The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-08-01

"The state antitrust act must have the
same construction in respect to traffic on
railroads within the state.
An Investing Company.
"NsIther the Great Northern nor the
Northern Pacific were parties to, or In
their corporate capacity had anything to
do with the formation OF tho Northern
proceedings complained of. The Northern
Securities IL merely an Investor In and
owner Of majority Of the stock Of each
OF those two companies. 1t Is not rail-
road company and has no fra1chise or
power to manage or operate or direct the
management or operation Of either rail-
road In respect to rates or charges for
transportation or otherwise; and there Is
no scntila OF evidence that It has sought
to control or Interfere In respect to any
of these matters.
st has, therefore. done no act and
made no contract in restraint of trade or
commerce. Owning now G. majority Of
the stock Of each Of these companies. it
has the power by voting its stock to elect
the board Of directors-the governing
body-of each Of these companies. But
the board Of directors of each Is differ
ent body from the board Of directors Of
the other. as no director of the Great
Northern can be director Of the North
ern Pacific. The directors Of each ap-
point its managing and other officers, and
control its business and policy. Presum-
ably they will seek, in lawful ways to
increase its business and property.
PearsaII Case Not Precedent.
Judge Lochren proceeds TO- discuss the
Pearsall decision, halding that the case
does not sustain the idea that single in
weston in railroad stocks, whether a
natural person or a corporation without
railroa franchises, could acquire power to
manage or operate railroads involved by
the mere purchase Of majority or the
whole of the stock. He holds that this Is
not necessarily consolidation. a
1T follows that as the Northern Se-
curities Is merely an investor in the stocks
o fthese corporations, not being itself a
railroad corporation and being without
franchise, or authority to manage, con-
troll or operate any railroad, its owner
ship OF majority Of the stocks Of these
two railroad companies. does not come
within the prohibitive language Of the
statute of 1874" .r.N t-N}
The two companies "still remain, sep.
arate corporations with no interests al
such, In common. The case would not
be different If one natural person witt
abundant capital should invest in the ma.
jority of the stocks of one of these com
panies. an danother like person should in.
vest in the majority If the stocks of the
other company. The interest of the two
If they chose to act in harmony, would
be the same as the interest of one per
son owning the whole" .Es- '..-.3a.f 80.
But it is urged that the ownership b,
the Northern Securities of such larg
majority Of the stock Of these two paral
lei railroads creates monopoly, havin,
tendency to prevent competition between
these railroads and presents case with
In the mischief intended to be remedie
by the statute of 1874. Also that it
contrary to the public policy of the state
Too Much Trust Talk. =.
''The terms monopolies' and trusts ar
perhaps in cases like this too often ar
piled to all business enterprises requirin
and employing great aggregations
Wfalth, and in the vague sense In whic
on the hastings they are used to arous
envy and jealousy. forgetting the mantle:
necessity Of such aggregations of wealt
to produce the commodities, and the
transportation, which our civilization an
comfort requires.
Every railroad corporation is in or
sense monopoly. It has franchises, civ
ing rights and powers not common to a
citizens It alone can operate its ow
railroad, tho subject to reasonable regl
lation by the state.
"All monopoies, in a strict sense, re-
upon some grant by the sovereoig powe
Of an exclusive franchise or privileg
And with the modern facilities for trans
portation and communica ton all IL
statutes and learning respecting 'foresta]
become archaic; and even the meanir
of those terms will hardly now be re-
ognized.
"All complaints that published rates a
unreasonable are heard and determin,
by state officials who may fix rates. bin
ing on the railroads; thus necessari
making rates uniform as between riv
railroads. AS a result of this policy, al
the absolute power Of the state officials
fix rates. and keep them at the lowe
reasonable figures. competition betwe
rival railroads no longer reduces rates
it did when railroads alone CONTROL
tariff. Costs of administration and one
alton may make the reasonable rate I
transportation greater than if tfhe who
business could be done, and was, in fa
done by one railroad
However that may be- the yNorthe
Securities Is but an investing stockhold
in these two railroad companies, witho
power to consolidate them or to interfe
with tho management or control Of eth
Because Of its large holdings of the
1890 sis.t fss