The Barre daily times. (Barre, Vt.) 1897-1959, 1903-12-16
United States Supreme Court Hears
Northern Securities Appeal.
GOVERNMENT FILES BRIEF
Attorney General Knox shows why
He Thinks United states Supreme
Court should CONFIRM Decision
Of the Circuit Court.

4
Of the Northern Eeeurities company, the
Great Northern Railroad company, the
Northern Pacific company, James j,
Hill. j. Pierpont Morgan, Daniel S. La
mont and others versus the United
States, coming to this court on appeal
from the decision Of the circuit court
for the district of Minnesota. That de.
cision was to the effect that the pur-
chase Of the greater share of the stock
Of the two railroad companies consti-
tilted a merger and was contrary to
the Sherman antitrust law. The case
involves the community of interest
principle
The court room was crowded both in
side and outside the bar Attorney Gen.
eral Knox was present with quite an
array of assistants from his office,
while the opposition also was repre-
scented by a long list of distinguished
counsel, including former Attorney
General Griggs, John G.. johnson OF
Philadelphia, G. v Bum and Charles
=. Young. Justice Brown was the
only member Of the court not present.
John @. johnson, representing the
Northern Securities company, made
the first argument. He announced that
the three railroads and the Securities
company would desire to be heard by
their counsel, while it was stated in be-
half of the government that only the
attorney general would speak
After stating the case Mr.. Johnson
said that the purpose Of the Securities
company In acquiring the stock Of the
railroad companies had been not to
prevent competition. but to prevent the
injury of its own property
Justice Peckham asked whether the
Securities company held the major
portion Of the stock Of the two com
panies, and Mr. Johnson admitted that
the company held nearly all the stock,
He contended that holding the stock.
IT had the authority TO control II.
He took sharp exception to the deci
sion Of the circuit court that the pos
session Of the power which the Securi-
ties company had was a violation Of
the law and contended that such hold
ing was not in accordance with deci-
sions Of the supreme court, which We're
uniformly TO the effect that 1t Is the
use Of power and not the possession Of
It that constitutes the offense.
The Governments BRIEF.
The brief OF the government In the
case was prepared by Attorney General
Knox and Assistant Attorney General
Day and covers 100 printed pages.
After stating that the bin in the case
was originally brought by the govern
ment to restrain the violation of the
antitrust law by the Securities compa-
ny In the consolidation of the Northern
Pacific ana the great railroads and that
the decision Of the court below was
favorable TO the contention Of the Unit
ed States, the brief enters into the fol
lowing specifications as to the reasons
for the action.
First.-The lines of railway operated
by the defendant, the Great Northern
Railway company, and Northern Pa
cifc Railway company are parallel and
competing
Second The combination IL In re-
straint Of interstate commerce and
monopoly
The Cfrcuit Courts Opinion.
The concluding paragraph Of Judge
Thayers opinion in the circuit court is
quoted as summing up the argument
bearing upon the facts Of the case as
follows
At the present time the Securities COM
pany is the owner Of about 90 per cent
Of all the stock Of the Northern Pacific
company and the owner 81 about 76 per
cent Of all the stock of the Great North
ern company The scheme which Was
thus devised and contaminated led in
evftahly To the following results:
First-Tt placed the control of the two
roads In the hands Of d single person to
wit, the Securities company, BY virtue of
its ownership Of a large majority Of the
stock Of both companies.
Eecond.--It destroyed every motive for
competition between two roads engaged
In interstate traffic which were natural
competitors for business by pooling the
earnings Of the two roads for the COM
mon benefit Of sle stockholders uf both
companies. and. according to the familiar
rule that every one Is presumed to intend
what il the necessary consequence Of his
own acts, when done wllfutly and delib-
eIaEE48s we must conclude ttlaL those VINO
conceived and executed the plan afore~
said intended. among other things, to ae-
cempiiah those objects
The attorney generals own summary
of the results is as follows
TO sum up the result Of the "aforemen-
toned exchanges Of Great Northern and
Northern Pacific stock for the stock Of
the Securities company the latter com
pany On Dec. IL 1901. had acquired and
paid for $4,000 shares On round figuresl Of
the Great Northern stock the total capt
tai stock Of that company consisting Of
l. go. 900 shares, Of which 10000 have
been issued, and by Jan l. 1902, the Sc
eurities company had acquired virtually
all Of the common stock of the Northern
Pacific fthe preferred stock was retired
on that date. the resolution to retire Il
having been passed in the preceding No
vemberl its answer to the hl admitting
that it held 100000 Northern Pacific
shares out Of a total Of $50 eoa
The final result Of these transactions
was that one and the same set Of meme
Mr.. Hill and Mr.. Morgan. and their assoc
GATES being the ruling spirits among
them-aeting together under charter
agreement and through the agency Of
corporate organization became vested
with absolute power OF control over two