The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1903-04-17
SUBSTANCE OF ORDER.

trust act d~cnounceS AS illegal.
Enjoinins the Securities compan,
quire, further stock of either of safe
companies.
CANNOT VOTE STOCKS.
at any meeting of stockholders of said
railroad companies, or exercising or
attempting to exercise any control, d.
rection, supervision or Influence over
the acts Of said company:
Enjeining the Northern Pacific ard
Great Northern companies, respective
", from Permitting such stock to be
likewise enioinins them from paying
any dividends to the Sccuritisa com
pany on account of said stock, or per-
mittinS Or suffering the Securities
company to exercise any control what
9 over the corporate acts of said
companies.
MAY RETURN SHARES.
Finally, permitting The Securities
company to return and transfer to the
stockholders of the Northern Pacific
and Great Northern any and all shares
MAJ have received from UGH stock
holders in exchange for it's cWn stock;
or to make such transfer and assign
rnent to such persons as are now hold
ers and owners of it's own stock origin
ally issued in exchange for stock of
said company.
TIE COURTS DISCUSSION.
The opinion declares hat under the
admissions of defendants, the Securi-
Burlington, Northern Pacific and Great
Northern interests, parallel and COM
peting lines, and holds that the scheme
thus contaminated led inevitably to
the following result:
Control of two interests in the hands
of a single person.
Destroyed every motive for competi-
ton between those two roads engaged
in interstate traffic, which are ~natura!
competitors for business, by POOLING
the earnings of the two roads for tho
benefit of stockholders of both
companies.
And, according to the familiar rule
that everyone is presumed to intend
what is the necessary CONSEQUENCE of
his own act, we must conclude that
those who conceived and executed the
plan aforesaid intended among other
things to accomplish these objects.
MEANING OF TRUST"
The court discusses the meanino of
the word trust" in the anti trust act
and says congress was careful to de-
clare that a combination, if in restraint
OF IHIeTSIaIG TRACE or commerce. IL IL
directly occasioned or affected such re-
~straint, should be deemed illegal. The
words sin restraint of commerce" do
not mean in unreasonable or partial
restraint of trade; but any direct re-.
straint thereof.
The court further says that anv
agreement between competing roads
requiring them to act in concert in fix
ing rates for carriage Of passengers or
freight over their respective ines from
one state to another is in direct re-
straint of commerce. within the mean.
ing of the antitrust act.
POWER OF CONGRESS.
Congress has the power, the decision
says, under the constitution, to reou-
late and to say that no con-
tract or combination shall be ieoaI
which restraints interstate commerce by
shutting off the operations of the Gen.
eral law of competition.
The organization of the Securities
company is held to accomplish an act
winch congress has denounced as iIIe-
gal, more efectual!y than by other
methods.
Concerning the New Jersey charter,
the court says the question to be de-
ternfned is whether a cha rter GRANTED
by a state can be used to defeat the
national legislature as expressed in =
law relating to interstate trade. over
which congress has absolute central
After quoting New Jersey law. he
court says the law inca ms that no DOW
ers granted BY a state shall be exer-
ciscd to set At defiance any United
States statutes. The contention that
the existing combination is in violation
OF the antitrust act, and that that az
unduiy restricts the right Of the in
dIv!dual to make a contract, and is in.
vs''a, rs declared to be entitled to lit
Viz HH c