The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-04-09

IL Liz 4NIA -A+IA4l '0~IA-NA1' LIN lcAAtS .
The organization of the securities
comDany, it is held. taccomolishes the
object which congress has denounced as
illegal. mote effectually' than by other
methods, and continues.
so far as the New Jersey charter Is
concerned. the question broadly stated
which the court has to determine is
whether a charter granted by state
can be used to defeat the viii of the
national legislature as expressed in u
law relating to interstate trade and
commerce, over which congress has ah-
no charter granted by state IS intend
ed to have that effect to be used for
such purpose, and in the present in
stance it is clear that the state of New
Jersey did not intend to grant charter
under cover of which an object de-
nounced by congress as unlaWful.
namely a cOmbina tion comforting the
power to restrain interstate commerce.
might be formed and maintained be-
cause the enabling act under which the
securities company was organized exN
pressly declares that three or more per.
sons may avail themselves of the pro-
visions Of the act and become Il corpe~
ration for any lawful purpose. (LaW S
Of New Jersey. 1899. p. fI3-)
This language i7noE merely perfunctory !,
1t means obviously that whatever powers
the incOr9Ora tors saw fit to assume
they must hold and exercise for the ac-
complishment of lawful objects The
words in question operate therefore, as
Il limitation upon all the powers emu
merated in the articles Of association
which were filed by the promoters Of
the security co npany, so that however
extensive and comprehensive these
powers may seem to be the state Of
New Jersey has said You shall not e0-
ercise them so as to set at defiance any
statute lawfully enacted by the con
gresS of the United States or any stat
ute lawfully enacted by any state
wherein you see fit to exercise youA
powers.
The contention that whatever re-
straint upon interstate commerce there
may be is indirect and remote and
therefore not to be forbidden by con-
sress is not found 10 be well sustained
The contention that if the existing COM
bination is in violation of the antitrust
act then that act -unduly restrict the
rights of the individual to make con-
tracts and is invalid. Is declared to be
entitled to little consideration. The
court says:
"The provision of the constitution
does not, as we believe, exclude congress
from lez1slatlng with regard to con-
tracts of the above nature while in the
exercise of its constitutional right to
regulate commerce among the states
On the contrary we think the provision
regarding the liberty Of the citizen is
to some extent limited by the cOmnercs
clause of the constitution. and that the
power Of congress TO regulate interstate
commerce COMPROMISES the T1R1J TO en-
act q law prohibiting the citizen from
entering into these private contracts
which directly and substantially, and
not merely indirectly remotely, Incl
dentauy and collateraily. regulate to a
greater or less degree commerce among
the states
The further contentious that the anti
trust law was not intended for such
combinations as this that this com
7 bination had been cOnsummated before
the bill was filed and was in reality in
aid of commerce and not to restrain It
are held to be clearly untenable as to
the first point and that the second point
is a novel not to say absurd interpreta-
tion of the antitrust act, and as to the
last contention it is said to be possible
but not a matter for decision of the
( court
The decree is then entered. as alrea dy
given above Circuit Judges Caldwell.
Sanborn.' Thayer and Vandeventer
heard the case and all concurred in the
opinion which was written by Judge
Thayer and filed in the United States
circuit court of appeals in this city
The defendants are the Northern Sc
curites. the Northern Pacific railroad,
the Great Northern Pacific Railroad
companies, James J. Hill, William p.
Ciough, D. Willis James, John S. Ken
nedy j. p. Morgan, Robert Bacon, Geo.
F. Baker and Daniel Lamont
WILL BE APPEALED.
New York. April 9.-The case of the
Northern Securities company will be
( appealed.
CAUSES SLUMP IN STOCKS.
New York. April 9-In the outside
market Northern Securities. which had
sold uD to 106ss broke to 1O3 on receipt
of the news from St. Paul