Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-08-01
MINNESOTA LOSES SUIT
Action Brought Against North
ern Securities Merger De-
cided For Company
STATE LAWS NOT VIOLATED
Judge Loohren Holds the consolida-
tion of Two Competing Railway
Lines is Not disqualification Does
Not Affect Previous Adverse Ruling
Of the Federal Court.

| ST. Paul. Aug. 1.-Judge Lochren in
| the United States district court today
| decided the case of the state of Mime
sofa against the Northern Securities
Company, in favor of the latter. Loch-
| ren, In dismissing the bill of complaint
of the state, finds that the company
has not violated the state laws forbid
ding consolidation of parallel and
competing lines of railway, thru its
Ownership OF stock in the Great Nor
thern and Northern Pacific roads. He
refuses the Injunction asked by the
state to restrain the securities company
from violating the stock OF either rail-
road company The decision doesn't
iaffect the result of the federal govern
ment's victory in the circuit court in
any way. although involving the same
defendants, but brought. on totally diff.
ferent contentious of the law. The
federal suit, in which the. company was
beaten, was prosecution for the viola
tion of the Sherman trust law. The
state suit, in which the company wins,
lis based on the allegation that the de-
PENDANTS violated the state act by
bidding consolidation OFF parallel roads.
An appeal to the supreme court Is now
pending in the federal suit.
After reviewing the acts of the legis-
lature and giving a complete history
of the merger proceedings and citing a
number of decisions on the Sherman
anti trust act. the court says:
NJ
man anti-trust act so far as 1t relates
to transportation as deduced from a
decision of the supreme court appears
to be this as 1T applies to railroads: All
contracts made between railroad COM
panies for the purpose and having the
effect of preventing competition by fix
ing rates or empowering persons to fix
then, and agreeing to conform to them
and within the provision OF the statutes,
whether the rates SO fixed are reason
able or unreasonable. That contracts
between divers manufacturers of a
commodity respecting their sales of that
commodity to be delivered by them out
side of the state and having the direct
effect OF sitting competition and rails
ing the cost of the article to the pur-
and within the statute. That contracts
which do not directly and necessarily
affect transportation or rates therefore
are not in restraint of trade or within
the statute. even though they may re-
motely appear to have some probable
effect in that direction. Che state anti
trust act must have the same con-
struction in respect to traffic on rail-
roads within the state. Neither the
Great Northern nor the Northern Pa
oific companies were parties to, or In
their corporate capacity had anything
to do with the formation of the North
ern Securities Company, nor of any of
the contracts or proceedings complained
of in the bill. The Northern Securities
Company is merely the investor and
owner OF a majority OF the stock of
each of those two railroad companies.
1t has done no act, or made no con-
tracts, in restraint of trade or COM
merce. The action of the defendant,
James Hill, in promoting the formation
of the securities company under the
circumstances and for the purpose for
which the evidence discloses, and in
volving in its stock by sale to it of his
stock in two railroad companies, in
volved no acts or contract in restraint
of trade or commerce or affecting trans
portaton or rates more than any ordin-
airy transfer of railroad stock from one
person to another. That judgement,
after the most careful consideration of
the facts and law applicable thereto
constructed by highest court leads me
to the conclusion that none of the de-
PENDANTS have violated the Minnesota
anti-trust act" The conclusion is APP
parently contrary TO that reached by
eminent judges who recently decided
the case of the United States VS.. North
ern Securities Company and doubtless
another court will review this case up
on appeal.