Evening star., 1902-02-05
Gov. Van SAINTS Message to the
Legislature Of Minnesota.
POINTS OUT DANGER TO THE STATE
Cooperation in Violation of the
Laws of Commonwealth.
ASKS MONEY TO FIGHT IT

ST. PAUL, Mimi, February 5.-At 1913
o'clock, before the session of the legisla
ture, which had been assembled in extra
session to receive the report of the ta1
commission and the measures presented by
that body for enactment. Governor Var
SAINT today read his message. The principa
portion was devoted to the recommends
tions of the commission. to which he made
some amendments covering points which
were suggested by the commission, but not
approved by him.
After recitng the occasion for the extra
session to be the desire to secure a revision
of the somewhat mixed tax laws of the
state he urged that immediate action or
the matter be taken looking to the passage
of laws suggested by the commission, with
such amendments as may be deemed wise
He argued against any discrimination in
the laws especially speaking against any
laws which might make the poor bear an
unequal share of the burdens of the taxa
ton. He would not analyZe the proposals
OF the commission. but simply called atten-
ton to them as an Improvement over the
existing statutes and worthy of considera-
ton, He, however. particularly indorsed
the suggestion of permanent tax commits
sion, opposed any reduction in the amount
of property exempted from taxation, sug-
with those of neighboring states, urges pro-
lection of vessel interests at the head of
lakes and then leaves the entire matter
with the legislature.
Railway Merger Discussed.
The only other subject discussed is the
so-called railroad merger. of which he says:
AT this time L desire to inform the legs-
lature of the suit brought by the state of
Minnesota against the Northern Securities
Company of New Jersey. Believing that
this corporation was organized for the pur-
pose of evading and violating the laws of
Minnesota by consolidating the properties
OF the Great Northern and Northern Pacific
companies. which companies run parallel
and competing lines of railway within the
state, requested Attorney General Doug
las to bring suit IN the name of the state
to prevent such consultations"
He then quotes from the statutes cover
ing the case and continues:
That the Northern Securities Company
can, and II not prevented by the courts will
merge or consolidate the lines and property
of the two railroad companies under one
management is evidenced by reference to
sections and of the articles Of incorpo-
ration of the Northern Securities Company
Those powers are as broad as language
can make them, and authorize the Northern
Securities Company not only to vote the
stock of the Great Northern and Northern
Pacific railway companies. and thus exercise
all the powers and privileges of ownership
and control, but specifically empower the
corporation to do any acts or things de-
signed 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 classifica-
ton of freight so as to increase the rates
Other States Interested.
Knowing that several other states. in
addition to Minnesota, would be affected by
this consolidation and that the declared
public policy Of such states through consti-
tutional or legislative provisions was SINH
lar to that Of our state, 1 deemed it wise
to call a conference of the governors and
attorneys general of the states through
which the lines of railway pass in order
that such method Of procedure might be
adopted as would be uniform. This confer
ence was held at Helena, Mont.
There were present the governors and at
torneys 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
feet his successor. Governor Mcbride, was
unable to attend. Governor Mcbride has
since. however, in a published interview
called the attention of the people of his
state to the dangers threatened by the con-
soiidation of these two companies. The
conference was harmonious throughout,
and that the official representatives Of the
various states were wholly In sympathy
with the action of this state and its de-
termination to oppose this consolidation
IS shown by the following resolution which
was unanimous
1T was determined, owing to the i'm
portance of the case and for the purpose 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"
Outcome Is Pr0blematicaL
What the final decision will be It Is Diff
cult to foretell, but it does not seem pos
sible that New Jersey corporation, no
mitted to violate the laws of the sovereign
state of Minnesota. If the final 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 Supreme Court. l quote the words Of
Judge Brewer in an address made at the
bi-centennial of Yale College, in which he
SAID, In speaking Of trusts and the inability
OF the courts to crush them: Appeal must
be taken to the great court of public opin-
ion, whose DEGREES are Irresistible In that
court every man Is counsel and every man
is judge
1T is a pleasure to commend Attorney
General Douglas for the able and efficient
manner In which he has endeayored to
Vlndtcate our laws. l learned from him that
the enaCtmentS upon our statute books are
ample and that no additional legislation ia
required at this time. But IT, during your
session, any further legislation should be
needed will Immediately communicate that
fact to you. While you have been called
together solely for the purpose of consider
ing the tax code, yet In view of the extraor-
dinary expenses attending this suit and the
great array of legal Talent in opposition.
would suggest that sufficient sum of
money be placed at the disposal of the legal
departments to employ associate counsel to
property continue the litigation and meet
the expenses necessarily connected there
with
Bill to Aid the Merger.
DES MONIES, Iowa. February Sem
ator Hubbard has introduced a bill In the
legislature providing that Iowa railroads
may buy. lease. own. control or operate
railroads and railroad property outside Of
the state; and also providing that railroads
organized in Iowa may buy own and con-
troll stock in railroad property and com
panies outside Of Iowa. This bill contem-
plates legalizing the operation Of wyoming
properties by the Burlington road OF Iowa
and has a direct bearing upon the merger
of the Burlington-NOrthern Pacific and the
Great Northern companies. 34
Iowa law already gives Iowa roads au-
thority to own. control and operate rail-
road properties In all states adjacent To
Iowa, and the measure simply proposes the
extension of this right to onerafto ~