The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-25
AS TOLD BY
COL. CLOUGH
His Testimony Encourages
Those Who Are Attack
ing the Merger.
He Said the Northern Secu-
rites Controlled the
N. p. and G. N.

Attorney Generals are attacking the
Northern Securities company front, flank
and rear.
Attorney General Knox of the United
States has brought the merger corpora
ton into court as violator of the Sher-.
man antitrust law.
Attorney General Stratton of Washing
|ton will ask the supreme court of the
United States for an Injunction restrain
of his state. .--
Attorney General Douglas of Minnesota
will bring suit in the district court of
Ramsey county. He will ask an injunc-
tion against the Northern Pacific and the
Great Northern. to prohibit them from
pany as the owner Of any part Of their
stock. He will also ask that the lat ter
company be restrained from voting the
stock Of either railroad company.
The Northern Securities company is
necessary party to the Minnesota suit.
Any action against the railroad companies
would involve the New Jersey corporation.
Realizing this, the states attorney will
make the company a party defendant.
This is bound to raise the question of
| jurisdiction again, and If the district
court denies it, the case will be carried to
the supreme court of the state. It's de-
icision will tell whether Minnesota has any
remedy against the violation of it's laws
| by foreign corporation. The federal
Icourts have refused it, and to make tho
question clear, Attorney General Douglas
| is Diet ermined to get ruling from the
state court. If it grants him jurisdiction.
he will proceed with excellent prospects
OF winding UP the corporation. If the
court refuses to entertain his suit, it will
show a defect in the judicial system which
must be remedied. Minnesota will have
no further remedy.
| C1ough's Testimony important,
Thanks to Minnesota's initiative. how
ever, there are two other channels for
relief. Prominent attorneys express con-
| fidence in the outcome of the govern
ment's suit. Developments Of the past
! few days have shown what sort of evil
| dence is at the command Of the nation s
legal head 1t was thought that the
I Northern Securities company had s1yly
evaded the issue by delaying the acQuisi-
ton of Great Northern stock This was
the inference from President Hills testi-
5Ttnony befors the referee in the Petes
Power case. Colonel Clough comes out
however, with the frank statement tha,
a majority Of Great Northern and North
ern Pacific stock is subject to the control
of the, merger company, and actually IN
it's hands This is held to he evidence
| enough to justify winding up the company
under the antitrust law. -.s.-s~ -
Attorney General Stratton of Washing
ton is still in st. Paul, preparing paper:
in his case. He will present them to the
supreme court April 7, when the cour
reconyenes.. The merger attorneys will
without doubt, raise the same point tina
they did before, that the anti-consolida
tion act is a penal statute, and not sub
ject to the jurisdiction Of the supreme
court. This was their main reliance II
the Minnesota case, but was not ever
mentioned in the opinion of the court
This silence is taken to mean that The
point was not in the minds of the cour
La good one, but they are not on record.
Washington Law Definite.
i Washington is in strong position. The
two railroads are parallel clear acros:
1.-THE state and nowhere more than thirty
miles apart. The prohibition against con-
l solidation is in the constitution of the
state, three sections of which bear on the
fquestion. They read as follows:
l. Article u. section IA: No railroad compan.
make any contract with the owners OF an.
vessel that leaves port or makes port in thi
state, or with any common carrier, by whicl
combination or contract the earnings Of on
doing the carrying are to be shared by tn
other not doing the carrying. ~.
Section Is: No railroad corporation shall
consolidate its stock. property or franchis
with any other railroad corporation owning
competing line. .y...- ....... .
Section %: Monopolies and trusts shal
J. never be allowed in this state
Mr.. Stratton spent the morning In thu
state law library. He declines to discus
: the suit, but says he will remain in st
) Paul for several days, going from Their
to Washington. He will appear alone a
first, but should the court ask for argu
ment, will associate other counsel witt
him.
M. D. Mum and George P. Wilson viii
4 be associated with Attorney Genera
Douglas in the Minnesota suit as before.