Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-28
Has Been Doing the Same Thing for
Fifteen Years With No
Opposition. 9A
THE FOUR DEFERRED PAYMENTS
They Will Amount to $24, OOO, 900 by
April Observation-Disclosures Who
Cannot Pay in Full Will Be
Granted an Extension.

ST. PAUL, Mimi, March 2S-The state
supreme court today upheld the Great
Northern Railroad Company in its conten-
ton that 1t had the right to issue SEQ 600
of stock authorized by the board OF directors
some months ago, and which was enjoined
by Attorney General Young. who claimed
that the company should first come before
the state railroad and warehouse commits
sion and submit to an examination to show
the necessity and purpose of the issue. This
contention of the state was upheld by Judge
Hallam in the Ramsey county district
court, who ordered an injunction to issue.
The supreme court today reversed that de-
cision.
THE decision of the Minnesota court was
no more than we expected" said ]. ]. Hill,
when he was informed that the supreme
court had upheld the Great Northern stock
issue. For fifteen years we had been
doing the same thing. with never any seri-
Gus opposition from the authorities of that
state"
Four Deferred Payments.
The four deferred payments or INSTALL
ments on new Great Northern stock will
amount to s24 100000 by April next. AS
the payment of so large a sum a. this time
might create some disturbance In the money
market it is believed that stockholders who
may find it involvement to pay the full in
stallments will be granted an extension Of
time.
The opinion of the court was unanimous
Chief Justice Start delivered the opinion,
the syllabus of which is as follows:
The court held:
First-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 of these are exclusively mat
tiers for legislative action, which cannot be
delegated.
Second-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 q
felony In this state.
Third--In the exercise of this right the
legislature may enact a statute providing
Schci diiy WHdh puipoocS uhu upoH WHdt
terms, conditions and limitations an in
crease of capital stock may be made, and
confer upon a commission the duty OF su-
pervising any proposed increase.
Facts in Each Case.
Fourth-It may also delegate to the COM
mission the duty of finding the facts In
each particular case, and authorize and re-
quire it, If 1t finds the existence of facts
that bring the case within the statute, to
allow the proposed increase, otherwise to
refuse 1t.
Fifth-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 its dis
erection to refuse it, would be unconstitu-
tional, as an attempt to delegate legislative
power.
Sixth-Section 2S72. R. s., 1905, relating to
the increase of capital stock of railway
corporations does not violate article l. sec
ton IL, of the state constitution, OF article
!, section 10, of the Constitution of the
United States, which forbid the enactment
of any law impairing the obligation of con-
tracts 1t does, however, violate section 1,
article 3, of the state constitution In that II
delegates to the commission legislative
power
The order of the county court is therefore
reversed.