Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-12-16
THE ARGUMENTS
Continued in Supreme Court
in the Merger Case.
Attorney General Knox Concludes His
Speech for the Government.
Attorney Young Opens His Case for
Securities Co.

in the Northern Securities case reSum-
ed in the United States supreme court,
today. Attorney General Knox con-
tinuel his argument. He declared that
by the union of the Northern Pacific
and Great Northern in the Northern
Securities Company, two competing
Interstate railroads have been brought
into such relations that their independ-
ence as competitive factors in inter-
state commerce is destroyed.
The thing that has been done was
declared illegal, he said, when brought
about by the methods pursued in the
joint traffic and trans Missouri cases.
These were cases of contracts or agree
ments between independent and COM
petiting lines of railroad for the regu-
lation of traffic charges. The govern
ment charged that these agreement:
restrained Interstate commerce ana
this court sustained that contention.
1.-The court heard the cases patient
ly," Mr.. Knox said, land the argu-
ments thrice presented by the railroads
failed to disturb the courts conclusion:
that the contracts or agreements III
question violated the law. The ext
gencies of the cases rendered necessary
a complete Interpretation OF the stat
ute. The power of Congress to enac,
the law, the application of the law to
common carriers and specifically its
application to contracts or agreements
regulating rates, were all denied. Dark
fCrebodings of resultant commercial
disaster, should the governments con-
tention prevail, We're sOlemnly ana
forcefully impressed upon the court by
gentlemen. OF eminent PERSONAL and
professional standing. These consider
ations invited and secured patient and
full consideration of the cases and eX-
haustive analysis and Interpretation OF
the statutes in the judgment.
After making it perfectly clear that
the court was not to be dissuaded from
giving effect by it's judgment to a pub
lie policy declared by Il constitutional
statute, the court stated what that
policy is and wherein it was infringed
by the challenged agreements
This exposition of the lave is. M
Knox said, now the governments re-
lance "as'' he added, 'it should have
been the defendants admonition." He
proceeded:
THE court's decision in the trans
Missouri case was not followed by
disaster but by years of abundant
prosperity. undisturbed until new de-
vices We're put into operation to ac-
complish again the destruction of com
petition and to thWart the wise policy
of the law. 1t is not the observance
of the law or its enforcement that Gre
ates panics or distress. 1t is wilfu
violations of its wholesome provisions
or defiance of the laws of economic
health"
The attorney general said that it was
not his intention to re-arguc any o!
the propositions settled by the trans
Missouri and joint traffic cases. but to
do what he could to show their appli
cation to the facts of this case. He
however, made the following statement
of the great questions settled by the
court in those cases:
First, that to shut out the opera
ton of the general law of competition
between competing interstate railroads
is to restrain interstate commerce.
Second. that to bring the operations
of two or more competing interstate
railroads under the control of a single
body shuts out the operation of the
stitutes a restraint upon interstate
commerce.
Third. that Congress is competent
to forbid any agreement or combina-
ton among companies competing for
Interstate commerce which Restraints
commerce among the states by shut
ting out the operation of the general
law of competition.
Fourth. that in order to maintain
suit the government is not obliged
to show an intent to restrain COM
mcrcc, if such restraint is the natural
and necessary effect of the arrange
ment"
He then said "The testimony shows
conclusively, | think, that as il matter
of fact and law the thing which these
gentlemen intended was to create a
combination in the form of trust, the
form specifically prohibited by the act
of Congress, il it restraints interstate
commerce. and also that the Northern
Securities Co. was formed for the pur-
pose of taking over the control of the
Great Northern and Northern Pacific
railroads and actually took over that
control. and with that control absolute
power over both roads the thing which
your honors have said constitutes such
restraint under circumstances substan-
TALLY the same as those of this case
Mr.. Knox declared that the power
to suppress competition had been ex-
ercised. and he declared that Messrs.
Morgan and Hill had the power to
suppress competition between the two
roads when they had control of the
majority of the stock of the two. He
also asserted that they executed that
power and actually suppressed and de-
stroyed competition between them the
moment they parted with the legal
title to their segregated holdings and
vested them in the Northern Securities
Co, with the power in that company
as it's 1ilarterl specifies. "to exercise all
the rights of ownership, including the
right to- vote thereon"
I r.SKnox then sulnmed up his points
in. support of his contentious. that as
a fact11his merger is a combination in
the, form of trust,,or otherwise as fol-
lows:s8
THAT the end it accomplshes is to
bring under one control the Northern
Do ,,,,v7 20 Norfhary,