The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-04-19
!. SUNDAY, APRIL 70, 1908.
'AI@ MENACE i, TO PROGRESS.
iE.l v. !.

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gSA5MENAcETo PROGRESS.
8SEGFolowing up our recent remarks on the
Precision III the Northern Securities case,
Awe think IL we'll enough to recall tho cir
5Scun1stances which led UP to the formation
II: 81 the Northern Securities Company. I'd
sg The great Northern road and the North
&.sScrn Pacific road are parable lines. Wo
sgsyears ago Mr.. ]. j. Fill. OF the Great Great
Northern, and those associated with him,
Miby making an alliance with Mr. &J. e.
Morgan, obtained q control OF the stock
I'M the3 Northern Pacific TIill and Nor
kasgan thun attempted to buy the y, ST. 1' fll
8sroad, and failing to do 50 bought instead tea
53the Chicago, Burlington 8 Quincy Mt
Hartman and thiss assocint e, who owned
$I;the Union Pacific road, protested against
$g4hi5 purchase OF the Burlington as an In
$s$[vasion& of Union Pacfic's ma tural terri
tory. and quietly! began TO purchase the
stock Of the Northern Pacific ROAD. III
5astlIttle while Nrcssrs Morgan and 4 fdlll
Undiscovered, to their dismay that enough
Shares had probably been purchased py
the Hartman people to take away t'e
&JCOntrOl OF IUo t1NOilllelH :
upon there was frantic competitive pus7-
ding Of Northern Pacific shares, winch y as as
5sSeome Of our readers will remember,calut SEQ
slthptE stock S to advance to Isl, COY per
share and precipitated the Wa Wall
u panic Of May 9th.
ssf@ fter8 the II fight was over each side
s aimed to own "a controlling interest IN
@ithe property. one side holding a majority
Sofl the preferred stock and the other sue sue
@a majority Of the common stock, ana
stl,e situation was complicated aad alarm
~ ing. Meantime, Mr. Mo:sGn 7 etn i e
from Europe, and his party and the t lTt
aEriman party got together and talked me
Situation over. The result was q COM
promise through which the formation OF
Sithe Northern Securities Company wa;
agreed upon, in which company both par
ties should have an interest and which
S should hold a majority of the shares Of
both roads. M
as j was entirely legitimate, as things go,
# for these menitto go on the open marker
II and purchase the shares of the railroads
q. concerned, and it was perfectly legitimate
for one side or the other to get q controls
ling interest in the shares of ether.or both
roads. There was no violation OF the
letter Or the spirit Of the Sherman law IN
III Ibis competitive buying, but as has al-
n ready been shown. 1T caused a great stir
in the railroad world and in the financial
world and prcciptated q panic. II the
fight had been kept up there is no know
8sing what the result might have been, but
#Atis fair to presume that It would haze
caused great distress II not disaster IN
Asylnany quartersi Es
What were tl,cse men to do? They.
# were men Of affairs and they readily saw
that a continuation Of tho fight would DO
~ hurtful to themselves II not to the coun-
TRY at large, and so with their usual dis
Is erection they agreed upon terms of peace,
ST would have been impracticable. even
II 1t had not been Illegal for them to
pool their shares and put them in the
hands of trustee for the life of every
Frs man is limited and there would have
been no certainty OF tenure. The only
way out OF tho difficulty seemed to be the
IA organization of securities holding COM
pa,ly which should have an Indefinite
lease OF life.
s And so tho Northern Securities Com
= pany was organized, not to restrain trade,
r. nor to injure the roads involved nor the
general interested the public. but as "a
Ga solution Of a problem, as the only practi-
% cal way out Of q complicated and threat
III cning situation. Yet the courts have do
VIII cided. and we think properly decided, that
this company IL an illegal corporation un-
s5l der the Sherman antitrust law. AMI must
II not be permitted 10 perform It's functions.
&t We are not criticsing the decision OF
#g the court, for It was the duty OF the
# court to construe the law and to decide
X the legal points involved In accordance
ID with the law. Eut we would direct at
tention once more TO the danger Of this
h law and all such laws which Interfere
q with the natural rights OF citizens and
~ with the natural laws OF trade. In our
opinion there has been 10 more signlfi-
cant and impressive Illustration OF the
tdanger from mischieyous and medde-
some legislation than Is brought out in
IA this decision. Fortunately, the decision
iyas delayed un,ll after the crisis had
@fpassed. but II Is our deliberate opinion
&g|that II the Northern Securities Company
had been declared illegal Immediately
@s after Its formation there would have been
s. another Wall-sueet panic with disas-
tfous results. SO far as that particular
case Is concerned we arc Inclined to think
fS that the worst is over and that tho par
WAX ties in Interest will probably be able to
adjust themselves 10 the new situation.
n even though the Supreme Court should
affirm the decision Of the lower court
But is that all2 Are there to be no
8 more suits under the Sherman antitrust
law9 Possibly not. but she way is wide
e5cJen ia all sorts Of mischievous litigation
81 tie part Of petty and irresponsible