The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-04-15
MERCER IN COURT
STRATTON ARGUES WASHINGTON,s
SUIT BEFORE SUPREME
BENCH
BUNN and GRIGGs ANSWER
Chief Justice Fuller Suggests State
Ownership as Remedy for the
Securities COmpany's Al
legged Combination.

WASHINGTON, >. c., April H-The
United States supreme court today heard
arguments in the case of the State of
Washington VS.. the Northern Securities
Company and the Northern Pacific and
Great Northern Railways, involving the
merger of the two roads Attorney Cen
eral Stratton appeared for the state and
made the opening argument, cOntending
that this court is the only one that can
properly hear the case and that if it re-
fuses to hear it there is no tribunal to
which the state can apply for the redress
of a wrong.
He was frequently Intercepted by mem
bers of the court. Justice White aske1
why the state could not pass a law OF
its own to cover the case, and Mr.. STRAIT
ton replied that he thought the state had
that right, but that it also is entitled to
an Independent proceeding for injunction.
In reply to Justice Harlan, he said that
the state might, of course, proceed
against either of the railway companies
for damage, but that the Northern Sc
curities company could not be thus reach
ed in a state court.
Cites Minnesota Merger Case.
The chief justice wanted to know if the
state could not institute suit and give
the securities company a chance to come
in.
Yes" was the reply, "but it won't
come in, as has been made manifest in
Minnesota"
He agreed with a suggestion made by
Justice Brewer that the railways involved
are interstate roads, and that on this
account it was competent to appeal to the
national authorities
Summing up the case, Mr.. Stratton said
the question presented is whether the
stock and power of control of two gigan-
tic lines of railway, traversing the states
of Washington, Montana, North Dakota
and Minnesota may be consolidated so
as to create a monopoly in railway traf-
fic therein in defiance of laws of such,
or whether a corporate entity can be
created and used for the express purpose
of overthrowing the constitutional rights
of number of sovereign states and thus
accomplish indirectly that which this
court has decided could not be done di
rectly.
Charles w. Bum and ex-Attorney Gen
eral John w. Griggs appeared for the
railway companies and Securities COM
pany.
Bum Doubts Jurisdiction.
Mr. Bum contended that if the injunc-
ton should be granted as prayed for by
the state of Washington, the Securities
company would be compelled to sell its
stock in at least one of the railroad COM
panies. He contended that the Securities
company had the same power to acquire,
own and vote stock as any natural per
son would have and could not be enjoined
Surely" he said, mo man could be
limited in his holding of stock and Sc
curities; but whatever power a state
might have to control the holding Of iIs
own citizens, it could not be reasonably
contended that it could have any influence
on citizens, natural or artificial, of other
states, like the Securities company. Sure
ly there was no law Of the state OF Wash
ingtOn, nor was there any common law
that could limit the holdings of an in
dividual in this respect, and if an in
dividuaI could hold without limitation so
also could a combination of individuals"
Moreover" he continued, IF there
could be such a limitation, it was for the
states themselves to apply it." He also
cOntended that there was no precedent
allowing one state going into another
state for the enforcement of it's own
laws, and said that Washington was I'M
dertal1ng to do just that in this proceed
ing. To do this would be a violation Of
the fourteenth amendment to the consti-
tuition of the United States.
Mr.. Bum cOntenGed that if the state of
Washington could come to this court for
relief it could go to the courts of New
Jersey for it. He said there was no pre-
cedent for such a proceeding. justice
White suggested that likewise there was
no precedent for such enormous combines
as that complained of in this case. To
this suggestion, Mr.. Bum said that while
this might be true they must be proceed
ed with by legislation if at all.
Mr.. GIi6gs argued that the power of
the supreme court cannot be invoked by
one state to enforce the police laws of
another. and cOntended that in this in
stance Washington is attempting to con-
troll the corporate action of three COM
panics, neither of which pretends to de-
rive it's existence or authority from that
state. He followed Mr.. Bum in the con-
tentiOn that there could be no more re-
strictiOn on the holding of stock by a,
corporation than its holding by an indi-
VidUal. adding that the principle is no
wise affected by the amount involved.
The mere suggestion was, he said, a
TefutatiOn of the erroneous assertion i'm
piled in the bill of complaint. He argued
that no act complained of would take
place in Washington. There was no pos
Sibiity of the violation of a state law
because Washington had no law on the
subject. 1t was only alleged that public
opinion would be violated. but this court
was not here to sustain the demands of
public opinion of one state against the
citizens Of another. The states should be
left to provide their own remedies
In his rejOinder, Mr.. Stratton said that
the entire argument on behalf of the de-
PENDANT corporations had turned on the
contention that Washington could not
proceed against them because of their
non-residence. whereas he urged that this
very circumstance was what gave the
federal supreme court jurisdiction. With
out this nterposition the state was, he
repeated, without remedy.
Suggests State Ownership.
''What do you think of state ownership?
Couldn't the state take possession of the
roads and run them? asked the chief
Justice"
Mr.. Stratton replied that such a remedy
had not occurred to him. What the state
of Washington wanted was that the
court should enjOin combination of the
two roads in third corporation under
the gllise of an Individual and he believed
that this would not be permitted He
closed with the charge that the cOmbi-
nation is violation of the contract obi
cation of the railroads implied in their
acceptance of charters from the state
THINK GATES Is IN CONTROL.