The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-15
WHAT THE "sUNo THINKS
The Case Against the MergeraIs,WeIl
Stated.

= ne neCdse against the MergeHaIssWell
stated. = 9
Special to The Journal.
s New York, Jan. 15.-Philip King, in his
weekly financial review in the New York
Sun, has the following summing up Of the
merger situation:
Ever since last April the varying as
poets of the Northwestern railroad situa-
ton have been the most important factor
IN the general market. The general expec-
tation is that within short time the SUI
preme court of the United tSates will an
nounce Its decision upon the application
of the state of Minnesota for leave to-
begin suit for perpetual Injunction
restraining the Northern Securities COM
pany from exercising control over the
Great Northern and Northern Pacific rail-
ways. From lay point Of view, it seems
almost certain that leave will be given
to the state of Minnesota to bring its ac-
ton, for even If its cause was less strong
than 1t appears to be. great state ap-
pearing in the high court of the nation in
the person Of it's attorney general, has
rights which must be regarded.
It is clear, however, that sooner or
later, in some way even II the Minnesota
lawyers in the present proceeding have
mistaken their jurisdiction or have made
other tealnical errors, an investigation
into the legality Of the plans and pur-
must be passed upon by the supreme
court
1t will be then contended in behalf OF
the Northern Securities company that It
has an inalienable right to buy and own
as much and as many securities as 1t can
pay for, and that it does not propose to
manage Jointly. but simply to own separ-
ately the competing railways in Minne-
sofa.
1t will be urged by the state, to use
Judge Peckham's language in the Pear
sail case, that there can be no inalien-
able right to commit manifest wrong"
and that such wrong will be the en-.
trance into any state OF a corporation
clothed with powers by another state to
do business in sweeping and absolute vio-
lation of the laws Of the state into which
it enters; that competition between the
railway lines necessarily and obviously
ceases when their ownership Is vested In
one man or in one corporation; that tho
idea of separate ownership by one man or
corporation of two naturally competing
railways without actual joint management
of them. is simply a lawyers bubble; that
the organization of the Northern Securi-
ties company Is, in fact, whatever its
avowed purpose, an effort to actually
merge and consolidate two competing
railways in the state OF Minnesota, and
that if this is not Its purpose, there IL
no other recognizable object Of its being.
There is. moreover, the question Of an
alleged impairment of the revenue ana
other property interests of Minnesota by
the proposed arrangement matter
which has been little remarked in the
newspapers.
Whatever the uphsot of the case may
be, there is this thought which must occur
to everyone. If it is possible for cor
poration owning property In certain
oh IN n ca Nv n a.,
Nv incorporating itself in some state which
will grant any kind of charter for the
asking. then local and state government
in this country has received the greatest
limitation ever put upon 1t since the foun-
dation oe the nation.
There is another side Of the question.
too, which must be fully and fairly con-
sidered-and there is no disposition to
do Injustice to 1t here-and that is its
economic and industrial character as dis
tinguished from the legal issues involved.
In his exceedingly interesting speech at
the Tri-State Grain and Stock Growers
convention in Fargo, N. D., James ]. Hill
extolled the great advantages which, he
declared, would accrue to the people OF
the entire northwest by Community OF
interest" between the railroads in THAI
section. He maintained that the rail-
roads had already been the chief factor
in developing that territory, that grain
and other products were now carried
there at low cost, and that closer res
lationship between the two great railway
properties chiefly concerned could only
result in further reductions in railway
tariffs, and In general enhancement OF
material prosperity in the northwest. Un-
checked railroad competition often meant
railroad bankruptcy and widespread busi-5
ness depression, and the destruction Of.
Injurious competition end thA uAjnte-s