Omaha daily bee., 1903-03-21
New Interpretation ASKED by Attorney fol
seOur ties Company.
FEDERAL COUNSEL coasATS ARGUMENTS
Alleges Holding Concern AbOlisbes All
Free Composition.
TALK ENDS TODAY AND JUDGES GET CASE
Decision In First Round May BE EX-
pected soon, Now Attorneys Draw
Near Close of Lenthy speeches
for Two sides.

Il. LOOlS, MhFcn IV-AFRunentS III ue- /
fense OF the Northern Securities company |
closed today and tho case will be finally |
placed in the hands Of the four judges to- |
morrow.
c. w. Bum of st. Paul, counsel for the
Northern Pacific, opened todays session |
and former Attorney General Griggs closed
tor the Northern Securities company. The
last hour OF the session was occupied by
7. d. Watson Of Pittsburg in closing for
the government. He was still talking
when court adjourned.
Mr. Bum endeavored TO show that prior
to this case there had never been sug-
sestion that a consolidation Of railway in
terests was a violation Of the antitrust
act.
Mr.. Bum said in part:
Act Is Not specific.
In this suit the United States seeks to
enjoin the Northern Securities company
irom owning and voting stocks OF two ran
Nay companies engaged parity in interstate
II is asserted that the owning by one
corporation of a majority Of the stock OF
.hsse railway companies Is prohibited by'
"a act passed by congress July 2, 1897. The
ct does not say that IL Is uniaWful Tor
one railway to buy, lease or control COM
tetlng railway Nor is one person or corpo-
iation lorbiuuen to own stock in two COM
peting railways, If these things are pro-
hipited Il is only because they necessarily
restrain commerce between the SeNeIdA
he broad generality and indehiniteness
Of the language of the law calls for great
care in It's interpretation ana appllcatloh
For it's validity the act rests alone on
e'Ig 6e nited defSG States Which che gives power to
congress to regulate commerce with Tor
eign nations ard among The states, ana 9
execution of this power, the statute cannot
oe interpreted more broadly than the grant
OF power itself,
Rights of the states.
All the ordinary legislative powers of gov
ernment, the general right to legislate con,
.or the welfare, good order and morals of
he people, is reserved by the constitution
o the states Congress must exercise Its
Jower to regulate commerce with reference
20 the powers Sofl the states IL can no
more infringe on their reserved power than
hey on its granted power.
That congreSS has not the constitutional
.serce, to prescribe the general rules by or
ander which either real estate or per-
'onal property. si9eks or bonds may be
syilled within the states, must be admitted.
Much less, can congress say that man
may not buy piece of property within
state because he may intend to use the
came in a manufacture or business carried
IN with the intent to monopolize or re-
congress restrict the right of partnership
'r corporations organized by virtue OF state
or personal property. Including stocks and
bonds.
No violation of the Law.
Again, II ID contract, arrangement or COM
blnation does restrain interstate trade It
ls lmmaterlaI whether II mas the SANCTION ,1
% a power vested in congress. In the case
at bar. or in any similar case. the trans
action must be treated as IL fully authorized
Wy 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
otherwise control the property of a parallel
All these conclusions are greatly strength
ened by the fact that everything which
made crime; the very thing denounced
as illegal is made criminal II is little
intended to make it a crime for man to
Guy stock IN two competing interstate rail-
to go into partnership with one new Which has; has
stock In another; 70 TO promote the forma-
tio1 of corporation to acquire stock in
ration already formed TO engage in acqulr-
Ing such stock or to promote the consoli-
or the lease or purchase by one OF another.
certainly It Is not too much to. require
things crimes II should have said so.
Acts Not a Conspiracy.
Former Attorney General Griggs followed
Mr.. Bum. closing the argument for tIs de-
tense. .1
In his argument on behalf OF the Northern
Securities company Mr.. Griggs contended
that the acts OF the defendant do not con-
stitute a contract, combination or con-
spiracy In restraint OF interstate trade or
commerce within the meaning Of the sher-
man act. In support OF this contention he
made the, following points; -.. -.
l. The creation OF railway corporations.
"a ~ hnNW
the character ana qualities OF their cor
porate stocks the routes which their rail-
ways shall take, whether they may con-
meet with other roads running in the same
general direction, whether they may or
may not eonsoiliidate SiiSia with parallel lines
portions of a state. All these matters are
and always have been subjects OF state
2 The acts OF the defendants being prima
tacie lawful, the burden OF proof Is upon
the government to show that they were, as
the attorney general charges, not bona hde
out a more formal device Intended to defea
the provisions OF the sherman act
3 Amy restraint OF trade or commerce
which may result from the acts done by tn
defendants is indireSt and incidental only
4. IL the sherman act can be so construed
as 70 forbid the sac OF stock in two com
peting railroad corporations 10 one n.r
chaser. then that act Is an attempted inter
ference on the part OF e9nsress with trans
Lrol OF the states OF the union and IN tina
respect the act is UNCONSTITUTIONAL
shOuId BE Clearly Expressed.
s. But assuming that congress may, unde
A the commerce clause OF the cons titut. .oI
and as a regulation OF commerce, restrain
the states in the exercise OF their pTeroga
uVes from permitting two OF more cor
porations 10 which the states have giVeI
life from merging, yet such purpose OF
the part OF the government ought 10 b,
clearly and distinctly expressed and not b.
found In the judicial Interpretation o
doubtful language contained in a pena
statute.
more than eleven yeers In the actua
merger and consolidation of many i'm
1ortAnt parallel and competing lines o
cairoads anu steamships engaged In inter
L state and International commerce ma
\ given a practical construction 10 the &C
! OF July q 1890 20 the effect that u wa
lot Intended TO forbid, aud does not forbid
The natural processes OF unincatton Whic
are brought about under modern method
Continued on Fifth PaSel d..