The Irish standard., 1903-12-19
MERGER CASE TAKEN UP.
Hearing Is Begun Before United
States Supreme Court-Brief
of Government.

Washington, Dec. Is. Immediately
after disposing of its routine business
the supreme court of the United States
Monday began hearing arguments in
the case of the Northern Securities COM
pany, James ]. Hill, ]. Pierpont Morgan,
Daniel S. Lamont and others, vs.. the
United States, coming to this court on
appeal from the decision of the circuit
court for the district of Minnesota.
The hearing began at 20 o'clock and
John G. johnson, representing the
Northern Securities company, made the
first argument. He announced that
three railroads and the Securities COM
pany would desire to be heard by their
counsel, while it was stated in behalf of
the government that only the attorney
general would speak.
After stating the case Mr.. johnson said
that the purpose Of the Securities COM
pany in acquiring the stock of the rail-
road company had been, not to prevent
competition, but to prevent the injury of
its own property.
The brief of the government in the
case was filed. The document was pre-
pared by Attorney General Knox and
Assistant Attorney General Day and
covers 100 printed pages.
First-The lines of railway operated
by the defendants, the Great Northern
Railway company and Northern Pacific
Railway company, are parallel and COM
peting.
Second-That the combination is in
restraint of interstate commerce and
monopoly.
The concluding paragraph of Judge
Thayers opinion in the circuit court is
quoted, as summing up the argument
bearing upon the facts of the case.
Washington, Dec. 16.-The argument
! in the Northern Securities case was re-
sumed in the United States supreme
court Tuesday, and again the courtroom
was crowded by attorneys and others
interested in the case. Attorney Cen
eral Knox was recognized almost i'm
mediately after the court came in, and
resumed his argument at the point at
which he left off when court adjourned
Monday. He declared that by the, union
of the Northern Pacific and Great
Northern Securities company two COM
petlng interstate railroads have been
brought into such relations that their
independence as competitive factors in
interstate commerce is destroyed.
The thing that has been done was
declared illegal, he said, when brought
about by the methods pursued in the
joint traffic and trans-Missouri cases.
These were cases of contracts or agree
ments between Independent and COM
peting lines OF railroad for the regu-
lation of tariff charges. The govern
ment charges that these agreements re-
strained interstate commerce, and this
court sustained that contention.
The attorney general said that it was
not his intention to reargue any of the
proposition settled by the transit Mis-
souri, and joint traffic cases, but to do
what he could to show their application
to the facts in this case. He, however,
made the following statement of the
great questions settled by the court in
those cases:
"First-That to shut out the opera
ton of the general law of competition
between competing interstate railroads
is to restrain interstate commerce.
"Second-That to bring the opera
lions of two or more competing inter-
state railroads under the control of a
single body shuts out the operation of
the general law of competition and con-
stitutes a restraint upon interstate COM
merce.
"Third-That congress is competent
to forbid any agreement or combination
among companies competing for inter-
state commerce which restraints COM
merce among the states by shutting out
/ the operation of the general law of
T! competition.
I "Fourth.-That in order to maintain
q suit the government is not obliged
to show an intent to restrain commerce
If such restraint is the natural and
necessary effect Of the arrangement"
Mfr. Knox closed at 1:A0 p. nj. and
was! Hmediately followed by George
B. Young on behalf Of the Securities
company.
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