Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1903-04-18
HISTORY OF CASE.
Federal Antitrust Law Was the Gov
eTnment'a Chief Reliance.

The Northern Securities company
case Is everywhere regarded as q cru
cial one In the governments campaign
against the trusts. on this decision the
beef merger and many other schemes
have waited. A Southern Securities
company would have been organized
very sOon to take over the southern
railroads controlled by Morgan; and
visions Of a United States Securities
company, to n day control all the rail-
roads, ave been regarded as net I'M
duly fanClful.
The Northern Securities was organ
lied by Hill and Morgan November 30,
1901; capital, $500, 600, 600; laws of New
Jersey. 1t offered to give $50 In Its
own stock for every 500 share OF Great
Northern, and $1t5 of its w shares
for each share OF Northern Pacific. The
Northern Pacific soon came under con-
troll of the securities company; the
Great Northern is understood now to
be also under the control.
BOUGHT THE BURLINGTON.
About the same time the Northern
Pacific and Great Northern came into
control of the Burlington system
through purchase of It's shares. They
exchanged their joint 4 per cent. bonds
at $500 OF bonds for each 800 share of
Burlington stock. Thus the Northern
Securities controlled the Northern Pa
cifc and Great Northern; and these
two In turn controlled the Burlington.
The state Of Minnesota protested
against the merger on the ground that
it Was a consolidation Of parallel and
competing roads, contrary to the states
law; also alleging II violated the Sher-
man antitrust act, and was contrary
TO public policy.
Attorney General Griggs ordered ac-
ton brought against the Northern Sc
CuritieS company, on complaint Of the
state Of Minnesota. This action was
brought in the circuit court of the
Eighth circuit. This is one OF the
ablest judicial bodies In the world, cas-
lily comparable to the federal supreme
court. Judges Sanborn, Thayer and
Caldwell composed the court when the
case started; afterward Judge Vande-
vantcr was added, and this is the first
case in which he has sat. He was es-
pccially asked by the other judges 20
come to st. Louis and sit because OF
the great Importance OF the case.
FAMOUS WITNESSES.
The hearings In the case have occu-
pied an immense amount Of time, being
chiefly before a commissioner of the
court, whose findings were to be con-
sidered and the evidence reviewed by
the court itself. During the taking of
testimony many of the worlds great
est llillIINltl5 "tlt tNlIlllllGu anu III
variably manifested strange ignorance
about their own business, and still more
lapSeS Of memor about gil
gantic and essential features Of their
own affairs. Morgan, Hill, Hartman
and others were examined. Attorney
General Griggs went out OF office and
was succeeded by General Knox, Mr..
joining counsel for the COM
pany.
Under federal court practice, this
case will now go to the United States
court. The bill passed during
the recent congressional session per-
hitting advancement OF important
causes will get the case before the su-
preme court in October, If lawyers on
both sides hasten; and after that a de-
Cisiou will be rendered in fifteen to
days. The ability and renown
the trial court will be accepted as an
evidence tina the higher court Will sus-
tain the decision.
PLANS TO DODGE IT.
Evidently anticipating this decision.
the burlington interests a year ago
tried to get preliminary legislation
in Iowa, it was alleged, in or
der that they might transplant the
Securities In a new form to
and failing because OF the gov
veto Of the Molsberry bill, an
other effort was made about Il month
go. in Nebraska, to insert exactly the
provision into Nebraska laws that
Cummins had rejected when adopted
INTO Iowa law. This Nebraska effort
also failed because the genesis OF the
Measure became known before 1t could
be rushed through.
Now comes announcement that Nor
gan and Hill will turn over the con-
troll of the three systems to three trus-
tees. thus getting the effect of a merger
without the violation of law. Lawyers
say, however, that plan would almost
fail; the courts interest them
in essentials rather than in forms
and details.