The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-06
NOT RESTRAINT OF TRADE.
New York Times.

Quincy. which was Joined to these two
roads IN one great system by the creation
OF the Northern Securities company,
operates network OF lines extending
westward from Chicago thru Missouri,
Iowa, Nebraska and Kansas. According
to information given in the Financial
Chronicle of Feb. Z, the gross earnings OF
the entire Pennsylvania railroad system
showed In 1902 an increase OF 10 ITO
per cent, as compared with 1901; the New
York Central system, an increase OF
2 2-10 per cent; the Union Pacific and
Southern Pacific systems, an increase OF
6-10 per cent while the Great Northern
Northern Pacific, and Chicago, Burling-
ton Quincy, constituting the Northern
Securities system, showed an increase OF
IA 2-1O per cent.
Advocates of the enforcement OF the
antitrust law in all its rigor might con-
clude that this remarkable increase In
earnings is due to exorbitant charges
If the charges Of this system Of railroads
have been exorbitant, then Of course they
have restrained trade Has trade really
been restrained in that part. Of the union
traversed by these great railroads? The
question is answered by the figures show
ing the growth of commerce in the Pa
cff1c ports.
In 1895 the exports from Puget sound
amounted to s6,466,722, and the imports
to $2,222590. In 1902 the exports were
$S4,686,023, an increase of over 600 per
cent while the imports in 1902 were
sl2.722,755, an increase of over 500 per
cent. In addition to these, imports to
the value of $7,S24,219 were entered in
bond in 1902 for transportation to the
interior.
In the year 1901 for the first time Puget
Sound tonnage, entered and cleared, sur
passed that Of San Francisco. In 1896
2,734,629 bushels of wheat were exported
from Puget Sound and 17,013, 613 from San
Francisco In 1902 Puget Sound wheat
exports were 13,S54,145 bushels, against
f6,O17,169 bushels from San Francisco.
The wheat flour exports Of Puget Sound
last year exceeded those of San Fran
cisco In 1902 there were 1,134, 147, 22C feet
of lumber sent out of the state Of Wash
1ngton-almost twice as much as was sent
out In 1899. More than five billion shin
gle were shipped by rail from that great
lumber growing state in 1902 Lumber
exports from Puget Sound have fallen
off In the last few years owing to the
fact that very extensive building opera
tons in the region of the Sound have
made home market for the lumber, but
that is not exactly restraint of trade.
The total foreign trade of Seattle for
1907 was 1913, 2S0,525. This is about eigh-
teen times the volume of foreign trade for
the year 1896 In addition to the foreign
trade, domestic receipts and shipments
that IS, from and to coastwise and Sound
ports-reached a value of $49,067,3O7.
The total foreign trade Of Puget Sound
increased from $5,s61, o99 in 1892 to s47.~
579,624 in 1902, a gain of $41,71s,525. The
foreign trade of Puget Sound therefore
increased III $40 per cent in ten wears
candid men will perhaps conclude from
this showing that the Great Northern and
Northern Pacific roads, tho combined ,n-
DER one ownership. have not imposed ex-
tortlonate charges. Manifestly they have
not restrained trade. On the contrary.
they have enormously expanded trade. The
country they traverse is as yet rather
sparsely settled and its productiyeness
mas only begun to be developed The two
railroads could not live on local traffic.
consequently, James J. Hill has formed
and is pursuing that broad minded and
1af-see1ng policy proclaimed by him last
year, and developing a great highway of
commerce from the cotton fields of the
south and the whole heart of this CONT
nent to the far east With this aim he
mas caused to be builtsthe great steam,
ships which are to bear across the Pacific
the cargoes of cur products delivered Nv
the railroads at Puget Sound. Operateff
under common policy and with COM
mon purpose the Northern Pacific and the
Great Northern would be able to helm on
the expansion Of our. Pacific foreign trade
more effectively than they could do s.
they were competitors continually irving
TO get away each others business. Equip
ment canont be bettered, nor can new
mileage be built, out of the losses of rate
cutting. The monthly statements of the
Chlcago. Burlington & Quincy system
show very important economies since that
road was acquired by the Northern Pa
cific. - :"
It is plain that the Northern Securities
company was organized in viola ton of
law. The United States circuit court
says SO, and has ordered the corpora ton
to be dissolved. But the court was very
careful to say that it had not considered
at all the question whether the formation
OF this holding company had really
operated In restraint of trade; the fact
that the Northern Securities company
possesses the power to restrain trade,
whether 1t choose to use it or not. was =
Violate of the antitrust act
II appears, therefore, that the '.puhIic
polcy OF breaking up combina tions hay-
ing the power to restrain trade NAV he
found to be in conflict with the public
policy OF increasing and expanding our
domestic and foreign trade Is it NOT an
surd for a nation fully grown up to make
such awkward and clumsy use Of its legis-
iat1Ve powers as to do itself real in
jury III its efforts to erect safeguards
against a fictitious evil? An amendment
10 the Sherman antitrust law of such
nature as to require the courts to a seer
TAIN whether oppressive . and Injurious
acts have been committed, acts which
reaHy do,restrain trade. is clearly in6li..
Gated and demanded. Restraint Of trade
not IN the. potential, fictitious. and ghost.
~ sense OF that phase as it is understood
and construed by the courts. but actual
restraint OF trade, as sensible business
men understand it, is fact, and fact
are susceptible Of proof The antitrust
act VIII be menace to the country's
plosperlly untll It REQUIRES the courts to
consider facts and cali for proofs y -
LITTLE TO FEEL PROUD OF.