The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1903-08-06
THE MERGER DECISION.

down an elaborate decision in the
case brought by the State against
the Northern Securities GOETHE So
called Merger case, in which he af-
firms the claims of the Securities
company at every point. 1t is not
an organization in restraint OF trade
and commerce, and has not in any
way violated the laws of Minnesota
which declare it to be illegal for
one railroad company to absorb,
purchase or operate a parallel and
competing line of road. The North
ern Securities company is not a rail
road company at all, but merely a
holding company, and has no power
under it's charter to operate a mile
of road, or to interfere in any way
with it's operation. The two great
roads involved-the Great Northern
and the Northern Pacific are as
wholly Independent in their organ
izations as they ever were, and there
has been no disposition shown to
consolidate them, or to enter into
any traffic agreement or inaugurate
any policy calculated to restrain
trade or commence. Such briefly
is the position of Judge Lochren,
before whom the case was tried, and
the decision has been prepared with
the UTMOST deliberation and with the
most conscientious regard for the
rights of all parties involved.
The United States circuit court,
in the case of the United States
against the Northern Securities COM
pany decided adversely to the COM
pany, declaring that it was operat-
ing in violation of that law. That
case has been appealed to the
supreme court Of the United States,
and this case doubtless will be. In
reference to that decision Judge
Lochren says:
To epitomize this decision. It is
held that it will be for the interest of
the Northern Securities company to re-
strain trade by suppressing competi-
ton between these two railroad COM
panies; and that by coercing or per-
suading the two boards of directors
who - has the power to elect, it will
certainly cause them to commit highly
penal offences by entering into combi-
nations, contracts and arrange
ments in restraint of trade, in VIOLA
tion of the antitrust act. and hence the
Northern Securities company is al
ready guilty of these offences that
+ ~ h tc off,
GERS or promoters, so far ats appears;
and it must be suppressed and destroy
ed.
am compelled to reject the doctrine
that any person can be held to have
committed, or to be purposing and
about to commit a highly penal offence
merely because it can be shown that
his pecuniary interests will thereby be
advanced. and that he has the power
either directly by himself, or directly
through persuasion or coercion of his
agents, to compass the commission of
the offence.
There is vast amount of mis-
conception as to the purpose and the
logical effect of the Merger upon the
general and local interests of the
northwest. 1t is assumed that they
are hostile. THE HERALD firmly be-
lieves they will be to the highest de-
gree beneficial. Neither company
could hope to make successful
fight for the volume of business of
this whole country and of the orr ent
which would warrant the building
up commanding Pacific merchant
marine. Either company might at
any time become an obstructive
power by reason of it's control pass
ing into the hands of capitalists
whose interests were with other
transcontinental roads. In fact this
condition was barely averted when
the Union Pacific owners made a
raid upon the Northern Pacific stocl
and only by strenuous and shrewd
cooperative action of Messrs. Nor
gan and Hill was it prevented. The
Northern Securities company was
organized to prevent any such re-
currence, as it would hold a major
ity of the stock of both roads.
Thereby assuring amity between
them. Both roads will always be
operated by separate and distinct
boards of directors and officers; not
one of whom can be a director or
officer in the other. They will
fight each other within the lines
prescibed by local law and national
authority for business, strenuous
~ as ever-but will make a COM
mon fight against other transconti-
mental lines for the business of the
world. The more of this they can
secure the larger their profts-and
that means, inevitably, reduction
of rates. As matter of fact rates
have been reduced-not advanced
by the merger roads during the past
year, and their profits have been
larger than ever. Given, an increas-
ed volume of business and lower
charges are assured. The New York