The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-02-05
MinnesOta's Governor Addresses
the State Legislature
On the Subject of Northern
Securities Company.
MUST Do SOMETHING
He Says, ,or Soon 1t Will Be Too
Late to Act.
Merger Would Have the People
at It's Mercy.

st. Paul, Feb. Sat 1890 o'clock be-
fore the session of the legislature which
had been assembled in extra session 10
receive the report of the tax commission
and the measures presented by that
body for enactment, Governor NanSant
today read his message. The principal
portion was devoted to the recommen-
dations of the comm ission. to which he
made some amendments, covering points
which were suggested by the commits
sion but not approved by him. After
reciting the occasion for the extra ses-
sion to be the desire to secure revi-
sion of the somewhat mixed tax laws or
the state, he urged that Immediate ac-
tiOn on the matter be taken, looking to
the passage of laws suggested by the
commission, with such amendments as
may be deem ed wise. He argued against
any discrimination in the laws, espe-
cially speaking against any laws which
might make the poor bear an unequal
share of the burdens of taxation. He
would not analyze the proposals of the
commission, but simply called atten-
tiOn to ii as an improvement over the
existing statutes and worthy of con-
sideration. He, however, partially en-
dOrsed the suggestion of a permanent
tax commission, opposed any reduction
in the amount of property exempted
from taxation, and suggests that the
grain tax be made to agree with those
of neighboring states.
The only subject discussed is the So
called railroad merger, of which he
says:
AT this time I desire to inform the
legislature of the suit brought by the
state of Minnesota against the Northern
Securities company of New Jersey. Be
neving this corporation was organized
for the purpose of evading and violat-
ing the laws of Minnesota, by consoh-
dating the properties of the Great
Northern and Northern Pacific COM
pantes. which companies run parallel
and competing lines of railway within
the state, 1 requested Attorney General
Douglass to bring suit in the name Of
the state to prevent such consolida-
tions.'
He then quotes from the statutes COW
ering the case and continues:
That the Northern Securities COM
pany can, and if not prevented by the
courts will merge or consolidate the
lines and property of the two railroad
evidenced by reference to sections and
4 Of the articles of incorporation of the
Northern Securities company, which
authorize that company to purchase,
hold, sell, assign, transfer mortgage,
pledge or otherwise dispose of shares
of the stock of any corporation or cor
porations, association or associations, of
the state of New Jersey, or any other
state, territory or country, and while
owner of such stock, to exercise all the
rights, powers and privileges of owner
ship including the right to vote thereon.
To aid in any manner any corporation
or association of which any bonds or
other securities evidences, or stock
are held by the corporation; and to do
any acts or things designed to protect
preserve, improve or enhance the value
of any such bonds or other securities
or evidences, or indebtedness, or stock
Those powers are as broad as lang
uage can make them and authorize the
Northern Securities company not only
to vote the stock of the Great Northern
and Northern Pacific Railway COM
panies and thus exercise all the pow
ers and privileges of ownership and
control, but specifically empower the
corporation to do any acts or things
designed to enhance the value of the
stock of the companies mentioned
which, of course includes the right TO
increase freight rates directly or to
change the classification of freight SO
as to increase the rates.
knowing that several other states
in addition to Minnesota would be af-
fected by this consolidation and that
the declared public policy of such states
through constitutional or legislative
provisions was similar to that of our
state, deemed it wise to call a con-
ference of the governors and ATTORNEYS
general of the states through which the
lines or railway pass, in order that such
method of procedure might be adopted
as would be uniform. This Conference
was held at Helena, Mont. There were
present the governors and ATTORNEYS
general not only of our state. but of
Montana. South Dakota and Idaho. and
the attorney general of Washington.
The governor of the last named state
died just prior to the conference and
owing to this fact his successor. Gov.
Mcbride. was unable to attend /
Governor Mcbride has since, how |
ever, in a published interview, called the |
attention OF the people of his state to I
the dangers threatened by the consoli- |
dations of these two companies The I,
conference was harmonious throughout /
and that the official REPRESENTATIVES. of |
the various states were wholly in synn- |
pathy with the action of this state and |
its determination to oppose this con- |
Sol1dat1on, Is shown by the following I
resolution which was unanimous" The
governor then read the resolutions /
adopted at Helena which have hean
heretofore published and Continued:
1T was determined, owing to the i'm |
portance of the case and for the mr. |
pose OF getting the matter disposed of |
at as early date as possible to bring |
the suit in the supreme court of the |
United States in the first instance
lie reclted the argument before that |
court on January q and added:
What the final decision viii be Fl ia
difficult to foretells but it does not seem
possible that a New Jersey corpora tior1
no matter what its capitalization will be
permitted to violate the laws of the |
sovereign state of Minnesota. If the
inal decision should be against the state |
the battle is not then lost: there is one !
remedy that never fails and which is
more supreme even than the sunrep1a |
court. I quote the words of :Iudee |
Brewer, in an address made at the BIZ
centennial of Yale college in which he
said in speaking of trusts and the ina
peal must be taken to the great court Of |
public opinion, whose DEGREES are i1-re |