The Minneapolis journal., 1903-12-19
Controlling Interest In One of the
Companies Will Be Ordered
Sold.
Charter of Company Won't Be Abro-
gated, Says Leading Corpora
tion Attorney.
Line Up of the Court Now and as
in Trans Missouri
Case.
Special to The Journal.


New York, Dec. 19.-Sentiment with
regard to the Northern Securities suit
is crystallizng into an opinion that
the ruling of the court Will cenSure the
present form of the company ana VIII
practically order the sale of a controll-
ing interest in either one or other OF
the companies. Current comment IS
pretty we'll summed UP in the follow
ing view, credited to prominent cor
poration lawyer:
Il look for a decision that Will
affirm in a broad sense the decision OF
the lower court but will not affect the
actual status or existence OF the COM
pany. I do not think the charter of
this company will be abrogated or the
standing of other similar companies
called in question.
This Is exactly in line with the op1n-
ions of people most closely concerned
in the company. In case OF such a de-
cison the company will be Immediate
ly put in line with the law by the sale
of a part Of the Great Northern stoclb
now held in the treasury OF Nortnetn IN
Securities, which sale will not lead to
the destruction of the central idea of
the combination at all. The form OF
Northern Securities may be changed,
but the substance will undoubtedly
remain.
A Historical Case.
1t is worth pointing out, however,
that four Of the seven judges who are
sitting on the supreme court bench
to try this case voted against the
Trans Missouri Traffic association in
1897. The tribunal in that cele-
brated case consisted Of nine judges,
three of whom are now Off the pench.
The two juries Of judges compare
as follows.
Trans Missouri, 1897 - Pecham,
Fuller, Harlan, Brewer, Brown. Field,
Gray, Shiras, White.
Northern Securities, 19Os-Peck-
ham, Fuller, Harlan, Brewer, Day,
Mckenna, White.
In the trans Missouri case Justices
Peckham, Fuller, Harlan, Brewer and
Brown voted against the railroads and
gave the decision to the government.
Justices Field, Gray, Shiras and White
voted for the railroads, making the de-
cision five against and four Tor.
In the present trial four OF the
Judges who voted against the rail-
roads are still on the bench, and only
one out Of the four who voted for the
railroads. Justice Brown is still on
the bench but in this hearing ne IS not
expected to take a part.
1t will be noted that the Volumlnous
quotations from the decision In the
trans-Missouri case which were lntro-
duced In this case were actually writ
ten by the men on the bench: Ihey
probably knew as Well What they
the lawyers who introduced them IN
court. :. -.,
In the trans Missouri case, it vii
be remembered, the supreme couf'
over-ruled the findings of both the cir
cult court and the circuit court OF ap.
naa1s which had found directly for the
defense. It was prophesied widely a.
the time that the decision Would
lead to a general collapse on wa!
street. 1t did lead to collapse mucf
like the break that followed the de
cision in the lower court on the North
ern Securities matter. The stocks were
supported, however, and the big me1
of the street used all their power tt
persuade the public that there wa
not going to be any general smashlns
of companies.
Result of Adverse Decision
Tn case Of an adverse decision il
the present case a like result Woul'
be Just as likely as not to follow
Certainly if the powerful clique
still in the market an attack will b
made on Pennsylvania, New 9or1
Central, Reading, Southern RallWa:
and Rock Island. 1t is expected
however, that due preparation will b
event and that the public Will b
given fatty to understand that tn
steps necessary to make legal tn
combination will be taken immediatel
If an adverse decision is TenQefeu. l
is known that the stocks Of -Norther
Securities are very concentrated q
present the best estimate being tha
only about 6 per cent of the stoc
is in outside hands. Certainly thi
stock does not look like an invitin
short sale no matter what tn
event.
A Parallel Case.
Assuming that Northern Securitie
will part with enough Great North
ern stock to give UP control the fol
/, lowing comparison between the posi-
ton of Pennsylvania and Norther
Securities is interesting:
Pennsylvania, 80 per cent of Pan
handle; 4S per cent of Baltimore
Ohio.
Northern Securities. 80 per cent c
Northern Pacific; As per cent of Grea
Northern.
Wall street is asking whether ther
is any legal, ethical or moral differ
ence between the two positions. Far
handle and Baltimore & Ohio wer
once redhot competitors at all point
from Pittsburg to Chicago.