New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-23
NEW ATTACK On MERGER.
Brief in .Hinncs0ta's Northern Sc
curities 1ippeaI Filed.

zv,sbineton Dee 22-The BRIEF OF the state 81
Minnesota IN the suit OF that State against The
Northern Securities Company was fled in the su-
prsme Court of the United States to-day by At
torner General Douglass and Messrs. VI. u. Mum
and George =. Wilson. The brief IS document
Of I7s pages. ana its authors contend that the
merger Of the Northern Pacific ard Great Northern
Railroad companies into the Northern Securities
Company was fo- he purpose OF sitting competi-
ton.
After stating that the action brought to on
5oin the consolidation 81 the two railroad com
panies because they are parallel and competing
lines within the Stsue OF Minnesota and that the
Circuit Court Of Inc United States for the Eighth
Circuit decided the contrary the contention
OF the state, the attorneys present their assign
unent or errors on the part Of the Circuit Court
There are tran;s-uine OF these assignments. bat
principal ones that the decree is erroneous
IN holdiag that lie Northern Securities Company
WAS not organized for the purpose Of consolidating
the appellee railway companies in holding that
the ownership OF the stock OF the TWO railway con;
pauies 10y the Northern Securities Company does
not amount 10 a consolidation within the meaning
% the acts set forth i'm appellants BILL in holding
that the Northern Securities Company does not N
fscs. control tho gwo railway companies by virtue
OF lis ownership OF the stock OF such railway COM
panies and IN holding that the Northern seeuTl-
ties Company was intended by its incorporates %
Be and is device for evadinE the laws OF the State
In The course Of the relation or the facts Of the
consolidation OF the two roads reference is made 10
the Northern Pacific and the Great Northern roads
on January -. 1902. and II is declared that the
effect OF this circular letter was 10 withdraw al
composition for business between the railroads
within the State Of Minnesota, and to compel the
shipper TO ship freight by the road having the
shorter route. or else pay the road having tho
longer route greater freight rate. and not only,
they say. was al competition. SO far as rates
were concerned. withdrawn or destroyed. but all
effort 10 secure business and all the benefits re-
ffraa Of sal
railroads within the State Of Minnesota were aoso-
lutely destroyed
In their argument the facts in the case coun-
sci contend that the lines are both parallel
and competing, and that the Northern Securities
Corapsny was organized solely for the purpose OF
consolidating and unifying the control Of the
Great Northern and Northern Pacific Railway
companies and is means Of evading the laws of
The State OF Minnesota prohibiting such consollda-
ton.
After presenting the authority for these state
rnents the attorneys offered the following resolu-
lions:
II is clear that the controlling stockholders of the
Great Northern Railway Company, includine MI
Hi and the controlling stockholders Of the North
6lIItns ~ tbe Sumner and fai Of 1901 to organize
the Northern Securities Company for the purpose
OF turning over 10 that company the absolute con-
the properly Of the two railway companies under
single or unified management, TO prevent either
company doing any act hostile TO the interests OF
the other. or entering into competition with the
other words 70 effectively Stihe competition and
destroy whatever benefit might result therefrom 70
the public as though the entire system OF Tall-
roads Of each company within the state or MIN
nesota Wer, owned and controlled by single
operating railroad corporation or individual
Arguing the law points in the case. counsel say;
The ACQUISITION Of majority Of the capital stock
81 the Great Northern and Northern Paelnc ran
--sv cou1panies By the Northern Securities Com
panv effects as complete consolidation OF the
property and franchises OF Such corporations aS
though one had purchased all the property ana
franc hiseS OF the other
The attorneys declare that the fact that these
two railway com anies have been consolidated in
and a perpetual control secured by. a single cor
poration is not disproved by word Of testimony
an this and add:
consolidation was necessary in order TO preserve
the united control that Mr. Hill and MI morgan
md their associates most urgently desire followed
~ declaration Of good intentions on their part;
framed in alluring visions OF benefits they intend
TO hes1ov upou this and other states. The appel
lees seem think this excuse and painted vision
Justification for the fragrant violation OF the laws
of this and other States. The court must hear IN
mind that -even States practically dependent
uuou the railroads controlled by the Northern Sc
and that these seven States embrace nearly one
twelfth Of the the United States, and con-
tain within their borders nearly one-tenth or the
total population n the United States.
The attorneys conclude by calling attention 70
the magnitude Of the and say:
The Judgment Of this court thereon must deter
mine whether a sovereign State of this Union is
powerless Vndicate the majesty OF Its own laws.