The pioneer press. (Miller, Hand County, S.D.) 1893-190?, 1903-04-16
MERGERS ILLEGA1
NORTHERN SECURITIES COM
PANY VIOLATES THE ANTI
TRUST LAW.
GOVERNMENT WINS The CASE
UNITED STATES COURT OF AP.
PEALs RENDERS A uNANi-
NOUS DECISION.
GOVERNMENT WINS THE CASE
COMBINE TO RESTRAIN TRADE
COMPANY ENJoINED FROM Ex.
ERcIsINe ANY coNTRot OVER
THE TWO ROADS.

st. Paul, April IL. - The Unlteo
States circuit court of appeals de-
clares that the Northern Securities
company is a violation OF the Sherman
antitrust law, in that in owning
controlling interest in the stock OF the
Great Northern railroad and the
Northern Pacific railroad 1t Is In enect
a combination in restraint OF inter-
state trade, within the meaning OF the
Sherman act. The decision OF the
court sustains every contention OF the
government. The case will doubtless
be appealed to the United States SUI
preme court.
The decision was fled in st. Paul
Yesterday by Judge Walter H. San
born. The opinion Is written by Judge
Amos M. Thayer All the judges that
heard the arguments in the case -
Judges Caldwell, Thayer, Sanborn and
Van Deventer. assent in the opinion.
Tied Up by InJunctions.
The courts decree enjoins the
Northern Securities company from ac-
curing any more of the stock OF the
Great Northern or the Northern Pa
cific, and restraints the Securities COM
pany from voting any OF the stock it
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 to the Securities company.
and they are prohibited from permit
ting the Securities company to exer-
else any control over the two roads.
The Securities company Is permitted
to return the stock of the two rail-
roads.
Destroys Competition.
Judge Thayer's opinion is an ex-
haustive discussion of the questions
involved. The court holds that the
Great Northern and the Northern Pa.
cific are parallel and competing lines.
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 COM
mon, one road 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 its own
board of directors does not affect the
question; the court holds that compe-
tition could not be more restrained II
the two roads were operated
Under Single Charter.
The charter of the Northern Securi-
ties company granted by New Jersey
the court does not consider as a de-
tense; for state, says the court, has
no right to authorize what is pronib-
tied by federal statute. Nor does the
court consider as valid the defense
that this action would destroy liberty
of contract, for a contract, also, to be
considered, must be lawful. That the
purpose of the Northern Securities
company was not to restrain trade.
but to promote It, that in fact the
company serves a good public purpose,
as contended by the defendants, the
court refuses to consider, since the
law is violated If there is a combina-
ton that has the power to restrain
trade, and the court finds that the Sc
curities company has that power.
State Case May Go On.
Attorney General w. p. Douglas
said yesterday afternoon that ne had
not consulted Gov. Van SAINT or his as
sociates, but he was of the opinion
that the state must likely go on with
Its suit against the Securities COM
pany for the purpose Of inviting a de-
cision by the courts as to the force
and effect of the state laws. The
state'9 action, now pending, is based
upon the statutes of the state prohib-
Ting the consolidation of parallel and
competing lines OF railway and the
federal antitrust act. upon which the
federal action was based.
Hill Makes Statement.
New York, April 10. - President
Hill made this statement:
Il am not satisfied with the reports
thus far at hand. They are too meager
to give us definite idea as TO how
the decision was reached. All I can
say at this time is that the roads of
the Northern Securities company are
showing good earnings. the pApperties
are paid for, and they cannot be
taken away. The decision, as I under.
stand 1t, does not disturb the owner.
ship of the properties"