The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1901-11-29
FIXED BY FEDERAL LAW.
Inter State Commission Gould Prevent
Injury From Combinations.

Injury From combinations.
st. Paul Pioneer Press:
Chairman Ira B. Mills of the state
' railroad and warehouse commission
stated yesterday his belief that pos
sible injury from the consolidation of
the Great Northern, the Northern
Pacific and the Burlington railroads in
the Northern Securities company
could be provided against by amend
ments to the federal interstate COM
merce laws, which he believes should
be adopted regardless of the present
case.
| Judge Mills advocates amendments
TO the interstate commerce laws Civ
! ing the commission complete power
over all rates throughout the country.
He points out the difficulty of liking
rates while recognizing distinctions
between state rates and interstate
rates, and he would provide for fed.
eral commission or commissioner for
each state, or group of states, with
power to receive and determine COM
plants, subject to retrial before su-
perior commission.
cit is impossible for a lawyer to
give an intelligent opinion on the le-
gality of the proposed operations of
the Northern Securities company un-
til he knows just what the company
intends to do. l presume the corpor-
alton is created for legitimate pur-
pose under the laws of the state where
it is organized.
"The stocks of the three railroad
corporations are on the market, and |
presume it is lawful for this corpor
alton to purchase them, like it would
be for the stockholders of any of the
three to purchase stock in the other
two. even if by doing SO he might
own controlling interest in the three.
''But if the owners of the stock at
tempted to consolidate the three lines
or two of them, they, being competing
and parallel lines, it would be unlawful,
and if this is done by this. New Jersey
corporation, or if in any other way
violates the laws of Minnesota, a re-
medy can be found to punish offenses
committed and prohibit their repeti-
tion.
"The New Jersey corporation e
right to own the stock of the other
companies is to be governed by the
laws in existence at the time of its
purchase. Those rights become vested
then, and no subsequent legislation
can impair them.
81 think all the injury that people
seem to anticipate from the opera
tions of the Northern Sureties company
can be provided against by suitable
amendments of the interstate COM
MERGE law, and that should be done
whether the scheme of the Northern
Securities company is carried out or
not.
"That commission should be given
| jurisdiction over all rates, both what
are known as domestic and Interstate.
In the Nebraska rate case, commonly
called the Ames case, it was decided
by. the. United States supreme court
that in determining what was rea-
sonable rate. on. state traffic, interstate
earnings could not be taken into con-
sideration, nor in fixing an interstate
rate, the state earnings Taking all
the roads operating in Minnesota, it
is safe to say, considering all the bust
ness thar is in any way done in Min
nesota, both freight and passenger, at
least 60 per cent is interstate. So in
an investigation of what is reason
able rate fol. Minnesota the Minnesota
commissioners would have to exclude
the earnings from all business that
originated in Minnesota and passed
out of the state and from such business
as originated out and came into this
state and all that passes through the
state, leaving them only what is purely
local, or only 40 per cent of the bust
ness carried through Minnesota terri
tory. If the commission had adopted
such a rule in the STEVENSON case It's
order could not have been justified.
"The system of railroads in this
country is an entirety and there is no
Intelligent traffic manager but that
considers the whole business in fixing
rate either for state or interstate
traffic. The business is so interviewer
and the rate in one state is so much
dependent on the other that great in
justice should adopt such rule.
81 do not wish to be understood as
finding fault with the decision of the
court, for it could not decide other
wise. 1t would lead to great confusion
if each state jurisdiction were left to
determine its share of the earnings in
adjusting rates. What l mean to say
is the question of railroad control as
1