The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1903-08-14
Effect Must ae Direct.

the supreme court Of the United State,
In several cases. y f$E @ y ;S&
j.. e. Effect Must 7e Direct. n IS ,.s5j44ii
'"rhe proper construction 81 the sher-
man antitrust act, SO far as It relates to
railroad transportation. as deduced from
these decisions of the supreme court ap-
pears to be this: $Sz:azsss&.s SJ ( b Z r.
! '"(a) The act applies, to railroads: And
all contracts made between railroad COM
pan1es Tor the purpose and having the
effect of preventing competition by fixing
and agreeing to conform to them when
fixed, are in restraint of trade and within
the provisions Of the statute, whether
the rates so fixed are reasonable or UNI
"(b) That contracts between divers
manufacturers Of commodity respect
Their sales Of that to be
ing the direct effect of sitting compete
ton and raising the cost of the article
! to the purchaser, is also in restraint Of
trade and within the statute; "
"lc) That contracts which do not d.
| rectly and necessarily affect transporta-
ton, or rates therefore. are not in re-
even though they may remotely and in
directly appear to have some probable
| effect in that direction.
The state antitrust act must have
the same construction in respect to traf-
nc on railroads within the state.
Does Not Control.
Neither the Great Northern company
parties to. or in their corporate capacity
had anything to do with the formation
Of the Northern Securities company, nor
complained Of in the bin. The Northern
| Securities company is merely an investor
IN ana owner OF majority of the stock
OF each Of these two railroad companies.
no franchise or power to manage or op-
crate or direct the management or :op-
GRAFTON Of either railroad in respect to
otherwise; and there is no scintiila Of
evidence that it has sought to control or
! interfere In respect to any Of these mat
1T has, therefore, done no act and
made no contract in restraint Of trade or
commerce. Owning now 4 majority of
! the stock Of each of these railroad COM
stock to elect the board of directors-the
governing body-of each of these rail-
road companies. But the board of di-
the board Of directors Of the other. as ;I no
director of the Great Northern company
can be director of the Northern Pacific
company. The directors of each railroad
other officers. and control its business
and policy. Presumably they will seek,
In lawful ways only, to increase the bust
they as directors represent. - -
1.-THE action Of the defendant Hill in
promoting the formation Of the North
ern Securities company, under the cir
the evidence discleses, and investing in
Its stock by the sale to it Of his stock
in the two railroad companies involved
| no act or contract in restraint Of trade
or commerce, or affecting transportation
| or rates. more than any ordinary trans
fer OF railroad stock from one person to
another. 81 0
! Differs With Other Court. w.
THAT my Judgment after most care
ful consideration Of the facts and the
the highest court, leads me to the con-
clusion that none Of the defendants ahave
violated the Minnesota antitrust, lact, a
reached by eminent Judges Who, I'll M sl Ills
court. recently decided the case 81 Unit
ed States vs.; Northern Securities COM
upon\ppeal, has necessarily caused hes
itation and careful examination. But the
ATTY alike af That my m% own
crate Judgment, guided by my under
standing Of authoritative expositior,s of
the law, be given in all cases tried be-
1.-THE decision Of the case last cited,
as ] read it and understood it, does not
specify or point out any contract, agree
ants. or any Of them, which is directly
in restraint Of trade or commerce.. or
which has any direct reference to trade,
commerce. transportation or rates. nor
; the part of any defendant to do any
such act or enter into any such con-
tract or agreement. ::
F.. Northern Securities company has become
the owner of large majority Of the
suppress competition between them. by
causing the two boards of directors Of
these railroad corporations. which It can
or enter into
trade, which will suppress competition;
and as corollary to this reasoning Cor
conjecture) the decision holds that tho
jority OF the stock of each Of these rail-
road companies, are acts or contracts in
and without further action mot yet
taken, and perhaps never to be taken)
by the directors Of the two railroad COM
ganies the formation Of the Northern
stock has and can have nothing to do
directly or Indirectly with trade, COM
merce, transportation or rates. r
Guilty Before Offending.
ITO epitomt lie this this dec decision: It is held
! Northern Securities company to restrain
trade by suppressing competition between
these two railroad companies; and that
by coercing or persuading the two boards
of directors, whom it has the power to
elect, it will certainly cause them ia
commit highly penal ofrenses by enter
ing into combinations, contracts and ar
engagements in restraint of trade, in vio-
lation Of the antitrust act, and hence
the Northern Securities company is al
ready guilty Of these offenses that have
never been committed or thought Of by
its officers or promoters so far as appears
and it must be suppressed and destroyed
IT am compelled to reject the doctrine
that any person can be held to have. com
Initted, or to he purposing and about to
commit a highly penal offense, merely
because it can be shown that his Pc
cuniarys interests will be thereby nd
vanced. and that he has the power either
directly by himself, or indirectly through
persuasion or coercion of his agents u
:; compass the commission Of the offense.
| r Fl los NO Consolidation. : s.ss*y*s
e'"Third-The charge In the bill that the
J acts Of the defendant contrayene the
statutes of Minnesota prohibiting the
consolidation Of parallel and competing
lines Of railroad presents a different
l question. .5s So 49, a }s s!E3
!. Chapter 80, General Laws OF Minne=
] sofa, 1874, provides as stated III. g I ga
! {" No railroad corporation or the les
81 sors, purchasers or managers Of any rail.
road corporation, shall Consolidate the