The free lance. (Fredericksburg, Va.) 1885-1926, 1903-04-14

Combin@ton OF Northern Pacific and
Great Northern Roads Declared H.
legal and Securities Company Re-
strained From Voting Stock.
St. Paul April 3D. -. The United
States Circuit Comt of Appeals has
handed down a decision in the suit
oi the Uuitod States against the North
cru Securities Company enjoining the
company nom voting the stock of the
Northern Pacific OF Great Northern
Railway Companies. but allowing the
return of such stock as had been de-
lvered 10 that holding company.
The opinion was unanimous. all the
four Judges cOncurIing. but the opin-
ion was written 10y Judge Thayer. The
substance OF the order is in the de
cree which is as follows.
"A decree in favor of the United
States viii accordingly be entered to
the following effect. Adjudging that
the stock OF the Northern Pacific and
Great Northern. now held by the Sc
curitics Company was acquired in
view of a combination among the de
PENDANTS. i'm restraint OF trade and
commerce among the several states
such as the antitrust act denounces
as Illegal
"Enjoiniug the Securities Company
from acquiring or attempting 90 &C
quire further stock of either OF said
companies. also enjoinins it from vot-
ing such stock at any meeting of the
stockholders OF either OF said railroad
companies. or exercising or attempting
TO exercise any control direction or
supervision or INFLUENCE over the acts
of said companies. or either of them.
by virtue ot its holding such stock.
"Euioininy the Northern Pacific and
Great Northern Companies. respective
iy. 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.
"Enioining them from paying any
dividends Co the Securities Companion
account OF said stock or permitting
or suffering tbs Securities Company
TO exercise any control whatsoever
over tho corporate act of said compa-
mics or 20 direct the policy of either.
and. finally. permitting the Securities
Company 10 return and transfer this
stock 10 the Stockholders of the North
crn Pacific and Great Northern Com
panies. any and an shares OF stock
of those companies which il may have
received from such stockholders in
exchange for its own stock or TO make
such transfer and assignment TO such
person OF persons as arc now the hold
ers and owners of its own stock origi-
nally issued in exchange for the stock
OF said companies"
Circuit Judge Thayer stated the con-
illusions of the court. He recites the
petition which was brought under the
antitrust act of 1890. and adds that
>under the act OF February II. 1908. this
case. being OF general public import
ance. has been given precedence over
others and in every way expedited.
II is declared that under the admis-
sions ol the defendants the matters of
fact are that the roads were parallel
and competing lines. that they had
Jointly secured control of the Burling-
ton line. that in 1901 holding COM
pany had been formed by large own
ere OF tho stock OF the Northern Pa
cific and Great Northern Railways. by
which the new company's large, stock
interests has been acquired at an
agreed price. ana the court holds that
the scheme which was thus devised
and consummated led inevitably to
the following results:
First. il placed the control of the
two railroads in the hands of single
person. To wit the Securities Company.
by virtue OF its ownership of a large
majority of the stock of both compa-
MES: second it destroyed every mo-
tive for competition between two roads
engaged in interstate traffic which
were natural competitors for business
1 by pooling the earnings OF the two
roads for the common benefit. OF the
/ stockholders of both companies"