Omaha daily bee., 1903-04-10
Northern Pacific and Great Northern Or
dsred to Ignore Big stOCkhOldsrL
ORIGINAL OWNERS MAY GET SHARES BACK
Illegal Combine Allowed to Reverse Trade
Made on Its Formation.
FOUR JUDGES BREAK RAILROAD TRUST
Issue sweeping Injunction Designed
10 Restore Competition I'm Car
rying Trade of NORTH
west.

ST. PAUL, April S.--Tne united states
circuit court Of appesis today at noon
handed down a decision in the United
States against The Northern Securities Com
pany, enjoining the company from voting
the stock Of the Northern Pacific or Great
Northern Railroad companies, but allowing
the return of such stock as had been de-
nvered to that holding company.
The opinion was unanimous. all four
Judges concurring, but the opinion was writ
ten by Judge Thayer.
Securities stock Rendered worthless.
The substance Of the order is in the de-
cree. which is as follows
A decree In favor of the United States
accordingly will be TO the following effect;
Adjudging that the stock OF the Northern
panies, now held by the Securities company,
was acquired in virtue of a combination
among the defendants In restraint of trade
and commerce among the several states
such the antitrust act denounces as
illegal; en1oining the Securities company
from acquiring or attempting to acquire
further stock of said companies: also en-
Joining II from voting such stock at any
meeting of the stockholders of either of
said railroad companies or exercising or
attempting to exercise any control, direc-
acts OF said compsnies or either of them
by virtue Of its holding such stock; en-
Joining the Northern Pacific and Great
1oers. directors or agents, from permitting
such stock to be voted by the Northern
b, Securities company or any of its agents or
attorneys on its behalf at any corporate
election for directors or officers Of either of
Rsn, seid frn fS9pSness sn9 5ewlse enjSinng
ourities company on account of said stock
or permitting or suffering the Securities
ever. over the corporate acts Of said COM
pennies or to direct the policy OF either. and
20 return and transfer this stock to the
stockhelders Of the Northern Pacific and
Great Northern companies, any. and all
shares of stock OF those companies which
II may have received from such stock
holders In exchange for its own stock, or
such person or persons as are now the
nolders and owners OF It's stock originally
izsued for the stock OF said companies.
Parallel and Competing Lines.
Circuit Judge Thayer stated the conclu-
Sions Of the court. He recites the petition
which was brought under the antitrust act
of 1ss6. aud adds. that under the act OF
February IL. 1909, this ease, being Of gen
erai public Importance" has been given
precedence over others and In every way
expedited. 1t is declared that under the
admission OF the defendants the matter of
fact are that the roads were parallel and
competing lines. that they had jointly se-
cured control of the Burlington, that In
1901 q holding company had been formed
by large owners OF the stock OF the North
ern Pacific and Great Northern railways,
by which new company large stock inter-
ests had been acquitted at an agreed price,
and the court holds that "the scheme thus
devised and consummated led inevitably
TO the following results:
Ftrst-1t placed the control of the two
roads In the hands OF a single person,
towit: The Securities company. by virtue
of its ownership of large majority OF the
stock of both companies: second. II de-
stroyed every motive for competition be-
u tween the two roads engaged In interstate
traffic which were natural competitors for
business, by pooling the earnings Of the two
roads for the combined beneht OF the stock
holders OF both companies; and. according
70 the familiar rule, we must conclude that
those who conserved and executed the plan
to accomplish these objects.
Meaning OF the Word Trust.
On the point whether the present case
comes within the Inhibition of the anti
4 trust act, the court discusses the meaning
~of the word trust in the act and adds
that congress was careful to declare that
q combine In any other form. II In restraint
of trade or commerce, that is. II II directly
occasioned or effected such restraint, should
likewise be deemed illegal. Moreover, In
cases rising under the act, II has been
held by the highest judicial authority in
the nation, and Its opinion has been re.
iterated in no uncertain tone. that the act
applies to interstate carriers OF freight and
passengers. as we'll as to all other persons
natural or artificial; that the words "iu
restraint Of trade OF commerce" do moi
mean unreasonable or partial restraint o,
trade or commerce, but any direct restraint
thereof; that an agreement between com.
peting railroads, which requires them q
act In concert In fixing the rate for the
carriage OF passengers or freight over theil
respective lines from one state to another
and which by that means restricts TEN.
porarily the right OF any other carriers ts
name any rates for the carriage Of sucl
freight or passengers over it's road, as 4
pleases, is contract in direct restrain
OF commerce within the meaning OF tn,
act. in that It tends to prevent competition
that Il matters not whether, while actin
under such a contract, the rate fixed 1
reasonable or unreasonable, the vice o
such contract or combination being tina
Il eonfers the power to establish unrea
sonable rates and directly restraints com
merce by placing obstacles In the way Q
free and unrestricted competition betwee
carriers who are natural rivals for patron
age; and, finally, that congress has tn
power. under the grant OF authority con
tainec in the federal constitution, to regu
late commerce. TO say that no contract 0
combination shall be legal, which shall re
strain interstate trade or commerce b
shutting on the operation OF the genera
Law OF competition.
Restraint Of Commerce.
Under those propositions. It is also hel
IA that II the stock had been entrusted
one person. with instructions how to vot
It, "the result would have been a combina
tion In direct restraint OF interstate com
meree because Il gave power to suppres
competition.
The Organization OF the securities CON
pany, II Is held, acoomplishes the objec
which congress has denounced as illega
more ettectuAlly than by other methods, an
continues:
a SO far as the New Jersey charter Is COZ
" cerned. the question, broadly stated whic
the court has 10 determine, IS whether
Ncharter granted by a state can be used