Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-11
COMPETITION UPH[[D
Courts Decision in Northern Sc
curities and Lottery Cases,
of Vast Importance
FEDERAL ACTIVITY WlDENED
Decision Holds That Mere Ownership
of Stock in interstate Railroad Brings
Owner Under PIenary Powers of Fed
eraI Government-People Must De-
termine Extent of Consultations.

Philadelphia, April Thames NJ.
Beck, assistant attorney general, who
argued the Northern Securities case,
and the recently decided lottery cases
for the government. when questioned
yesterday as to the scope of the decis
ion in the former case said:
"Disclaiming any purpose to express
any opinion but my own. the clear and
exhaustive opinion of Judge Thayer
seems to me to be leaving nothing to
be desired in the matter of full eX-
position of the federal law applica-
BILE to the consolidation of competing
interstate carriers. All interests should
welcome such result for it seems to
me of first Importance that the exact
meaning of existing statutory law
should be definitely ascertained. When
so ascertained the question of the wis
dom of the statutes can be fairly de-
bated in the greater court of public
opinion. The decision of the circuit
court accomplishes this purpose. 1t
destroys the last legal devise for the
suppression of competition, and shifts
the whole question from the courts to
the people, and leaves for their con-
sideration ard ultimate decision the
question whether railway consolidation
under proper regulation is desirable,
or whether it should be altogether pro-
hibited. The wild suggestion THAI this
decision is revolutionary and will dis
rupt the American railway system is
absurd 1t simply reaftirms existing
principles and has no application what
ever to legitimate extensions of rail-
way Ines, but solely applies to the
suppression of competition by railway
consolidation.
"rhe decision is also of first impor-
lance in holding that the mere owner
ship of stock in an interstate railroad
brings the owner in such direct relation
with interstate commerce as to subject
him to the plenary powers of the fed
eral government with respect thereto.
Perhaps this holding give sthe decision
it's greater Importance. The defend
ants attorneys contend that the mere
acquisition of such shares had either
no direct relation to the interstate
commerce or that, in any event, such
relation was indirect, collateral and re-
mote. They sought TO establish an I'M
sound distinction between ownership OF
a road and its operation. This view
The court negatives and holds that the
purchase of shares of stocks in an in
terstate railway subjects the purchaser
to the constitutional power of the fed
eral government The Importance of
this holding coming as it does upon the
heels of the lottery cases cannot we'll
be oyerestimated. 1t greatly widens
the scope of federal activity. The con-
stitution remains unchanged but the
sphere of human action, to which 1t is
applied is by means of wholly exterior
forces, greatly widened.
when the constitution was framed
the only media of interstate communi-
cation was the coastwise sailing yes
sells and the occasional stage coach ]
which crossed state lines, but steam
and electricity have indissolubly bound
the states together by lines of steel, ag-
gresating in the matter of railroads
alone 100000 miles in length, and this
has produced centripetal action which /
has inevitably increased the sphere and
scope of federal activity. In this as
pect the lottery cases and the case just |
decided easily mark a new and most I
important epoch in the life of the ma
ton. The lottery cases which sus-
tanned the power of congress to pro-
hibit interstate traffic when prejudicial
TO the public welfare, and the Northern !
Securities case, which subjects not only
the immediate operation of every in
terstate road, but its very ownership
.hru stock shares to federal power, are
simply inevitable results of this centri-
petal force. The decision makes it
LOUDLY necessary to determine as a
natter of public policy the exact and
proper relation between the railways l.