The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-10-14
MET BY THE FACTS
Democratic Attack on Gov. Van SAINT
X for Not Fighting Iron Ore
Roads Merger.
Attorney General Douglas Shows
Groundlessness of Charge
e.. Speech at Hawley.


in an official circular by the democratic
state committee for not instituting pro-
ceedings against the merger of the iron
ore roads.
+ The governor has made no reply to this
attack but clear explanation of the
whole matter was given the other even
ing by Attorney General Douglas in a
speech at Hawley. reproduced in the
Moorhead Independent. The attack only
shows how easy it is to criticize a public
official without full knowledge Of the
facts.
1t is not the fault of Governor Van
SAINT that "a suit was not brought against
the steel trust merger long ago. Neither
is 1t the fault Of the attorney general,
who has spent weeks Of labor in investi-
cation. Governor Van SAINT requested
him last spring to make the investigation
and to proceed against the companies II
he found a violation of the law. Mr..
Douglas consulted three other able at
torneys and is waiting for their report.
His own conclusion is that there is little
show for maintaining an action. but If the
associate counsel in their opinions give
him any hope suit will be brought.
Attorney General Douglas discussed the
proposition as follows:
1.-THE action of Governor Van SAINT has
been questioned by the democratic party
FOR partialty shown in directing the
prosecution of the Northern Securities
company for consolidating in Its hands
the majority of stock Of the Great North
ern and Northern Pacific railway COM
panies and in failing to prosecute the
United States Steel company for the al
legged merger of stock Of the Duluth 4
Iron Range and Duluth Missabe & North
railway companies. AS usual this
complaint Of the democratic party is
without the slightest foundation.
I'm April, 1901, one branch Of the legis-
lature passed a joint resolution (Which
failed in the lower house, requesting an
investigation by the attorney general OF
The alleged consolidation of the iron range
railways in Minnesota.
Shortly thereafter. and long prior to
the merger Of the Great Northern and
Northern Pacific railway companies, I en-
tered upon an investigation Of the subject,
and employed Hon. Fred B. Synder, an at
torney Of Minnea polls, and then a member
of the state senate, to join In this inVeSt1
cation and report recommendations.
preliminary report was made to me by
Senator Snyder last fall and the matter
reserved for further consideration This
inquiry involved two railways aggregating
less than 300 miles of mileage and was in
a degree displaced by the consolidat ton
which took place Nov. 13 last of the
Great Northern Northern Pacific railway
companies, aggregating, including the
wards of 10000 miles of railway mileage
Subsequently, but prior to the passage OF
the resolution by the senate, in the spring
of 1902, Governor Van SAINT directed me
to make an exhaustive inquiry as to the
condition Of the alleged consolidation OF
the iron range railway companies. l car
say that he has never withdrawn thai
request and has always urged the com.
pletion Of such an investigation and &C.
ton, provided q violation of the laws Of
the state of Minnesota had taken place
which the courts had jurisdiction to cor
rect. L personally completed the inVesti
cation involving the facts some month:
ago, examining somewhat the legal ques
tions involved and referred the whole
question Of law and fact to my associate!
in the merger litigation, viz. George p
Wilson and NJ. d. Mum, as we'll as tt
Hon. Fred 3. Snyder who made the pre-
lminary investigation. The report o
these gentlemen as to whether in thei
Judgment the violation Of the laws Of thu
state Of Minnesota has taken place o.
whether the courts of Minnesota or of thu
United States have jurisdiction to correc
such violation has not as yet been made
If any blame Of any nature involving th
investigation and prosecution attaches t.
any administrative officer Of the state o
Minnesota, it certainly should not fal
upon Governor Samuel r. Van SAINT, bu
always has been my purpose to prosecut
the alleged merger Of the iron range rail
way companies provided my associate
agree that the facts and the law warran
such a prosecution.
II bog to say that the facts in the matte
OF the alleged merger Of the Iron Rang
railway companies are not Identical wit
the consolidation Of the stock in the hand
Of the Northern Securities company G
the Great Northern and Northern Pacifl
railway companies. In the latter instance
the ma jOrity Of stock Of such companies
merged In the Northern Securities com
tpany while on the other hand. my investi
cation has demonstrated that all of tn
stock of the Duluth & AAssabe Norther
RaAway company except Angle shares c
stock sufficient to quaMy directors
owned by the Consolidated Mining com
pany, a New Jersey corporation, while o
the other hand. the capital stock Of tn
Duluth Il Iron Range railway company
owned by the Minnesota Iron company
This latter company is organized unde
the laws Of the state Of Minnesota and
specifically authorized by the laws of tn
state Of Minnesota to purchase and Ow
any line Of railway in the state or tn
stock Of said line Of railway. 1t wi
therefore be observed that the stock {
these two railway companies has not bee
consolidated in single hands. My inves
tigation. however, discloses the fact the
the capital stock of the Minnesota Iro
company is vested In the Federal Ste,
company, q New Jersey corporation, an
in turn, the stock of the Federal Stet
company Is owned by the United State
Steel company, also g. New Jersey cor
pcration. The stock Of the Consolidate
Mining company is also vested in tn
United States Steel company. Thus Will
the railway stock specifically is not merge
in single hands yet through a series
inferno date companies the stock of til
latter companies is in the end so cor
solidated as to give the United State
Steel company the power to elect til
boards OF directors Of two New Jersey col
poratlons, which in turn with a series
stages may elect~the directors of each
caid hallway companies.
My investigation shows that the Unite
States Steel company has first, never con
piled with what is known as the Some1
willie law and appointed an agent upO
whom summons may be served in Mir
nesota. Second, does not maintain an OF
fee or employ an agent in Mnnesot;
Third, Is not the owner of any propert
whatever situated in the state of Mime
sofa. Fourth, its only property Indirect
affecting Minnesota interests is the capt.;
stock of two New Jersey corpora lions ne
Their one of which is situated in or mair
tains an office in Minnesota. I am strong
ly inclined to the view, after an exhaustiy
examination Of the authorities, that juris
diction over the United States Steel CON
pany cannot be obtained sin Minnesota
an action brought by the state against i