The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-13
NELSON TO DOUGLAS
Senator's Second Letter to State
Attorney General. =.
HOW TO GET AT MERGER LEGALLY
Mr.. Douglas Explains His Quandnry
and the Senator Tries to p.
s----.~zsz.st Help Him Out.

From. The Journal Bureau, Room. 40, Posi-
-6niIdisg, Huntington. 49,. go -
Washington, March 13.-After the let
ter of Senator Nelson to Attorney General
Douglas, published in T h g ] o ur l
yesterday, had been written and mailed
Senator Nelson received a supplemental
statement from Mr.. Douglas including
copy OF the resolutions which passed the
legislature. To this statement Senator
Nelson replied to-day by mail as fol-
low. and it will arrive in ST.. Paul on
Friday -,l. .....
Your favor of the 9Th, inclosing a copy of
the resolution adopted by the legislature rela-
tive to an amendment to the judiciary act for
the purpose of getting Jurisdiction in the
proposed merger suit, is at hand. In,my let
ter of yesterday called your attention to the
fact that. In the light of the recent decision
of the supreme court of the United States in
the merger case, an amendment to the jul
dietary act such you suggested in your
letter and as is suggested in the resolution of
the legislature which you sent me- would not
help you.7
The supreme court decided, first, that the
Great Northern and Northern, Pacific rail-
way companies were necessary parties, and,
second, that If they are made parties to the
suit 1t would, under the constitution, GUST
the court of Jurisdiction on the ground no
doubt that at least one of these corporators
was a citizen OF the state of Minnesota. ~
l now desire to add to what stated in my
letter, of yesterday, first that such an amend
ment to the judiciary act as you suggest
would not help you in. this case in the light
OF the recent decision of the supreme court,
and, second, that the resolution asks for
legislation that, under the constitution, it is
not in the power Of congress to grant.
By an inspection of section g. article 8, of
the constitution, you will observe that, ex-
cept in cases where action arises under the
constitution or laws or treaties of the United
States, the judicial power of the United
States does not intend to cover a controversy
between state and citizen Of the same
and, Of course you know corporation is
deemed citizen of the state in which it is
Incorporated -
Douglas to Nelson.
Attorney General Douglas letter to
Senator Nelson reads:
In view of the recent decision of the su.
preme court of the United States in the North
ern Securities company case, denying juris
dction, and as an incident to proposed legis
lation ito test the elawfuness of the acts o
said Northern Securities COMPANY 7 hay,
been led to Investigate the Jurisdiction o
many courts, or want of jurisdiction, over th
controversy.
Doubtless arising. from the presumption tina
the supreme court had Jurisdiction of sue,
cases under the authority conferred by articl
OF the constitution. congress has failed t.
confer jurisdiction upon circuit courts of tn
United States over litigation in which stat
is party except where it involves the con
struetion OF an act of congress or consttu
ton or treaty Of the United States This con
struction has been repeatedly upheld
The logic of the recent decision in tn
Northern Securities company case holdin
that the Northern Pacific and Great Northern
are
an action in equity against that company
drives the state out of the courts Of New Jer
sey, except, possibly, in quo warranto pro
ceedings, which could only be instituted b
the attorney general of that state, for the rea
son that each of the railway companies il
question Is not doing business in New JERSEY
Limited to Local Courts.
Again, careful examination of the laws o
s New York discloses the fact that we are prob
ably barred from the courts Of New Yor
under. the terms Of section 1880 of the Ney
York code. 1t follows of necessity, so far a
the state OF Minnesota is concerned that
Is limited to- our local courts and to sue
remedies as may be invoked against loca
corporations doing business in Minnesota
Having reached this conclusion I deem
important that the judiciary acts, so-called
of congress-, be amended SO as to confer upo
the circuit courts of the United States 1uris
diction over actions against citizens of othe
states, even II it becomes necessary to joi
Herewith as defendants citizens of the stat
insttutng the litigation.
An amendment to the acts. in my judgment
should Also provide for service of process O
all defendants, wheresoever they may b