The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-10


agreed with each other 70 procure snq cause
the formation Of q corporation under the
ter company. when organized. should buy al
or ny least the greater part OF ne stock OF ,nc
psnies.. 2
The individuals who CONCEIVED ana pro.
NOTED this plan agreed with each other 70
exchange their, respective holdings OF stock
IN the last-named railroad companies ior
the stock OF the New Jersey ompapy when
us e thes inasno 90 to induce other siocf
holders In their respective companles 70 90
likewise. TO the end that the New Jersey
the whole or at least a major portion OF the
stock Of both railroad c0mpanrs ,.
In acoordancs With thu: plan the deie ensf,n,
ined under the laws Of the stnte Of New Jersey
ooo.oo. that sum beng ths exact amount ".
two rsii,oedp compsnies AZ The price agreed
to be paid therefor:
Mhen me Secnr.ms company va rartv
10 The scheme that had Seen de- by lie
promoters before II became a legal entity,
Very shortly after rs organization I'M, rne
neC1Inse Sonnpany ~ .Sn Sa-sherns Do cjTo
~ The pa,e 81 ans rer share payin therefor
In it's own stock at par At the same time Il
acquired about 800. 400 shares OF the stock 0,
the Great northern COMPANY iI9 hna ' heen
inetr,,%sn,ai Y In ' organiline the Securities
COMPANY. paving therefor al the rate OF
$3.50 PER share and using Its own stock al par
10 MAKE the purchase. mad.
further purchases Of stock OF the Great North,
ern company a! me same Inte ana IN 49, 49,
Two mon'ns nao ACQUIRES s'cck Oh, on ~" soa 90
c con @ a. pss 70 n stock 10
~ o onx ~, hopp 1 ~, 90 90
make the smbsenue sI" pp1rebase Of stock from
stockholders OF the lireat Sorthern Sonpay
not immediately concerned In me orgaah ,i,na
procurement and persuasion OF these s,ocx,
holders oil the Great NoIthern ooIn nppi,
without having been tnstrumentai IN oLea annd
NY tne oecuIl,les COMPANY anu mnanv
Al the present time the Securities Com,
pany IL the owner OF about rs per cen. o.
all the stock Of the Northern Pacinc company
ana the owner Of ABOUT ~ per cent, n oI az '"e
DESTROYED EVERY MOTIVE FOR COMPETITION.
80, ,--,. -
contaminated led inevitably to the following
r resas IN m. hands, p Of a single person. to
roau' VI ',.e "o ,. " e'
wit: the Securities Company. 6y virtue
OF ITS ownership OF a large ms'orny OF .ns
ny.rr n,otiva Tor comne,i,ion her veen two
eV' ;.a...a,. .racoc hitch
roads engased IN in,ers'a,e I ha,u.. w"' hm
pooling the earnings Of the two roads for the
common benefit of the stock olders OF both
COMPANIES; and. according to the familiar
rule that every one Is presnmeo 70 inte ans,
what Is the necessary c2hseanehcs n ms own
We must conclude that those VINO conceiyed
and executed the pan aloresaiu tntenoeu
among other things 10 accomplish 'nese o.
JeSss. .,,,,o..,o, y, Law ,r,s,pg from, THE
state of facts IA whether such a combination
~ ;nterests as TINT above described falls
within the Inhibition of the antitrust act
or Il oeyond a ,,s reaeh iilsea, -ererv contract
combina ton in the form OF trust OF otherwise
or conspiracy in restraintof trade or com
fnrsigp nnt;ons
'o'o's"
Iaarnsd counse, on both sides have COM
r,sntad on The General ianpuage OF the act
doing 40 of course for a d ferent purpose. and
,ha ssna,nIitv of the language employed is
in o,,r Judgment. OF great Significance, IL
indicates we think that Congress. being un-
able to ana s e a thst
,nisht he rcsoTted 10. to place restraints on
intspstate trads or commerce, deliberately
n.nnioSad nords ~ such General import as
s ~ 10 on,ninn go1ld comprebend every
.nhams tbat might he de yissi to accomplish
that; .,..s -,.,-
.necies Of combination organized by indi-
siduals n, corporations Tor the urpoee OF
NIuuaIs ~ ", H.. Soi an,,,sctura ~ or ira fic
IN, Verl1us aruc'er ~ I'M nndorStnoa wben
Was Wen nhoen anu e iu nv,-o u' "e"
ING ~ IN sha, fpsrn werc sccordin civ
-Sst'inh,tH Hnt rnnvress evtdeotiv sntici-
pivmotT;. ,%n s oomh;nstion mi.,ht be other
ps . rm"s wase cayeful 70 declare that n
cnmhi0a.ion i'm anv other form IL in restraint
Quietly oeGasi9nedd e or llerai ''
shou,u nne esrv,ou. nr",sloSs HAVE HrIn
Moreover, in cases arising under the act.
II has been held by the highest judicial author
ity In the nation. and its opinion has been
reiterated in no uncertain tone, that the act
applies TO interstate carriers OF freight and
passengers as we'll as to all other persons.
natural or ARTIFICIAL that the words in re-
straint Of trade OF commerce DO not mean
in unreasonable or partial restraint OF trace
or commerce. but any direct restraint thereof;
that an agreement BET ween compe,,ng ra,r
roads WHICH requires mem 10 acI ~ coent
in fixing the rate LOT tne carrlase oi pa1uG Ell
gers or freight over bntia III des Inch Sv thet
from one state 70 ano,nsi anH rch, W ~ any
one OF such carriers 10 name such iates Ior
the carriage OF snch Ireleht OF passenseis
over its road as II pleases. oqhnusct n
direct restraint Of cqmrhe.e w ~ nr. .ne
meaning OF the act, IN that IL tenus 70 PItvven'
competition: that IL matters not whe'neI,
while acting under such contrhct' w Iato
fixed Is reasonaoe or uhreasonaoS. .ne 49, w.
OF such contract or oonipina,ppm oems
that II confers the power 70 esapiish un-
reasonable rates ana ulrcfuy resu aihs .on,,
merce by placing oostacies W .ne Wy %,
carriers VINO are haLura rlNas ior Eas oanu,
n