The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-02

The CASE TO GO HIGHER
This Decision for The Railroad Combination Wi
Not Effect The Case the National Gov
erment is Pushing to an
Issue.
(By the Associated Press. J

st. Paul, Mimi, August Judge Loeb,
rem today in the United States Circuit
court handed down his decision in the case
of the State of Minnesota against the
Northern Securities Company, the Great
Northern Railway Company, the Northern
Pacific Railway Company and James J.
Hill, as president of the Northern Sc
curities Company individually, in which
he sustained the contentious of the de
fendants sand dismissed the bill of com
plaint of the State.
He finds that the Northern Securities
Company has not violated the State laws
forbidding the consolidation of parable
and competing lines of railway, through
its ownership of the stock of the Great
Northern and Northern Pacific Railways.
He refuses the injunctions asked by the
State Of Minnesota, to restrain the Sc
curities Company from voting the stock
OF the railway companies or either of
them.
This decision affects the results of the
Federal governments victory in the Cir
cult court in no way whatever. The Fed
eral suit involved the same defendants and
the same general state of facts, but was
based on a totally different contention OF
law.
The Federal suit in 4he Securitie
Company was beaten was prosecuted for
violation of the Sherman Antitrust law
passed by the Federal Congress.
The State suit. in which the Security
Company wins, was based on an allegation
that the defendants violated acts of the
Minnesota Legislature forbidding the con
solidation of parallel and competing lines
of railway.
The hearing of the State suit was begun
Friday, June 5th, before Judge Lochren.
IN the Federal Circuit court. 1t followed
the submission of much testimony by both
sides for many months, in which Frederick
G. Ingersol of this city, acted as referee.
The final argument lasted five days, in
which Attorney General Douglass, former
Attorney General George B. Wilson and
Attorney NJ d. Mum, spoke for the State,
and George B. Young, NJ. d. Grover and
G. w. Bum for the defendants The case
was submitted Wednesday, June 10th. An
appeal to the United States Supreme court
is now pending in the Federal suit.
In epitomizing his decision, Judge
Lochren said:
'It is held that it will be for the inter-
est OF the Northern Securities Company
to restrain trade by suppressing competi-
tion between, these two railroad companies
and that they coercing or persuading the
two boards of directors whom it has tae
power TO elect, it will certainly cause
them to commit highly penal offenses by
entering into combinations, contracts and
arrangements in restraint OF trade in Vio-
lation OF the Antitrust Act and hence the
Northern Securities Company is already
guilty of these offenses that have never
been committed or thought of by it's Off
GERS or promoters, so far as appears and
it must be suppressed and destroyed.
Il am compelled to reject the doctrine
that any person can be held to have com
mitted, OF to be purposing and about to
commit highly penal offence, merely be-
cause it can be shown that his pecuniary
interests will be thereby advanced and
that ne has the power either directly by
himself, or indirectly through persuasion
or coercision of his agents to compass the
commission of the offence. Decree will
be entered dismissing the bill.
ST. aul, Mimi, Aug. 1.-Governor Van
SAINT said concerning the decision of the
court in the Northern Securities case:
II do not feel the least discouraged by
the decision of the court this morning.
1t simply means that teh case will have
to be finally decided by the court of last
resort. The State will Immediately ap-
peal aad every effort be made by its at
torney general and his able associates to
protect the interests of the people. The
fight is going to continue until our laws
ara yindicatad and uDheld.'
Washington, August 1.-Mr Day, assist
ant to the Attorney General. was asked
what effect the decision of Judge Loeb
rem i'm the suit of the State of Mime
sofa against the Northern Securities Com
pany would have on the case of the United
States against this company. He replied:
ut can have no effect whatever. The
case of the United States against the Sc
curities Company was brought under the
Sherman Antitrust Law, charging vio-
lation of IFS provisions, and it was decided
by four United States Circuit Judges, in
unanimous opinion that the Northern
Securities Company was a conspiracy in
restraint of interstate commerce, and
therefore unlawful. This case was not
brought under the Sherman Antitrust
law or anv other Federal statute 1t is.
= sr;t of the State of Minnesota for an
aneged violation OF It's constitution and
laws end the decision of District Judge
7 I,ochren in such a case could in no event
affect the result reached by the four cir
cuit iudges in the former case