The Cooperstown courier. (Cooperstown, Griggs Co., N.D.) 1902-1913, 1903-08-06

ment's attorneys.
In brief, Judge Lochren holds that
the Northern Securities company is a
holding" company and there is moth
ing to show that 1t is in restraint of
trade as the state laws define re-
-etraint.
Discusses the Merits.
Judge Lochren goes into the merits
of the case and in referring to the
governments case at st. Louis he
must reject the doctrine advanced in
the government case that "a person
can be held to have committed or to
be purposing to commit a highly penal
crime merely because it can be shown
that his pecuniary interest can be
thereby advanced"
Judge Lochren holds that the North
ern Securities company is not an OPP
Grating company and does not manage
the Northern Pacific and Great North
ern railroads. 1t is not in possession
ola majority Of the stock of the two
roads and therefore physically unable
to control them.
Individual ownership of stock in
parallel railroads, says the court, is
not in violation of the law. He dis
tinguished the famous Pearsall case,
where the Great Northern as COM
pany sought to purchase half the cap
ital stock of the Northern Pacific. This
was held illegal by the court, but as
the Securities company is an indi-
vidual, 1t is not unlawful for it to hold
stock in both companies.
History Of the Company.
The court deals with the history Of
the company, tells Of the efforts Of the
Hartman interests to secure control
of the Northern Pacific at the time the
Burlington was absorbed and refers to
the triumph of Morgan and Hill over
the opposition by forcing the retire
ment of the Northern Pacific's pre-
ferred stock. 81 .
The action just decided is one At
torney General Douglas instituted
shortly after the conference of gov
ernors at Helena, Jan. 1, 1902. The
supreme court of the United States de-
MED the petition that 1t assume orig
inal jurisdiction, and the action was
resumed in the state courts, to be
transferred to the federal court and
brought to trial in June of this year
after. numerous delays.-Minneapolis
Times, Aug. 2.
The Decision.
This cause came on for final hearing
no hi
answers and testimony takeri-and on file
That the cause is one OF equitable
cognizance and that this court has right
full jurisdiction of the same was conceded
by counsel. The cause was fully argued
and upon full consideration the following
facts appear and are exhibited:
Burlington Purchase.
The purchase of the Burlington system
by the Great Northern and Northern Pa
cif1c, which was completed about April /,
cif1c company to fear diversion Of traf-
fc from the railway Of the Union Pacific
to the ayd e. the two
representing the Union Pacific company,
applied to James ]. Hill and J. Pierpont
Morgan, who respectively represented the
the. Union Pacific company to join and
share with them in the purchase Of the
Burlington system; but his application
'.Thereupon the said Hartman and
others acting in the interest Of the Union
Pacific company began rapidly and quiet
ly to purchase the stock of the Northern
Pacific company. intending thus to ac-
quire a majority of that stock and the
control Of that company. with its half
interest in the Burlington system.
''The common stock Of the Northern
Pacific company was $SO,OO0,OO0. and it
had issued. and had outstanding pre-
ferred stock to the amount Of SIS. 0OO, 900,
v1h az no
common stock, but which the company
by the action Of its directors might pay
y at ana sSs o ps on IN fns s
month of April and first week in May,
1901. the said Hartman and others act
Pacific company purchased and held a
little more than 1900. 900 Of the COM
mon stock. and little more than ST.
than $4,000, 900 in all, and more than a
majority of the aggregate Of the COM
mon and preferred stock Of that COM
But in the first week Of May. 1901: J.
P. Morgan & Co; becoming apprehensive.
which with their previous holding of that
stock and those Of Mr.. Hill and other
stockholders Of the Northern Pacific COM
more. than SAL 900, 900 Of such common
stock; being more than majority Of that
stock. AS It was known that Mr.. Morgan
and his associates would insist upon the
payment apd retirement Of the preferred
stock on Jan. !, 1902, and that tho board
pany would take acton to that end. Mr..
Hartman and his associates abandoned
their attempt to obtain the control Of
that company.
Securities Company.
1.-THE attempt In the interest Of the
Union Pacific company to purchase q ma
jority Of the stock Of the Northern Pa.
cific company and obtain the control Of
that company, and through It Of the Bur-
lington system. alarmed the managers
and stockholders Of the Northern Pacific
company, and led them to consider the
feasibility Of forming holding company
which should purchase or secure IN ex-
change for its own stock more than . ma