New-York tribune., 1903-03-21
GRIGGS CLOSES CASE.
ARGUES FOR ". p. MERGER.
He Says the Combination Is a SUB
ject for State Control.

He Says the COMBINATION Is q QUO
ject for State Control.
St. Louis, March 20.-Arguments In defence Of the
Northern Securities Company trial here before
the United States Circuit Court for the District OF
Minnesota closed to-day, and the case will be
placed in the hands of the four judges tomorrow
c. w. Bum. of st. Paul. counsel for the Northern
Pacific Railroad Company. opened to-days ses-
sion. and ex-Attorney General Griggs closed the
case for the Northern Securities Company The
last hour Of the session occupied by Special
Counsel T. D. Watson, Of Pittsburg, who will close
the for the government He expects to con-
clude by noon tomorrow.
Mr.. Bum said that prior to this there never
had been a suggestion that consolidation OF rail-
way interests a violation Of the Sherman
Antitrust law.
MR. GRIGGSS ARGUMENT.
In the course of his argument on behalf Of the
Northern Securities Company ex-Attorney General
Griggs made the following points:
| The acts Of the defendants do not constitute
Of interstate trade or commerce within the mean
ing and prohibition of the act of July 1890 known
as the Sherman Act.
Of their corporate organization the character and
qualities Of their sock the T routes wGn 6on
meet with other roads running in the same genera 1i
date With parallel Ines. % or operate paFareI
through different PSrtinons Of statma theoe @
State Jurisdiction
The acts of the defendants being prima facie law
full the burden Of proof Is upon the govern9ens I eG
ehaTge not nc bona de but mere e, t35 f5e
Act et-'1'N - 'e'e'' ''''
result from the acts done by the defendants is IN
direct and Incidental only. and not covered by the
act Of July 2, 1890
If the Sherman Act can be go construed ad9 as 70
forbid the sale Of stock in two competing railroad
eorporai9ns to one % then tna az as
with transactions which are wholly within the cor,
the is unconstitutional
But assuming that Congress may, under the com
merce clause Of the constitution. and as reguIa-
else Of their prerogatives from permitting two or
more corporaons to which the states M nave par
OF the government ought TO be clearly ana dstlnct-
probation Of doubtful language contained IN penal
statute ~ 49,,
eleven years in the actual merger and consolidia-
lines of railroads steamships engaged in inter
state and international commerce mas gwen a
erect fhst Was 10 not ntended to forbid and
does not forbid the napr sba Prices od HI meth
DDS Of lease consolidation; merger community OF
interest or ownership Of stock
THE FACTS CONSIDERED.
After arguing each Of these contentious in detail
Mr.. Griggs proceeded:
The defendant, the Northern Securities Company,
corpqratton lawfully GEganzsd for the the 1s tans
States alleges that the company was not organized
in gGq fa5 to and f5 R
companies that it was organized solely to lncor-
porate the pooling of the stocks OF said companies
and to carry into erect unlawful combination
and o ts a rawy compes and the mo-
nopolizng OF the trade and commerce carried on oy
them respectively. in violation OF the act OF July
We must keep in mind that the burden Of prov
bad faitb and upI
What proof has the United States offered to
eondenty sayanOhng Pey9nd @ 1ne taef
and holds majority Of the stock Of both railway
t6at it was organized soley to into effect
unlawful comhination and consptracy: he-s thu
acts of the parties are consistent with honest and
sbTn by pPoofs hat Roud nstfy
criminal action and that exclude the existence OF
Of the Northern segqrhties ID s,sn96 GP4Pg tPs
and of the other defendans set to15n ~ oVeI T1anv
years which gradually led uD to the consunmaatlG9n on
@ I tee eocRboder Of the Great Northern to combine
their holdings of stock in that road SO as 70 @
answers are more than supported by the fesumon% ny
Of Of tse secriqfsa pTpclPac5 company
The Great Northern and the Northern Paclnc; enc
while competitors in some degree. have never e oeen
hostile each other There is great he
between Tyairy rival apa indvuais and corpora
lions not only without rancor and jealousy put IN IN
nromote good relations IN all that touch
the mutual interests OF the competitors And with
due respect it is submitted tiEt the law does not
Another fact to be constantly kept in mind is is
together who formed the Securities COMPANY were
Ggarf Great Northern Railway Company There wers
about sixteen hundred different stocknoders N llat
and in fT b &orhern 42nr to Ys
Of these actually consulted ana ne. ne a6[on o
the vas not made dspendenT 1Ie upon
offered the onDortunity to come in and sell thelr
stock to the Securities Company. which some but
not all OF them did. -r.,,- --o. ,o-r,ea
there was no certainty that a majority of the
stock either OF the railroad companies YOU'D ne
Rave continued II 70 other persons than the origi;
raj projectors Of the company mad come come IN am alIg
all the persons participating In the organization
ORIGINAL IDEA OF COMPANY
The original conception. the primordial germ out
of which the Northern Securities grew. Is 10 he
found much ncse6f 3sfS 6fan Of !hf that Merely
hastened the development and maturity OF the con-
The purpose and intent Of the ortginators Of the
scheme cannot be subject to dispute II reSts n9t
nent and successful business men OF the country
but is substantiated by collateral facs mat tarnsn
action that finally taken. without requiring US
to resort mputation of Illegal and criminal
Briefly stated, the circumstances are these;
The defendants. Messrs HILL Kennedy. James.
and Samuel Thorne and others. not exceeding Ten
in number formed group Of active and innusntia 5d
Great Northern enterprise from its origin and Who
noncmTrenae t91 SUPPORT ard goodwill Of the other
stockholders. and were. because or their sucess1ul
management and their influence cohtinueu from
A earlv as 1893 these gentlemen took. up for
subject OF continuing their policy
in the manaGenent of the company by some ar
rangement which would prevent their stock from
original conception out of which the Northern Sc
~ +iJna Of fhe ton of the Northern