The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1903-04-17
A HIT AT TRUSTS.
United States Court Declares securi.
ties Companies Illegal.
THE FOUR JUDGES UNANIMOUS
The Opinion. winch is clear Cut

The Opinion, Which is Clear Cut
and Strikes Out from the
Shoulder. Was Written
byJudEc Thaycr.
The position Of the United States
government in the suit brought
against the Northern Securities com.
pany, the Northern Pacific and Great
Northern railraws and individual Of
ticials and directors Of those compa-
nles, was sustained in the decision
handed down in the United States cir
cult court Of appeals at St. Pauls,
Mimi, Thursday. The case was
originally brought in the United
States court, but under a special act
Of congress was taken at once to the
court OF appeals, which court VAS to
expedite the hearing aud decision of
the case In every manner possible.
The taking of testimony in ST. Pauls
and New York lasted for several weeks
and the arguments in ST. Louis be-
fore Circuit Judge Caldwell, Sanborn,
| Ihayer and Vandevcnter took several
| days. The decision Of the court was
written by Judge Thayer and was
Tiled in st. Pauls, where the original
action was instituted. An appeal to
the United States supreme court will
be taken Immediately. All four
| judges concurrcd in the conclusions Of
the court, which were stated by Cir
cult Judge 'rhayer
Judge mayer, in the opinion, rccites
the petition which was brought under
the ANTITRUST act Of 1890 and adds
that under the act of Feb. IL, 1903,
this case, being OF general public i'm
portance," has been given precedence
over others, and in every way expedit-
ed | t is declared that from the ad-
missions of the plcadings the matters
of fact are that the roads were par
allcl and competing lines and that they
had jointly secured control of the Bur
lington line, that in 1901 e holding
company had been formed by large
owners Of the stock of the Northern
Pacific and Great Northern RAILWAYS,
by which new company large stock in
terests and been acquired at an agreed
price, and the court holds that 'the
scheme which was thus devised and
consumated led inevitably to the fol-
lowing results:
The following from The State will
show the far reaching. results OF the
decision: The Northern Pacific and
Great Northern railways traverse
several States. on parallel lines and
were direct and active competitors for
the immense business In their terri.
tories. From time to time there were
rate wars, and always the country
traverscd had the benefit of competi-
| tion. An effort was finally made by
the dominant interest OF one system
to obtain control Of the other. The
lllegality OF such combination was too
flagrant to stand even the dim light
cast on such transactions by the gov
ernmcnt at that time. 1t was then
that the genius Of j. Pierpont Nor
gan was called into play Us a trust
organizer. With the consent Of the
stockholders Of both roads Morgan
planned to defeat the spirit of the
law, combine the two systems and
| ANA'a NOiiA PSCi Cioti III UtidO UCIIIlOTy
| through the medium of the Northern
Securities company.
10 circumvent the law against one
competing road acquiring and operat-
ing Il rival, the Securities company
was organized in New Jersey to oper-
ate both the Great Northern and
Northern Pacific railways for the
mutual benefit of the stockholders of
those roads. The Stockholders Of the
railroads surrendered their holdings to
the Securities company and we're is
sued stock OF that company. The
two roads were worked as If belonging
to one system and competition In rates
ceased. The earnings OF both went
into the same strongbox from which
stockholders Of each, standing on the
same footing, were paid. South Car
DINA has law prohibiting the con-
Soldation of competing railroads. If
the Morgan scheme was legal, it would
then be practicable for stockhulder OF
the two lines between Columbia and
Charleston (supposing them to be in :
dependent systcms) to surrender their
stock to an individual or company,
giving the holder authority to oper-
ate both roads as one system for the
mutual interest Of owners Of the two
lines
The boldness Of the undertaking ana
the seeming security Of the promoters
in perpctrating this injustice on the
public are astonishing. The rights
Of the people who granted the chart
crs which permitted the railroads are
ignored, their purpose thwartcd, the
competition they desired smothcred.
Morgan says an appeal will he taken
TO the United States supreme court
but he can hope for nothing from
that tribunal. The court Of appeals
administers Il hard rap to the State of
New Jersey, the breeding ground for
corrupt corporations, but it might
have been more severe That her
citizens may escape taxation, the
good name Of the commonwealth is on
the lnarket-for sale to any who have
the price.
The Old Story.
| 4 ,.1, ;I., ~, >f,;,