Milford chronicle., 1903-12-18
KNOX SHOWSWHY
MERGER IS ILLEGAL
Argues Against Northern Securities
Company in Supreme Court
IT SUPPRESSED COMPETITION

IN the Northern SeCuIlLleS case was re
sumed in the United States supreme
court, and again the court room wa
crowded by attorneys and others inter
ested in the case. Attorney Genera
Knox was recognized almost imme
diately after the court came in and re
sumed his argument at the point a
which he left off He declared that b,
the union of the Northern Pacific anC
the Great Northern in the Northern
Securities company two competing in
terstate railroads have been brough
into such relations that their independ
ence as competitive factors in inter
state commerce is destroyed.
The attorney general said that il
was not his intention to reargue any
Of the propositions settled by the trans
Missouri and Joint Traffic cases, but tc
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 oper-
alton of the general law of cOmpeti-
ton between competing interstate rail
roads is to restrain interstate com
merce.
"Second-That to bring the opera
tions of two or more competing inter
state railroads under the control of a
single body shuts out the operation of
the general law of competition and con-
stitutes a restraint upon interstate
commerce.
"Third-That congress is competent
TO forbid any agreement or combna-
tion among companies competing for
interstate commerce which restrains
commerce among the states by shutting
out the operation of the general law of
competition.
"Fourth-That in order to maintain
a suit the government is not obliged
TO show an intent to restrain COM
merce, if such restraint is the natural
and necessary effect of the arrange
ment."
Attorney General Knox held that the
combination was in the form of a
trust and was specifically inyalidated
by the statute.
He also declared that the power to
suppress competition has been exer-
cised and he declared that Messrs.
Morgan and Hill had the power to sup
press competition between these two
roads when they held the control OF
the majority Of the stock of the two
He also asserted that they executed
that power and actually suppressed
and destroyed competition between
them the moment they parted with the
legal title to their segregated holdings
and vested them in the Northern Sc
eurities company, with the power in
that company, as its charter specifies.
ITO exercise all the rights or owner
ship, including the right to vote there
on"
He then took up the doctrine of di-
rect and immediate effect upon inter-
state commerce. On that point he said:
1.-THE Northern Securities arrangement
operates directly upon commerce, be-
cause its certain effect is to control
every act, policy, and operation of two
gigantic systems of railroads by which
commerce is carried on. Nowhere does
it appear by suggestion even, that the
purpose of organizing the Northern Sc
curities company was other than to Sc
cure the control of these two roads
Congress" he declared, can regu-
late anything ana everything in the
sense that it can prohibit and prevent
its use in a way that will defeat a law
that congress may constitutionally en-
act Foe this purpose the supreme
power operates upon everything. upon
every one"
In concluding. he called attention to
the great possibilities of securities
holding company as a financial ma
chine for manipulating railroads and
other properties and concentrating
their control in the hands OF a power
full clique, and said:
Il cannot think that a combination |
held together by a rope of sand comes |
within the prohibition of the law, and |
that one which is bound by links of |
steel may defy its wisdom and It's |
power
ITO prevent such a dangerous con- !
centration of power dangerous to COM
merce and a menace to our freedom. |
the people have done all that it is pos
sible for them to do under our system
of government. They have legislated
against it, If this law can be construed
so as not to cover the situation. or if
the court says yea. to the proposition
affirmed in the last paragraph of Mr..
answer-namely. congress
has no power to prevent such combina-
tions, then. indeed. the governments
grave concern as to this litigation may
be easily understood"
Wife Murderer Hanged at Media, Pa.
Media, Pa, Dec. 16.-Henry, alias
kid" Jones, colored was hanged in
the county Jail yard here for the mur-
Ter of his wife in Chester on March 8
asst. His neck was broken and he was
dead in six minutes. The
condemned man, who had been surly
ince his conviction, became pacifed
ome time ago. and he went calmly to
lis doom.
Newspaper of 16o Pages.
st. Louis, Dec 15-The twenty-fftI
of the DublfcafiOn Of the