The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-12
senator Nelson's Letter.

| &
| In reply to your favor of the Sth touching
on the effect OF the recent decision Of the
supreme court in the so-called merger case
against the Northern Securities company and
I suggesting certain amendments to the judi
ciary act I beg leave to say that in view Of
section g. article 8, of the constitution, and
| of article IL Of amendments, the only amend
ment that would be- possible under the con-
stitution would be to insert in the judiciary
act at the proper place as it was amended in
| 1888, the words, cor a controversy between a
! state as plaintiff and citizens Of another
tstate.n
| Under such an amendment you could tfnstf-
tute a suit in the United States circuit court
| for New Jersey against the Northern Securi-
I ties company; but you must bear in mind
! that in the recent decision of the supreme
! court, the court held that both the Northern
Pacific and Great Northern Railroad COM
panes were necessary parties; and that being
the case, you could not make those two COM
] panies, as understand minnesota corpo-
rations-parties to a New Jersey suit, for all
your parties defendant would not he, In the
i language Of the constitution, 'tcitizens of an
i other state At all events, thisswould be
true of the Great Northern company.
Jurisdiction Not Conferred.
4 You would be in this condition in such a
suit The state would be the plaintiff. and
| the defendants would be the Northern Securi-
! ties company, Northern Pacific and Great
Northern Railroad companies and the fact
that the Great Northern Railroad company is
a material party defendant and a citizen OF
I Minnesota would be taken advantage Of to
Dust the court of jurisdiction, and that is q
matter which could not be helped by an
amendment to the judiciary act. for the rea-
| son that section Sof article OF the constitu-
( tion as you will observe, does not give juris-
diction to a federal court over a controversy
between a state and a citizen Of the same
state.
\ AS I understand it, you. do not claim or al
Il all events did NOT in the bill which you of
fered to file in the sF,.i * tfturt, that YOU
action arose under the constitution or laws
of the United States. You based your action
| If understand the bill correctly, upon VIC
lation of the statutes of Minnesota.
If my views are correct express then
with great difndence-the legislation you sug.
gest to give you Jurisdiction over New
i Jersey corporation, in view of the decision OF
the supreme court, would not give you the
relief you expect. The course Ifwould sug.
/ gest would give jurisdiction to federal courts
SO that you could institute your suit In those
! courts against the three corporations.
4 Only Course for the State.
It seems to me--but th sis only a sugges
is worth--that your only course, under the
circumstances is to institute an action il
the courts of Minnesota against the Grea,
Northern and Northern Pacific Railway com.
panies to enjoin and restrain these companies
their officers or servants, from permitting any
foreign corporation, it's officials or servants
directly or indirectly, to interfere in any
shape or manner with the management, con;
troll an deportation of the railroads of th&
1 two corporations. 49,
In such action based on such principles
| the Northern Securities company would moi
be a necessary party. You would simply
seek to prevent the Great Northern and
Northern Pacific railroad companies from al
lowing the Northern Securities company tt
have anything to do with their management
or control.
i Basis of Action.
You could base your action, it seems tt
me, on two grounds:
First-Violation of the statutes prohibiting
the consolidation Of competing lines.
T. Second--On the ground Of abandonment ant
REIMBURSEMENT of their corporate duties il
placing the same in the hands of a foreign
corporation.
Tris, in brief, and in rather nasty an6
offhand manner, is the way in which tn,
} case appears to me. Should you still insist
on seeking the legislation you suggest il
your letter, I would then ask you TO prepar.
and send me such a bill as you think ap.
: propriate and that would meet the case ant
} l will introduce it and see that it receive!
proper consideration and attention.