Omaha daily bee., 1903-04-11

the NORTHERN SECURITIES DECISION
The decision Of the United States
circuit court OF appeals in the case of
the government against the Northern
Securities company is sweeping and In
all probability will prove to be con-
elusive, since It is distinctly in accord
with the decisions of the supreme court
Of the United States in cases arising
under the antitrust Law Of 1890. Re
duced to the simplest statement, the
decision is that The Northern Securities
company is a combination that is re-
pugnant to the law and that its OBJ
sorptlon and control of competing lines
Of railroad, by destroying every motive
for competition between the roads in
interstate traffic, is in restraint Of COM
merce between the states.
This is the gist of the courts opinion,
but there are important declarations in
regard to the meaning Of the terms of
the antitrust act which somewhat
broaden its construction and application.
1t was contended by the company that
the law does not apply to it for the
reason that it is not a trust" but the
court pointed out that congress was
careful to declare that q combine in
any other form, If in restraint Of trade
or commerce, that is, II 1t directly
occasioned or effected such restraint,
should likewise be deemed Illegal"
There would seem to be no question as
to the soundness of this view, the anti
trust act declaring illegal every contract,
combination in the form Of trust or
otherwise" thus giving unlimited scope
to the application Of the law. 1t was
therefore logically held that If the stock
had been entrusted to one person, with
instructions how to vote 1t, the result
would have been a combination in d.
rect restraint Of interstate commerce
because it gave power to suppress COM
petition. AS to the contention that the
law unduly restricts the right of the in
dividual to make contracts, the court
thought it entitled to little considera-
ton, holding that the provision regard
ing the liberty of the citizen is to some
extent limited by the commerce clause
Of the constitution and that the power
Of congress to regulate interstate ON
merce comprises the right to enact a
law prohibiting the citizen from entering
into those private contracts which d.
rectly and substantially, and not merely
indirectly, remotely, incidentally and
collaterally regulate to a greater or less
degree the commerce among the states"
So far as we are aware this is the first
judicial opinion upon this point and its
Importance will be readily recognized.
Not the least important feature of the
decision is that which holds that a state
charter of a corporation cannot be used
to defeat the will of the national legis-
lature, as expressed in a law relating to
interstate trade and commerce, over
which congress has absolute control.
The decree of the court deprives the
Northern Securities company of all au-
thority and control over the Northern
Pacific and Great Northern Railway
companies. 1t Is enjoined from acquir-
ing further stock of those companies
and from voting such stock, the officers
Of the railroads being also enjoined
from permitting such stock to be voted
by the Securities company. Thus the
authority of the merger organization is
completely taken away and It is allowed
only the privilege Of returning the stock
which was exchanged for it's securities.
The victory of the government is most
signal and there is strong reason to
believe that it will be sustained by the
supreme court.