River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1907-04-04
court Holds Hill
STOCK issue Valid
MINNESOTA SUPREME BODY DE-
ClDES IN FAVOR OF $6o,ooo,-
600 INCREASE.
RULING OF LOWER
BENCH is REVERSED
Great Northern Has Right to Put
Forth Shares Without Consulting
Railroad Commission According
to Opinion.

ST. Paul, March 29.-The state SUI
preme court Thursday upheld the
Great Northern railroad in its conten'
ton that it had the right to issue $780,
100000 of addition stock which was
authorized by the board OF directors
several months ago. The issue was
enjoined through the intervention of
Attorney General Young, who held
that the railroad company should first
go before the state railroad and ware
house commission and submit to an
examination to show the necessity OF
the issue. The contention of the state
was upheld by Judge Hallam in the
Ramsey county district court, and he
ordered an Injunction to issue. The
supreme court reverses that decision.
Courts Opinion Unanimous.
The opinion of the court was unan-
imous. Chief Justice Start delivered
the opinion, the syllabus of which fol-
lows:
1. The terms and conditions upon
which corporations may be created,
the powers and capital stock they may
have, the purposes for which they
may increase their capital stock and
the conditions and limitations thereof
are exclusively matter for legislative
action which cannot be delegated.
2. The state having created rail-
way corporations for public purposes,
the legislature has the right to enact
statutes regulating the increase of
their capital stock. Such regulations
tend to prevent secrecy of operation
and accounts by such public agencies
and the issue and sale of fictitious or
watered stock, which is felony in
this state
3. In the exercise of this right the
legislature may enact statute pro-
viding generally for what purposes
and upon what terms, conditions and
limitations an increase of capital stock
may be made, and may confer upon a
commission the duty of supervising
any proposed increase.
Commission May Find Facts.
A. 1t may also delegate to the com.
mission the duty of finding the facts
in each particular case, and may au.
thorize and require it, if it finds the
existence of facts that bring the case
within the statute, to allow the pro-
posed increase or otherwise to re-
fuse it.
s. Any statute, however, which at
tempts to authorize the commission in
it's judgment to allow an increase of
capital stock for such purposes and on
such terms as it may deem advisable
or in it's discretion to refuse it would
be unconstitutional, as an attempt to
delegate legislative power.
6. Section 2,872, r. L. 1905, relating
to the increase of capital stock of rail-
way corporations, does not violate arti-
Gle 1, section II, of the state constitu-
ton, or article 1, section 10, of the con-
stitution of the United States, which
forbid the enactment of any law i'm
pairing the obligation of contracts. 1t
does, however, violate section 1, article
8, of the state constitution in that it
delegates to the commission legislative
power. Order reversed.
Hill Says He Expected 1t.
New York, March 29.-"The decision
of the Minnesota court was no more
than was expected" said J. ]. Hill,
when informed that the supreme court
had upheld the Great Northern stock
issue. For Is years we had been do
ing the same thing, with never any Sc
rious opposition from the authorities
of that state"
The four deferred payments, or in
stallments, on new Great Northern
stock will amount to $24,000,000 by
April 8. AS the payment of so large
a sum at this time might create dis
turbance in the money market, it is
believed that stockholders who may
find it convenient to remit the full
amount will be granted an extension
of time