Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-04-04
der abortive efforts to apply any effective
remedy for the existing evils
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iSiilCuy lOI luS SAlSllUS cVllS
Status Of Corporations.
1t is clear that corporations created for
quasf-public purposes, clothed for that rea-
son with the ultimate power of the state to
take private property against the will of
the owner hold their corporate powers as
carriers in trust for the fairly impartial
service of all the public. Favoritism in the
use of such powers. unjustly enriching some
and unjustly impoverishing others, discrim-
mating In favor of some places and against
others, Is palpably vfolative of plain prin-
ciples Of Justice Such a practice unchecked
Is hurtful in many ways. Congress- having
had it's attention drawn to the matter, en-
acted most important anti-rebate law,
which greatly strengthens the interstate
commerce law. This new law prohibits I'm
der adequate penalties the giving and as
well the demanding or receiving of such
preferences, and provides the preventive
remedy of injunction. The vigorous admin
1stration of this law. and it will be en-
forced. will, it is hoped, afford a substa ntial
remedy for certain trust evils which have
attracted public attention and have created
public unrest.
This law represents a noteworthy and
important advance toward Just and effect
I've regulation of transportation. Moreover
Its passage has been supplemented by the
enactment Of a law to expedite the hearing
of actions of public moment under the anti
trust act. known as the Sherman law and
under the act to regulate commerce, at the
request of the Attorney General; and fur
thermore. additional funds have been ap-
propriated to be expended under the d.
rectfon of the Attorney General in the en-
forcement of these laws.
Northern Securities.
About the same time the case against the
Northern Securities Company was insti-
tuted. This was a corporation organized
under the laws Of the state of New Jersey
with a capital of 4O0.OO0,OOO. the alleged
purpose being to control the Great Northern
and the Northern Pacific railroad compa-
MES, two parallel and competing lines ex-
tending across the northern tier Of states
from the Mississippi river to the Pacific
ocean. Whatever the purpose its consum-
nation would have resulted in the control
OF the two great railway systems upon
which the people of the northwestern states
were so largely dependent for their sup
plies and to get their products to market be-
ing practically merged into the New Jersey
corporation. The proposition that these in
dependent systems Of railroads should be
merged under single control alarmed the
people of the states concerned, lest they be
subjected to what they deemed monopoly
of interstate TRANSFORMATION and the sum-
preston OF competition. The governors Of
the states most deeply affected held meet
ing to consider how to prevent the merger
becoming effective and passed resolutions
calling upon the national government to en-
force the antitrust laws against the alleged
combination. When these resolutions were
referred to the Attorney General for con-
stderation and advice he reported that in
his opinion the Northern Securities Com
pany and it's control Of the railroads men
toned was a combination in restraint of
trade and was attempting a monopoly in
violation of the national antitrust law
Thereupon suit in equity, which is now
pending, was begun by the government to
test the validity Of this transaction under
the Sherman law.
Cotton Growers Complaint
The cotton interests Of the south, includ-
ing growers, buyers and shippers made COM
plant that they were suffering great injury
in their business from the methods of the
southern railroads in the handling and
transportation of cotton. They alleged that
these railroads. by combined action under
pooling arrangement to support their rate
schedules, had denied to the shippers the
right to elect over what roads their COM
modfties should be shipped. and that by d.
viding upon fixed basis the cotton crop
OF the south all inducement to compete in
rates for the transportation thereof was
eliminated. Proceedings were instituted by
the Attorney General under the antitrust
law. which resulted in the destruction of
the pool and in restoring to the growers
and shippers Of the south the right to ship
their products over any road they elected,
thus removing the restraint upon the free
dom OF commerce.
In November, 1902 the Attorney General
fled In the United States circuit court at
San Francisco against the Federal Salt
Company-a corporation which had been or
ganised under the laws Of an eastern state,
but had fts main Office and principal place
Of business In California-and against a
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