The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-12-16

them in the Northern Securities Com
pany. This, he contended, actually
destroyed competition between the two
roads, and in support of this statement
he laid down the following general
propositions:
ITO be competition there must be
competitors in different interests.
ANY act which eliminates the COM
petitors or unifies the interests de-
stroys competition.
There is no competition where the
net results of operation go into a COM
mon purse.
'.There may be rivalry between the
different departments or agencies as
to which will contribute the most to
the common fund or as to which Is
the most economically administered o.
operated, but so long as all are inter
ested in the operations of each py
sharing a fixed proportion OF a COM
mon fund unaffected by the proper
ton contributed by each, there is no
competition
How He Summed Up.
Mr.. Knox then summed up his points
in support of his contentious, that as
a. fact this merger is combination IN
the form of trust or otherwise, as fol-
lows: . l.
THAT the end it accomplishes is to
bring under one control the Northern
Pacific and Great Northern Railroads
in such a way as to destroy compe-
tition between them and to create
rnonopoly of transportation in the sec
ton served by them.
THAT this end was the dellperale
purpose OF the parties defendant, VINO
conceived and carried out the combl-
nation.
THAT such a combination is IN re-
straint of trade, as your honorS nave
repeatedly decided, and therefore, vlo-
lates the act of Congress.
ut is bad enough to bring the entire
railroad facilities of an important sec
ton of the country under monopollstlc
control but when to the power 10 nX
charges for transportation you add the
creation of scores of millions OF nat
stock. upon which those charges are eX-
pected to pay dividends, you impose an
unjustifable burden upon the people
and exact too high price for a sue
cessful evasion of the law"
In conclusion the Attorney General
said:
LAS 1 said in opening this argument
specifically this suit was Instituted to
determine whether this device which
defendants employed to restrain inter
state commerce, by monopolizing the
business of transportation, will prevail
against a law making all devices to
that end illegal 1t is this particular
device that is before the court and no
other.
Dangers 1t Offers.
"The possibilities of a securities hold
ing company of this kind, as finan-
cial machine for manipulating railroad
and other properties and concentrat-
ing their control in the hands of a
powerful clique are. however, legiti-
mate considerations, and l am safe IN
saying they are simply enormous. 1t
has again and again been pointed out,
since the organization of the Northern
Securities Company that, in its simplest
form It is possible for a group of men,
by Incorporate ting themselves as a Sc
curities holding company, to control
two railroad companies upon the hold
ing of half the amount of stock that
would be required in the hands of in
dividuals.
ITO prevent such a dangerous con-
centration OF power, dangerous to COM
merce. and q menace to our freedom,
the people have done all that it is pos
sible for them to do under our sys-
tenn of government. They have legis-
lated against it. II this law can be
construed so as not to cover the sit
nation. or If the court says yea to the
proposition affirmed in the last para
graph of Mr.. Morgan's answer, name
", Congress has no power to prevent
such combinations, then indeed the
governments grave concern as to this
litigation may be easily understood"
A Question of Property.
Mr.. Knox was Immediately followed
by George B. Young on behalf of the
securities company. He began his ar
gument by saying that his clients do
not seek to in any way limit the au-
thority of Congress over Interstate
commerce, nor was the securities COM
pany seeking to in any was evade the
law. But IL was not he said, necessary
10 stretch a law covering interstate
commerce to make It cover something
that is not interstate commerce.
I'VE are not dealing here with COM
merce or the operations OF railroads at
ALL" he said. but we are dealing with
the question OF property"
Mr.. Young contended that the trans
fer OF the stock OF the railroad COM
panies 70 the securities company had
been entirely free from the features
which had operated 10 throw discredit /
upon the formation Of trusts. There |
was no million-dollar commission nor
any other incident OF the usual char