New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-15

He cOnteEded that there had been no coHsohud-
tion but said that if there had been II would not
be in restraint of trade
KNOX SPEAKS FOR GOVERNMENT.
Mr. Bum was followed by Attorney General Knox
for the United States The court was within three
quarters of an hour of the time for adjournment
when Mr.. Knox began his address, and he was able
to deliver only portion of his argument He had,
in fact scarcely than completed his statement
of the facts when the days session ended.
In beginning Mr.. KnoS outlined the attitude of
the government toward the case. saying that it
"one of grave concern. based upon its convic-
ton that mschievous evasion of the law has been
attempted, as well as upon its especial interest IN
and relations to of the properties affected"
In order that the court might understand the
reasons for this concern he reviewed the principal
facts connected with the organization and history
OF the Northern Pacific company, its relations to
the Great Northern Railroad and other facts out
of which the questions in this arise, but with
out extended comment. His statement of facts
was follows:
FIrot-That the Northern Pacific Railroad was
built under the authority of the United States and
IN the main with capital furnished by the United
attached the condition to its contribution that the
hghWsy a1d speced tSat the dbeet Of coa
stEuetion was to promote the public interests"
ing the past ten years the defendants or some of
dence of the Northern Pacific company and bring
It under the domination of the Great Northern
Third-That the Northern Securities Company Is
devised 10
hold and exercise control over these two parallel
and competing lines of railroads. to destroy com.
transportation in the section served by them, and
states to the franchise and land grants Of the
Northern Pacific Company.
POINTS FOR GOVERNMENTS SIDE
On this statement the Attorney General based
the following propositions:
First-That the arrangement effected by defend
ants is combination in restraint OF interstate
commerce and is Illegal under the first section OF
Second-That IT constitutes a monopoly under the
Third-'That the court has the power TO prevent.
restrain or otherwise prohibit it.
Further reviewing the history of the Northern
Pacific Railroad Company. he said it chartered
under the provisions of an act OF Congress ap-
proved July . 1864 The corporation authorized
10 construct railroad which by the eleventh
ton of the act, shall be a post and military
road subject TO the OF the United States for
postal, military. naval and all other government
He remarked in passing that when the United
States created the Northern Pacific company and
purpose endowed it with 1900 of the public
domain, it was to secure TO the government AT all
military and other purposes In other words said
Northern Pacific Railroad Company and to no other
company, and the United States is directly inter-
render the service which was the consideration of
the grant, unaffected by the domination of other in
terests."
AGREEMENT OF MORGAN AND HILL,
The Attorney General then gave a detailed ac-
count of the attempt TO secure control of the
Northern Pacific Road shown in the of
Pearsall against the Great Northern Road Mr.
Morgan, he said. of this attempt sympat hized
with it, and assured Mr. Hill that If he failed they
could work the two railroads in harmony.
Continuing, Mr.. Knox said;
Let us next see what steps were taken tosget the
Northern Pacific property in such situation as
ance to Mr. Hill that if he failed to acquire the
Northern Pacific stock in the manner Just descrbed
the road was effected. and new company. organ
Northern Pacific company.
BY the reorganization agreement J. p. Morgan
& Co were made managers of the reorganization
tween the two roads. and continued as such until
the Chicago. Burlington and Quincy Railroad
This partnership in the ownership of the Burling
merger of which the government complains
The Attorney General then detailed the facts
connected with the Burlington purchase and the
organization of the securities company. and in
concluding his presentation of the evolution of the
securities company said:
These facts clearly establish that it instru-
mentality created to cgntroi the Northern PafHG
! ownership of the Burlington to control that road
! likewise.
At this point Justice White reminded Mr. Knox
that he had referred in the beginning of his
ment to the act of Congress organizing the North
ern Pacific Road, and asked him if the rested
| on that act. Mr.. Knox replied that it did not and
added that he had merely referred 10 Jhat egSla-
ton in reply the reflections that the government
| had undertaken interfere in in which it
! had interest.
The Attorney General able before adjourn
| ment to announce only proposition by way of
| argument and that contained in the following
| sentence:
! This merger of interests was a combination in
| restraint of commerce among the States, and
| intended to be. ana, with or without proven
intention it is illegal as by virtue Of the combna-
designed 20 prevent, namely. II brings transpOrta
under the controlling influence OF single body and
DESTROYS any possible advantages the public might
| have through any competition between the two
! lines
The court adjourned until tomorrow when Mr
! Knox will continue.
THE GOVERNMENTS BRIEF.
The brief of the government was filed to-day II
| was prepared by Attorney General Knox and AS
sistant Attorney General Day. and $50 print
| ed pages. After stating that the bill in the
| was originally brought by the government to re-
| strain the violation Of the Antitrust law by the
| securities company in the consolidation of the
Northern Pacific and the Great Northern railroads
| and that the decision of the court below IA
vorahle to the contention of the United States. the
| brief enters into the following specifications to
| the for the action:
First--The lines Of railway operated by the de.
| PENDANT. the Great Northern Railway Company and
Northern Pacific Railway Company, parallel
| and competing.
| interstate commerce and a monopoly.
| The closing paragraph of Judge Thayer's opinion
| in the Circuit Court is quoted summing up the
| argument bearing the facts of the case as
| follows
At the present time the securities company is
! the Northern Pacific Company and the owner of
| about &c per cent OF all the stock of the Great
devised and contaminated led inevitably the fol