The Aberdeen Democrat. (Aberdeen, South Dakota) 1???-1909, 1903-08-07
-. Lessees Of railroad corporations
There are none.
Not a Purchaser.

"2. Lessees of railroad corporations
There are none.
Not a Purchaser. 4
8. Purchasers of railroad corpo-
ratlons-Construing this term as apply
cree. having capacity to hold and enjoy
the franchises and operate the railroad2
thsIe We're none in this case.
tions- A'' railroad G mana ngs1r0i IS t fsrpo oer-
son having the administration, charge
ana oversight " Of the operation and bust
ness nense OF u the TailToad' Among the parties
manager: He did not effect any CONSOLE
dation: He promoted the formation of
the Northern Securities company, and
panies.
But the complainant contends that
M Sad ,b the T Mort Securities company
Become apo The p oW,no L. asol' purchased and
trolling majority Of the stock Of the
Northern PACIFIC company, it became the
purchaser of that railroad corporation.
within the meaning of that word as used
IN the act of 1874, and became thereby
disaoled from acquiring, as it afterwards
did; a controlling majority Of the stock
And upon the subject of purchasing
a railroad by buying all the stock, I am
cited ,aso to e iasp 81 General Laws Of Min
railroad corporation may lease or pur.
chase or become the owner or control or
hold stock Of any other railroad, when
their respective railroads can be con-
nected together and form a CONTINUOUS
line with or without branches. But in
that case the purchase OF the stock would
be by a railroad corporation having ca
paclty to operate the railroad. even aside
from the authority to do so either ex-
pressly or implicitly granted by this stat
ute; and such railroad could therefore
rightfully assume the control. manage
ment and operation of the railroad, the
stock of which it had so acquired.
Peersail Case.
IT am also cited to the case of Pear
s. SIX Is Great Northern Railway ISL U.
The case is far from sustaining the
idea that if a single investor in railroad
stocks. whether a natural person or a
should acquire by purchase a majority
or the whole of the stock of both the
Northern Pacific company and the Great
Northern company that would work any
consolidation of those two companies, or
that such purchase would have any
power to manage or operate the railroads
of both or either of said railroad COM
panies.
I'm the case under consideration the
court is careful to note the difference in
effect between the purchase of a c%ontroll-
corporation by a rival railroad corpora
ton which might control, manage and OPP
crate it, and a purchase Of the same
though holding whatever amount Of stock
in the same rival railroad company. The
court says:
Great Northern company could lawful,
acquire by individual purchases a ma
jority. or even the whole of the stock
of the reorganized (Northern Pacifcl
ultimate control. but the companies
would still remain separate corporations
with no interests, as such, in common:
ut follows that as the Northern Sc
in the stocks of these railroad corpora.
lions, not being itself a railroad corpora.
| ton. and being without franchise, power
or authority to manage. control or op'
l crate any railroad. it's ownership of a ma.
: jority of the stocks of these two railroad
: companies does not come within the pro
Separate Corporations.
> > eth two companies still remain sep
: arate corporations with no interests, a
: such, in common The case would not b.
D different if one natural person with abun
: dant capital should invest in the majorit.
of the stocks of one of these, companies
and another like person should invest, Il
company. The interest of the two. i
they chose to act in harmony, would b
, the same as the interest of one persol
owning the whole
q State Fixes Rates.
$ The policy of the state in respect t
: the operation and management Of rail
: roads is disclosed by it's statutes; espe
: cially by sections n s Mir to aoS; vol nnd J. Gen fh
: heading Of Railroad and ,Warehous
e Commission which closely follows tn
provisions Of congressional legislation Re
:. clearly specified regulations places the su
# pervision. oversight and control of thos
matters, particularly the rates for trans
portation, in the hands of the designate
state officials.
1T is plain from these statutes as cor
strued by the supreme court Of the stat.
y railroads. with their rolling stock an
" appliances shall be kept in a high stat
of safety and efficiency; and that rate
y, II Of transportation, Wh hn11 a1Ms vs am mp fai
y reasonable, stable and uniform: Scnec
ules of rates are to be kept publicly pos
ed at every station. ana no cnange or q,
lie mitted, nor any rebates allowed, or az
lie vantage to one shipper oyer another; ar
: no change in such rates is pe ah1;rted u u
% til after ten days previous pupllSned III
" tice has been given.
If .Under this system shippers can. cou'
n accurately the cost OF transportatlon
4; business must incur exactly the * e:
or pense; and .~untrammeled competition .
lG tween rival TdIlrOduS ieSuLGAhS IL .
IS wars, sporadic struggles for partlcul
l. contracts or consignments, as We'll as {
l. rebates. open or secret. all alike unfair
in ruinous to carriers and shippers, are pr
8. hibited under penalties, and intended
be entirely eliminated and done aWi
~ with; leaving as the only bases Of cor
petition between rival carriers the fu
m nishing of the better accommodation
Of and the greater safety n celebrity
10 carriage.
n "Aii complaints that published rat
are unreasonable are heard and dete
mined by the state officials. who may
IA rates binding on the railroads.; thus n
oa cessarily making rates uniform as 2
i ie tween rival railroads. AS q result OF II
az az policy, n the absolute power OF I
81 State officials to fix rates. and keep the
a. a. at the lowest reasonable figures. compe
rs IS ton between rival railroads no longer !
~ y duces rates. as it did when, railroad COZ
~. panies alone controlled them: On !
- contrary where two or more railroads
vide the transportation TIVE =
places the necessity Of considering glres
~ err fixed charges and greater cost OF g
,.a ministration n operation may, make !
reasonable rate for transportation Srea
". than if the whole business could be &c
a. and was in fact done by one railroad
ne Nc Law Violated.
to "However that nay be. the Nlortht
Securities mpa is but an invests
,a.E.-L \ f,E+l,ara tuyn 5ro i{rnq6 conn