The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1903-04-16
BLOW DEALT TRUST
Gigantic Railroad Merger is
Declared to be illegal.
GOVERNMENT WINS CASE
Northern Securities Company ls En-
Joined from Voting the Stock -
Of Northern Pacific and "a
Vlce.Versa.

The position of the United States
government in the suit brought
against the Northern Securities Com
pany, the Northern Pacific, the Great
Northern railways. and individual OH
cials and directors OF those companies,
was sustained in the decision handed
down In the United States circuit court
Of appeals in st. Paul, Minn., Thuras
day.
The case was originally brought 10
the United States district court In the
same city, but under special act Of
congress was taken at once to the
court Of appeals, which court was 70
expedite the hearing and decision ce
the case in every manner possible.
The taking of testimony in St Paul
and in New York lasted for several
weeks and the arguments in st. Louis
before Circuit Judges Caldwell, San
born, Thayer and Van Deventer took
several days. The decision Of thu
court was written by Judge Thayerss
and was filed in st. Paul, where the
original action was instituted. An ap-
peal to the United States supreme
court will be taken Immediately. All
four judges concurred In the concin.
sions Of the court. which were stated
by Circuit Judge Thayer.
The court holds that "the scheme
which was devised and consummated.
led inevitably to the following results:
81. It placed the control Of the two
roads in the hands Of single person,
to-wit, the Securities company, by yir.
tue Of its ownership Of a large major.
ity Of the stock Of both companies.
2. 1t destroyed every motive for com
petition between two roads engaged
in Interstate traffic, which were natur.;
al competitors for business, by pooling
the earnings Of the two roads for tha
common benefit of the stockholders cf
both companies; and, according to the
familiar rule, that every one Is pre-
sumed to intend what Is the necessary:
consequence Of his own acts, when
done wilfully and deliberately. We,
must conclude that those who coneeiy.
ed and executed the plan aforesaid, In
tended, among other things, to accom-
plish these objects"
DIspIeases Magpate Morgan.
According to a New York SPECIAL.
J. Pierpont Morgan is credited with
the following expressions in regard to
the decision:
Until l see the full text Of the de-
cision I should not care to express an.
opinion on 1t. This much is certain.
however, It will not rest where 1t is. #
"The question Of the right Of two Or
more railroads to be operated by a;
holding company will be taken to the
United States supreme court at Wash.
hgton. Instead Of looking upon the:
decision of the court today as blow
10 railroad enterprise, should say
that the reverse is the vase. Capital
Ill over the country is anxious to know
It's rights in the matter Of railroad con.
Itruction and operation. Railroai
hen want to know where they stand.
'"The decision today is just one step
closer to a decision from the United
States supreme court, which will be
final, for even If the Northern Securi-s
ties had won today, the governments
attorney would probably have ap
pealed.
"The question was Of such impor.
tance that an appeal was assured. no
matter who won. These facts are plain.
Both railroads held by the Northern
Securities Company still exist and are.
doing a good business.
when railroad men know exactly
how the law is to be interpreted, they
will probably find good way to see thai
properties are operated economically
and proftably."