Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1903-12-24
Arguments BEGUN 1, /:
IN merger Case
4. ...... r.. ss
Suit Of Government Against North
"- -"'-.'.-'" - = f+NT SsGT' n 90 10 l,rta
erna Securities Company Be-,
fore Supreme Court.
KNOX WILL PRESENT Case :" .
OF THE UNITED STATES
Counsel States That Merger Is to Pre-
vent Injury to Property Instead OF
to Prevent COmpetition-Brief of
Government, Prepared by Attorney
General, Is Filed.


Government, Prepared by Attorney
General, Is Filed.
washington, Dec. Is. - Immediately
after dispOsing of its routine business
the supreme court of the United States
Monday began hearing arguments in
the case of the Northern Securities COM
pany, James J. Hill, J. Pierpont Morgan,
Daniel S. Lamont and others, VS.. the
United States, coming to this court on
appeal from the decision of the circuit
court for the district of Minnesota
That decision was to the effect that the
purchase of the greater share of the
stock of the two railroad companies
constituted merger and was contrary
to the Sherman antitrust law The
case involves the community of inter-
ests principle.
There has been much interest in the
room was crowded both inside and out
side the bar. Attorney General Knox
was present with quite an array of as
sistants from his Office, while the oppo-
:sition also was represented by long
list Of distinguished counsel, including
former Attorney General Griggs, John
V. Johnson, of Philadelphia; c. W.
Bum and Charles B. Young Justice
Brown was the only member Of the court
not present.
The hearing began at II: 20 o'clock and
John G. Johnson, representing the
Northern Securities company, made the
first argument. He announced that
three railroads and the Securities COM
pany would desire to be heard by their
counsel, while it was stated in behalf OF
the government that only the attorney
general would speak.
Reason for the Merger.
After stating the case Mr. Johnson said
that the purpose of the Securities COM
pany in acquiring the stock of the rail-
road company had been, not to prevent
competition but to prevent the injury OF
its own property.
Early in the argument Justice Peck
ham asked whether the Securities CON-
pany held the major portion of the stock
of the two companies and Mr.. Johnson
admitted that the company held nearly
all the stock. He contended that, hold
ing the stock, it had the authority to
control it.
He took sharp exception to the decision
OF the circuit court that the possession
of the power which the Securities CON-
'pany had was a violation of the law and
commended that such holding was not
In accordance with decisions of the su-
preme court, which were uniformly to
the effect that it is the use of power and
not the possession of it that constitutes
the ofcense.
Case of Government.
The brief Of the government in the
case was filed. The document was pre-.
pared by Attorney General Knox and
Assistant Attorney General Day and
covers 1870 printed pages.
After stating that the bill in tho case
was originally brought by the GOV
eminent to restrain tho violation OF
the antitrust law by the Securities
company in the consolidation Of the
Northern Pacific and the Great North
sern railroads, and that tho decision OF
the court below was favorable to the
contention of the United States, the
brief enters into the following specifi-
cations as to the reasons for the action:
First-The lines Of railway operated
by the defendants, tho Great Northern
Railway company and Northern Pacific
Railway company, are parallel and COM
peting.
Second-That the combination is In
restraint of interstate commerce and
monopoly.
The concluding paragraph of Judge
Thayer's opinion in the circuit court is
quoted, as summing up the argument
bearing upon the facts of the case.
The chief justice announced a recess
of that court for two weeks from next
Monday.