The Barre daily times. (Barre, Vt.) 1897-1959, 1903-12-16


frfneed by the challenged agreements.
This exposition OF the law is, Mr.
Knox said. now the governments relI
anee. "as." he added, sit should have
been the defendants admonition' He
proceeded s'The courts decision in
the transmissouri case was not fol
lowed by disaster, but by years OF
abundant prosperity, undisturbed until
new devices were put into operation to
accomplish again the destruction OF
competition and to thwart the wise pol,
icy Of the law. It is not the observ-
ance of the law or its enforcement that
creates panics or distress. 1t Is willful
violation OF its wholesome provisions
or defiance Of the laws Of economic
health
Great Questions Settled.
The attorney general said that 1t was
not his intention to reargue any of the
propositions settled BY the transmits
souri, and joint traffic cases, but to dc
what he could to show their appliea
ton TO the facts OF this case He, how.
ever, made the following statement
the great questions settled by the court
in those cases
First. That to shut out the opera
ton Of the general law Of competition
between competing interstate railroads
is to restrain interstate commerce.
Second. That to bring the opera,
tons of two or more competing inter.
state railroads under the control Of a
single body shuts out the operation Of
the general law Of competition and
constitutes restraint upon interstate
commerce.
'sThird. That congress is competent
to forbid any agreement or combination
among companies competing for inter
state commerce which Restraints com.
merce among the states by shutting
out the operation of the general law
OF competition.
Fourth. That in order to maintain
a suit the government IS not obliged to
show an intent to restrain commerce il
such restraint is the natural and neces-
sary effect of the arrangement"
Some Combinations Not Trusts.
He then said:
1.-THE language Of the law is 'combi
nation in the form Of trust or other.
wise that is, combination in any 9th.
er form. Combinations In the form Of
trusts were well understood at the time
Of the enactment Of this law. They
were invariably formed by transferring
the stocks or property Of the constitu
ent units to holding trustee, whose
will was thus dominantly enthroned
over the whole, and against the stocks
or property 50 transferred the holding
| trustee issued certificates to the trans
ferrors representing their respective
| proportions Of the whole. This form
Of combination was evolved from thu
experience that gentlemans agree
ment TO control competition works bet
ter when the collateral is up
ANY combination that has these fea
lures il il combination in the form of |
trust and is specifically inyalidated b!
| the statute
1.-THE testimony shows conclusively,
/ think, that as a matter Of fact and Law
the thing which these gentlemen dil
was to create combination in tn
| form Of trust, the form specifically pro
hibited BY the act of congress IL It re
strained interstate commerce, and alst
that the Northern Securities compan.
was formed for the purpose Of taking
over the control Of the Great Northern
| and Northern Pacific railroads and &c
tuaIly took over that control, and witt
that control absolute power over bot
roads, the thing which your honor
have said constitutes such restrain
under circumstances substantially th
same as those Of this case.
But the law likewise prohibits com
binattons otherwise formed that is t
say. the law distinctly and plainly pro
vides that its policy shall never be de
feated by the exercise of any ingenuit.
in the deyising of forms. The objec
of the law once clearly determined, al
difficulty ceases If it Is established tina
that object is defeated through con
tracts, combinations in the form 0
trust or otherwise or by conspiracies.
Mr.. Knox then discussed the end aC
eomplished By the merger Of the raj
road interests, saying:
-srhe device resorted to in this case
! II sustained. defeats the policy Of th
law, as 1t accomplshes all and NOR
in the way OF effectual destruction o
competition than was accomplished i
the transmissourl ana joint train
cases.
The one secures permanent, absolut
control and power to administer ever
feature Of management and operatio
! OF the properties, while the others Wer
but temporary arrangements which II
lated to q single feature of rates an
depended for their duration upon th
Will Of the parties,