The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-04-11
NORTHERN SECURITIES CASE.

THE MOST IMPORTANT opinion
handed down by a lesser United
States court in years is the decision
Of the circuit court Of appeals IN the
Northern Securities company case. In
effect the court orders the dissolution
Of the company because che purpose for
which it was created is Illegal The
opinion as interesting throughout. eX-
planning. as it does many points that
have long been I'm dispute.
The most vital Of all the points, how
ever. is the decision that no Constitu-
uonal amendment is necessary TO give
congress the power to regulate the
trusts. The court says specifically that
under the constitution as it stands to-
day, congress has the power TO say
that no contract or combination shall
be legal which is I'm restraint Of inter
state trade or the natural workings Of
the law Of competition. This Is the
contention set up by the Democrats In
congress and, although the Republican
members. Republican stump speakers
and the opposition generally, derided It,
the courts have approved the Demo
cratic position.
The case of the Northern Securities
company was an ideal one for the test
from the standpoint Of the government
The issue could not have been more
. sharply drawn. In the northwest are
two great railroads. the Northern Pa
clhc and the Great Northern. In the
meaning Of the statutes they are
parallel and competing lines. Finding
that fl would be 20 their mutual ad-
vantage to consolidate, the men in
control Of these systems set to work
to devise a method.
AT the outset they encountered the
laws of the states through which the
roads run. Those laws provide that
combinations, such as the one proposed,
are unlawful Then began the process
Of whipping the devil around the
stump" The Northern Securities com
pany was organized. The only object
of this corporation was to act as a
holding company. That is, it was TO
hold a majority Of the stock OF both
roads and vote it Tor their mutual
benefit. To an intents and purposes
this would bring the Great Northern
and the Northern Pacific under one
management.
The consolidation was effected just as
surely as though the Great Northern
had purchased the Northern Pacific or
vice versa. The United States filed
suit I'm the most convenient court Of
original jurisdiction the district court
of the United states al ST. Paul. Later.
i'm order to expedite matters, a special
act of congress. giving the United
STATES circuit court of appeals original
jurisdiction, was passed. The first opin-
ion. therefore. comes from the second
highest court in the land.
What the final outcome Of the case
win be no one can say with positive
ness. lit has been announced that an
appeal win be perfected at once, but Il
rs practically certain that the supreme
court win not band down an opinion
before next winter. In the meanwhile.
however. the moral effect of the de-
cision win be tremendous. Already il
has been noted in the break IN North
ern Securities company stock and II
would not be surprising il stocks ia
other combinations now operating in
restraint of trade and competition suf-
fcred sharp declines.
The decision viii prove one Of the
most popular ever given by q United
states court Public sentiment is pow
erfuuy against the combinations
whether they are reasonable or unrea-
sonable in their changes, for people
generally realize that IL is extremely
dangerous TO place In the hands OF
few men the power TO control absolu-
ately railroad rates or prices Of neces-
..-.- .rLLeIae