Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1903-04-16
MERGERIS llLEGAl
NORTHERN sEcURTTlEs COM
PAMY VIOLATES TEE ANTI
TRUST LAW.
GOVERNMENT WINS THt CAST
UNITED STATES COURT or kF-
PEALs RENDERS a uNAai-
NOUS DECISION.
COMBINE TO RESTRAIN TRADE
COMPANY ENJoINED FROM E@'
ERclsfNe ANY CONTROL OVER
THE TWO ROADS

81. Paul. April IL. - The unheo
states circuit court Of appeals C.
clares that the Northern secar'IieS
company Is a violation OF the sherman
antitrust Law, IN that in oWnlng
controlling interest in the stock OF Ins
Great Northern railroad and me
Northern Pacific railroad il Is In eIIecI
q combination In restraint OF inter
state trade, within the meaning OF tle
Sherman act. The decision OF 1hs
cont sugtains every contention OF the
government. The case viii doubtless
he appealed 10 the United States SD
preme court
The decision was Sled in ST. PAM
yesterday by Judge Walter H san
horn. The opinion is written by Judge
Amos nj. Thayar. All the judges that
heard the arguments in the case -
Judges Caldwell. Thayer, Sanborn and
Van Deventer. assent in the opinion.
Tied Up by Iniunctlons.
The courts decree enjoins the
Northern Securities company frCin &C"
curing any more Of the stock Of the
Great Northern or the Northern Pa
cifc. and restraEns the Securities eor-
pany from voting any OF the STOCK II
now owns. The Northern Pacific and
the Great Northern are not TO permit
the Securities company to vote any
OF their stock: they are not TO pay any
dividends 10 the Securities company.
end they are prohibited from permit
ting the Securities company 10 ezer~
else any control over the t%0 roads.
The Securities company Is permitted
20 return the stock OF the 40 rail-
roads.
Destroys Competition.
Judge Thzyer's opinion is an ex-
haustIye discussion Of the questions
involved. The court holds that the
Great Northern and the Northern Pa
cffic are parallel and competing linF.
Control Of the two railroads, the court
finds, is placed in the hands Of the
Northern Securities company This
control destroys competition between
the two roads on interstate business,
because, their interests being CON-
mon, one read cannot FIX rates regard
less OF the other. Whether these rates
are reasonable or unreasonable, the
court holds, does not affect the ques-
ton. since the violation OF the law lies
in the power to fix unreasonable rates.
The fact that each road has It's OWE
board Of directors does not affect the
question: the court holds that ccmpe-
tition could not be more restrained If
the two roads were operated
Under Single Charter.
The cnarter Of the Northern Securi-
ties company granted by New Jersey
the court does not consider as a de-
Tense; for a state, says the court, has
no right to authorize what is prohib-
tied by federal statute. Nor does the
court consider Sc valid the assensa
that this action would destroy liberty
Of contract for contract. also, to be
considered. must be lawful. That the
purpose Of the Northern Securities
company was not TO restrain trade,
but 10 promote II, that in fact the
company serves a good public purpose.
as coEterded by the defendants. the
court refuses to consider, since the
Law Is violated IL there Is a combina.
! ton that has the power to restrain
trade, and the court finds that the Sc
curities company has that power.
stste Case May Go On.
Attorney General w. p. Douglas
said yesterday afternoon that he had
not consulted Cor. Van SAINT or hts an.
sociates. bat he was OF the opinion
that the state must likely 90 on with
Its suit against the Securities com.
pany for the purpose Of inviting a de.
cisson by the courts as 70 the force
and effect Of the state laws. The
state's action. now pending. is based
upon the statutes OF the state prosih.
Ting the consolidation of parallel and
competing lines OF railway and the
federal antitrust act. upon which the
federal action was based.
Hin Makes Statement.
New York. April 10. - Presiden,
HIN made this statement:
Il am moi satisfied With the renors,
thus far at hand. They are too meager
TO give rs definite idea as to how
the decision was reached. An car
say al this time is that the roads o,
TIE Northern Securities company are
showing good earnings, the properties
are paid for, AMI they cannot be
taken away. The decision, as under
stand t. does not disturb the owner
chip OF the properties"