Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1902-04-17
THE MERGER CASE.
ATTORNEY GENERAL STRATTON
PRESENTS ARGUMENT
Before the Federal Suprem: Court, and is
Replied to by Attorney Charles ". Bum
Latter Claims Northern Securities Com.
pany is Competent to Hold Stocks Of Cor.
porations Same as an Individual Could Do.

Washington, April l5.-The United
States Supreme Court yesterday 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 railroads. ATTORNEY
General Stratton appeared for the state
and made the opening argument, con.
tending that this court is the only one
that can properly hear the case and tina,
if it refuses to hear it there is no tribu.
nal to which the state can apply for the
redress OF wrong.
He WAS frequently Intercepted by
me mbers Ct the court. Justice White
asked why the state could not pass a law
of its own to cover the case and Mr.
Stratton replied that he thought the
state had that right, but that it was also
entitled to an independent proceeding
for injunction. Iu reply to Justice Har-
Ian, he said that the state might, OF
course, proceed against either OF the rail.
road companies for damages, but that
the Northern Securities Company could
not be thus reached in state court
The chief justice wanted to know if the
state could not Institute a suit and give
the Securities Company chance tc
come in.
YES" was the reply, "but it won,
come in, as has been made manifest in
Minnesota"
He agreed with a suggestion made by
Justice Brewer that the railways in.
volved 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 il whether
the stock and power OF control of two
gigantic lines Of railway, traversing the
states Of Washington, Montana, North
Dakota and Minnesota, may be CONSOLE
dated so as to create monopoly in rail.
road traffic therein, in defiance of the
lava OF such, or whether corporate
entity can be treated and used for the
express purpose OF overthrowing the
constitutional enactments of number
Of sovereign states and thus accomplish
indirectly that which this court has de-
cided could not be done directly"
Attorney Bunn's Reply.
Charles w. Bum and former Attorney
General John w. Griggs appeared for the
railroad companies and the Securities
Company.
Mr.. Bum contended that if the in
junction should be granted as prayed fol
by the state of Washington, the Securi
ties Company would be compelled to sell
its stock in at least one of the railroad
com panies. He commended that the Sc.
curities Company had the same power
to acquire, own and vote stock as any
natural person would have and coulC
not be enjoined. Surely, no man could
be limited in his holding of stocks anc
securities, but whatever power state
might have to control the holdings of it.
own citizens it could not be reasonably
contended that it could have any in
fuence on citizens, natural or artificial
of other states, like the Securities Com
pany. Surely there was no law in the
state OF Washington, nor was there any
common law, that could limit the hold
ings OF an individual in this respect
and if an individual could hold without
limitation, so also could combination
of individuals.
/ Moreover, if there could be such limit
alton it was for the states themselves tt
apply it. He also contended that there
was no precedent allowing one state tc
20 into another state for the enforce
ment OF its own laws, and said thai
Washington was undertaking to do JUS
that in this proceeding. To do this
would be a violation of the fourteenth
amendment to the constitution of the
United States.