The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-12-15

both roads, the thing which your honors
have said constitutes such restraint under
circumstances substantially the same as
those Of this case.
The law likewise prohibits combina-
tons otherwise formed. That is to say
law distinctly and plainly provides that
its policy shall never be defeated by the
exercise of any ingenuity in the devising
Of forms. The object of the law once
clearly determined, all difficulty ceases
If 1t is established that the object is de-
feated thru contracts, combinations in the
form of trusts or otherwise OF by cou-
spiracies.
Mr.. Knox then discussed the end
accomplished by the merger of the
railroad interests, saying:
Destroys Competition.
The device resorted to in this case, if
sustained, defeats the policy of the law,
as it acconplshes all and more in, the way
of effectual destruction of competition
than was accomplished in the trans Mis-
souri, and Joint Traffic cases.
The one secures perma nent, absolute
control and power to administar every fea-
ture of management and op,, ;ltion of the
properties, while the others sSareS but tenn
porary arrangeme ntss which related to the
single feature of%rates, and depended for
] their duration upon the will of the par
ties. -e,A.<. ~!
| You may call it a merger, a combinat ton,
| a pool, a conspiracy, a consolidation, a.
contract, a securities company. or what
you like The thing it accomplishes is not
varied by, a, tvariaticn in name or manner
/ Of bringing it about.
!. Have Used Their Power.
Mr.. Knox then also declared that
the power to suppress competition has
| been exercised, and he1declared that
I MaSSTS MORGAN Hill h2H ~ Tho
power to suppress competition be-
| tween these two roads when they held
| the control of the majority of the stock
| of the two. He also asserted that they
actually suppressed and destroyed
competition between them the mo-
ment they parted with the legal title
| to their segregated holdings and
vested them in the Northern .Securi-
| ties company with the power in that
| company as it's charter specifies. to
exercise all the rights of ownership,
including the right to vote thereon
| Mr.. Knox then summed up his
points in support of his contentious
that as fact this merger is, COM
bination in the form of trust or
| otherwise.
Knox's Summing Up.
- Mr.. Knox summed up as follows:
THAT the end accomplished. is to
bring under one control the, North
ern Pacific and Great Northern rail-
roads in such a way as to destroy
competition between them and to
create a: monopoly of transportation
in the section served by them.
.'That this end was the deliberate
purpose of the parties defendant, who
conceived and carried out the COM
bination.
'That such combination is in re-
straint of trade, as your honors have
repeatedly decided, and therefore .vio-
lates the act of congress.
ITO all of. this" he added, defend.
ants make vigorous objection, much
Of which. isfwholly Irrelevant L, shall
not deny the fact Of a tendency, to
combination turnout the land, nor
discuss it's economic value.
/ IT presume that fact accounts for
the existence of laws designed; to reg
ulate the tendency along the lines of
it's manifestation where necessary to
protect the rights and interests of
the people.
Merger Has No Merit.
IT have not the slightest doubt,
however, that this particular mani.
festation of that tendency has no eco
nomic merit. 1t is bad enough to
bring the entire railroad facilities in
an important section of the country
!. under monopolistic control, but when
to the power to fix charges for trans
portation you add the creation OF
scores Of millions of fiat stock upon
which those charges are expected to
pay dividends, you, impose an unjusti-
fable burden upon the people and ex-
act too high a price for a successful
evasion of thetlaw.
while it may be true that the re-
capitalization of these companies was
based upon existing market values
for their stock. yet existing market
values rested at that time upon total
forgetfulness of the fact that the
progress of material prosperity. is not
continuous and that those values were
| lifted upon the wings of an optimism
that had converted into stock and
stock values al 1.-The prosperity in
sight, as we'll as all hopes and expec-
tations of many. future years.
Men Lost Their Heads.
This thing was done when nler
who have been regarded as wise mer
: and safe men. lost their hold upor
! their Judgment and failed to, with
z stand the temptation to gather fol
their instant personal advantage the
fruits which, conserved. would have
: lasted many years and benefited NAM
people"
, Mr.. Knox continued. -
Nowhere does. it appear by sug.
, gestion, even, that the purpose of or.
ganizing the Northern Securities com.
!, pany was other than to secure the con.
troll of these two roads
) The attorney general next discussed
the alleged invasion of safe rights.
| The States. Rights
Il "Of course" he said, "a state la,
;