Omaha daily bee., 1902-03-02
TWO slnrs on MERaER Isspr.

tWO SIZES UT MhhUhh AccDRs
The bill IN the suit Of the Department
Of Justice against the Northern securi-
ties company has been completed and IL
is understood will be filed this week
either in Minnesota or New Jersey,
probably the latter, as the company Is
Incorporated in that state. 1t is said
that when the case comes up the mer-
ger people will claim that the right TO
sell stock cannot be restricted; In other
words, that q railroad company a go
into the open market and sell its stock
and that the question Of who buys 1t is
not material. They win also hold that
the effect OF such purchase of stock Is
not Of itself matter for which the par
ties can be held accountable. To show
merely that the effect Of such a sale is
to restrict trade by suppressing compe-
tition will not, they hold. make the
company liable to dissolution for a vio-
lation of the statute. They will con-
tend that an intent to restrict trade
and so violate the statute must be
shown. OF course 1t will also be as
serted hat the Securities company Is
not a trust and therefore not amenable
to the Sherman law.
According to reports from Washing
ton, the Department of Justice takes the
view that it is impossible to go into the
question of what the railroad magnates
intend doing or decide upon in their
secret sessions and that If the effect is
to restrict trade the arrangement is
illegal. 1t will also be claimed by the
attorney general that the statute pro-
hibits the restraint of trade by trusts
"or otherwise" and that the word
otherwise is sufficiently broad to
cover the case. The effect, II will be
contended, is exactly the same as If the
railroads had formed a trust with, the
intention of restricting trade, While
there may be some force in the claim
hat the Securities company is not a
trust, as commonly defined, there can be
no question that it is a combination,
formed with the distinct purpose of
1 IN y thC NtCdI NOElucIh anu NOIlu-
ern Pacific railroads, thus bringing them
under n control and suppressing com
petition. The contention which 1t is
said the merger people will set up that
a railroad company can go into the open
market and sell its stock and that the
question Of who buys it is not material
is hardly relevant to this case I'M view OF
the fact that this combination was
formed with the definite object of TAX
ing the stock of the two railroads, which
did not go into the open market to sell
their stock. The courts may not hold
that this vas a conspiracy, but the
Rany has that appearance.
The view said to be held by the De-
partment Of Justice, that it is impossi,
BILE to go into the question of what the
railroad magnates intend doing. seems
to be entirely sound. The effect of what
they have done is the matter of import.
ance. If the effect is to suppress com.
petition, as there seems to be no doubt
and such suppression would be in re.
straint Of trade, the merger is clearly
in violation Of the federal antitrust
law, by whatever term the company
that has taken up the stocks of the two
railroads may be designated. The
issue raises some very important and
fa%r-reaching legal questions. the judicial
determination Of which viii have a very
decided effect financially and cBmmer
cially, and perhaps also in other
respects. The earnest purpose Of the
Department Of Justice to secure a de
termination of these questions as soor
as possible is to be heartily commended