The Washington times., 1902-04-08
Attorney General Stratton
Files Bill of Complaint
With Supreme Court.
LIKE MINNESOTA CASE
Court Accepts Briefs, But Declines to
Hear Arguments-Ex-Attarney Gener-
al Griggs Appears for Securities Com
pany-Legal Points Involved.

Application for the State OF Washington
the Northern Securities Company the
Great Northern Railway Company. and the
Northern Pacific Railway Company was
made in the United States Supreme Court
yesterday by w. h. Stratton. attorney
general of the State who was previously
admitted TO practice that he might ap-
pear.
Ex-Attorney General Griggs appeared as
counsel for the Securities Company
Mr. Stratton stated TO the court that
the Till which it was desired to tile was
in all respects practically the same as
that which the State Of Minnesota wanted
the court to take in a suit against the
Securities Company. The railway compa
nies. not being citizens of Washington,
they had been included with the Securi-
ties Company a. defendants. 1t asks an
injunction against the Securities Company
from exercising the management. direc-
tion. or control of the railway companies
and against the railway companies from
in any manner recognizing or accepting
the Securities Company as the owner or
holder of any shares of stock in either.
Mr Stratton's Brief.
In his brief accompanying the bill At
torney General Strattcn asserts that
vesting the ownership of a majority of
the shares of the stock of the two rail-
way companies in the Northern Securi-
ties Company is a practical consolida-
tion of the two properties; such a con-
solidation as is forbidden by the const;-
tuition Of the State of Washington. that
by coming into the State the two rail
way companies entered into contracturaI
relations with it, by which they not only
became subject to, but assumed the obli-
cation to comply with its laws.
The laws bearing upon the case and
the constitutional provisions upon which
they are founded, he said, are not penal
statues, but protective enactments de-
claratory of the policy of the State and
clearly authorized by implication tine
prosecution of remedial actions to pre-
vent violation thereof. The State has
a material interest involved the same
that was set up in the Minnesota bill,
viz, that combination would result in an
increase of freight rates now secured by
competition on materials used in the sew
eral penal, reformatory and benevolent
institutions. to the detriment of all the
citizens of the State. No other forum.
the brief states, is open TO the State for
the presentation of its grievances and
able TO give it relief
In his short brief opposing the grant
ing of the application, eX-Attorney Cen
eral Griggs said:
Mr.. Griggs' Reply.
None CT the acts complained of as fur
nishing the basis OF the complaint OF the
State of Washington is alleged to have
been done within the jurisdiction of that
State. The burden of the complaint IL
that acts lawful where done, acts not
pretended to be governed by the laws of
Washington. are injurious or calculated
to be injurious to the State of Washing
ton in its sovereignty because the effect
of those acts will be to destroy the spirit
and policy of competition existing or, at
least which the State desires shall exist
between these two railroads as operated
within the jurisdiction of the State IF
Washington.
The idea of the complainant is that IL
has a right to supervise the number and
character of the owners of the stock of a
railroad company and If it is found that
they are harmonious among themselves
competing company and are likely to elect
managers who Will harmonic, then the
State can hold up the stockholders by in
junction. deprive them of the dividends,
take away .heir right TO vote, and com
pei them to desist from buying more
stock.
Limiting Sale of Stock.
mo law of Washington or of any other
State limits the amount of stock which
one person, whether natural or corporate,
may buy and hold. No law of any State
or country makes the right to vote upon
stock dependent on the motives or pur-
poses of the stockholder
THE action OF the individual stockhold-
ers is not the action of the corporation,
and cannot be treated as such for purposes
corporation through its constituted Off
GERS and agents that is alone the sub
ject of legal regulation. The injury, if
any there can be which may happen to
the complainant. must result from the
action of the railroad companies and not
from the action of the stockholders. The
latter have no corporate rights or priyi-
icges in Washington. exercise none there
and claim none there. And II is not
averred that the railroad companies are
doing OF threatening to do CT themselves
any act In derogation OF free and open
competition in the State OF Washington" "
Not Privilege Tax.