Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-12-15
AGAINST THE MERGER
Attorney General Knox Re-
sumes His Argument.
COURT ROOM THRONGED
RUSH TO THE HEARING OF TILE
FAMOUS CASE.
Points Made by the Chief Prosecuting
Officer Of the Government-G. B.
Young Opens for Companies.
COURT ROOM THRONGED

IRENE Court today In the case OF the
Northern Securities Company, the Great
Northern and Northern Pacific railway
companies, James j. Hill. ]. Pierpont
Morgan and others against the United
States.
From the doorway leading to the court
room extending for long distance through
the corridor, was line of men and women
who had come long before the hour for the
court to assemble, in order to hear At
torney General Knox deliver his argument
against the merger.
Within the court were many distinguished
persons Mrs. Roosevelt and Mrs. Cowles.
sister Of the President, were among the
spectators. Within the railing marking the
reservation for attorneys were Senators
Hepburn. Clapp. former Senator Chandler,
Representative Curtis OF Kansas, Alex-
al der Porter Morse, Richard Randolph
Mcmahon. Besides the Attorney General,
representing the government, there We're
present Assistant Attorneys General Wm
A Day, Campbell, Russell and Robb.
Among those who came into the court
room while the Attorney General was
speaking were Senators Lodge, Fairbanks,
Beveridge, Burrows and Kean.
The impressive assembling of the court
was followed by the admission of several
attorneys to practice before the court and
minutes after IL o'clock the case of the
Northern Securities Company was called.
and Attorney General Knox at once took
up his argument from the point he left it
yesterday afternoon when the court ad-
5Ourned
The Attorney General Resumes.
Mr.. Knox reviewed the formation Of the
railway companies involved in the suits
and, referring to the claim of economic
danger from the enforcement of law against
such combinations declared with emphasis:
TT Is not the enforcement Of law that
creates panics and distress; it is the willful
violation of the provisions of the laws Of
economic health
He declared that by the union of the
Northern Pacific and the Great Nori.ern in
the Northern Securities Company two COM
brought Into such relations that their In
dependence as competitive factors In inter-
state commerce is destroyed.
The thing that has been done was de-
clared Illegal, he said. when brought about
by the methods pursued in the Joint traffic
ana trans-Missouri cases. These were cases
OF contracts or agreements between inde-
pendent and competing lines Of railroad for
the regulation of traffic charges. The gov
ernment charged that these agreements re-
strained interstate commerce, and ...s
court sustained that contention.
THE court heard the cases patiently
Mr. Knox said. "and the arguments thrice
presented by the railroads failed to disturb
the courts conclusions that the contracts
or agreements in question violated the law.
The exigencies of the cases rendered nec-
essary complete Interpretation of the
statute. The power of Congress to enact
the law, the application of the law to COM
mon carriers and specifically its application
10 contracts or agreements regulating rates
were all denied. Dark forebodings OF re-.
sultant commercial disaster, should the
governments contention prevail, were Sol.
emnly and forcefully impressed upon The
court by gentlemen of eminent personal
and professional standing. These consjd-
erations invited and secured patient and
ruu consideration of the cases and ex-
haustive analysis and Interpretation OF
the statute In the judgment.
After making it perfectly clear that the
court was not to be dssuaded from ri wing
enect by Its Judgment to a public policy
declared by constitutional statute, the
court stated what that public policy is and
agreements"
This exposition Of the law is. Mr.. Knox
SAID. now the governments reliance, las"
ne added. 1T should have been the de-
1endants admonition." He proceeded:
Cause Of Panic.
The courts decision In the TRANSMITS
souri, case was not followed by disaster.
but by years Of abundant prosperity, undis-
turbed until new devices were put into
operation to accom- plish again the destruc-
ton Of competition and to thwart the wise
policy OF the law. 1t is not the observance
panics or distress. 1t is willful violations
OF its wholesome provisions or defiance Of
the laws of economic health"
The Attorney General said that 1t was not
Int lon 70
ositions settled by the trans-Missouri and
Joint Traffic cases. but to do what he
could to show their applica ton to the facts
OF this case. He, however. made the fol-
lowing statement Of the great questions
settled by the court in those cases:
The Principles Stated.
First. That to shut out the operation of
the general law of competition between
competing interstate railroads is to restrain
interstate commerce.
Second. That to bring the operations of
two or more connecting interstate railroads
under the control of single body shuts
out the operation Of the general law OF
competition and constitutes a restraint
upon Interstate commerce.
Third. That Congress is competent to
forbid any management or combination
among companies competing for Interstate
commerce which restraints commerce among
the states by shutting out the operation Of
the general law OF competition.
Fourth That in order to maintain a
suit the government is not obliged to show
an intent to restrain commerce If such re-
stratnt Is the natural and necessary effect
OF the arrangement"
He continued: THE language of the law
is combination In the form OF trust or
otherwise that Is, combinations in any
other form. Combinations in the form Of
trusts were well understood at the time OF
the enactment OF this law. They were in
variably formed by transferring the stocks
OF property of the constituent units to a
holding trustee, whose will was thus DOM
inantly enthroned over the whole; and
against the stocks or property so trans
ferred, the holding trustee issued certiti-
Gates to the transferrors. representing their
respective proportions of the whole. This
form of combination was evolved from the
experience that a gentlemens agreement
to control competition works better when
the collateral Is up.
ANY combination that has these features
is combination in the form of a trust and
is specifically inval dated by the statute.
What Was Organized.
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