Governor speaks of it consoli6a-
tion On Its face it is not. 1t is merely pooling
of stock
THE EFFORT TO MERGE THE COMPANIES
Governor Van SAINTS opposition 10 the plan
for combining the Great Northern an1 the
Northern Pacific under a single control also re
calls the effort made in 1895 to merge the two
companies That proposed conbina ton contem-
plated the guaranteeing by the Great Northern
Of a. fixed the net earnings of the North }
ern Pacific, The roads 10 operated as
separate entities; but the courts refused to per-
NIT it. 1t is urged that there is no parable, be-
tween that proposition and the present plan OF
having the shareholders of the two roads ex-
change their stock for stock of the Northern
Securities Company. which. although its real
object may be opposed TO the spirit Of the State