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

ganized under the laws of New Jersey by
certain stockholders Of the Great Northern
ana Northern Pacific Railway companies,
Tor the purpose of acquiring the capital
stock of those two companies, thus effect
ing consolidation of the property and
franchises of these two competing lines of
railway IN this state in violation of the
laws of MINES ota.
The attorney general retained special
counsel to assist him in enforcing the
cons lidation An application was made
on behalf Of the state to bring this suit in
the supreme court, for the reason that
the Northern Securities company was a
New Jersey corporation, and it was ques-
tlonable whether or not Jurisdiction could
be obtained over such corporation in this
state. Owing to peculiar conditions this
application was denied and shortly after
that suit was begun in the%district court
OF ramsey county, aud an effort made to
curities company The Northern Securf-
ties company and the two railway COM
pan1es involved then made an application
to remove this suit to the federal court
filed 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 aequiescing to the removal to the
FEDERAL court, the attorney general and his
associates became convinced that it would
obtained over the Northern Securities
company in the state court, owing to the
fact that our statutes made no provision
! for 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
Il have been Informed by counsel for the
STATE that prior to 1899 we had on our
| statute books an act which would enable
state oh
/ corporation, but this act was repealed in
1899 The Northern Securities company
mas submitted to the jurisdiction of the
federal court after declining to submit to
jurisdiction in the state court.
| large amount of the testimony has al
ready been taken in the federal court, and
TINS testimony shows, among other things,
tnat 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
1t 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
tance 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
doing and will continue to do all in their
| n Il
be that the courts will decide that the
laws of one state can be evaded or violated
by means of a 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 olidat1on 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
Sions.
We hear much these days of good"
and bad" trusts. I do not wish to take
any of your time in discussing the fallacy
or correctness of such a term l do as
sert, however. without hesitation, that no
trust or combination is more dangerous
to the public welfare than combination
of transportation companies, or facilities.
which either has the power to or does
St1f1e or remove competition in freight
and passenger business.
1t seems to me that few, if any, COM
binations of trusts can be successfully
maintained unless they are. connected with
or in such a position that they can con-
troll the avenues AKA means of transpOrta-
ton.
most ingenious scheme ever brought into
existence to promote transportation mo-
noply and stfffe 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
upon its statute books against such con-
solidation, and pass any additional legis-
latlon 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 e. r
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.
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-
yided !, it !, meets with your views, locking
The
cles encountered by the state in its suit
Our state is engaged in a 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 Gen
eral 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 a power greater than corporate
wealth, greater than even the supreme