The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-03-13
Theater of Action Of HILL Morgan
Combine Transferred From
Iowa to Lincoln.
Bill Identical With the One Vetoed
by Cummins Passes the
Lower House.
African in the Woodpile Not I'M
covered Until a Good Start
Was Made. r.,
special to The Journal.

special to The Journal.
Lincoln. Neb., March 13.--What
seemed on it's face to be an innocent bill,
but which in reality is far reaching
and monentous measure, was pushed
through and adopted stealthily by the
lower house of the Nebraska legislature
on Tuesday.
The bill removes the present limitation
of Indebtedness which certain corpora
tions may incur.
1t seemed unimportant. and after des-
ultory debate 1t was declared passed by
vote Of So to 49,
The present statute limits the Indebted
ness of CORPORATIONS to two-thirds Of the
capital stock. This limitation was ob5ec-
tionable to the railroad fnanciers and the
bill to strike out was introduced. Repre-
sentative Douglas Of Rock county was its
sponsor
Douglas Explains
When it developed to-day that SIMS
ter scheme was the apparent inspiration
of the measure. Representative Douglas
declared that he had introduced 1t at the
request OF an attorney Of the Fremont.
E.lkhorn & Missouri Valley railroad to
permit it to borrow money to build extern
sions.
ANY possible value Of the measure,
however. to the Elkhorn road Is now re-
moved by the fact that 1t has been
merged into the North Western system,
the transfer taking place two weeks
prior to the passage of the Nebraska,
bill.
Meanwhile. the committee on corpora
tions in the senate has been investi-
eating the Douglas bill and its members
have made the startling discovery that
its provisions are practically identical
with the bill introduced in the Iowa legis-
lature a year ago at the behest OF the HILL
Morgan Northern Securities merger.
The Iowa, bill sought to abolish the limit
of corporation Indebtedness this object
being desired by the Northern Securities
merger as a preliminary to it's re-organi-
cation as an Iowa corporation. since It's
permanence as New Jersey incorporation
was menaced by a suit pending In the
courts.
Governor Cummins Of Iowa vetoed the
bill. his action being accompanied by an
exhaustive message pointing out that Its
provisions were inimical to the public
welfare.
Seeks New Home.
The Nebraska senate COMMITTEES now
declares that the Northern Securities
merger, failing in Iowa. has moved the
scene of its operations to Nebraska, Where
1t seeks to find a new home. ~.
In this connection it is pointed out tina
Governor Van SAINT Of Minnesota is au-
thority for the statement that In order
to insure the permanency OF the North
ern Securities merger it is necessary for
one of it's constituent companies to or
ganize in state which will permit an
unlimited debt.
Burlington to the Rescue.
The influence of the Burlington railroad
which Is a part of the HillMorgan merger
and the most powerful political organiza'
ton In Nebraska. is being exerted on be-
half of the Douglas bill. The effort tc
slip it through the Legislature unnoticec
having been detected, the campaign fo1
and against the measure has suddenly be
come the most interesting chapter Of the
present legislative session.
Governor Mickey. who must pass OF
the bill In case it runs the gauntlet OF thu
senate, was the dark horse nominee OF thu
republican convention last year and NJ
went into office unpledged to any cor
poration.