The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-06-06
SECURITIES CASE is
BEFORE CIRCUIT
COURT
Attorney General Douglas
Argues That Corporations
Violated State Anti Trust
Law as Well as the Sher-
man Law - Defense Will
Speak Today.

The case of the state of Minnesota
against the Northern Securities COM
pany was commenced before Judge
Lochren in the federal circuit court
IN st. Paul yesterday morning.
The opening argument was made by
Attorney General w. B. Douglas. who
talked from 10 o'clock in the morning
until 8 In the afternoon, in presenting
the states side of the case. The
states contention is that the defend
ants operated, under one management.
two parallel and competing roads in
denance of two statutes enacted by the
state legislature, one in 1874 and the
other in 1881. The attorney general
commended that the defendant corpora
lon was violating the provisions Of the
state statutes prohibiting the CONSOLE
dat1on of parallel competing lines, and
frequent reference was made to the
decision of the circuit court of appeals
IN the case OF the government against
the Northern Securities company.
The government case, according to
the views of Mr.. Douglas, was fought
out on different principles from that
or the state case. The governments
contention was that the defendants
were violating the provisions of the
sherman antitrust act, and while this
principle is incidentally introduced in
the state case, is is also charged that
trust laws, which, it has been discov-
cred, are worded almost the same as
the Sherman law. 1t was argued by
the attorney general that if the de-
PENDANTS were guilty of violating the
Sherman law, they were also guilty of
violation of the state laws.
MIR. Douglas spoke at considerable
length IN referring to the organization
or the defendant company, and during
the course of his remarks told of the
raid of the Hartman interests on the
STOCK OF the Northern Pacific company
In May, 1901, and of the steps taken by
the Morgan-Hill interests to protect
this stock and retain control of the
road. He referred to the retirement OF
the preferred stock Of the Northern
Pacific and the immediate organization
thereafter of a holding company to
prevent any similar conflicts.
The whole purpose and object Of
the organizers of the Northern Securi-
ties company" said Mr.. Douglas, twas
to destroy competition, and as such,
was against the state and federal
laws"
It was farther argued that the
Northern Pacific and Great Northern
train accommodations had greatly de-
creased since the organization Of the
holding company, and that competitive
solicitating Of freight for transporta-
ton by the two roads had practically
ceased. 1t was pointed out that the
state had 100000 acres of land, as
we'll as many institutions which would
be detrimentally affected by the lack
OF competition in transportation facili-
ties caused by the combine. If the
Securities company was allowed to
continue, is was argued, a gigantic
combine Of all transcontinentaI lines
would likely result.
The attention of the court was
called to the state anti trust law of
1899, of which the following clause is
almost identical in wording to a. clause
of the Sherman law.
Amy contract, agreement, arrange
ment or conspiracy, Or any combina-
ton in the form of a trust or other
wise, hereafter entered into which is
In restraint Of trade or commerce
within the state, or commerce be-
and any of the. people of any other
state or country-is hereby prohibited
and declared to be unlawful"
The speaker quoted extensively from
federal supreme court decisions, bear
ing on the subject of competitive rates
and combinations, and decisions were
quoted to show that the federal anti
rates. The working Of corporations,
such as the defendant COM
pany, was described as containing a
dangerous Commemorative power by
means Of which with a. comparatively
small capital, vast interests could be
controlled.
Mr.. Douglas completed at o'clock,
and was followed by Gen. George Will
son, for the state, who spoke until 4 80,
at which time court adjourned until 10
o'clock this morning. His arguments
were along the same lines as those of
the attorney general. He will speak
another hour this morning, after which
Judge Young will argue in behalf of
the defendant company. Attorneys
Bum and Grover will follow. Judge
Young, all speaking for the Northern
Securities company, and the case will
be closed by M. D. Mum in behalf of
the state.
1t is expected the arguments will be
completed by Monday evening.