The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-01-08

Sdnlzed under the laws OF New Jersey by
certain stockholders of the Great Northern
and Northern Pacific Railway companies
for the purpose Of acquiring the capital
STOCK OF those two companies, thus effect
franchises of these two competing lines of
railway in this state in violation of the
laws of Minnesota
The attorney general retained special
counsel to assist him in enforcing the
laws OF this state and preventing such
consolidation. An application was made
on behalf Of the state to bring this suit in
tne supreme court, for the reason that
the Northern Securities company was
New Jersey corporation, and it was ques-
tlonable whether or not jurisdiction could
pc obtained over such corporation in this
state Owing to peculiar conditions this
application was denied, and shortly after
that suit was begun in thefdistrict court
or Ramsey county, aud an effort made to
acquire Jurisdiction over the Northern Sc
cur1ties company. The Northern Securt-
ties company and the two railway COM
pan1es involved then made an application
70 remove this suit to the federal court.
HE'D an affidavit that the company did not
own any property situated in Minnesota
and was not doing business therein and
an order was made transferring the suit
to the federal court, where it is now being
pressed.
STATE HAD NO JURISDICTION.
Before acquiescing to the removal to the
federal court, the attorney general and his
associates became convinced that it would
be very doubtful if jurisdiction could be
obtained over the Northern Securities
company in the state court, owing to the
fact that our statutes made no provision
Tor service upon a foreign corporation.
where such corporation had not appointed
an agent within the state upon whom
service could be made, and for the further
reason that the Northern Securities COM
pany was not doing business in Minnesota
nave been informed by counsel for the
STATE that prior to 1899 we had on our
statute books an act which would enable
the state to have made service upon such
corporation, but this act was repealed in
1879. The Northern Securities company
f mas submitted to the jurisdiction of the
federal court after declining to submit to
jurisdiction in the state court
A large amount of the testimony has al
ready been taken in the federal court, and
TINS testimony SHOWS, among other things,
that the stockholders of the Northern Pa
chic Railway company have already ex-
changed more than SO per cent of the total
capital stock Of that company for the
stock of the Northern Securities company
It also shows that the stockholders of the
Great Northern Railway company have al
capital stock Of that company for the
stock of the Northern Securities company:
thus giving the later company complete
control of the property and lines Of rail-
way of both the Great Northern and
Northern Pacific railway companies The
testimony also shows that during January
officers Of the two railway companies,
Withdrawing and equalizing competitive
rates between junction points in this state
where the distance was greater by one
route than the other, and requiring the
freight to be shipped by the shorter route
unless the shipper was willing to pay dis
lance tariff or higher rates by the other
road. refer to this only for the purpose
OF showing the effectiveness of this con-
solidation.
STATE MAY BE DEFEATED.
The executive officers of the state are
DONG and Will continue to do, all in their
power to defeat this consolidation. 1t may
be that the courts will decide that the
laws of one state can be evaded or violated
by means of corporation organized I'M
der the laws of another state; if SO. all
the benefits of the more perfect union"
SO earnestly sought by the trainers of the
constitution, and so much desired by all
law abiding citizens, will not be realized.
| have an abiding faith, however, that the
laws of this state will be sustained, and
that the attempt to evade them in the
manner stated will be defeated
The law of this state prohibiting the
cons olidation Of competing lines of railway
is declaratory of a wise public policy and
any effort to weaken or undermine it
should be defeated, and every effort put
forth to enforce and strengthen it's prOVi-
siOns
We hear much these days of good
and bad" trusts. l do not wish to take
any of your time in discussing the fallacy
or correctness of such a term. 1 do as
sert, however, without hesitation, that no
trust or combination is more dangerous
a
of transportation companies, or facilities
which either has the power to or does
stit1e or remove competition in freight
and passenger business
1t seems to me that few if any COM
blnatiOnS of trusts can be successfully
maintained unless they are. connected with
or in such a position that they can con-
troll the avenues ara means of transpOrta-
ton
This Northern Securities company is the
most ingenious scheme ever brought into
nj fYeY1 cyTNINT 70 i,ON
nOp1y and stifie competition.
DUTY OF THE STATE.
If you agree with my conclusion in this
matter, you will use every means in your
power to strengthen and aid the state in
its efforts to enforce the laws already
solidation. and pass any additional Iegis-
lation which you may be advised by the
legal representative of this state is neces-
sary to accomplish this object. Every
well WiSher of both the state and nation
is seriously considering the complex prob
lens involved in the solution Of the So
called trust question" The first great
duty Of corporation through which
such consultations as are called trusts
are made possible, is to obey all consti-
tUtional laws adopted for their regulation
or CONTROL whether such regulation or
control can be successfully accomplished
through national legislation is a QUestion
about which there seems to be much diff
ference Of opinion. Each state, however,
can very largely regulate and control c. r
porations of its own creation It thus
becomes the imperative duty of this state
to do what it can and to adopt such addi-
tional laws as may be necessary for the
accomplishment of this object.
l call your attention to the condition
of the suit of the state against the North
ern Securities company and the two rail-
way companies involved. 50 that you
may be informed of the situation and pass
such legislation as 1 am informed the at
torney general will submit to YOU pro-
vided it meets with your views, locking
toward the removal of some of the obsta-
cles encountered by the state IN its suit
Our state is engaged in great legal
battle to protect our rights. The state
Of Washington has a suit pending in the
supreme court of the United States, and
by order of the president, Attorney Cen
eIal Knox has commenced action looking
to the dissolution Of this company. Real
izing the power Of corporate wealth, CON
gress has appropriated 100000 to aid the
legal officers of the government in prose-
cutting. this and all other Illegal trusts and
unlawful combinations Whatever the re-
suit there need be no apprehension, for
there is power greater than corporate
wealth, greater than even the supreme