Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-04-10
.UNITEDSTATES WINS
The Celebrated Suit Against
Northern Securities Co.
Latter Enjoined from Voting Northern
Pacific or Great Northern Stock.
But Decree Allows Return Of Stock to
Former Holders.

st. Paul, Mimi, April 9.-The United
States circuit court of appeals, today
handed down a decision in the suit of
the United States against the Northern
Securitys Co., enjoining the company
from voting the stock of the Northern
Pacific or Great Northern Railway Cos,
but allowing the return of such stock as
had been delivered to the holding com
pany. The opinion was unanimous and
was written by Judge Thayer. The
substance of the order is in the decree,
which is as follows:
A decree in favor of the United
States will accordingly be entered to
the following effect: Adjudging that
the stock of the Northern Pacific and
Great Northern Railroad Cos. now held
by the Securities Co., was acquired in
virtue of combination among the de-
PENDANTS in restraint of trade and COM
merce among the several states such as
the anti trust act denounces as illegal;
enjoining the Securities Co. from ac-
curing or attempting to acquire fur
Their stock of either of said companies;
also enjoining it from voting such stock
at any meeting of the stockholders of
either of the railroad companies or ex-
ercising or attempting to exercise any
control, direction or supervision or in
fiuence over the acts of said compan-
les, or either of them, by virtue of its
holding such stock; enjoining the
Northern Pacific and Great Northern
Cos. respectively, their officers, direc-
tors and agents from permitting such
stock to be voted by the Northern Sc
c11ritilS IF rants at
torneys on it's behalf at any corporate
election for directors or officers of
either of said companies and likewise
enjoining them from paying any divi-
dends to the Securities Co. on account
of said stock or permitting or suffer-
ing the Securities CO. to exercise any
control whatsoever over the corporate
acts of said companies or to direct the
policy of either; and, finally, permit
ting the Securities Co. to return or
transfer this stock to the stockholders
of the Northern Pacific and Great
Northern Cos, any and all shares of
stock of those companies which it may
have received from such stockholders
in exchange for it's own stock, or to
make such transfer and assignment to
such person or persons as are now the
holders and owners of it's own stock
originally 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 I'M
der the act of Feb. II, 1908, this case,
being of general public Importance
mas been given precedence over others
and in every way expedited. 1t is de-
clared that under the admissions of the
defendants the matters OF fact are that
the roads We're parallel and competing
lines, that they had jointly secured
control of the Burlington line that in
1901 a holding company had been
formed by large owners of the stock of
the Northern Pacific and Great North
ern Railroads by which new company,
large stock interests had been acquired
at an agreed price"
The court holds that "the scheme
which was thus devised and consum-
mated led inevitably to the following
results.
First, it placed the control of the two
roads in the hands of a single person,
to wit, the Securities Co., by virtue of
it's ownership of large majority of the
stock of both companies; second it de-
stroyed every motive for competition
between two roads engaged in inter-
state traffic which were natural COM
petitors for business, by pooling the
earnings of the two roads for the COM
mon benefit of the stockholders of both
companies and, according to the
familiar rule that every one is presum-
ed to intend what is the necessary con-
sequences of his own acts, when done
wilfully and deliberately, we must
conclude that those who conceived and
executed the plan aforesaid intended,
among other things to accept these
objects"
A formal decree was filed later in
accordance with the decision as hand
ed down by Judge by Judge Thayer.