The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1903-04-15
4 HIT AT TRUSTS.
United States Court Declares Seeuri-
ties Companies Illegal.
THE FOUR JUDGES UNANIMOUS.
and Strikes Out from the
Shoulder. Was Written
by yJudge Thayer.
by Judge Thayer.

Shoulder. Was Written
by Judge Thayer.
The position Of the United States
government in the suit brought
against the Northern Securities COM
pany. the Northern Pacific and Great
Northern railraws and individual Of
fcials and directors Of those compa-
nies, was sustained in the decision
handed down in the United States cir
cult court Of appeals at St. Pauls,
Mimi, Thursday. The case was
originally brought in the United
States court, but under special act
Of congress was taken at once to the
court of appeals, which court was to
expedite the hearing and decision Of
the case in every manner possible.
The taking of testimony in St. Pauls
and New York lasted for several weeks
and the arguments in ST. Louis be-
fore Circuit Judge Caldwell, Sanborn,
Thayer and Vandeventer took several
days. The decision Of the court was
written by Judge Thayer and was
filed in ST. PaulS, where the original
action was instituted. An appeal to
the United States supreme court will
be taken Immediately. All four
judges concurred in the conclusions Of
the court, which were stated by Cir
cult Judge Thayer.
Judge Thayer, in the opinion, recites
the petition which was brought under
the antitrust act Of 1890 and adds
that under the act of Feb. II, 1908,
this case. being of general public i'm
portance," has been given precedence
over others, and in every way expedit-
ed 1t is declared that from the ad
missions of the pleadings the matters
of fact are that the roads were par
allel and competing lines and that they
had jointly secured control Of the Bur-
lington line, that in 1901 a holding
company had been formed by large
owners Of the stock of the Northern
Pacific and Great Northern railways,
by which new company large'stock in
terests and been acquired at an agreed
price, and the court holds that the
scheme which was thus devised and
consumated led inevitably to the fol-
lowing results:
The following from The State will
show the far reaching results Of the
decision: The Northern Pacific and
Great Northern railways traverse
several States on parallel lines and
were direct and active competitors for
the immense business in their terri
tories. From time to time there were
rate wars, and always the country
trayerSed had the benefit Of competi-
tion. An effort was finally made by
the dominant interest Of one system
to obtain control. of the other. The
illegality Of such combination was too
flagrant to stand even the dim light
cast on such transactions by the gov
ernment at that time. 1t was then
that the genius of J. Pierpont Nor
gan was called into play as trust
organizer. With the consent Of the
stockholders of both roads Morgan
planned to defeat the spirit Of the
law, combine the two systems and
kill competition in that territory
through the medium Of the Northern
Securities company.
TO circumvent the law against one
competing road acquiring and operat-
ing a rival, the Securities company
was organized in New Jersey to oper-
ate both the Great Northern and
Northern Pacific railways for the
mutual benefit Of the stockholders OF
those roads. The stockholders Of the
railroads surrendered their holdings to
the Securities company and were is
sued stock Of that company. The
two roads were worked as if belonging
to one system and competition in rates
ceased. The earnings Of both went
into the same strongbox from which
stockholders Of each, standing on the
same footing, were paid. South Car
olina has a law prohibiting the con-
solidation of competing railroads. II
the Morgan scheme was legal, it would
then be practicable for stockholder OF
the two lines between Columbia and
Charleston (Supposing them to be in
dependent systems) to surrender their
stock to an Individual or company,
giving the holder authority to oper-
ate both roads as one system for the
mutual interest Of owners Of the two
lines.
The boldness Of the undertaking and
the seeming security of the promoters
in perpetrating this injustice on the
public are astonishing. The rights
OF the people who granted the chart
ers which permitted the railroads are
ignored, their purpose thwarted, the
com petition they desired smothered.
Morgan says an appeal will be taken
tc the United States supreme court
but he can hope for nothing from
that tribunal. The court of appeals
administers hard rap to the State OF
New Jersey, the breeding ground 1or
corrupt corporations, but it mlgnt
have been more severe. That her
citizens may escape taxation, Uhe
good name of the commonwealth IS on
the market-for sale to any who have
the price.
The Old Story
4 dispatch from Manila says Captain