The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-03-20
NEARING THE END.
Argument in Merger Case Ex-
pected to Close Soon.

ST. Louis March 20.-Counsel for the
defense continued argument today in
the Northern Securities merger, the fore
noon session of court being opened by
Attorney c. W Bum. counsel for the
Northern Pacific Railway company. It
is thought probable by the attorneys yet
to talk that argument in the case will
be finished today.
Former Attorney General Griggs viii
close for the defendants and Special
Counsel Watson of Pittsburg win close
for the government
Attorney Bum is his argument this
morning endeavored to demonstrate
that the antitrust act does not hold
that it is unlawful for one railway to
control competing line
An abstract of his argument follows:
In this sui THE United States seeks to
enjoin the Northern Securities company
from owning and voting the stocks OF
two railway companies engaged partly
In interstate commerce. 1t is asserted
that the owning by one corporation Of
majority of the stock of these railway
companies is prohibited by an act pass
ed by congress July 2 1890. The act
does not say that it is unlawful for one
railway to buy, lease. own or control
a competing railway Nor is one person,
or corporation forbidden in terms to
own stock in two competing railways
If any of these things are prohibited, It
is only because they necessarily restrain
commerce among the several states
The broad generality and indefinite
greatness of the language of the law call
for great care in its Interpretation and
application to particular cases.
For its validity the act rests alone on
article !, section of the constitution of
the United States, which gives power to
congress TO regulate commerce with
foreign nations and among the states
and with the Indian tribes" Being pass
ed in execution of this power the statute
can not be interpreted more broadly
than the grant of power itself.
All the ordinary legislative power or
government, the general right to legis-
late concerning contracts and property
rights. and for the welfare, good order
and morals of the people. is reserved by
the constitution to the states. Congress
must exercise its power to regulate COM
merce With reference to the powers of
the sta ties. It can no more infringe on
the reserved power than they on its
granted power
That congress has not the constitu-
tional power. under the guise of regu~
lating commerce, to prescribe the gen
eral rules by or under which either real
estate, or personal property, stocks or
bonds may be bought. owned, sold,
passed by descent or Willed within the
states must be admitted. Much less can
congress say that man may not buy
piece of property within a state because
he may intend to use the same in a
manufa cture or business carried on with
the intent to mOnopolize or restrict in
terState commerce. NO more can con-
gress restrict the right of partnership
or corporations organized by virtue of
state laws to buy within the states,
either real or personal property, includ-
ing stocks and bonds.
Again, If a contract, arrangement or
combination does restrict interstate
trade, it is immaterial whether it has
/ the sanction OF state law or not A
state law must yield to the power vest
ed in congress. In the case at bar, or in
any similar case the transaction must
4 be treated as if fully authorized by
state law.
For holding company to own the stock
! OF competing interstate carriers is plainly
no more prohibited by the act than for one
interstate carrier to purchase. lease or
I otherwise control the property of a paral-
lei or competing carrier.
All these conclusions are greatly
| strengthened by the fact that everything
which fails into the prohibition of the act
/ Illegal is made criminal. It is little short
/ Of absurd to suppose that congress intend
/ ed to make it crime for man to buy
stock in Two competing interstate railway
companies; or. having stock in one. to 20
into partnership with enc who has stock
in another. or 10 promote the formation Of
! corporation 10 acquire stock in both, or
as director or officer of corporation al
/ ready formed to engage in acquiring such
! two competing interstate carriers. OF the
lease or purchase by one of another. Ii
is certainly not too much to require that
if congress had intended to make these
/ things crimes it should have said so.