The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-10
FULL TEXT OF THE DECISION.
Tho Northern Securities Company an
Illegal Combination.

Illegal Combination.
- Sf. PAUL, MINI, April s.-The Northern
Securities Company Is an illegal combina-
ton In restraint Of trade. So decide the
United States Circuit Court Of Appeals In
the Federal merger suit. Judge Sanborn
filed the decision Of the court to-day. 1t
IL written by Judge Thayer.
Every contention of the Government
IA upheld by the decision every contention
OF the defence Is held to be untenable. The
court refuses to consider the claim Of the
defence that the merger will confer great
benefits upon the people.
The court holds that the organization
Of the Northern Securities Company was
a combination in restraint OF trade. that it
etided competition between parallel and
competing lines OF railroad by placing the
mana cement Of two railroad systems under
one individual control.
The reasonaoleness OF existing rates.
says the court. is a matter OF no moment
at all, the vice OF the combination being
the power il confers Of establishing un-
reasonable rates in the future. The full
record Of the decision is as follows:
for he s Distr,ct OF Tinnesots1 Third DIyision"
United states OF America, complainants. vs..
the Northern Securities Company, the North
So s aT aaI%ny yS Tonp%nS sme se H
William p. Cloueh. u; Willis James. John y
hennsdy Pierpon1 Ng5 sn Robert Bacon on
Paiiander c. Knox. Attorney General;
iseos and "" j. Day, Assistant Attorneys.
General and John NJ. Freeman for the United
Mr. George B. Young and the Hon. John W.
Griggs for the Norl nern Securities Com
Eany n, , Grover fSSr The Great s NoSthsIn
! s,stsop snd David Wilcox for Defendants
mf Rsfope 1 csiar en- ssnSSrn Thayer and
4 .Thayer.. Circuit Judge. stated th. con-
This Is !. sIlI sSSieited sy the United state.
t sSy md ss sassd aa nH ct
commonly called the sherman Antitrust
ifihe case sss heard before a Circuit Court
composed Of the four Circuit Judges OF the
fecent act q coss s ns FeS
u. 1913. which REQUIRES such cases 70 b. heard
before nos ies: than hses Of ,hs Circuit
; when the ATTORNEY General nles with the
clerk OF the court wherein the CAGE 70 pend
public impoTtAnee.. such a c-rtincate ba Is
been aIed. and. In accordance with the man
date OF the 6tAtuVe. tne case mas Deen gwen
precedence over others and In every way
FINDINGS ~ FACT.
From admissions made by the pleading q
AZ well as from much oral testimony We re ach
the following conclusions Ms respects matters
Two Of the defendants. namely. the North.
.rn Pacinc Railway Company and the Great
of nes sSS
Minneapolis, In the state OF Mtnnesots. thence
These roads are and in public estimation
have ever been regarded as parallel and
sgp Sns e sas : :aes
other actively for transoontinentd and
In the spring Of the year 1901 they united
IN purchasing about Is per cent. Of the en-
and Quincy Railway Company, and became
Joint surety for the payment Of bonds Of the
last-named company, whereby the purchase
was accomplished. which were TO run twenty
yea,s and Sss,% Per cent interes, per annum :,
the par value of about slo7 .ooo and as Il
was purchased nj the rate OF $500 per ehare
/. lthe bonded indebtedness OF the two companies
wac thns increased 70 the extent OF $780,
Subsequent to the acquisition Of the stock
OF the Burlin gton company. and IN the sum
mer OF the year fooi. certain laree and In
huentiai stockholders Of the Northern Pacific
snd Great Northern companies. who had prac-
been made parties defendant 70 the present
bill. acting In concert with each other. con-
ceived the design OF placing a very large
majority OF the stock OF both OF the last
named companies 10 the hands OF single
IEE NxSoEn .pEscnIuHp
To this end these stockholders angcd and