The herald., 1897-03-23
Under the Supreme Court
Decision
SHERMAN'S ANTITRUST LAW
Applies to the Trans. missouri Traffic
Agreement
The Agreement Operating to Fix Rates of
Transportation In the Southwest Set
Asidc-Northern Pacific Affairs

WASHINGTON, March 22.-The su-
preme court has decided the case Of the
United States against the Transmits
souri, Freight association against the
railroads. The opinion was rendered by
Judge Peckham. 1t reverses the decis-
ion OF the court below and holds the
to railroad transportation and traffic
agreement pools as illegal.
Justice Peckham reviewed the history
of the case and stated the conclusions
of the court in a very few words. He
said that the bill had originally been
filed by the government for the purpose
of securing the setting aside of the
agreement operating in the southwest
which constituted the association to fix
rates of transportation which the vari-
Gus roads constituting the pool should
agree to. The bill was filed under the
law known as the Sherman antitrust
act of 1890. The defendants had in their
answer denied the governments allega-
ton in respect especially to the point of
improper intent and upon these show
ings the case proceeded to a hearing.
The court below decided that the Sher-
man act did not apply to railroads and
therefore refused to sustain the govern
ment. 1t was also held by the lover
court that even II the act did apply the
agreement was not one looking to the
unreasonable restraint" Of trade. Con-
tinuing, Judge Peckham said that when
the case was brought into the supreme
court the defendants had moved to dis
miss the appeal on the ground that the
freight associations had been dissolved,
leaving nothing before the court. and
also on the allegation that the amount
involved was not sufficient to justify the
consideration of the case in the supreme
court of the United States. These mo-
tions were both oyerruled by the courts
conclusions announced today.
Justice Peckham said the mere disso-
luton of the association did not deter
mine the question, as there was still
relief to be had. Taking up the case
on it's merits, he said the court had
reached the conclusion that the Sherman
act does cover the question of the rail-
road transportation and that the agree
ment between the various roads is
within the prohibition OF the act. Hence
the decision of the lower court, which
was favorable to the contention Of the
railroad company, was reversed and the
case remanded:
Justices Feld, Gray Shiras and White
dissented. Justice White delivering the
dissenting opinion.
CANCELLED BONDS
MILWAUKEE,, Wis, March a.
Judge Jenkins today directed Special
Master Carey to cancel $6,726,000 of the
consolidated mortgage bonds Of the
Northern Pacific railroad company
owned by the new company. After the
bonds are cancelled they are to be de-
livered to the Northern Pacific Railroad
company.
The consolidated bonds were among
the liabilities for the security of which
the Northern Pacific pledged its prop
erty that passed in the sale as "the sec
ond parcel" The new company. how
ever, expressly valves it's share and in
terest under the bonds in the $4,000, 900
for which the second parcel sold.
Neither the petition nor the order gives
any reason for the iberality of the new
company in thus giving away its share
In the proceeds The petition shows
that the s2,00O,000 of the consolidated
bonds. par value, were pledged with the
Northwestern Equipment company as
security and that the Northern Pacific
Railroad company has purchased all Of
the stock of the equipment company
The balance Of the bonds. "a, 10000, was
among the securities pledged to secure
the receivers certificates and which the
new company has acquired by purchase.