The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1903-04-17
i. S. WINS Biz
MERCER CASE
Circuit Court Of Appeals for
Eighth Circuit Gives a
Sweeping Decision.
MUST DISSOLVE MERGER
At Is Held to Be in Violation of
the Sherman Anti Trust
Statute.
MUST DISSOLVE MERGER
CASE WILL BE APPEALED
Court Discusses the Federal Power to
Control Commerce, and Holds That
Powers Are Amply Broad to
Reach This Case.

o"SiS HTS NIlpIy DiSaO ~ .a
Reach This Case.
St. Paul, Mimi, April 1O.-The Unit.
Led States circuit court of appeals ha
handed down a decision in the suit OIL
the United States against the North
err Securities ny, enjoining The
company from voting the stock OF the
Northern Pacific or Great Northern
Railroad companies, but allowing the
return of such stock as had been de
.livered to that holding company. The
opinion is unanimous. r.
SUBSTANCE OF ORDER.
The substance of the order foIiows:
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
companies now held by the Securities
company was acquired in virtue OF a
combination among the defendants in
restraint of trade and commerce among
the several states, such as the anti
trust act d~enounces as illegal.
E%njoining the Securities company
from acquiring or attempting to ac-
quire further stock of either of said
companies.
CANNOT VOTE STOCKS.
Enjoining it from voting such stocks
at any meeting of stockholders of said
railroad companies, or exercising or
attempting to exercise any control, d.
r%ection, supervision or influence over
the acts of said company.
Enjoining the Northern Pacific and
Great Northern companies, respective
ly, from permitting such stock to be
rNSNfnl nv Tho GaN,prtffec ~>~. 49,
likewise enjoining them from paying
any dividends to the Securities COM
pany on account of said stock, or per-
hitting or suffering the Securities
company to exercise any cont OIL what
soever over the corporate acts of said
companies.
MAY RETURN SHARES.
Finally, permitting the Securities
to return and transfer to the
stockholders Of the Northern Pacific
nd Great Northern any and ali shares
of stock of those companies which it
may have received from such stock
holders in exchange for its own stock;
or to make such transfer and assign
iment to such persons as are now hold
ers and owners of it's own stock origin
ally issued in exchange for stock of
said company.
THE COURTS DISCUSSION.
The opinion declares that under the
admissions of defendants, the Securi-
ties company acquired control of the
Burlington, Northern Pacific and Great
Northern interests, parallel and com
peting lines, and holds that the scheme
thus consummated led inevitably to
the following result:
Control Of two interests in the hands
sof a single person.
Destroyed every motive for mpeti-
ton between those two roads ENGAGED
in interstate traffic, which are ~natura!
competitors for business, by pooling
the earnings Of the two roads for the
common benefit of stockholders of both
companies.
And, according to the familiar rule
that everyone is presumed to intend
what is the necessary of
his own act, we must conclude that
those who conceived and executed the
plan aforesaid intended among other
things to accomplish these objects.
MEANING OF TRUST"
The court discusses the meaning Of
the word "trust" in the antitrust act
and says congress was careful to de-
clare that a combination, if in restraint
of interstate trade or commerce, if it
%straint, should be deemed illegal. The
words ain restraint of commerce" do
not mean in unreasonable OF partial
restraint of trade; but any direct re.
.~straint thereof.
The court further says that any
agreement between competing roads
requiring them to act in concert in fix
ing rates for carriage of passengers or
freight over their respective lines from
one state to another is in direct re-
straint of within the mean
ing of the antitrust act.
POWER OF CONGRESS.
Congress has the power, the decision
says, under the constitution, to regu-
late commerce and to say that no con
tract or combination shall be legal
which restraints interstate commerce by
shutting off the operations of the gem
eral iaW>of competition.
The organization Of the Securities
company is held to accomplish an act
winch congress has denounced as lille
methods.
Concerning the New Jersey charter,
the court says the question to be de-
termined is whether a cha rter GRANTED
by a state a be used to defeat the
national legislature as expressed in a
law relating to Interstate trade, over
which congress has absolute control
After quoting New Jersey law, The
court says the aW mea MS that no BOW.
ers granted by a state shall be exer.
eised to set at defiance any Uniteo
States statutes. The contention tina,
= existing combination is in violation
of the ANTITRUST act, and that that aci
unduIy restricts the right Of the in.
dividuaI to make a contract, and is ia.
valid. is declared RI ba an&:AI.J a. IA