The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-01-01
TRUST SHOWS ITS TEETH.
Promptly Fights Back and Wins Pyhic Victory Getting nuRc-
ton Dissolved But Declaring Any Merger Illegal
Case to Go to Supreme Court

Moore, Chicago, and Attorneys Lancas-
ter and Belden and BOltell Of Mime
apolis.
Mr.. Powers attorneys tonight au-
thorized the statement taat the fight
had just commenced sf1 that they
7-DUld anraa1 20 ttg - Stntaz sai-
preme court.
Court Sees No Merger.
Judge Lochren, in his decision. made
a ruling which the attorneys OF J. J.
Hill maintain settles the controversy
Of the Northern Pacific merger. The
court said:
If the Northern Pacific railroad new
er thought Of consolidation, but TO pay
off the preferred stockholders and is
sue common stock, it had authority to
do that, and that Of itself would GER
tainly have no tendency toward con-
solidation.
1t is claimed that it would place
certain persons who are alleged to be
manipulating these stocks with a view
10 consolidation or merger in a posi-
ton in which they would be ena bled to
carry out their schemes better than if
there was not retiring OF the pre-
ferred stock. That is asserted.
/ do not see that it very clearly ap-
pears from any of the facts that are
set forth.
The mere scheme Of the retiring of
the preferred stock could be carried out
Just as fully if, for instance, the North
ern Securities company had never been
thought Of. The same persons who
own the common stock now own il
without any reference to the Northern
Securities company.
Not Connected With Trust.
1T is not very clear to me why they
could not manage these three compa-
MES with as much reference as to do
ING away with competition without
any such company being formed as
with II. If the same persons own all
or substantially all Of the stock Of both
companies, ! do not see the necessity
OF forming that company. simply for
The purpose Of carrying that purpose
out. They might do it Just as wen
without it.
But L do not see that the retiring of
the preferred stock has anything TO do
Of itself, naturally with the formation
Of the Northern Securities company if
that is Illegal conception. Of itself the
retirement Of the stock is a lawful pur-
pose; something that might properly
be done.
1T might as we'll be said. I think.
that if the men had not property at all.
they would be disabled from doing this
unlawful thing doubtless in a greater
degree than if they were prevented
from retiring this preferred stock. but
that would not warrant the denuding
them Of their property, nor does it seem
to me that it warrants any court in
saying that the Northern Pacific COM
pany and the holders Of the common
stock shall not be entitled to carry out
its lawful contracts
ut seems to me that the preferred
stock may all be retired without the
Northern Securities company being
formed, and if it is formed, and il 1t
is unlawful, that it's unlawfulness. con-
sists not in the retiring Of this stock,
but in the acts which result in the for
nation Of that company and placing
other securities in that company It
seems TO me that this injunction should
be dissolved, at least so far as it as
sumes TO prevent the retiring Of the
preferred stock. And I see no reason
why it should be retained for any pur-
pose"