The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-06-11
ADMITS STATE HAS
RIGHT TO CONTROL
RATES
Attorney Mum Argues for
Commonwealth in North
ern Securities Case, Claim
ing That Acknowledged
Benefits From Holding
Company Do Not Offset
Principle Contended For.

A11CIplC OOnlV uUCu Wa
Attorney NJ. D. Mum. before Judge
Lochren, in the federal court, yester-
day morning, commenced the closing
argument in the case of the state
against the Northern Securities COM
pany. Mr.. Mum talked all of yes
terday and will require the greater
part of the time today in presenting
the states side of the case.
In addition to the oral argument
made by Mr.. Mum, he filed a brief
which goes into the history of the case
in detail, and the law points are re-
viewed at considerable length. In
addressing the court in the interests
of the state, Mr.. Mum reviewed the
history of the. formation of the North
ern Securities company at some
length, declaring it to be an illegal
combination.
Admitted Benefits.
The speaker, while practically adj
hitting the contention of the defend
ants that the formation of the Sc
curitieS company was of benefit to the
country traVersed by the roads, said
such benefits were no excuse for dis
regarding the law. which he held had
been done by the formation of the
holding company.
The judgment of this court" said
Mr.. Mum, must finally determine
whether q sovereign state has the
power to vindicate the majesty of its
own laws. The fact that these two
railway companies are consolidated,
and their control placed with one cor
pOratiOn is not denied by word of
testimony in the case. The magni-
tude of this action is shown by the
pleadings, the testimony and the fact
that four days have been consumed al
ready in presenting the principles
which relate to the case.
While it is not the duty of the state
of Minnesota to protect the rights Of
other states or their citizens, and it
does not seek to do So I desire to call
attention to these facts for the pur-
pose Of showing that a decision in this
case adverse to the state means that
seven other states, along with Mime
sofa, will be powerless to protect
themselves against such corporations
as this one. Under the constitution
of the United States, the federal gov
eminent is powerless to regulate COR
porations created by a state, and the
judgment of this court in this action
in its final application will determine
whether a state, having accepted the
constitution, is also powerless to en-
force regulations adopted by 1t for it's
own creatures, and whether corpora
ton created by another state can be
used as means of instrumentaIity for
evading those statutes.
Formation Was Above Board.
Much has been said by Judge
Young and Mr.. Grover as to the bene-
fits which would accrue to the people
of this and other states, provided they
We're allowed to carry on this consoli-
h IaE1. h& -
court to disregard the declared public
policy of the state; that if the court
would do that q great Oriental trade
would be built up. They admit the
acquisition by the Northern Securities
company of nearly all the stock of one
OF the railway companies and of
majority of the stock of the other.
They contend that the organization Of
the Northern Securities company has
all been open and above board, and
that they had nothing to hide. They
also say that if their acts were not
satisfactory to the public that there is
a full and complete remedy through
the control which the public has over
the rates that may grow out of such a
corporation.
State Can Control Rates.
I'm answer to this last proposition
/ will say, as the supreme court said
In the Pearsall case. that while doubt
less 1t Is true that congress and the
states have power, respectively, to
regulate these rates, at best it is a
poor and inadequate remedy.
This is nation of upwards of So
OO0,OO0 OF people, scattered over terri
tory lying between the Atlantic and
the Pacific, between the Canadian
boundary on the north and the Gulf
of Mexico on the south, and over It's
entire area are scattered builders Of
homes, laborers, mechanics and arti-
sans, whose wrongs, individually. are
each entitled to consideration, but
whose wrongs must become collective
before they attract and receive the
consideration of a government which
represents such vast people and such
a great area
What remedy or relief is 1t to a.
FARMER residing on the western borders
OF this state, who is deprived of rights
winch accrue, confessedly, to him out
or competition, to say to him, Go to
the federal government or to the state
government and get it to redress your
wrongs" Many of these men. as your
honor knows, are little familiar with
our laws and less familiar with their
actual rights; and it is the policy of
sovereign to have laws which in their
hnal operation shall protect men SO it
VIII not be necessary for them to spend
the hours set aside for rest and awav
from work in seeking protection which
they ought to have from the law itself
without effort on their part. Thus the
court said, wisely and truly, that that
remedy is but poor and hating rem
edy.
L have said that admissions have
been made in this argument or in these
arguments which would probably Gre
ate a wonder in your honor's mind
why it was necessary to take all this
testimony. While 1t probably has no
bearing upon the conclusions that
your honor will finally be Obliged to
reach after listening to these areu-
ments and considering this testimony.
II mas considerable bearing upon what
we nave right to assume from the
conduct of these defendants.
Object of Holding Company.
I'VE allege that the purpose and
object of the incorporators of the
northern Securities company was to
place the stock control of these cor
poratlons in the Northern Securities
company This has not been denied
by the defendants. The officers of the
company themselves say that this was
their object" -''
Mr.. Mum contended that the state
did not seek to violate the right of anv
stakeholder, but that it's object was to
enforce the state laws He declared
the object of the Securities counanv
TO be conspiracy to accomplish an
unlawful intent in legal manner. and
SAID that, while Messrs. Hill and Nor
gan ola not own controlling amount
OF Great Northern and Northern Pa
cific stock personally, thew Controlled
nine tenths of the stockholders nrox-
les. -
Mr.. Mum will resume his argument
THIS forenoon, and will probably sneak