New-York tribune., 1903-04-10
AFFECTS STOCK LITTLE
Wall Street Opinions of Decision
and Its Future Effects.

Colonel W. P. Clough, general counsel and
third vice president of the Northern Securities
Company No 81 Nassau-st. announced last
evening that the company would Immediately
appeal from the adverse decision in the railroad
merger case handed down yesterday by the
United States Circuit Court of Appeals in ST.
Paul, MINI.
"Of course" said Colonel ClOugh, L assume
from the published reports that the opinion is
adverse to the company. but no matter which
side won, the would have been carried up
to the United States Supreme Court A decision
from the highest tribunal is wanted to settle the
questions involved. Counsel had agreed upon
an appeal beforehand. 1t may take a year to
get a decision"
Colonel CIough declined to comment on the
decision.
John W Griggs, ex-Attorney General, said
last night at his home, Paterson. n. j., that he
had only seen the newspaper reports of the de
cision from which he gathered that the point or
which the case was decided was that the pur
chase of the stock of the Northern Pacific and
Great Northern railroads in restraint OF
trade and therefore illegal under the Antitrust
act
'I cannot criticise the decision of the court,
especially as we will appeal the case to the
United States Supreme Court. and the case will
probably come up for argument in the court or
last resort next fall The only answer L can
make to the decision is our contention that the
ownership of the stock of the two railroads can
not be in restraint of trade We held that any
one can legally hold property unlimitedly, and
it is only the use of that property that can be
restricted by the Antitrust law.
when the Northern Securities Company or
the two railroad companies whose stock 1t holds
do any act that is in restraint of trade, then
it or they can be enjoined but not until then
Until now the Northern Securities Company has
done no act with the stock 1t holds, and there
fore it could not come under the operation of the
Antitrust law. 1t has not voted the stock it
holds.
The decision of the court does not affect the
legality of the corporation. The company can
go ahead and do business as before. The only
thing affected by this decision is the purchase Of
the stock of these two railroads. 1 cannot tell
you whether the appeal to be taken by the de-
fendant corporal ton will act a stay or that
anything of that kind will be sought by the
company That has not been discussed
The decision came as a great surprise to Wall
Street. No decision was expected before May
l That the ownership of Northern Securities
should be practically declared a monopoly for
hidden by the act of 1890 almost entirely
unexpected. it was said, by those holding ITS
shares Wall Street heard of the decision at
1:12 o. m The effect of the news the stock
market was not marked. 1t is true that North
ern Securities. selling the curb, declined
swiftly from 1O61s to 1929. but it rallied to
fO31b closing at 14 bid. Union Pacific holders
feeling that their stock was peculiarly affected
by the decision, by reason of the Southern Pa
cif1c litigation sold freely. but the hnal net Joss
of the day was not great. st. Louis and San
Francisco dropped Az. rejecting the fear that
the Rock Island deal would be prevented. and
PENNSYLVANIA and New-York Central were
heavily sold. But the whole market rallied
substantially at the end of the days trading
II was not thought in the Street that the market
would be at all seriously affected.
Soon after the ST. Paul dispatches confirmed
hevond a doubt the report unfavorable against
the merger Colonel Clough said appeal
would be made and this. on becoming generally
known in the Street somewhat allayed appre-
hension.
Until I see the full text of the decision
should not care TO express an opinion It,,
said r P Morgan This much is certain, how
ever II will not rest where it is
II NAV be added with authority that Mr.. Nor
pan was not responsible for interview i'm
nptsd TO him. wherein he alleged to have
daclarad that the decision would have no ef-
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