Omaha daily bee., 1902-02-21
TO TEST TIE MERCER.

The announcement that the attorney
general of the United States has rem
dered an opinion that the antitrust law
Of 1890 is violated by the merger OF the
Northern Pacific and Great Northern
railway systems, and that a bill In
equity viii be fled by the United States
to test the legality of the merger. VIII be
gratifying to all who have approved the
course Of the Minnesota authorities In
challenging the action Of the Northern
Securities company as in violation of the
law Of that state which prohibits the
consolidation of competing lines Of rail-
road and also as a violation Of the
federal antitrust law.
In the argument on his motion before
the supreme court of the United States
to file a bill OF complaint on behalf Of
the state Of Minnesota against the
Northern Securities company, the attor-
ney general Of that state said: THE
declared public policy Of the United
States is against the consolidation and
unifcation Of competing lines of rail-
way and the removal Of competition In
freight and passenger rates. This pol
icy is declared in the so-called antitrust
law of the United States" While there
is no specific reference to railways In
the law Of 1890, that act applies to all
corporations engaged in interstate COM
merce. 1t prohibits contracts or com
binations the effect OF which would be
In restraint Of trade or commerce among
the several states and there can be no
doubt that railway corporations are en-
braced In this. Indeed, this was the
view taken by the supreme court Of the
United States In regard to the traffic
agreements between railroads and it Is
doubtless upon this that Attorney Gen
eral Knox relies for the proposed action
by the Department of Justice to test the
legality Of the merger. 1t would seem
to be perfectly obvious that IL a traffic
agreement is In violation of the anti
trust law such a combination of rail
way lines as has been effected through
the Northern Securities company also
co%ntravenes that act. OF course the
contention is made that there is no &C
tual combination or consolidation; that
while the Securities company has taken
up the stock Of the two railroads and
they are placed under one control still
they remain practically independent
lines. But it appears that this conten-
ton has had no weight with the attor-
ney general Of the United States and
his view of it will command great atten-
ton.
The question is n of f~ar-reaching i'm
portance. If state law a be success
fully overridden, as the Northern Sc
curities company has attempted to do In
this instance, what esource have the
people for protection against railway
monopoly? AS was said by the attor-
ney general Of Minnesota: "If what is
| attempted to be done here can be sue
cessfully accomplished, the states Of this
union are powerless to enforce such
statutes. The national government,
under its present constitutional .limita.
tons, can enact no legislation which will
protect state commerce and state traffic
against such a monopolisdc consolida-
ton as is referred to in this bill" II
is interesting to note that the proposed
proceedings on the part Of the govern
ment have been prompted by President
Roosevelt. who has thus shown hat he
is taking an active interest in such
matters.