The Tomahawk., 1903-08-13

suppress competition between them, by
causing the two boards OF directors OF
fill by election, to enter into arrange
ments or agreements in restraint OF
trade, which will suppress competition:
conjecture) the decision holds that the
formation Of the Northern Securities
company and purchase I by It + Of m ma e.
road companies. are acts or contracts in
restraint Of trade, though OF themselves.
and without further action lnot YET
by the directors Of the two railroad COM
panies. the formation of the Northern
Securities company and Its holdings 81
Directly or Indirectly with trade, COM
merce, transportation or rates.
Guilty Before Offending.
ITO epitomize this decision: It is held
that it will be for the interest OF the
trade by suppressing composition between
these two railroad companies; and that
by coercing or persuading the two boards
elect, it win certainly. cause them to
commit highly penal offenses by enter
ing into combinatio contracts and ar
latien 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
it's officers or promoters SO far as appears;
and it must be suppressed and destroyed.
II am compelled to reject the doctrine
that any person can be held to nave com a
commit a highly penal offense, merely
because it can be shown that his pc
cuniary interests will be thereby ad-
directly by himself or indirectly through
persuasion or coercion Of his agents to
compass the commission of the offense.
Nc Consolidation.
''Third-The charge in the bill that the
ar nj fhn defendant COntraVenR the
statutes of Minnesota prohibiting the
consolidation of parallel and competing
lines, of railroad presents a different
"Chapter 30, General Laws of Mime
sofa, 1874, provides as stated:
No railroad corporation or the J.: les
road corporation shall consolidate the
stock, property or franchise of such cor
Or wa o or IN any
control any. other railroad corpora ton
owning or having under it's control a
parallel or competing line
This is the only statute on that SUBJ
ject of consolidating parallel and com
peting railroads that need be considered,
it e is IN any
of the police power of the state. Louis
Vile. etc. Railroad vs.. Kentucky, 141 u.
'"The prohibition against consolidating
ape II. 10 railroad corporations-The
Northern securities company Is not d
railroad corporation, and neither the
Great Northern company nor the Northern
Pacific company in it's corporate capacity,
did any Of the acts charged.
'2. LesseeS of railroad corporations
There are none.
Not a Purchaser.
rations -Construing this term. as apply
cree ere - having c capacity to hold and enjoy
the franchises and operate the railroad
there were none in this case.
tions-A Ai railroad manager is is the pc per-
and oversight Of the operation and bust
concerned. Mr.. Hill alone was railroad
manager. He did not effect any consoli..
dalton. He promoted the formation Of
the, Northern Securities company company, and
But the complainant contends that
M ad about as T Dec. t. 1901, PURCHASED and
tFollins majority Of the h; 5fgek . Of tSs
purchaser OF that railroad corporation.
in the act Of 1874 and became thereby
ala. sDasu co , majority Of the stock
Of the Great Northern company.
and upon the subject, of purcha sing
e faf TO eha by S Laws Of
nesota, 1881, which provides that any
railroad corporation may lease or Pur.
% the oSer
their respective railroads can be con-
nected together and form continuous
line with or without branches nc e. co But IN
be by a railroad corporation having ca
pacity to operate. the railroad, even aside
from the to- do 50 1v either ths
ute; and such railroad could therefore
rightfully, assume the. control; manage
ment and operation Of the railroad the
stock of which it had so acquired.
Separate Corporations.
1.-THE two companies still remain sep
arate corporations with no intel ests. as
such, in common The case would not be
different if one natural person w with abun
of the stocks of one of these companies,
and another like person should invest, in
the majority of the stocks Of III the
they chose to act in harmony would be
the same as the interest of one person
owning the whole.
State Fixes Rates.
1.-THE policy of the state in respect to
the operation and management Of rail-
roads is disclosed b, by its .a statutes; espe-
eral Statutes OF mir, Minnesota sofa Under the
Commission, which closely follows the
provisions of congressional legislation re-.
speeding interstate commerce. ana under
clearly specified regulations places the SUI
pervision. oversight and control Of those
matters, particularly the rates for trans,
portation, in the hands of the designated
state officials.
.'Under this system shippers can count
accurately the cost of transportation as
an expense in their business. with the
assurance that others engaged in like
business must incur exactly the like ex-
pense; and untrammeled competition be-
tween rival railroads resulting in. rate
wars, sporadic struggles for particular
contracts or consignments, as well as all
rebates, open or secret. all alike unfair or
ruinous to carriers and shippers. are pro-
hibited under penalties, and Intended to-
with; leaving as the only bases OF com
nishing Of the better accommodations.
and the greater safety and celebrity Of
carriage.
"All complaints that published rates
are unreasonable are heard and deter
mined by the state officials, who may fix
rates binding on the railroads.; thus ne
cessarily making rates uniform as be-
tween rival railroads. AS a result Of this
policy, and the absolute power Of the
state officials to fix rates. and keep them
at the lowest reasonable figures. compete
slroo n In,