Omaha daily bee., 1902-03-12
TBE sUIT AolIrsr nm NrRosR


The bill filed by direction Of the at
torney general Of the United States
against the Northern Securities COM
pany and the merged railway compa-
mics sets forth clearly and comprehen-
sively the grounds OF the suit which
IL brought under the antitrust act OF
1890. The arrangement for the prao-
teal consolidation OF the Great North
ern and the Northern Pacific railroads
IL declared in the bin to be an unlawful
combination or conspiracy to place re-
straint upon all competitive interstate
and foreign trade or commerce carried
on by those railroads and to monopolize
or attempt to ~monopolize the same. Its
purpose was to suppress the competition
existing between the two railway sys-
TENS in interstate and foreign trade. II
is urged that under the securities com
pany scheme "all Inducements for COM
petition between the two systems were
to be removed, a virtual consolidation
| effected and a monopoly Of the inter
state and foreign commerce formerly
carried on by the two systems as in
dependent competitors established"
The bill alleges that the Northern Sc
curities company was not organized in
good faith to purchase and pay for the
stocks Of the railway companies. but
solely to incorporate the pooling Of the
stocks and to carry out the unlawful
conspiracy. II Is affirmed that the COM
pany does not have and never had capt.
tai sufficient to warrant such q stu
pendous operation, that IT'S subscribed
capital was but $4,000, and the com
pany Is described as "a mere deposit
tory, custodian. holder and trustee for
the stocks of the Great Northern and
Northern Pacific railway companies and
its shares of stock are but beneficial
certificates issued against said railroad
stocks to designate the interest of the
holders In the pool"
The bill declares that failure Of the
government to prevent the carrying out
result not only in the virtual consolida'
ton of the two railroads and the con
sequent suppression of competition be
tween them In interstate and foreign
Of such commerce within the territory
traversed by those railroads, but there
after an available method will be pre-
sented whereby the antitrust act ma,
ho oircYtmv anfad ond aat ot uor0ht aan
all transcontinental lines, indeed the en-
tire railway systems Of the country, ma,
be absorbed, merged and consolidated
thus placing the public at the absolute
mercy Of the holding corporations" Thi
is the consideration which gives to thi
case its great and far-reaching signif
canoe. Should the government not sue
coed In the suit it has brought agains
the Northern Securities company tn
way will be clear for a wholesale polio
of railway consolidation, through tn
merger plan. leading inevitably to
mighty monopoly most dangerous to tn
public interests and welfare.
The prompt action of the Department
of Justice in this matter gives promis
that the suit will be pressed with a
possible vigor. 1t is manifestly desil
able that this be done and that ther
shall be no unnecessary delay in oil
tanning a judicial decision. The answe
Of the defendants in this suit will b
awaited with very general interest. ]
has been intimated that they will urg
that the antitrust law contains not
word in prohibition OF mergers. but
mere verbal bubble Of this kind is nc
likely to receive serious considerable
from the courts. This is by far the mos
important cas- that has arisen under til
act Of July 2, 1890.