The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-06-06
FIRST INNING
FOR THE STATE.
Gen. George P. Wilson Finishes Pre-
sentation for State in Mer-
ger Case.
He Quotes J. Pierpont Morgan, Mr..
Hill and Cites Several
Decisions.
. = . :
Defense, Represented by Judge
Young, Began It's Argu-
ment This Afternoon.

Attorneys LOT the STATE nave Ildu their
first inning in the argument of the merger
case 1t was resumed this morning be-
fore Judge Lochren. General George 2.
Wilson, associate counsel for the state.
continue his address begun yesterday af-
ternoon, and finished just before the noon
recess The argument for the Northern
Securities company. and the other defen-
dants was begun this afternoon by Judge
George Young.
Colonel cIoueh Present.
Colonel w. p Clough vice president and
general counsel of the Northern Securi-
ties, listened to the proceedings with at
tention. Colonel Clough is understood to
have planned the merger. He was In fire..
quent consultation with the defendants
counsel
Community of Interest,"
General Wilson called particular at
tentfon to the definition Of community Of
interest given by j. Pierpont Morgan in
his recorded testimony. Mr.. Morgan
said: -.-gse ...-.-.-
The community of interests Is that
principle that a certain number of men
who own property can do what they like
with it,
This, said General Wilson. was a frank
and concise statement of the case, as 1t
was understood by the promoters Of the
community of interest.
The testimony Of the various stockhold-
ers to the effect that competition would
continue. was commented on In fact.
said General Wilson, they had not been
competing for several months, since the
board Of directors Of the Northern Pacific
had been recast under, the direction of
Mr.. Morgan. At the present time there
is the same semblance Of competition but
as the court said in the recent decision,
the management of all these roads Is en-
tirely under Mr.. Hill. It is merely
ind md 1noH ,n
two roads no longer have their corps Of
freight agents at competing points, So
letting shipments.
"Al these things are absurd said Gem
eral Wilson, vehemently. "They cannot
deceive the people, they cannot deceive
us, and they cannot deceive the court
AS Mr.. Hill said, he did not have to
give an order to Mr.. Mellen. The North
ern Pacific would accept his suggestions.
That they did so was shown by the iden-
teal circular withdrawing long haul rates
between competing points.
Defense Denurs.
The defendant companies were benefc-
1aries of enormous land grants, 10 great
that a decision of the. supreme court was
affected by the extraordinary size Of the
grants This statement was den1urred
to by the counsel for the defense, but
General Wilson said:
IT will stand by that statement and
bring In the book for it. You got 100000
acres from this state for the Northern Pa
cific and $4,000, 900 from the government;
and then you went into bankruptcy two or
three times. ! am Just mentioning this
to show the obligation these companies
are under to maintain competing systems
for the benefit of the public
General Wilson then passed to the inter-
est the general public has in competition.
The figures showed that over 100000. 900
bushels of grain had been brought into
Minneapolis over the Great Northern in
recent years. Of this, a large proportion
was, raised in Minnesota. This shows
what large proportion OF the shippers
are entirely at the mercy Of the Northern
Securities roads. If any reductions in
rates had been made. a reason existed II,
the suits being brought, and an analysis
would show they we're on clasSifcattOns
which made little difference in the earn
ings, of the roads. Suppose the final de-
cisions Of the courts should uphold the
merger, then said General Wilson
s'tfese roads would be independent of all
control except such incidental interior
ence. as might come from our magnificent
railroad and warehouse commission
The Generals Challenge.
General Wilson challenged the oppos-
ing counsel to combat the proposition that
ownership of a. majority Of the stock car
ried with it control of the property. This
was confessed to be the case in the oper-
>, alton of proprietary lines by the Great
Northern, the holding corporation.
One Of the most amusing things in the
testimony of Mr.. Hill and Colonel Clougf
was the talk about these old men wht
were afraid that they would not be lef
In peaceful possession Of their Grea;
Northern stock, without putting it int
SO big a company that it could not b.
reached. Colonel Clough testified tina
rod Woi
territorial charter which they could u.s.
and escape from legislative control, or
rather, as he said, on cross examination
from violent legislative amendment" Fl
nally they had been compelled to seel
refuge in the little state of New Jersey.
Mr.. Hill had testified that the Unior
Pacific could not buy the Burlington be
cause 1t was a competing line, and i
would have been against the law. o.
another occasion when Mr.. Hill resigned
from the Northern Pacific directorate, h
showed regard for the law. However
law to organize the Northern Securities
company.
A "Crooked Steer"
When counsel advised against its legal
tty Mr. Hill and his associates had said
go ahead. There won't be any trouble
We control the administration, and /
Governor Van SAINT says anything W
throw him into the Mississippi river. II
is politician, and wants to be reelected
SO we will have no trouble with him.
General Wilson then reviewed the de
oisions in the Pearsall case, and the re
Gently decided federal suit, and Shove
the parallel between these cases and tn
one at bar. He also cited the recer
Kentucky case, in which the suprem
court held that the prohibition of consol
idations was proper exercise of tn
police power of the state. The decisio
affirming the Sherman act, in the trans
Missouri freight case was reviewed 8
length in It's bearing on the present cas-,
constItutIonaIIty Questioned.
The defendants deny the constitutional
ty Of the acts of 1876. 1881 and 1899. Th
last named may be combatted successful
" to the extent that it applies to inter
state commerce and In some cases stat
and interstate commerce cannot be sepa
rated However, it is plainly declarator
Of the public policy of the state. The
may also he opposed because they contai
a penal clause and the federal courts car
not enforce them However, such regula
Aons are not considered by the court