The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1903-08-04
JUDGE LocHREN RENDERS A De.
cislcN IN NORTHERN sEcuRi-
TIES CASE.
COMPANY is NOT uNLAWFuL
DOES NOT VIOLATE MINNESOTA
STATUTE AFFECTING Compel
ING LINES.

st. Paul, Aug. 3.-The decision IN
the case Of the State of Minnesota
against the Northern Securities com
pany is in favor Of the company.
Judge William Lochren, In his decision
filed Saturday morning in the United
States circuit court, holds that the
company is a lawful organization and
orders the states bill dismissed.
Judge Lochren rules against the
state on both counts it set up against
the company. holding that the North
ern Securities company does not vio-
late the Minnesota law prohibiting
parallel and competing lines from
consolidating, nor does it violate the
state antitrust law.
On the latter point Judge Lochren's
decision is directly contrary to the de.
cision by the United States circuit
court. of appeals in the federal case
against the company, in which It was
held that the company is in violation
of the Sherman antitrust law. Both
cases will now go before the United
States supreme court for a final de-
cision.
There can be no immediate effect of
Judge Lochren's decision. The de-
ClSlOL VI IuC OuICCu 0I0IO0 SAANuAS
court of appeals has declared the
Northern Securities company illegal,
and that decision stands until 1t is re-
versed by the United States supreme
court. The circuit court of appeals
ordered the Securities company dis
solved and it's holdings of railroad
stock returned to the former holders.
II the supreme court sustains this de-
cision, the result contemplated is the
winding up of the Securities company.
Should the supreme court reverse
Judge Lochren. the result would be
the same, since the relief sought was
the same in both cases.
Cannot Agree With Both.
The supreme court cannot agree en-
tirely with both courts, since the court
of appeals and Judge Lochren reach
opposite conclusions on the question
whether the company violates the
antitrust laws. While one case was
/ based on federal law and the other on
a state law, the principle is the same
in both cases. But the other count IN
| the state case, the consolidation of
parallel and competing lines, involves
a principle altogether different from
! that in the federal case, so that there
is open a wide field for speculation on
what the decision will be in the two
cases. The supreme our may n
the Securities company a violation OF
the antitrust law and not a violation
of the state anti-consolidation law, or
1t may find the reverse, or find 1t a
violation of both laws or of neither.
Judge I.ochren reaches the conclu-
sion, based on decisions by the Unit
ed States supreme court, that the
Northern Securities company Is
not an organization in restraint of
trade. The mere fact that the Securi-
ties company might coerce officers OF
the two railroads to commit acts VIC
lating the law, he finds not sufficient
ground for declaring the company
guilty of offenses that have never
been committed or thought OF by It's
officers or promoters, as far as ap-
pears. He finds no evidence that he
company has done anything in viola
ton of the antitrust law.
Judge Lochren's decision that the
Northern Securities company does not
effect a consolidation of the Northern
Pacific and the Great Northern rail-
roads, is based on the conclusion h a
the Securities company is merely an
investor and that the company exer-
cises no control over the two roads.
Organization by individuals.
The organization of the Securities
company was undertaken by stock
holders of the railroads as individuals
and never had the sanction of the gov
erning boards of the railroads. The
two roads remain separate corpora
lions, with no interests as such in com
mon. Each has its own board OF direc-
l I--- -AY ~.x1 NHG cows vryhioh m n at
be composed of entirely different per
sons. and not a scintilla of evidence
was presented, says the opinion, thai
the Securities company had sought to
control or interfere in the manage
ment or operation of either road or in
the matter of transportation charges
or otherwise.
Judge Lochren finds q very marked
difference between the ownership OF
stock of a railroad and the absorption
of n road by another which could
take a hand in it's management. The
Northern Securities company has none
of the functions of a railroad, and moi
being able to operate railroads, Its
, ownership of stock cannot be consid
cred a consolidation.
; The opinion opens with a concise
history of the Northern Securities com
, pany, showing how it was organized t.
prevent raids on Northern Pacific
stock and to protect the interests o
the roads and the territory through
which they run.
. Judge Lochren also points out tina
under the Minnesota law rates ar,
regulated by the state railroad AM
\ warehouse commission, so that, he de
clares, the only basis for competition
! between rival carriers is the furnish
!. ing of better accommodations and tn
greater safety and celebrity of cal
! riage.
, The arguments in the case wer
: commenced before Judge Lochren o.
G June 5 and the Ease was submitte'
June 10.