The Montgomery advertiser., 1903-12-16
WAR ON THE
 BIG MERGER Knox Speaks for the Gov
 ernment. COMPETITION RESTRAINED The Holding Corporation Has
 This Effect. The Attorney General Concludes and George fl. Young Begins His Reply in Behalf of the
 Securities Company.
COMPETITION RESTRAINED

~~e@AkS@-%s Washington, Dec. B.-The arguments In the Northern Securities case was resumed in the United States Supreme Court to- day and again the court room was crowd ed by attorneys and others interested tn the case. Attorney General Knox re- sumed his argument which he began yes- terday. He declared that by the union of the Northern Pacific and the Great North ern companies the two cJmpet.ng inter- state railroads had been brougnt into such relations that their indepenuence as com petitive factors in interstate commerce is desired.
 1 The thing that has been done was de- clared illegal. he said. when brought about by the methods pursued in the joint trafic and trans-Missouri cases. Theee were cases of contract or agreements be- tween independent and competing lines Of railroad for the regulation of trafsic charges. The government charges that the agreement restrained interstate cofa- merce and this court sustained that ccn~ tention.
 Court Not Disturbed.
 "The Court has heard the cases patient ly." Mr. Knox said, and the arg Amenta presented by the railroads, but they failed to disturb the courts 6 conclusions that the contracts or agreements In question vio- lated the law. The exigenctes of the cases rendered necessary complete interpEeta- ton of the statute. Tie power of Congrssz to enact lhe law. the application of the law to common carriers and specid ally it's application to contracts or agreements I regulating rates were all denied.
 Dark foreDodings of resultant comner- cial disaster should the governmen.a com tentlon prevail were solemnly and for 3e~ fully impressed upon court by geus efnen of eminent personal and professional standing. These considerations invited and secured patient and fuii considera- tions of the cases and exhaustive anass- sis and interpretation of the statute in the judgment.
 After making 1t perfectly clear that the court was not to be disauaaed from giv- ing effect by lts JudgmeHk 10 public the court stated what that publie policy Is and wherein 1t was infranged by the challenged agreements
 "The exposition of the law is," Mir. Knox said. ''the governments reliance as," he added. it should have been the defendants admotion." He proceeded:
 ."The courts decision in the trans-A1is- souri case was not followed by disaster but by years of abundant prosperity uEi- disturbed until new devices were put into operation to accomplish again the dsstruc- ton of competition and to thwart tho wise policy of the law. It is not the ub- servance of the law or It's enforcement that creates panics or distress. It is wii- full violations of it's wholesome provisions, or defence of the laws of economies and health"
 Summary of Case. | The Attorney General sad that It was not his intention to re-arg> any of the propositions settled by the Missouri and joint traffic cases. but to do what he could to show what their application Is t0 the facts fin this case. He. however, mada the following statement of the great quea- tions settled by the court In those cases:
 "First-That to shut out the operation of the general law of competition between competing interstate railroads is to re- strain interstate commerce.
 'Second-That to bring the operations of two or more competing interstate rail- roads under the control of a single body shuts out the operation of the genara1 law of competition and constitutes a re- straInt upon interstate commerce. "Third-That Congress is competent to | ofrbid an agreement or communication between cprnpanies competing for inter- state cont cree which restraints commerce among the States by shutting out the op-~ | eration of the general law of competition.
 ''Fourth-That in order to maintain a suit the government Is obliged to | show an intent to restrain commerce. if I sary effect of the arrangement"
 He then said:
 Language of Law.
 "The language of the law is conbina- ton in the form of trust or otherwise, that is. combination in any other form Combination in the form of trusts were well understood at the time of the enact ment of this law. They were invariably formed by transferring the stocks or property of the constituent units to a holding trustee, whose will was thus dom | inantly enthroned over the whole, ana against the stocks or property so trans | ferred, the holding trustee issued certiGs cates to the transferers representing l their respective proportions of the whole. This form of combination was evolved from the experience that a 'gentleman'a | agreement to control competition works I better when the collateral is up.' Amy combination that has these fea- lures Is combination in the form of . trust and is specifically invaiidated by st- | statute.
 ''The testimony shows coneinsivety. 4 think. that as a mater of fact and law the thing which these gentlemen did was | to create a combination in the form oe a trust. the form specifically prohibited by the act of Congress, If it restrained | interstate commerce. e '"Fhe law likewise prohibits combina@ tions otherwise formed. That is to say. the law disunctly and piainIy provides that It's policy shall never be defeated oy | the exercise of any ingenuity in the ds- vising of forms. The object of the law once clearly determined all diufcults l ceases if 1t is exhibited that that object is defeated through contracts. combtna- tions in the forms of trusts. or otherwise or by conspiracies."
 What Was Contemplated. Mir Knox then discussed the end ae- complished by the merger of the railroad ! interests, saying
 "The device resorted to in this case # 1 sustained, defeats the policy of the Iaw, as 1t accompnshes all and mora in khe | way of effectuaI destruction of competf- tion than was accomplished in the trans i Missouri and joint traffic cases. ''The one secures permanent. absoluta | -.--