The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-04-10

and using its own stock at par to make tn
purchase.
THE Securities Company subsequently
| made further purchase of stock OF the
Great Northern Company, with the SAINT
rate. and In about three months had ac-
/ quired stock OF the latter company amount
ing. at par. to about ss3.co0oOo using. for
thai purpose. its own stock TO the amount
4 of about SfT1 OoO.0s0
| STOCKHOLDERS PIT CONTROL,
OF INTERESTS IN ONE PERSON.
The Securities Company was enabled TO
make the subsequent purchase OF stock
holders OF the Great Northern Company
not Immediately concerned in the organiza-
ton Of the Securities Company. by the ad-
vice procurement and persuasion OF those
stockholders Of the Great Northern Com
pany who had been instrumental in organ
izing the Securities Company and had ex-
changed their own stock for stock in that
company. shortly after its organization. At
the present time the Securities COMPANY IL
the owner OF about % per cent Of all the
STOCK or the Northern Pacific Company. and
the owner OF about ss per cent Of all the
sleek Of the Great Northern Company. The
scheme which was thus devised and cor
s'inl'-dted led inevitably to the follow
ing results:
1t placed the control Of TIE two roads
In tae hands Of a : ug!e person. to wit:
The Securities CompIuy. b. virtue OF its
owns fSh-p o. iarsc mLjo Ity OF the stock
every motive for comp t.ti N between two
FOedS engaged N int rsta,e traffic which
were natural competitors for business. by
pooling the earnings OF the two roads for
the common beEefiJ Of the stockholders OF
both companies and. according to the IA
lni!iur rule that everyone Is presumed TO
what
OF hts own acts when done willfuIly an de-
Iotiiteiy. We must conclude that those
SAID Intended. among other things, to ac-
CCmplsh these objects.
The general question Of law arising upon
tnls :iate OF facts Is whether such a
cn:nbirct ton of interests as that above de-
sSTlbeu ialls within the inhibition of the
antitrust act. or Is beyond its reach The
set brands as Illegal every contract com
b-ratiOn in the form OF trIst or otherwise
or conspiracy IN restraint OF trade or com
merce among the several States or with for
eiRr nations,
Competition. We think. would not be
more erectu'-ly restrained than II now Is
under and by force OF the existing arrange
ment II the two railroad compinies were
consolidated under a single charter. 1t IS
manifest. therefore. that the New Jersey
defendants can interpose between them
selves and the law.
spired the combination by which this end
was accomplished were wholly laudable
and unselfsh: that the combination was
formed by the individual defendants to pro-
tect great interests which had been com
mitted 10 their charge: or that the combi-
nation was the initial and n necessary step
which. II carried out as they were con-
cetyed. would prove to be OF inestimable
value to the communities which these roads
serve. and 10 the country at large
We shall neither affirm nor deny either
OF these propositions
DECREE OF THE COURTS
As ENTERED By JUDGES.
"A decree for the United States wIll &C
cordingly be entered TO the following effect:
Adtudging that the stock OF the North
nm nm, TagnG ssId ana StsaI NaIthern companies.
acquired IN virtue Of combination among
the defendants. IN restraint OF trade and
the antitrust act denounces as Illegal. en-
joining the Securities Company from ac-
quirtng or attempting TO acquire further
stock OF either of said companies: also en-
Joining it from voting such stock at any
meeting OF the stockholders Of either OF said
railroad companies or exercising or at
tempting TO exercise any control, direction
or supervision or influence over the acts
Of said companies OF either Of them by
virtue Of Its holding such stock; enioining
the Northern Pacific and Great Northern
companies respectively, their officers, direc-
tors and agents, from permitting such stock
Company or any Of its agents or attorneys
on its behalf at any corporate election for
directors or officers OF either OF said COM
paying any dividends to the Securities Com
pany. on account OF said stock or per-
mitting or suffering the Securities Company
to exercise any control. whatsoever. over
the corporate acts Of said companies or to
direct the policy OF either; and. finally. per
uitting the Securities Company 20 return
and transfer to the stockholders of the
Northern Pacific and Great Northern COM
panies any and all shares OF stock OF those
companies, which II may have received
from such stockholders in exchange for its
own stock. and to make such transfer and
assignment TO such person and persons as
are now the holders and owners OF its own ,
stock originally issued In exchange for the
stock OF said companies"