Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1903-04-11
Hold that Even Reasonable R'straint Of
Trade IL Illegal at Present.
RAILWAY CONSOLIDATION MAY Be GOOD
Peop's Must Decide Which Mergers Should
Be Prohibited
SECURITIES CASE DEFINES STATUTES
Leaves No LOophoIe for Escape by
Destroying Last Legal bubble
and Finally Settling
judges Powers.

PHILADELPHIA, April johannes NJ.
Beck, assistant attorney general, who ar
Eued the Northern Securities case for the
government, when questioned today as to
the scope OF the decision, said;
''Disclaiming any purpose to express any
opinion but my own. the clear and exhaustive
opinion Of Judge Thayer seems to mo to
leave nothing to be desired in the matter |
OF a full exposition OF the federal law ap-
plieable to the consolidation Of competing
Interstate carriers. All interest should well |
come such a result for Il seems to me OF
FIRST Importance that the exact meaning of
existing statutory law should be definitely |
ascertained. When ascertained, the !
Question OF the wisdom OF the statutes can |
W fairly debated in the greater court Of
public opinion,
Court Destroys Last Legal euibhle'
''The decision OF the circuit court accom- |
pIlshes the purpose. II destroys the last
legal device for the suppression of com
petition and shifts the whole question from
the courts 70 the people and leaves for their
consideration and ultimate decision the
question whether railway consolidation un-
der proper regulations is desirable or
&hether II should be altogether prohibited.
n The wild suggestion that this decision is
revolutionary and will disrupt the Amer
lean railway system is absurd. Il simply
reafirms existing principles and has no sp-
pIication whatever to legitimate extensions
Of railway lines. but applies solely to the
suppression of competition by railway con-
soi!dation. Judge Thayers decision, In ef-
feet demonstrates the inaccuracy OF the
phrase holding compang.' and also shows
that the community Of interest plan,
through stock ownership. when 1t sup
presses competition and promotes monop-
oily, is unlawful. II holds in substance that
whenever the control OF competing inter-
state carriers is secured, either by COM
bination OF natural persons or by corpor-
alton which they create. and the motive
Z for competition has thus been destroyed by
the consequent unity OF interests, the anti
trust law is violated.
s'The fact that each Of the competing lines
IL nominally operated by q separate board
OF directors is held immaterial. and the
court, disregardng form and looking to
substance, holds that the real policy OF
railroad 1s controlled by those who own
the majority of the stock and that such In
dividual holders in real sense determine
all important corporate acts
stock ovnership Gives Law Chance.
THE decision Is also Of FIRST importance
IN holding that the mere ownership OF
stock in an interstate railroad brings the
owner In such direct relation with inter-
state commerce as to subject him to the
pienary powers OF the federal government
with respect thereto. Perhaps this holding
gives the decisioa its greatest Importance.
sr"The defendants attorneys contended that
kthe mere acquisition Of such shares had
1ither no direct relation to interstate com
merce, or that, in any event, such rela-
tion was indirect collateral and remote.
They sought TO establish an unsound dis
tinctiop between ownership OF a road and
It's operation This view the court mega
tives and holds that the purchase Of
shares IN an interstate railway subjects
the purchaser to the constitutional power
Of the federal government The Importance
Of this holding coming as It does. upon
Athe heels OF the lottery cases, cannot we'll
fbe overestimated. 1t greatly widens the
scope of federal activity The constitution
remains unchanged but the sphere Of
human action, to which It is applied. is, by
means Of wholly exterior forces. greatly
w.dened.
"When the constitution was framed the
only media of interstate communication
were the coastwise sailing vessels and the
occasional stage coach which crossed state
lines. but steam and electricity have in
dissolubly bound the states together by
OF railroads alone 600 miles in length,
and this has produced centripetal action
which has inevitably increased the sphere
and scope Of federal activity,
Conditions Need New Remedy.
I'm this aspect the lottery cases and the
case Just decided easily mark q new and
most important epoch In the life Of the
nation. The lottery cases, which sus-
taiaed the power OF congress TO prohibit
interstate trafic when prejudieial to the
public welfare and the Northern Securities
case, which subjects not only the i'm
mediate operation Of every interstate road
but its very ownership through stock
shares to federal power. are simply in
evitable results of this eentTipetal force
The decision makes 1t doubly necessary tC
determine as a matter of public policy th'
exact and proper relation between the rail
ways. upon which our prosperity so vital!
depends, and the state.
I'm this connection the conservative sug
gestion Of Attorney General Knox in hi
notable address at Pittsburg. that the anti
trust law should be so rodifed as to torbi'
only unreasonable restraints Of trade
should be horne in mind. The suprem
court. In the joint trahhc decision. by
bare majority OF one. so construed tn
antitrust law as to bring reasonable a
well as unreasonable restraints Of trad
within its prohibition, and thus added i'm
mensely TO the difhculty Of an already diff
hcult problem.
The attorney generals view OF the ex
isting law has been fully sustained and hi
courageous aetion fully vindicated. and tn
responsibility must now rest with Ameri
can people to determine. as leg.slativ
and not as a judicial question, how IA
and under what conditions the public In
terest may n at all. justify such railwa
consultations as are in restrain Of com
.Setition."
Appeal Notice is Filled.
Sr. PAUL. April l0.-The Northern Sc
eurities eompany's appaaI To the suprem