The Providence news. (Providence [R.I.]) 1891-1906, 1903-04-10

st. Paul, MIMI, Aprn 1O.-Ine United
States circuit court OF appeals yesterday
handed down q decision In the suit of the
United States against the Northern Sc
curities company enjoining the company
from voting the stock Of the Northern
Pacific or Great Northern Railway com
panies, but allowing the return OF such
stock as had been delivered to the holding
company. The opinion was unanimous
and was written by Judge Thayer. The
substance OF the order is In the decree.
which is as follows:
THE DECISION.
"A decree In favor OF the United States
will accordingly be entered TO the follow
ing effect: Adjudging that the stock OF
the Northern Pacific and Great Northern
Railway companies now held by the secu-
rites company was acquired In virtue OF
a combination among the defendants In
restraint of trade and commerce among
the several states, such az the antitrust
act denounces as illegal:
''Enjonlng the securities company from
acquiring or attempting TO acquire further
stock OF either OF said companies: also en-
Joining It from voting such stock at any
meeting OF the stockholders of either OF
the railroad companies or exercising or
attempting TO exercise any control, direc-
tion or supervision OF influence over the
acts OF said companies, or either of them.
by virtue OF It's holding such stock:
"Enjoining the Northern Pacific and
Great Northern companies. respectively.
their officers, directors and agents, from
permitting such stock TO be voted by the
Northern Securities company or any of Its
agents or attorneys on its behalf at any
corporate election for directors or officers
of either OF said companies. and likewise
enjoining them from paying any dividends
-t.tn nf
said stock or permitting or suffering the
securities company TO exercise any control
Whatsoever over the coporate acts OF said
companies or TO direct the policy OF
either;
RETURN STOCK.
And finally. permitting the securities
company to return or transfer TO the
stockholders OF the Northern Pacific and
Great Northern companies any and all
shares of stock OF those companies which
IL may have received from such stock
holders in exchange for Its own stock, or
20 make such transfer and assignment 10
such person or persons as are now the
holders and owners OF It's own stock
originally g. "a In exchange for the stock
Circuit Thayer stated the con-
clusions OF ... court. He recites the petit
tion which was brought under the Anti
Trust act OF 1890 and adds that under the
act OF Feb. II. 1903. this case, being or
general public Importance" has beer
given precedence over others and In every
way expedited.
IL Is declared that under the admissions
of the defendants the matters or fact are
that the roads were parallel and compet-
ing lines; that they had jointly secured
control OF the Burlington line; that In
1901 n holding company had been formed
by large owners OF the stock or the
Northern Pacific and Great Northern
railways, by which nav company large
stock interests had been acquired at an
= agreed price.
The court holds that "the scheme which
was thus devised and consummated led
inevitably to the following results:
b. DESTROYED COMPETITION.
First, II placed the control OF the two
roads I'm the hands OF a single person, 10
wit. the securities company. by virtue OF
Its ownership OF a large majority or the
stock OF both companies; second, IL de-
stroyed every motive for competition be-
tween two roads engaged In Interstate
traffic which were natural competitors
for business by pooling the earnings OF
the two roads for the common benefit OF
the stockholders OF both companies and.
nccording 20 the familiar rule that every
one is presumed TO intend what is the ne
cessary consequence OF his own acts.
when done wllruily ana uenoerhteiy, W.
must conclude that those who conceived
and executed the plan aforesaid intended,
among other things. TO accomplish these
objects"
On the point whether the present case
comes within the inhibition OF the Anti
Trust act, The court discusses the mean
ing Of the word trust as used In the
nct. and adds that congress was careful
TO declare that q combination in any OH
er form, II In restraint OF Interstate trade
or commerce. that Is. II II directly ooce.
stoned or effected such restraint, should
likewise be deemed Illegal.
Moreover. IN cases arising under the
act Il has been held by the highest Judi.
cial authority In the nation and its opin