Omaha daily bee., 1902-04-08
NEW MERGER SUIT ON
State Of Washington Presents Case to
Federal Supreme Court.
ASKS FOR AN IMMEDIATE HEARING
Bill Makes Northern Pacific and Great
Northern Defendants.
CHANGES TACTICS FROM MINNESOTA
Follows Out the Same General Line in the
Complaint, However,
HANGES TACTICS FROM MINNESOTA
COURT WILL GIVE AN EARLY ANSWER
Former Attorney General GriRRs An
pears as Counsel for Railroad
Companies and Argues the
Legality of Merger.

VI NNNeNEs
WASHINGTON, April 7.-Attorney Gen.
eral Stratton OF the state of Washington
| today brought TO the attention of the United
| states supreme court the desire OF that
state TO bring suit to prevent the mercer
OF the Northern Pacific and the Great
Northern railroads by moving for leave
to file bill OF complaint on behalf Of the
| state against the Northern Pacific and the
Great Northern railroad companies and the
Northern Securities company. In making
| the motion Mr.. Stratton said that counsel
for the defendants were present and pre-
pared 20 proceed with an oral argument
If the court was prepared to hear them.
| adding that the case involves the same
! questions as were presented in the Minne-
| sofa case. He added that an immediate
hearing was desired because II involved
another trip from the state.
EN-Attorney General Griggs who was
present as the representative OF the railroad
companies, acquesced in what Mr.. Stratton
said as to the desirability Of an early hear
| ing. but the court declined 10 announce an
| immediate decision on that point TIE
| chief justice said, however that an early
| response would be given.
Makes Railroads Defendants
In connection with his motion for leave
| to file his bill OF complaint Mr.. Strattou
submitted copies Of the bill and BRIEF i'm
its support. To avoid the objec ion under
which this court refused to entertain the
bill of the state of Minnesota against the
Northern Securities company, the state Of
Washington has made the Great Northern
Railway and the Northern Pacific Railway
| companies defendants.
l.
straint and injunction. and is a general re-
eital of the acts Of merger which il is
| claimed are in contravention OF the laws
of the state of Washington prohibiting the
consolidation of competing lines Of railroad.
1t is charged specifically that "the North
ern Securities company was organized
solely for the purpose Of carrying out and
accepting the designs, agreements and plans
i-of James j. Hill and ]. Pierpont Morgan,
and their associate stockholders, to effect
a consolidation of the property, railway
lines, corporate powers and franchises OF
| the Great Northern and Northern Pacific
Railway companies, respectively through
the Northern Securities company
Termed IA Conspiracy.
This combination is characterised as "a
| conspiracy and it Is asserted that the in
terest Of the individual stockholders in the
property and franchises of the two raiI-
way companies was to terminate and TO be
converted into an interest in the property
and franchise of the Northern Securities
company. The interests of the individual
stockholders were no longer to hold an in
terest in or derive their dividends from
the earnings of either said railway com
panies, but rather from the earnings of
both systems collected by such holding cor
poration. That the defendant the NorthOrn
Securities company, is not only exercisins
the right of ownership of such stock but
also debating the management OF said rail-
way companies.
The interest of the state in maintaining
Independent lines of road is fully set forth
and in the accompany brief the legal rea>
sons in support of the action are set out IN
detail. Among these is the plea that unless
the supreme court assumes Jurisdiction the
state of Washington is withou a forum to
which the controversy may be presented
The brief, referring to the former case
brought by the state of Minnesota, saws;
Authority of Recent Decision.
Under the authority of the reoent dsci-
sion of this court in the state OF Minnesota
against the Northern Securities companv
u Is clear that the. Northern Pacific and
Great Northern railway companies are
parties defendant, not only In this, but
any other court having equitable iurlsdic-
!
Washington against the Northern securl-
ties company.
This rule bars the state OF Washington
from maintaining such an action In the
courts of New Jersey, for the reason tina 1
SAID railway companies are not within the
state for the purpose of giving the court
Jurisdiction over them.
An action against the Northern seeuri-
ties company Will not lie In the state of
Washington, for the reason that the courts
are powerless to obtain jurisdiction over
Careful inquiry has been made, and It
has been found that the state of New
wSISb apTE Is ss6h the Sniy state In The nation N
designated an agent upon whom court pro-
cess may be served, and It Is clear that
being non-resldents of the state OF New
York, cannot be maintained therein, under
section 1850 OF the New York code of civil
procedure
briefs FILED In Opposition.
Two briefs were filed in opposition to the
prayer Of the complaint. one OF these being
by Messrs George B. Young, NJ. d. Grover
and c. W. Dunn and the other by former
Attorney General John W. Griggs.
Mr.. Griggs takes the position that the
bill Of complaint does not present a case
, Of controversy of a civil nature, which un-
der the constitution and laws OF the United
, States is justihable In this court, that a
| is suit TO enforce the local law and policy
Of state whose right to make laws an
, TO enforce them exists only within itself
r aud by means Of its own agencies and ID
r limited TO it's own territory and that
, "whateyer the law OF the state OF Wash
ington is on the subject of consolIda tion
/ OF railroad corporations, it is a municipal
, or police law and not one comforting rights
/ Of proprietary OF contractural nature"
No Outside Aid Available.
He contends that neither the courts Of
the United States nor any other jurisdic.
tlon outside Of the state OF Washington
will lend their aid to the enforcement Of
the police laws Of Washington"
He points out that none OF the acts com.
planned Of is alleged to have been done
: within the jurisdiction OF the state ol
Washington and says;
Every specific thing charged IN the biI
Of complaint as having been done by the
Northern Securities company and It's stock,
holders and by the stockholders OF the two
. railway companies was In the exercise oi