The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1903-08-06
THE MERGER DECISION.

case brought by the state aganlS
the Northern Securities Co.--the so
called Merger case, in which he at
firms the claims of the Securltie:
company at every point. 1t is no
an organization in restraint of trade
and commerce, and has not in any
way violated the laws of Minnesota
which declare it to be illegal fol
one railroad company to absorb,
purchase or operate parallel and
competing line of road. The North,
ern Securities company is not rail
road company at all, but merely a
holding company, and has no power
under its charter to operate mile
of road, or to interfere in any way
with its operation. The two great
roads involyed-the Great Northern
end the Northern Pacific are as
wholly Independent in their organ
izations as they ever were, and there
has. been no disposition shown to
consolidate them, or to enter into
any traffic agreement or inaugurate
any policy calculated to restrain
trade or commence. Such briefly
is the position of Judge Lochren,
before whom the case was tried, and
the decision has been prepared with
the UTMOST deliberation and with the
most conscientious regard for the
rights of all parties involved.
VI.
in the case of the United States
against the Northern Securities COM
pany decided adversely to the COM
pany, declaring that it was operat-
ing in violation of that law. That
case has been appealed to the
supreme court Of the United States,
and this case doubtless will be. In
reference to that decision Judge
Lochren says:
To epitomize this decision. 1t is |
held that it will be for the interest of |
the Northern Securities company to re-
strain trade by suppressing competi-
ton between these two railroad COM
panies; and that by coercing or per-
suading the two boards of directors
who =. has the power to elect, it will
certainly cause them to commit highly
penal offences by entering into combi-
nations, contracts and arrange
ments in restraint of trade, in VIOLA
ton OF the antitrust act. and hence the
Northern Securities company is al
ready guilty of these offences that
have. never been thought of by its OFF,
GERS or promoters, so far as appears;
and it ho cry nd 1
ed. 1880 -
am compelled to reject the doctrine
that any person can be held to have
committed, or to be purposing and
about to commit a highly penal offence
merely because it can be shown that
his pecuniary interests will thereby be
advanced. and that he has the power (
either directly by himself, or directly
through persuasion or coercion of his
agents, to compass the commission OF .
the offence. .-a.T
There is vast amount of mis-
conception as to the purposes and the
logical effect of the Merger upon the j
general and local interests of the !.
northwest. 1t is assumed that they
are hostile. The HERALD firmly be-
lieves they will be to the highest de- =
gree beneficial. Neither company |
could hope to make a successful
light for the volume of business of l
this whole country and of the orr ent
which would warrant the building
up commanding Pacific merchant r
marine. Either company might at t
any time become an obstructive :
power by reason of it's control pass r
ing into the hands Of capitalists !
whose interests were with other :
.ranscontinental roads. In fact this :
was barely ayerted when :,
The Union Pacific owners made a :
aid upon the Northern Pacific stocl !,
md only by strenuous and shrewd !;
action of Messrs. Nor
gan and Hill was it prevented. The !.
Northern Securities company was 4
to prevent any such re-
,urrence, as it would hold major :
Ity of the stock of both roads.
hereby assuring amity between !.
hem. Both roads will always be !;
operated by separate and distinct
boards of directors and officers; not J,
,ne of whom can be director or
officer in the other. They will :
light each other within the lines
orescibed by local law and national
for business, strenuous
y as eVer-but will make a COM Z
non fight against other transconti-
lental lines for the business of the :
world. The more of this they can !,
secure the larger their profits and :,
hat means, inevitably, a reduction !,
IF rates. As a matter of fact rates
lave been reduced mot advanced
~ the merger roads during the past !
rear, and their profits have been !,
anger than ever. Given, an increas-
d volume of business and lower ],
harges are assured. The New York Z 4
CENTRAL road is ain example of this =
4 L i - J y a