The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-06-12
SECURITIES CASE is.
UP TO JUDGE
LOCHREN
Attorney Mum Closes Argu-
ment for the State Prob
ability of Case Going to
Supreme Court, No Matter
What Judges Decision
May Be.

The final arguments in the suit
brought by the state of Minnesota
against the Northern Securities COM
pany were completed yesterday after
nonon, and the case is now up to Judge
Lochren, of the federal circuit court,
who heard the arguments, for a de-
cision.
AS in the government case, no mat
ter what the decision may be. the
case viii doubtless be appealed to the
United States supreme court.
The closing argument for the state
was made by Attorney M. d. Mum,
who commenced talking Wednesday
morning, finishing yesterday afternoon
at $3.50 o'clock.
Argument Is Resumed.
In resuming his argument yesterday
Mr.. Mum devoted some time in an eff
fort to show that the acts of the stock
holders Of corporation must be con-
sidered as the acts of the corpora
ton itself. and that, without the
stockholders, the corporation was an
empty legal fiction. The point Mr..
Mum expected to make by this state
ment was that as the stockholders of
both the Great Northern and Northern
Pacific roads had consented to the
formation of the Northern Securities
company, the corporations Of these
roads had in reality consented to a
merging of their control, and on this
account came within the scope of the
state laws against such combinations
This, the speaker commended, would
shows that the Northern Securities
company was a railway company.
For the purpose of showing that the
Northern Pacific company could not
seek refuge behind the Wisconsin
charter, Mr.. Mum quoted decisions
from the supreme court to show that
no corporation could possess greater
rights than it was legally entitled to
in the states in which it did business.
1t was also held that the statutes of
Wisconsin were similar to those of
Minnesota, and that they expressly
forbade the consolidation of competing
and parallel lines of railway.
What State Contends.
eve contend" said Mr.. Mum, "that
the defendant company is a railway
company within the meaning of the
law, because the directors of the
Northern Pacific company passed a
resolution, that retiring the preferred
stock of the company. the express pur-
pose of which was to facilitate the
formation of the Northern Securities
company. Without that action
the Northern Securities company
would have failed in attaining the sole
object for which 1t was intended-the
control of the Great Northern and
Northern Pacific roads. The, board
thus made a move which resulted in
the acquiring Of the Hartman hold
ings, and they made it for the purpose
of securing these holdings which were
necessary for the success of their
plans.
Counsel for the defendants argued
that the state antitrust law of 1889
did not apply to the railroads, because
previous laws had fully, provided for
regulating them. This contention has
never been upheld, as court records
will demonstrate. A law enforcing
rights Of the sovereign state is none
the less effective because it may hap
pen to interfere with interstate COM
merce. This is one of the discomforts
of the national government, which
must submit to the exercise Of police
powers ny the states. Learned cOunSel
in the suit brought by the government
argued that states alone could decide
as to the breaches of the remedial laws
| committed within it's borders"
Mr.. Mum argued that every state
| may have different law for the reg
| ulation of railroads within each re-
| spective state, and the government
still different law on the same sub
| ject, and all be binding.
The arguments in the case closed
yesterday consumed weeks time, six
attorneys, three on each side, devoting
| considerable time in discussing the
merits of the case.
1t is expected that Judge Lochren
| will render his decision within a few
days.