The Montgomery advertiser., 1907-03-31
HILL SHOOK Is uPHELD.
Delegation of Power to State COmmls
 sion Unconstitutional.

Delegation of Power to State COmmls-
 sion Unconstitutional.
 St. Paul Special to Chicago Record
 The Great Northern's S6O,oOo. 900 stock issue was upheld today by the Minnesota Supreme Court, which de- cided that any statute which gives the state railroad commission discretion to forbid such an issue of stock would be unconstitutional "as an attempt to delegate legislative power"
 The issue of stock was authorized by the Great Northern directors several months ago and was enjoined by At torney General Young, who claimed that the railroad should first submit to an examination by the state railroad and warehouse commission to show the necessity and the purpose of the issue. This contention of the state was up- held by Judge Hallam in the Ramsey County District Court, who ordered an injunction to issue. The Supreme Court today reversed that decision.
 Court Is UnnnimOus.
 The opinion of the court was unari- nous Chief Justice Start delivered the opinion, the syllabus of which is as
 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 matters for legislative ac- ton WllCn cannot pc QGlGSdACu
 2. The state having created railway corporations for public purposes, the legislature has the right to enact statutes regulating the increase or tend to prevent secrecy of operation and accounts by such pubIc agencies. and the issue and sale of fictitious or watered stock, which Is a felony i'll 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 limi- may be made, and confer upon a com mission the duty of supervising any proposed increase.
 Power Is Limited.
 4. It may also delegate to the com mission the duty of finding the facts in each particular case, and authorize and require it, if it finds the existence of facts that bring the case within the statute, to allow the proposed increase, otherwise to refuse 1t.
 ,. Any Statute, however, which at tempts to authorize the commission, in its Judgment to allow an increase Of capital stock for such purposes and on such terms as 1t may deem advisable or, in its discretion to refuse it, would be unconstitutional as an attempt to delegate legislative power.
 6. Section 2S72. R. l.. 1905, relating to the increase of capital stock of rail- way corporations, does not violate arr ticle 1, section Ii, of the state consti- Constitution of the United States which forbid the enactment of any law im- pairing the obligation of contracts. It does, however, violate section 1, ar ticle 3,of the state constipation in that 1t delegates to the comHhission legls- lative nower.
 Attorney General Young said today l that the decision was an unfortunate one for the state. He holds that in eff ! feet it deprives the state of the power to supervise railroad capitalization and permits railway companies to is | similar to the one here declared uneon- ! stftutional he said. had been upheld by the courts of Massachusetts and New York, and he had hoped that this Su- | preme Court might. have seen it's way. | clear to follow their decisions l ''The decision of the Minnesota court