The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1903-08-07
NORTHERN MERGER
NOW WINS A CASE
Case of Minnesota Against the
Securities Company Won
by the Latter.
is UNDER THE A LAW
Judge Lochren Holds That in Becom.
ing Owner Of Stock Of Two Roads
the Company Did Not Con-
solidate Competitors.

st. Paul, Aug. 4.-Judge Lochren IL
United States district court today de-
cided the case Of the state Of Minne-
sofa against the Northern Securities
company in favor OF the Securities
company.
Judge Lochren In dissNissing the
bill of complaint Of the state finds the
company has not violated h state
laws forbidding consolidation OF par
allei and competing lines OF railway
through Its ownership of b stock OF
h Great Northern and Northern Pa
citic roads. He refuses the Injunction
asked by the state to restrain the Sc
curities company from voting the
stock Of either railroad company. The
decision does not affect the results of
the federal governments victory in the
circuit court in any way. although in
yolyinG the same defendants, but is
based on a totally different contention
OF law. The federal suit in which the
was beaten was q prOSecu-
tor for violation of the Sherman anti
trust law. The state suit in which the
company wins Is based IN the allega-
ton that the defendants violated the
state act fo%rbidding the consolidation
OF parallel roads. An appeal to the su-
Dreme court is now pending in the fed
eral suit.
A PROPER construction of the Sherman
antitrust act. so far as It relates to
transportation, rs deduced from the de-
c.sion OF the supreme court, appears to
be this: b act applies to railroads; all
contracts made between railroad GEM
pa1des for the purpose and having the. ef-
feet of preventing competition by fixing
rates or persons to fix them,
end agreeing to conform to them when
fixed, are In restraint of trade, and with
IN the provision Of the statutes. whether
the rates SO fixed are reasonable or un-
reasonable.
That a contract between divers manu-
their sales Of that eV eomnsodity, r to bee dss,
livered by them outside the state haFing
the direct effect OF sitting competition
and raising the cost of the articles to
the purchaser, is also in restraint OF trade
and with in the statute.
THAT contracts which do not directly
rates therefor are not IL restraint Of
tssy tn ma bsv. rs snms yro ssa ias1rssqy ~
direction. The state antitrust act must
have the Same CONSTRUCTION in respect to
traffic on railroads within tho state.
Railroads Didn't Do It.
Neither the Great Northern nor North.
ern Pacific ~npan were parties to orr
in their corporate capacity had .nything
to do with the Of the Northern
contracts or proceedings Complained Of In
the bin. Tho Northern Securities COM
e ed he ns nassss a oe s sassste OF L, n.e md d. o tsass
two railroad companies. It has done no
act and made no contracts tn restraint of
trade or commerce. The action of de-
fendan James, j. Hill, in promoting the
Formation Of the Securities company UNI
aer the circumstance and for the PURPOSES
which the evidence discloses. and Invest
Ing In it's stock by the sale to it of his
stock In the ewo railroad companies in
VOWED no acts or contract in restraint OF
trade or commerce or Affecting transporta-
ton or rates more than any ordinary
to another.
That my judgment, after the most care
ful consideration Of the facts and law APP
p1cable thereto. as construed by the high
est court, leads mo to the Conclusion t6at
none OF the defendants has violated the
This conclusion is apparently contrar w
to that reached by the eminent Judges Who
recently decided The Case Of the United
States VS.. the Northern Securities COM
court, review this cause upon appeal.