New-York tribune., 1902-02-21
lowing table:

Interests directly representing the Northern
Securities Company and its constituent corpora
|tions were rcticent when asked for their views
pn the Presidents action. Francis Lynde Stet-
son, ex-Auorney General Griggs. William D.
.Guthrie ana other legal representatives. of the
railway companies all declined absolutely to
discuss the subject, but it is understood on the
best authority that the Attorney Generals con-
ltention will be opposed vigorously. Speaking
for J. P. Morgan & Co. a member of that firm
declared that there was nothing to do or say
at this time. but that successful termination
lof the case was looked for.
James J. Hill, president of the Northern Sc
eurities Company and the Great Northern Rail
rEay Company, is in the West.
Mr.. Morgan was in conference with his part
ners and legal advisers until a late hour yester-
day afternoon The parties to the conference
included Daniel S. Lamont vice-president of
the Northern Pacific road; William D. Guthrie
one Of Mr.. Morgan's legal counsel, and Charles
Steele and George ". Perkins, of ]. P. Morgan
& Co. From what could be gathered yester-
day the lawyers for the railroad interests will
take no further action until the United States
Supreme Court hands down its decision in the
case now on.
That case was presented to the court by At
forney General Douglas Of Minnesota on Janu-
ary Z, when he fled bill Of complaint alleging
that the Northern Pacific and the Great North
ern were subject to the laws of Minnesota; that
those laws prohibited the consolidated of paral-
lel or competing lines. and that the Northern
Securities Company, a railroad company within
the meaning Of the laws Of that State, repre-
sented such a consolidation, and had been or
ganlzeo IN furtherance OF a plan TO evade the
laws OF Minnesota, its formation being lin re-
stralnt OF trade, against public policy and void"
and he asked for q permanent injunction re-
\ stralnlng the Northern Securities Company from
exercising any management or control over the
Northern Pacific and the Great Northern and
from holding, owning controlling any of the
STOCK OF either company.
In another paper submitted TO the court At
1oTney General Douglas stated as follows the
principal question raised in this action: Can
q corporation organized under the laws Of New
Jersey use its corporate powers so as to violate
or overthrow the constitutional enactment of a
a sister State, and thus accomplish Indirectly
that which this court has held cannot he dona
directly, especially in view Of the fact that the
Newt ersey corporation was organized for the
express purpose Of accomplishing this result?"
The further question is presented: Does not
the consolidation Of these railway companies,
which own and operate all the lines situated
IN the northern half of Minnesota Except two
snort IRON ore carrlers( amount 10 monopoly
IN railroad traffic? And IS not such a monopoly
the subject of challenge regardless Of statutory
Prohibition
1t has been for some time generally believed
that the Supreme Court will hand down an
opinion dismissing the bill for lack of tl1rsdic-
fion. The litigation to be begun by Attorney
General Knox viii originate in United States
District Court, and in time will doubtless be
carried on appeal TO the United States Supreme
Court for a final adjudication. 1t will alege
violation Of the Sherman act of 1890 a federal
law, ana It's mai determination, II is agreed,
VIII be OF the highest Importance, in view of the
tendency Of the times toward the consolidation
OF corporations
The Attorney General says that his bill will
ask that the merger effected through the ex-
change Of shares of the Northern Securities
Company for shares of the railroad com
panies be dissolved and such shares ordered re-
exchanged TO restore the stocks of the two rail-
road companies TO their original holders. Com
pliance with such order of the court, IL is
said, would be exceedingly difficult. If not i'm
possible The shares of the Northern Pacific
and the Great Northern We're not accepted 'for
transfer TO the Northern Securities Company"
but were sold tn blank, and at least the Great
Northern shares which have been turned
by owners asserting to the plan held by
trustees, and net directly by the Securities Com
pany. The latter corporation has issued it's own
securities for stock deposited and these securi-
fies have in many cases been sold by persons
who received them and transferred on the
Northern Securities Company's books to hold
ers who may not have been stockholders IN
either the Great Northern the Northern Pa
cific and who may not be willing to give up
their stock for shares Of one of those corpora
tons. Moreover the Northern Securities Com
pany on February / paid dividend Of ! per
cent on its outstanding stock
There has been good deal of speculation as
10 the position Of the Union Pacific in case the
bond uniting the Northern Pacific and the Great
Northern shall be dissolved by the courts II
may be said on authority that such an outcome
of the impending litigation would not preiu-