The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-11-30
the RAILROAD SIDE OF the DEAL.

The railroad side OF the proposed
merger Of the Great Northern and North
ern Pacific is set forth by writer in the
Railway Age in an article the Inter
Mountain prints in order only that both
sides of the project may be understood
by the public. 1t is as follows:
The announcement, long expected.
of the organization of the Northern
Securities company for the purpos,
of holding the securities of the Great
Northern and Northern Pacific Rail-
way companies, has excited the OPP
position of Governor Van SAINT of Mime
sofa, who announces his purpose to call
an extra session of the legislature Ito
checkmate this reported consolidation Of
the railroads in his state" Although the
intention to harmonic the interests of
these two companies, together with the
Burlington, had long been a matter of
public knowledge, no attempt was made
to throw legal obstacles in the way, and
the suggestion of legislating to prevent
an accomplished fact now seems untime-
ly. Efforts are being made to enlist the
governors of other states through which
the roads run, in an opposing movement
similar to that threatened by Governor
Van SAINT. but both the possibility and
deesirab ility of the proposed legislation
appear to be a matter of much doubt
among public men and lawyers. The
Minnesota law which the governor
wishes to show as having been violated
is as follows:
No railroad corporation shall CONSOLE
date with, lease or purchase or in any
other way become owner Of. or control
any other railroad corporation. or any
stocks. franchises. rights or property
thereof, which owns or controls parallel
or competing line of railroad. No rail-
road corporation or the lessees, pur-
chasers or managers of any railroad cor
poration shall consolidate any stock,
property or franchise OF such corpora
ton with or lease, or purchase or con-
solidate the works or franchises of such
corporation with or in any other way
control any other corporation owning or
having under its control a parallel or
competing line.
The able lawyers who drafted the plan
Of the Northern Securities company were
we'll aware Of this statute. and must
have been satisfied that they weere not
viola ting or evading it. The law pro-
hibiss corporations owning parallel lines
from consolidating by lease. purchase or
in any other way. The Northern Pacific
and Great Northern companies are not
consolidated. They maintain their separ-
ate and independent organizations and
neither company dominating the other.
and so far as the public is concerned, VIII
continue distinct. The Northern Securi-
ties company is a financial corporation
of New Jersey. Wose stockholders have
bought stock IN the Minnesota roads and
committed it to the new company as
their trustee. The people Of Minnesota
who use these roads have sustained no
injury. Rates have not been raised nor
accommodations diminished. The state
has the same power as before to fix rates,
prohibit Determinations. establish taxa
ton, compel safe and satisfactory ser
vice, and in general protect the public
from any wrongdoing by the railways
and the matter OF the. ownership of the
stocks cuts no figure. The legislature in
cited by a vindictive governor, may pass
unjust and oppressive laws against the
railways. and force them to appeal to the
courts for protection, but until the public
has suffered or appears to be in serious
danger of suffering from the existence OF
the Northern Securities company, pm
tive legislat ton against the roads would
seem to be uncalled for.