The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-03-20
Most Of Day Taken Up With.
Arguments for Defense.
MORGAN IS REP e SCENTED
Briet Prepared BY Counsel for the Firm
Presented II Court Claims That 4
Northern Securities Company #
Has Violated No Laws,
"a, A.so.criated pre,,. T,

UFT
ST, LOUIS, NO., March 19.--Almost the
entire days session OF tho United States
circuit Court, before which the case Of
the United States Government against
the Northern Securities Company Is boz
ing tried, wag occupied by former State
Supreme Judge George B. Young. In de-
fense OF the merger interests. Judge
Young was followed by M. D.. Grover. Of
st. Paul. also counsel for the defense,
Former Attorney General Griggs to-
night informed the Associated Press
that In order to facilitate the hearing
Of the Northern Securities Company.
case, It had been decided BY tho counse4
! for the defendants not to read in8court
a brief prepared by Daniel Wilcox, and
signed by him and Francis Lynde stet-'
son, in behalf Of j. Pierpont Morgan.
Robert Bacon and Daniel 8. Lamont, and
that copies had been given to oil con-
cerned In tho case.
THU BRIEF. 81
q An abstract Of the brief follows:
IA brief signed by David Wilcox and
Francis Lynde Stetson, representing j..
iPierpont Morgan, Robert Bacon and Dam
Tel s, Lamont, was presented on behalf
OF ]. p. Morgan and Company, setting
forth the history Of the organization of
the Northern Securities Company. and
continues: y
3 It was organized according to law and
possesses all the powers set forth In It's
certificate OF incorporation, and has
full power to do every act which It has
in fact done. The petition contains no
allegation to the contrary, Fl t8g3
II It having become known that the Orc
gon Short Line Company was not dlsln-
clined to sell Its holdings Of the major
part OF the Northern Pacific stock upon
satisfactory terms as to price, the firm
OF u. p. Morgan and Company, deeming
such action for the best interests Of the
Northern Pacific Company, purchased from
said Oregon Short Line Company all its
holdings Of the capital stock Of the North
ern Pacific Com pany, agreeing to pay
therefor partly in cash and partly in
shares of the new company, when formed.
After Its organization the Northern Sc
curitles Company duly purchased all the
shares OF the Northern Pacific Company
and OF the Great Northern Company, here
5inbefore mentioned, including those pur-
chased by the firm OF J.. P. Morgan and
Company from the Oregon Short Line
Company, for which 1t paid partly In
cash and partly in Its own shares. 1t
also was willing to purchase the shares
OF any other shareholders of the Great
Northern Company who desired to sell
the same for the price OF $3.50 for each
share OF the Great Northern Company,
payable In its. own shares. and did ac-
.tually purchase and pay for considerable
amounts Of said stock at such price,
The foregoing states all the material
facts. The petition contains many adjec-
,tives adyerbs and conclusions which are
unsupported by proof and are, Of course.
without value in stating O cause of &C
ton, because If tho acts done were law
fnl the question Of their intent Is without
*
The only ground for relief pleaded In
tho petition Is that the ultimate effect of
these transactions may be to diminish in
some degree competition between the
railway companies. and that they, there
fore, constitute a restraint Of Interstate
commerce within the Federal statute
known as the Sherman act (26 U. s. Stat,
205). This Is not established by the
proof, and in any case would not sup
port the action.
It Is submitted that the action must
fail because the transactions were law
full, and II the statute applied to them
1t would be unconstitutional, because 1t
would deprive the Securities Company OF
the right to purchase property and the
stockholders Of the railway companies
Of the right both to sell their own shares
and to acquire an interest In the shares
of others. "A