The pioneer press. (Miller, Hand County, S.D.) 1893-190?, 1903-08-06

/ VDTITTDIT1
within the meaning Of that word as used
| in the act Of 1874, and became thereby
disabled from acquiring. az IL afterwards
| did, controlling majority OF the stock
| OF the Great Northern company.
And upon the subject of purchasing
railroad by buying all the stock, am
| cited % chapter 81, General Laws OF Min
nesota, ISL. which provides that any
| chase or become the owner or control or
hold stock Of any other railroad, when
their respective railroads can be con-
! nected together and form a continuous
line with or without branches. But I'm
that case the purchase of the stock would
be by railroad corporation having ca
pacity TO operate the railroad, even aside
from the authority 20 do so either ex-
pressly or implicitly granted by this stat
ute; and such railroad could therefore
rightfully, assume the control; manage
ment and operation Of the railroad, the
stock OF which II had so acquired,
PearsnII Case.
"I am also cited TO the case OF Pear
sail VS., Great Northern Railway. 16l U.
s. G46.
''The case is far from sustaining the
idea, that n a single investor in railroad
stocks. whether a natural person or a
corporation without railroad franchises.
should acquire by purchase a majority
or the whole Of the stock OF both the
Northern Pacific company and the Great
Northern company that would work any
consOlida ton Of those two companies.
or that such purchaser would have any
power to manage or operate the railroads
Of both or either Of said railroad COM
panies.
"In the case under consideration the
court Is careful TO note the difference In
effect between the purchase of a controll-
ing majority Of the stock Of q railroad
corporation by a rival railroad cor pora-
ton which might control. manage and OPP
crete IT, and n purchase Of the same
stock by an Individual or individuals
though holding whatever amount Of stock
In the same rival railroad company. The
court says:
Doubtless these stockholders Cof the
Great Northern company could lawfully
acquire by individual purchases a ma
jority, or even the whole OF the stock
OF the reorganlzed (Northern Pactfic)
ultimate control. but the companies would
still remain separate corporations with
no interests. as such. in common
cit follows that as the Northern Sc
curities company is merely an investor
in the stocks OF these railroad corpora
tions, not being itself q railroad corpora
ton and being without franchise, power
or authority. to manage, control or OPP
crate any railroad. its ownership Of a ma
jority Of the stocks of these two railroad
companies does not come within the pro-
hibitive language Of the statute of 1874.
Separate Corporations.
THE two companies still remain sep
arate corporations with no interests. as
such, In common The case would not be
different If one natural person with album
dant capital should invest in the majority
Of the stocks of one Of these companies.
and another like person should invest in
the majority of the stocks OF the other
company. The interest of the two, IL
they chose to act in harmony would be
the same as the interest of one person
owning the whole.
state Fixes Rates.
THE policy Of the state in respect TO
the operation and management of rail-
roads is disclosed by its statutes; espe-
cially by sections SO to 403 vol 1, Gem
eral Statutes of Minnesota, under the
heading of Railroad and Warehouse
Commission which closely follows the
provisions Of congressional legislation re-
specting interstate commerce. and under
clearly specified regulations places the SUI
pervision, oversight and control Of those
matters. particularly the rates for trans
state officials.
1T is plain from these statutes as con-
strued by the supreme court of the state,
that il is the policy Of the state that the
railroads, with their rolling stock and
appliances shall be kept in high state
of safety and efficiency; and that rates
of transportation while kept ample to
secure such result shall always be fair,
reasonable stable and uniform. Sched-
ules of rates are 70 be kept publicly post
ed at every station, and no change or de-
Walton from such published rates is per-
mltted, nor any rebates allowed or adj
vantage TO one shipper over anOtner, ana
no change In such rates is permitted un-
I'll after ten days previous published no
tice has been given.
Under this system shippers can count
accurately the cost OF transportation as
an expense in their business, with the
assurance that others engaged in like
business must incur exactly the like ex-
peDSe; and untramn-eled competition be-
tween rival railroads resulting in rate
wars. sporadic struggles for particular
contracts or cOnsignments. as well as all
rebates, open or secret, all alike unfair or
ruinous to carriers and shippers, are pro-
hibited under penalties. and intended TO
be entirely eliminated and done away
with; leaving as the only bases Of COM
/ petition between rival carriers the fur
nshing oT the better accommodations.
and the greater safety and CELEBRITY OF
carriage.
IAN complaints that Published rates are
unreasonable are heard and determined
by these state officials, who may fix rates
binding on the railroads; thus necessarily
making rates uniform as between rival
railroads AS result OF this policy, and
the absolute power Of the state officials
TO fix rates and keep them at the low
est reasonable figures. competition be-
tween rival railroads no longer reduces
rates, as II did when railroad companies
alone controlled them. On the contrary
where two or more railroads divide the
transportation between two places lhe 5
necessity of considering greater nNeu
charges and greater cost OF administra-
ton and operation may make the reason
able rate for transportation greater than
II the whole business could be done and
was in fact done by one railroad.
No Law Violated.
However that may be. the Northern
Securities company is but an investing
stocEholder in these two railroad compa-
MES without power TO consolidate them
or TO interfere with the management or
control OF either. Because of ITS large
holdings OF these stocks it may elect the
board OF directors OF each, who must De
composed of entirely different persons.
Each board will appoint the ofncers
and control the business and anairs OF
its own corporation and viii naturally
seek 10 Increase its business and proper
ty Neither has any power 70 controt tne
other nor TO contract with the other IN
restraint of trade There is no presuinp-
tion that either viii disobey the law or
be guilty OF the commission OF penai OF
lenses. Should they do these things, thsn
the antitrust act Of Minnesota Will %
FOR the first time violated, and the ran
road CORPORATIONS and their offending ON
Gals will be amenable to punishment. anu
70 appropriate legal or equitable proceeu-
ings.
Decree will be entered dismissing the
BILL William Lochren, Judge.
New Rain Producer.