Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-01-28
NORTHERN PACIFIC HEARING.
The Motion to Allow a Bill of Com
plant Is Argued.

States supreme court, today, Attorney
General Douglass of Minnesota, re-
rewed his motion for leave to file q bill
Of complaint on behalf of the state
against the Northern Securities Co. in
the matter of the merger Of the North
ern Pacific Railroad with other rail-
roads, saying that he had given notice
to the defendants as required by the
court.
When the preceding case had been
completed Attorney General Douglass
was recognized to make his argument
in support of the motion for leave to
file his bill of complaint. Mr. Douglass
made the following points in support
Of the right Of the State to file an origi-
nal suit in this court.
w. ID. Gutherie for the Northern Sc
curities Co. filed a brief with the court
outlinging that company's position. He
cOntended that no state can call upon
this court to enforce its penal or police
laws in other states. Hence this court
is without jurisdiction.
He called attention to the fact that
no relief is sought against the Great
Northern Railroad Co. or the Northern
Pacific, although both are corporations
of the state Of Minnesota and both
therefore within the jurisdiction of the
courts of that state.
Mr.. Guthrie said there is no Mime
sofa statute prohibiting co-partnership
or individuals from acquiring and hold
ing stocks of parallel or competing rail-
road companies. This he considered
most significant in view of decisions by
the United States court in other cases.
If he said, sit be urged that the
word managers contained in the act of
1874 applies to James j. Hill, VIM. p.
Clough and others who We're directors
or officers of the Great Northern Co.
and that they could not individually,
while acting as managers, acquire the
stock of a parallel or competing COM
pany, it may be said that the act of
1881 omits all reference to managers
and that this subsequent act implied
they repealed the prior act which COW
cred exactly the same subject matter"
He asserted that the alleged threat
ened injury to the proprietary interests
of the state Of Minnesota charged in
the bill of complaint is altogether re-
mote and fanciful.
EX-AttOrney General Griggs spoke
also for the Securities Co. He said that
the fundamental error of the state of
Minnesota in this proceeding is in max
ing a claim to the assistance of the
court in the exercise of it's sovereignty.
At best the command Of the state can
not be considered effective outside the
state. The public police law of one
state cannot be extended to another
20 ha ~ ~ \
heard of a case in which a state had
called upon the federal judiciary to sup
port it's state laws in matters not COM
ing under federal jurisdiction. 1t was
not averred that any damage had oc-
Cured and whether any ever would oc-
Gu would depend on the conduct of the
railroads themselves, the roads. so far,
having taken no such steps as the state
professed to fear.
In concluding the argument of the
state of Minnesota, M. d. Mum said
that the law in controversy was adopt
ed to protect the state against the con-
solidation of railroad lines which had
been constructed by aid. He called at
tentiOn to the fact that the act not only
prohibits the consolidation of railroad
companies, but that also of railroad
franchises and stocks. He contended |
that the act was part Of the charter |
contracts when the railroad corpora
tons came into the state. Consequently |
the state of Minnesota could enforce it |
at any place.
Justice Shiras asked what the effect |
on the management of the two roads |
would be if the injunction prayed for |
should be granted, and Mr. Mum re-
piled that the control would revert to |
the original stockholders.
In answering Chief Justice Fuller and |
Justice Harlan he said it would be i'm |
possible to obtain relief in the state |
courts, because it would be impossible |
to get jurisdiction. the Securities Co. |
having no resident representative in |
Minnesota. Furthermore. he assumed |
that the directors of the two ailoads |
would obey the dictates of the Securi- |
ties Co. as the slave would obey the |
commands of his master.
When Mr.. Mum concluded the court |
took the application under advisement. |