The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1903-04-17
HISTORY OF CASE.
Fedora Antitrust Lave Mas the Cow
ernment's Chief Reliance.


The Northern Securities company
case is everywhere regarded as a cru
cial II In the governments campaign
against the trusts. On this decision the
peer merger and many other schemes
have waited. A Southern Securities
company would have been organized
very soon to take over the southern
railroads controlled by Morgan: and
visions Of a United States Securities
company, to one day control all the rail-
roads, have been regarded as not I'M
duly fanciful.
The Northern Securities was organ
lied by Hill and Morgan November 80,
1901; capital. $4oo. 100000: laws Of New
Jersey. It offered to give $3.50 in its
Owl stock for every 500 share If Great
Northern, and s1l5 OF it's own shares
for each share Of Northern Pacific. The
Northern PaS5f{s saef>came Under con-
Great Northern Is understood now to
be also Ihder the control.
BOUGHT TIE BURLINGTON.
About the same time the Northern
control of the Burlington system
through purchase of Its shares. They
exchanged their joint 4 per cent. bonds
at $500 OF bonds for each 500 share of
Burlington stock. Thus the Northern
Sec Securities dne e eon5Fol krt ~ Northern ths Pc Pa
Gli!S Gfeat northern; ana tneSe
two IN turn controlled the Burlington.
The state Of Minnesota protested
against the merger on the Ground that
it was a consolidation OF parallel and
competing roads, contrary to the states
law; also alleging it violated the Sher-
man antitrust act, and was contrary
to public policy.
ton brought against the Northern Sc
curities company, on complaint Of the
state Of Minnesota This action was
brought in the circuit court of the
Eighth ircuit. This is one of h
ablest judicial bodies in the world, cas-
lily comparable to the federal supreme
court. Judges Sanborn, Thayer and
Caldwell composed the court when the
case started; afterward Judge Vande-
vanter was added, and this Is the first
case in which he has sat. He was es-
pecially asked by the other judges to
come to ST. Louis and sit because of
the great Importance of the case.
FAMOUS WITNESSES.
The hearings in the case have occu-
pied an immense amount of time. being
chiefly before a commissioner OF the
court, whose findings We're to be con-
sidered and the evidence reviewed by
the court itself. During the taking of
testimony many of the worlds great
est financiers were examined and in
variably manifested strange ignorance
about their own business, and still more
startling lapses of memory about gil
gantic and essential features of their
own affairs. Morgan, Hill, Hartman
and others We're examined. Attorney
General Griggs went out of office and
was succeeded by General Knox. Mr..
Griggs joining counsel for the COM
pany.
Under federal court practice. this
cas- will now go to the United States
supreme court. The bill passed during
the recent congressional session per
hitting advancement OF important
causes will get the case before the SUI
preme u In October. II lawyers on
both sides hasten: and after that q de-
cision will be rendered in fifteen to
thirty days. The ability and renown
Of the trial court will be accepted as an
evidence that the higher court will sus-
tain the decision.
PLANS TO DODGE 1T.
Evidently anticipating this decision
the Burlington interests a wear ago
tried to get preliminary legislation
passed in Iowa, it was alleged. in or
der that they might transplant the
Northern Securities in a new form to
Iowa: and falling because of the gov
ernor's veto of the Molsberry bill, an
other effort was made about a month
ago. in Nebraska, to insert exactly the
same provision mo Nebraska la WIS that
Cunmins had rejected when adopted
into Iowa law. This Nebraska effort
also failed because the genesis of the
measure became known before IL co,Id
be "uShed through.
Now comes announcement that Mo,-
gan and Hill Will turn over the con-
troll of the three systems to three tr,1s-
tees, thus getting the effect OF a merger
without the violation of law. LAWYERS
say, however, that plan would almost
certainly fail; the courts interest them
selves in essentials rather than in forms
and details.