Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-03-20
Northern Securities Attorney
Defends the Merger.
MR.. GRIGGS TO FOLLOW
EXPECTED THAT HEARING WILL
CLOSE TODAY.
Claim Set Up That Antitrust Law
Does Not Prohibit Stock
Purchases.

ST. LOUIS, Mo-, March 20.-Counsel for
the defense continued argument in the
Northern securities merger case, the fore
noon session being opened by Attorney
c. w. Bum, counsel for the Northern Pa
cifc railroad. 1t is thought probable by the
attorneys yet to talk that argument in the
case will be finished today.
Former Attorney General Griggs will close
for the defendants and Special Counsel
Watson of Pittsburg will close for the gov
eminent.
Attorney Bum in his argument this morn
ing endeavored to demonstrate that the
antitrust act does not hold that 1t is I'M
lawful for one railway to control Compel
ing line.
An abstract of his argument follows:
In this suit the United States seeks to
enjoin the Northern Securities Company
from owning and voting the stock of the
two railway companies engaged partly in in
terstate commerce. 1t is asserted that the
owning by one corporation of a majority of
the stock of the street railway companies
is prohibited by an act passed by Congress
July 2 1890. The act does not say that 1t
is unlawful for one railway to buy, lease.
own or control a competing railway. Nor is
one person or corporation forbidden in terms
TO own stock In two competing railways.
II any one of these things are prohibited 1t
Is only because they necessarily restrain
commerce among the several states.
Language is Indefinite.
THE broad generality and indefiniteness
OF the language of the law call for great
care in its Interpretation and application to
particular cases.
For its validity the act rests alone on
article l. section g. of the Constitution Of
the United States, which gives power to
Congress ito regulate commerce with for
eign nations and among the state and with
the Indian tribes Being passed in eXecu
tioa of this power. the statute cannot be
interpreted more broadly than the grant
of power itself.
'All the ordinary legislative power Of
government, the general right to Legs ate
concerning contracts and property rights,
and for the welfare, good order and mo ais
of the people, Is reserved by the Constitu
tiGn to the states Congress must exercise
its power to regulate commerce with ref
eranoe to the powers of the states 1t
can no more infringe on their reserved
power than they can on it's granted power.
THAT Congress has not the constitutional
power, under the guise of regulating COM
merce. to prescribe the general rules by or
under which either real estate or personal
property. stocks or bonds, may be bought,
owned. sold. passed by descent or willed
within the states, must be admitted. Much
less can Congress say that a man may not
buy piece of property within a state. be-
cause he may intend to use the same in
C.
intent to monopolize or restrict interstate
commerce
Limitations of Congress.
'No more can Congress restrict the right
OF partnerships or corporations organized
by virtue of state laws to buy within the
states. either real or personal property. in
Guiding stocks and bonds. Again. if con-
tract. arrangement, or combination does not
restrain interstate trade it Is immaterial
whether ii has the sanction of state law or
not. A state law must yield to the power
vested in Congress. In the case at bar or
in any similar case. the transa ction must be
treated as if fully authorized by state law.
For holding company to own the
stock of competing interstate carriers is
plainly no more prohibited by the act than
for one-interstate carrier to purchase, lease
or Otherwise control the property of a par
allel or competing carrier.
Ail these conclusions are greatly
strengthened by the fact that everything
which falls within the prohibition of the
act is made a crime, everything denounced
absurd to- suppose that Congress intended
to make IL a crime for a man to buy stock
On two competing interstate railway COM
panies: or having stock In one to go in
partnership with one who has stock in
another: or. to promote the formation of
corporation to acquire stock in both; or as
director or officer of corporation already
formed TO engage in acquiring such stocks
or TO promote the consolidation of two
Competing interstate carriers, or the lease
or purchase by one of another. 1t is GER
tanly not too much to require that if Con-
gress had intended to make these things
crimes II should have said so"