New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-16
1RGUMENTS IN DETAIL.
Com biHatiOp Not a Trust. Declares
Mr. Young for the Defence.

Washington Dec. 15--Attorney General Knox --s
recognized almost Immediately after the came
in and resumed his argument at the point which
he left or when court adjourned yesterday. T5e
declared that by the union OF the Northern Pacidc
and the Great Northern in the Northern Securities
Company two competing interstate railroads hal
been brought into such relations that their indie
pendence as competitive factors in interstate com
merce was destroyed.
The thing that had been done was declared IL
legal, he said, when brought about hSr the methods
pursued in the joint traffic and trans Missouri
cases These were eases of contracts or agree
ments between independent and competing lines
OF railroad for the regulation of traffic charges
The government charged that these agreements
restrained interstate commerce. and the SuDrems
Court sustained that contention.
The court heard the cases patiently" Mr. Knox
said. "and the arguments thrice presented BY the
railroads failed to disturb the courts conclusions
that the contracts agreements in question vio-
lated the law The exigencies OF the cases rem
dered necessary a complete Interpretation Of the
statute. The power of Congress to enact the law.
the application OF the law to common carriers and
specifically it's application to contracts OF agree
ments regulating rates were all denied Dark
forebOdings Of resultant commercial disaster should
the governments contention prevail. were soIennIy
and forcefuly impressed upon the court by gentle
men of eminent personal and professional stand
ing. These considerations invited and secured pa
tient and full consideration OF the cases and ex-
haustive analysis and Interpretation OF the statute
IN the judgment
After making it perfectly clear that the court
be dissuaded from giving effect by it's
Judgment to public policy declared by a consftlI-
tiOnaI statute the court stated what that publi,
policy is and wherein it was infriused by the
challenged agreements" This exposition OF the
law is. Mr.. Knox said. the governments re-
Hance as he added, 1T should have been the
defendants admOnitOn." He proceeded:
The courts decision in the trans-Mlssouri case
abundant prosperity. undisturbed until new de-
vices were put into operation 70 accomplish again
wise policy of the law IL Is not the observance
or JiStreSs n il VIifII vnI.+i S CLsateS pSnies
sale provisions or defiance of the laws OF economic
GREAT QUESTIONS SETTLED
The Attorney General said it was not his IN
tenton to rearsue any OF the propositions settled
by the trans-AIssouri and Joint tranc cases but
to do what he could to show their application to
the facts OF this case He, however. made the fol
lowing statement OF the great questions settled
by the court in those cases
Frst-That to shut out the operation Of the r.asr.I
ro%ds S% % 4 eS%PsTS@ between ecmDeE ntestas ~
secOnd-That bring the Operations Of tive or more
sSmPeras interstate railroads under the control q
Of somPettion and constitutes restraint upon inter
Third-That Congress Is eompetent TO forbid any
for interstate commsrcs which TeStrsns eom9seTe
among the states by shutting out the operation Of the
F0uEth-That ln order to maintain the gov
commerce. restraint the natural aud aerex-
saTy effect of the arrangement
Mr.. Knox then continued:
The language OF the law is combination IN ths
form or trust otherwise IS. combinations
I'm any other form. Combinations I'm the form or
trusts were well understood The time Of the en-
aCtment OF this kaW. They invariably formed
BY transferring the stocks property OF CON
stituent units to a holding trustee whose Will was
thus dOminantly eHthTOned over the whole aud
a gatnst the stocks or property transferred the
holding issued certificates the transfer
rors representing their respective prOpOFt Ions o.
the whole This form Of combination was evQIvs.I
from the experience that a ~genJlamen's agree
ment 20 control competition works better whe..
the collateral Is up
Any combination that has these features Il A
combination In the form of trust and IS sDecia-
caIy invalidated by the statute.
The testimony shows cOnclusiVeiy i think thar
as a matter OF fact and law the thing which these
gentlemen did was 10 create combination I'm ~.
form OF trust. the form specifically prohiblted 81
the act Of Congress- II IL restrained Interstate com
merce and also that the Northern Securities COM
pany formed for the purpose OF taking over ths
control OF the Great Northern and Northern Paein.
railroads and actually took that control ar,l
with that control. absolute power over both rOadr
the thing which your hOnOrs have said conStituf,s
the same those OF this case.
But the law likewise prohibits combinations ofhe~-
wise formed That Is 20 say the law distinctly aod
plainly provides that IT'S 2clcy shall never be