The free lance. (Fredericksburg, Va.) 1885-1926, 1903-04-16
THE MERGER
SUIT DISCUSSED
Northern Securities Decision Is
Sweeping, Says J. w. Griggs.
us OPINION OF WHAT IT MEANS


fectS the Natural Right to Acquire
and Hold Observation-Disclosures IL APP
pIicnble 10 All Interstate Competi-
ton Consultations Made since I'm
actmcut OF sherman Law.
Former Attorney General John W.
Grsgs. one OF the counsel for the
Northern Securities company. was in
terviewcd at his home in Paterson. y.
J.. 10y & New York Herald reporter on
the decision rendered in the merger
suit
Without saying word IS to his
chances before the highest court IL was
evident that the former attorney gen
eraL though his disappointment was
keen at the decision. believes firmly
that the supreme court VIII uphold him.
Il maintain" he said. that ;he &C
Quicscence 10y the government fov nine
teen years in the actual consolidation
II many parallel and >cOmpeting lines
Of railroads has given as practical
construction OF tie sherman law that
it does not forbid the natural processes
of consolidation under modern meth
DDS. But the Northern Securities com
pany. mind you. was organized 10 pro
mote rather than 70 Restrain colapetl-
ton. Ii was its aim 70 build % great
tranScontineutal road that could corr
pete with the Santa Fe. southern Pa
cine and other systems.
Il maintain that congress has the
right 10 control the use. not the owner
ship. OF property. Ii has no business
with the title Of private property. II
can tell an expreSSmau how much he
must charge. but cannot forbid him %
sell his wagons or buy As many rs he
wants. II own "a steamboat on the
Hudson. l must run prescribed speed.
charge certain fare. make 80 many
trips, but what power i there TO stop
my selling that boat 70 my competitor
or any one else: | can blow II up II
want 10. and that would restrain com
petition equally.
Il can give you the whole Northern
Securities situation I'm q word An en-
gine driver controls an engine. a super
intcudcnt controls the engine driver
but docs not directly control the en-
CINE. That j. the position we held at
ST Louis. The Securities company ex-
ercises Il secondary. not a primary
power over the railroads.
we all know of many instances in
which moral power IS exercised by
some financial institution over prop
orty without owning share OF that
property. How are YOU going to con-
troll every one who has Influence To
say that one person or several persons
cannot acquire stocks IN companies
that might restrain competition is to
say that the power TO commit a crime
Is equivalent 20 its actual commission
Nobody questions the right OF con
eress to regulate rates. II these com
panies should use their power to re
strain trade. congress has remedy at
hand by compelling them TO run GER
tain number of trains and TO charge
certain rates and provide full and Just
accommodations
Just think what the decision means
10 the development of the country
There is hardly a consolidation posi-
BILE that does not touch competition
somewhere. No law can compel rail
road companies 10 compete. hostility or
rivalry is not commanded as a corpo-
rate duty.
I'VE thought the point settled for all
time In the sugar decision. Chief Jus
tice Fuller said in that case: There Is
where the supreme court distinguished
between acts which directly restrain
commerce and acts which only indi-
rcctly have that effect. There was
nothing in the proofs to indicate any
intention to put a restraint upon trade
or commerce, and the fact that trade
might be indirectly affected was not
enough TO entitle complainants to a de
cree"
Mr.. Griggs was asked If he agreed
with one of the counsel who was quot
ed anonymously as saying that the
closing phrase of the judges order in
the merger case providing for the
transfer of the stock to the present
owners of the railroads practically
nullihes the whole effect of the deci
sion"
Il do not see the point" he answer
ed. The decision is sweeping. 1t af-
fects the natural right to acquire and
hold property. 1t is applicable to all
consultations of Interstate competition
made since the Sherman law was