The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-04-12
THE MERGER CASE AND CON-
GRESS

|
! Will there be an effort made to have
Congress modify the Sherman anti
| trust law? There seems to be an i'm
preston that there will. In an inter-
view, which we published yesterday,
James NJ. Beck, who argued the North
| ern Securities case for the government.
in speaking of the decision in that case,
said: THE responsibility must now
rest with the American people to de-
termine as a legislative and not as
| judicial question, how and under what
conditions the public interest may. if
at all, justify such railway consolida-
lions as are in restraint of competi-
ton"
This means. of course, that in Mr..
Beck's opinion the Supreme Court will
uphold the decision that has been rem
dered, and that an effort will be made
to have Congress so change the anti
trust law as to permit railroad CONSOLE
dations under certain conditions. 1t is
evident that il the question of modify
ing the law were to be brought into
Congress it would be productive of one
of the most notable debates that ever
occurred in that body. In the present
condition of public sentiment in re-
spect to trusts senators and representa-
tives might hesitate to take sides
against the law. but owing to the
vastness of the property interests in
volved advocates of a modification of
the law would not be wanting in either
house of Congress.
In his comments upon the merger
case before the decision was rendered
ex-Attorney General Griggs, who is one
of the lawyers for the Northern Sc
curities Company, said that a decision
against the company would "taint with
illegality unnumbered millions of
stocks and bonds issued upon railroad
mergers and consultations" Undoubt-
eddy the amount of stocks and bonds
which have been issued upon CONSOLE
dated and merged railroads since the
antitrust law was passed is very great.
1t has been nineteen years since the
enactment of that law, and during all
that time the merging and consolidat-
ing of railroads have been going on.
1t can be readily seen, therefore, that
if the Supreme Court should affirm the
decision, and it should be decided to
ask Congress to modify the antitrust
law, there would in all probability be
a struggle that wouldn't be confined
to Congress.
Naturally the Northern Securities
Company is hopeful that the Supreme
Court will reverse the decision rem
dered by the Circuit Court of Appeals.
1t is pointed out that the judges of
that court are all residents of a section
of country where the feeling against
trusts is intense and that naturally
they would be affected by it. 1t may
be that they were influenced by their
surroundings, but the decision is so in
harmony with the letter and spirit of
the law that there does not seem to
be much reason to think it will be re-
versed.
The decision, IT must be borne in
mind, affects not only those roads
which were merged or consolidated be-
cause they were competitors, but also
all roads which have acquired a domi-
mating influence in other roads to pre-
vent competition. even though the COM
petition is at only few points. In other
words, it lis applicable to all CONSOLE
dations of interstate competition made
since the antitrust law was enacted"
AS already stated an inference
from Mr.. Becks' Interview is
that he believes an effort will be
made to have Congress come TO the
relief of the railroads. 1t will be re-
called that the railroads asked Con-
gress a number of years ago to permit
them to pool their earnings, so as to
enable them to avoid ruinous competi-
ton, and that their request was re-
fused. Mergers and consultations fol-
lowed the refusal, and now that these
mergers and consultations have been
declared illegal it would not be sur
prising if another appeal to Congress
for relief were made.