New-York tribune., 1902-03-05
ATTACKING THE MERGER.
ATTORNEY GENERAL KNOX'S BILL OF
COMPLAINT COMPLETED.
GOVERNMENT LEGAL OFFICERS THINK A
STRONG CASE Is Observation-Disclosures
MENTs FOR ARGUMENT AT ST. PAUL
Tpv TELEGRAPH TO THE TRIBUNE ]

Washington, March Attorney General
Knox who returned from New-York this morn
ing, has completed the bill Of complaint which
he will file this week in behalf of the United
States against J. Pieruont Morgan. James j.
Hill and others, for the purpose Of preventing
the merger OF the Great Northern and the
Northern Pacific railway companies into the
Northern Securities Company. While it cannot
be said positively tonight it is pretty definitely
settled that the bill will be presented 10 the
court of the With Judicial District sitting at
St. Paul Lawyers Of the government say that
the case seems to be we'll understood, and do
not think II will be necessary to demand much
additional testimony after the answer of the
defendants has been received by the court. At
torney General Knox and his assistants COM
piled the bill after an exhaustive investigation
Of matters pertaining 70 the merger. which
tion involves, according 10 an experts definition.
the combination Of two stock corporations by a
holding corporation. and which. under consti-
tutional law, is held to be Illegal.
In addition 70 this complaint 81 Is also said
that one of the chief points to be brought out
in the suit is the legal difference between in
dustrial monopoly. or combinations controlling
production, and monopoly with respect TO com
Inerce among States and transportation Indus
trial trusts II is asserted, operate legally upon
the force Of the decision rendered in 1893 by
the Supreme Court of the United States in the
case Of the United States against Knight. In
this decision. T. is pointed out the court held
that the control Of production was not a ma
tional issue Legal officers Of the admnstra-
ton who are sanguine as to the outcome ~ the
governments contentious. point out that II is
specifically provided IN the constitution that
the national government shall have jurisdiction
over interstate commerce.
From the Circuit Court the case will be carried
before the Court Of Appeals. and finally 10 the
Supreme Court. When the answer Of the de
PENDANTS is read II the desired Information Is
conceded therein. there viii he no necessity
for taking testimony, and each side Of the case
viii be argued al once Otherwise both j. Pier
pont Morgan and ]. J. Hill viii have 10 he sum
moned to give testimony before the court. The
arguments for the government will be made by
the Attorney General and Solicitor General
Richards. the latter having assisted Attorney
General Griers in the insular test case II is
learned good authority that John g. John
son, of Philadelphia, one OF the best known cor
pOration lawyers in the country, and Mr.. Guth-
RE. Of New York have been retained by Messrs.
Morgan and Hill As the defendants are anx-
ious 10 have the dispute settled pos
sible il is expected that they will do everything
to expedite the litigation.
There has been a great deal Of interest ex-
cited in this suit. involving, as II does, pro
digious amount Of interest both private and
governmental and lawyers say that II is second
in important only 70 the Philippine cases.
report was clrcu!a''q Ut NAH Sreet yesterday
that Attorney General Knox and the lawyers for
the Northern Securities Company had reached an
agreement. AT the suggestion Of the latter
pedite impending litigation concerning the
merger. The method to he adopted. according 70
the report was that Che Attorney General was 70
bring an action Immediately asking for in
junction In the matter and that in the argument
thereon all the points the should be brought
out and adjudcated BY this course, II said.
the case would he finally passed upon within few
months.
President Hill and John ". Grggs both dis
claimed all knowledge of any such arrangement or
the intention of requesting it