The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1903-08-14

within tie mssnins 81 vhat word III q Used s
IN the act OF 1915 and became thereby
disabled from acquiring, a. Il afterwards
81 the areat Northaan oomp % ns stock
And upon the subject Of purchasing
railroad by buying all the stock. am
cited to chapter "a. General Laws OF Min.
railroad corporation may lease OF pnr-
chase or become the owner or control or
hold stock Of any other railroad. when
r Their respective railreads can be con
line with or without branches. But In
that case the purchase OF the stock would
be by a railroad corporation having ca
Cacfty to operate the railroad even aside
from the authority tn: do so either ex-
pressly or implicitly granted by this stat
ute: and such railroad could therefore
ally the
stock Of which 1t had 80 ACQUIRED.
Pearsall Case.
II am also cited to the case Of Pear
sail VS.. Great Northern Railway. 161 U.
s. GAG.
.'"The case IS far from sustaining the
idea stea that II single investor in railroad
corporation without railroad franchises.
should acquire by purchase a majority
or the whole Of the stock of both the
Northern company that would work any
consolidation Of those two companies,
or that such purchaser would have any
Of both or either of said railroad com.
panles.
I'm the case under consideration the
court IS careful to note the difference in
effect between the purchase Of controll:,
ing majority, Of the stock Of railroad
corporation by a rival railroad corpora
tlon which might control. manage and OPP
crate 1t. and purchase of the same
though holding whatever amount Of stock
in the same rival railroad company. The
court says:
Doubtless these stockholders tof. the
acquire by Individual purchases ma
iorty. or even the, whole of the, stock
ct the reorganized (Northern Pacific
still remain separate corporations with
no interests. as such. in common
ut follows that as the Northern Sc
IN the oeRp ny these Is RAILROAD
tons. not being itself railroad corpora
ton. and being without franchise. power
or authority, to manage, control or OPP
iority OF the stocks Of these two railroad
companies does not come within the pro-
hibitive language Of the statute of 1874.
Separate Corporations.
THE two companies still remain sep
arate corporations with no interests, as
SUCH In common The case would not be
different If one natural person with album
dant capital should invest in the majority
and another iike person should invest in
the majority OF the stocks of the other
company. The interest of the two, If
they chose to act in harmony. would be
owning the whole.
State Fixes Rates.
THE policy Of the state in respect to
the operation and management Of rail-
roads Is disclosed by its statutes; espe-
cially by sections $40 to 4O3. VOL 1. Cen
beading Of Railroad and Warehouse
Commission which closely follows the
provisions Of congressional legislation re-
clearly specified. regulations places the SUI
pervision. oversight and control of those
matters. particularly the rates for trans
portation. in the hands Of the designated
state officials.
1T is plain from these statutes as con-
strued by the supreme court of the state
that it Is the policy of the state that the
railroads, with their rolling stock and
appliances . shall be kept in high
of transportation, while kept ample to
secure such result. shall always be fair,
reasonable. stable and uniform. Sched-
ul I OF rates are to be kept publicly post
Walton from such published rates is per-
mitted. nor any rebates allowed or adj
vantage to one shipper over another. and
no change in such rates Is permitted I'M
til after ten days previous published no.
tfce has been given.
Under this system shippers can count
accurately the cost Of transportation as
an expense in their business. with the
assurance that others engaged in like
business must incur exactly the like ex-
pense; and untrammeled competition be-
tween rival railroads resulting in rate
wars. sporadic struggles for particular
O0v,fr ocfc Nv rrio nvvoa MT 90 xxyo1 DC a
rebates, open or secret. all alike unfair or
ruinous to carriers and shippers, are pro-
hibited under penalties. and intended to
be entirely eliminated and done away
with; leaving as the only bases Of COM
petition between rival carriers the fur
nishing Of the better accommodations:
and the greater safety and celebrity OF
carriage.
unreasonable are heard and determined
by these state officials. who may fix rates
binding on the railroads; thus necessarily
making rates uniform as between rival
the absolute power Of the state officials
to fix rates and keep them at the low
est reasonable figures, competition be-
tween rival railroads no longer reduces
alone controlled them. On the contrary
where two or more railroads divide the
transportation between two places the
necessity of considering greater fixed
charges ana greater COSI VI .
ton and operation may make the reason
able rate for transportation greater than
IL the whole business could be done and
was in fact done by one railroad.
No Law Violated.
.'However that may be. the Northern
Securities company is but an investing
stockholder in these two railtoad compa,
MES, without power to consolidate them
or to interfere with the management or
control of either. Because Of Its large
holdings Of these stocks it may elect the
board Of directors Of each, who must be
composed Of entirely different persons.
zach board will appoint the officers
and control the business and AFFAIRS OF
its own corporation and will naturally
seek to increase it's business and proper
ty. Neither has any power to control the
other nor to contract with the other IN
restraint of trade. There is no presump-
ton that either will disobey the law or
be. guilty Of the commission OF penal OF
lenses. Should they do these things. tnen
the anti trust act OF Minnesota VIII sD :,
for the first time violated and stne ran-
road corporations and their OFFENDING ON,
scials viii be amenable to punishment. ana
to appropriate legal or equitable proceeo~
ings, 49,.
Decree will be entered dismissing the
bill. William Locnreh' 'u uAtse
New Rain Producer.
Tho latest Australian newspapers conf
70 q, III M rtic,1lars OF some experiments