The Aberdeen Democrat. (Aberdeen, South Dakota) 1???-1909, 1903-08-07
Effect Must Be Direct,

the supreme court of the United States
IN several cases.
Effect Must, Be Direct.
''The proper construction of tho shor-
man antitrust act, so far as it rela fes 70
Iallroad transportation, as deduced from
tlese decisions of the supreme court an.
pears to be this: $500 =
az contracts made between railroad COM
p aseaa Tor the purpose and having the
ealect OF preventing competition by fixing
and = OF persons to fix them,
tAeo' are IN restraint Of trade and within
me provisions of the statute, whether
une rates SO fixed are reasonable or I'M
OBJ That contracts between divers
manufacturers of a commodity respect
ing their sales Of that commodity to be
a ;ea by them outside the, state, nav
ING the direct effect Of Sitting competi-
ton and raising the cost of the article
to the purchaser, is also in restraint Of
trade and within the statute.
tcl mat CONTRACTS which do not d.
rectly and necessarily affect transporta-
ton: or rates therefore. are not in re-
stralnt OF trade, or within the statute,
e dirac,1 tnough they may remotely and in
effect in that direction.
the same construction in respect to trait
nc on railroads within the state.
Does Not Control.
Neither the Great Northern company
nor the Northern Pacific company were
parties to, or in their corporate capacity
nad anything to do with the formation
or any. OF the. contracts or proceedings
complained of in the bill. The Northern
Securities company is merely an investor
OF each of these two railroad companies
1t Is not a railroad company, and has
no franchise or power to manage or OPP
crate or direct the management or OPP
GRAFTON OF either railroad in respect to
rates or charges for transportation. or
otherwise; and there is no scintilla of
evidence that it has sought to control or
interfere in respect to any of these mat
tiers.
1T has. therefore, done no act and
made no contract in restraint of trade or
commerce. Owning now a majority OF
the stock Of each of these railroad com
panies. it has the power by voting its
stock to elect the board of directors-the
governing body-of each Of these rail
%rectors Of each is a different body from
the board of directors Of the other, as nc
director of the Great Northern company
can be a director of the Northern Pacific
other officers. and control its business
and policy. Presumably they will seek
in lawful ways only, to increase the bust.
IDS oiio pAoPSikS " lIC "AiAS
they as directors represent.
The action of the defendant Hill il
promoting the formation of the North
cumstances and for the purposes which
the evidence discloses, and investing ii
it's stock by the sale to it of his stool
in the two railroad companies. involved
no act or contract in restraint Of trade
or commerce, or affecting transportation
or rates, more than any ordinary trans
: fer of railroad stock from one person t.
another.
Differs With Other Court.
"That my judgment, after most care
full consideration of the facts and tn
law applicable thereto. as construed b,
I the highest court, leads me to the con
t clusion that mons of the defendants hav
violated the Minnesota antitrust act:
conclusion apparently contrary to tina
court. recently decided the case of Unit
1 ed States VS.. Northern Securities com
t pany, 12o Fed, 721, and who will doubt
r upon appeal, has necessarily. caused hes
: itation and careful examination. But tn
rights of litigants and my own sense 9
crate judgment. guided BY my under
!, : the law, be given in all cases tried be
:. fore me.
as I read it and understood it, does nc
! specify or point out any contract, agree
y ment or act on the part of the defend
G ants, or any OF them Whien Is a1rect u
I which has any direct reference TO trad
:. commerce, transportation or rates; nc
q even any threat or avowed purpose Q
= such act, or enter into any such cor
Z tract or agreement. .,
i i "But it is argued that because tn
: Northern Securities company has o De n
! stock Of each Of the two railroad col
porations it will be for it's interest 7
:. suppress competition between them, u
!. = these railroad corporations, which it ca
: iii by election, to enter into arrange
d ments or agreements In restrain
n trade, which Will suppress is rs com nping q
conjecture) the decision holds that r. q
formation of the Northern Securltlt
: company, and purchase BY It Of a M mi
! road companies. are acts or contracts
{ restraint Of trade, though of themselve
and without further action lnot y
$ taken. and perhaps never 10 DE De 1a con
: panies. the formation Of the Northe,
= Securities company and it's holdings
:. stock has and can have nothing 10 {
9 directly or indirectly with trade, con
3 merce, transportation or rates.
Guilty Before Offending.
II s"To epitomize this decision: 1t Is ne
that it will be for the interest of II
g Northern Securities company to restta
g trade by. suppressing competition betWe'
e these two railroad companies; n tn
Nv coercing or ~persuading the two boar
III directors. whom it has the power
elect. it will certainly cause them
It commit highly penal offenses by ente
IS ing into combinations, contracts n g
l. rangements in restraint of trade, IN VI
sc lation of the antitrust act, and men
e the Northern Securities company IS q
l. ready guilty Of these offenses that ma
) never been committed or thought of :
J. its officers or promoters so far as appear
and If must be suppressedfand destroys
81 am compelled to reject the doctrl
10 that any person can be heldXto have COZ
If mitted. or to be purposing n ABOUT
Id commit a highly penal offense, mere
because 1t can be shown tnat ms !
J. cuniary interests will be thereby a
ID yanced, and that he has the power eltn
j. directly by himself, or indirectly throu
ir persuasion or coercion OF his agents
,e compass the commission OF the oHense
No Consolidation.
- .Third-The charge in the bill that t
~ acts Of the defendant c~ontravene 7
Is statutes of Minnesota prohibiting !
~ consolidation of parallel and competi
~ lines Of railroad presents a differe
es AChapter 90, General Laws Of Minr
"a sofa, 1874. provides as stated: /,
os ".No railroad corporation or the \
90 sors. purchasers or image q any "a
~ road corporation, shall consolidate
" y stock, property or franchise OF such c,