The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-04-11
SECURITIES;
DECISION.
Sltissof3vastlm portanCe. Says
Mr.. James M. Beck.
FULL EXPOSITION \ /, IS: Of Law
]! \ u S8
Question howto &c Decded1l!s' Whether s'I
vi the Statue IS a Good One, and
This Is for the People
ri to Determine. 3
FULL EXPOSITION I OF o. " W

TEN &PEILADCLIPH1A,5 PA.,S April w ttiiie'
Al Nj q Beck, assistant attorney eneral WIG
sRaargued the Northern Securities case cas- a J. =
ssfthe recently decided lottery cases iol
ggihe government, when questioned to-day
4 IL as to the scope of I he decision IN the
XII former case, said:
Fl any opinion but my own, the. clear ana
Il al austive opinion OF Judge Thayer
~ seems to me TO leave nothing to be de-
sired In the matter OF a full exposition
A or the Eederal law applicable TO the con
OF competing nterRtate car
4 riers, All interests should be Interested
IS In such}a result, for It seems to be Sof
t8first Importance that the exact meaning
Of existing statutory law should DC
ascertained. When so ascer-
8Stnined the question Of the wisdom OF INC
n statute can be fairly debated IN the
& greater court Of public opinion.
..The decision Of the Circuit Court ac-
VI conplisied this purpose 1t destroys the
n last legal device for the suppression Of
" competition, and shifts the whole question
II from the courts to the people, md leaves
tor their consideration and ultimate de-
Srision the question whether railroad con-
n eolldation under proper regulation IS de-
y. sirable or II whctherS3it should be alto
N sEether prohibited. The wild suggestion
that this decision is Revolutionary and
will disrupt the American railroad sys>5
y TEN IS absurd. It simply reaffirms cS-
listing principles and has no application
whatever to legitimate extensions q
n railroad lines, but solely applies to tho
h suppression Of competition by railroad
u ronsolida ton.
~. .a a HOLDING COMPANY.
3Ss5S. Judge Thayers decision, in effect
T. demonstrates X tho inaccuracy OF the
N phrase holding company and also shows
that the community Of interest ploa
through stock ownership, 4 when 1t sup-
presses competition and promites monop-
oily IS unlawful 1t holds in substance
that whenever the control OF competing
Interstate carriers Is secured, either ny
& al combina ton of natural persons or by
a corporation which they create, and the
motive for competition has thus been d.
stroyed by the consequent unity OF In
terest, the.Hanti-trust law Is violated.
The fact that each of the competing
lines IS nominally operated by n sepa-
rate board OF directors Is held inmate
rial. and the court, disregarding form ard
looking to substance, holds that the real
policy Of railroad is controlled by
those who own the majority Of It's Stock
and that such Individual holders in a
real sense determine all important COR
pornte acts
= 1.-The decision Is also OF first impor-
: tance In holding that the mere ownership
lsof stock iii an interstate railroad brings
5sthe owner in such direct relation with
Interstate commerce MS to subject him
ito the plenary powers of the Federal
government with respect thereto Per,
l1aps this holding gives the decision Its
greatest Importance. The defendants at.
torneys commended that the mere acqu'-
sition of such shares had either no al, 4
rect relation to interstate commerce., Or
that In any event such relation was In
direct. collateral and remote. They
sought to establish an unsound dstirn-t
8tion between ownership of a road and its
Operation. This view the court negatives
land holds that the purchase of shares OF
stock In an interstate railroad subjects
gthe purchaser to, the constitutional power
sof the Federal government.
4 1.-THE Importance of this holding. com.
4ing as 1t does upon the heels of the lot
stery cases, cannot we'll be overestimateG
lit greatly widens the scope Of Federal
activity. The Constitution remains un-
changed, but the sphere OF human action
Ito which it is applied, Is by means OF
wholly exterior forces greatly widene5 4
4 IS NEW EPOCH.
81 ls'When the Constitution was framed.
THE only media OF Interstate communca-,
gtion were the coastwise sailing vessels and
the occasional stage coach, which crossed
State lands. but steam and electricity
have indissolubly bound the States to-
4gether by links OF steel, agEregating in
THE matter OF railroads alone 200, 900 miles
IN length, and this has produced centri-
petal action which has inevitably in
creased the sphere and scone Of Federal
activity. In this aspect the lottery cases
Sand the case just decided easily mark
"a new and as important epoch In the life
of the nation. The lottery cases, which
sustained the power OF Congress to pro-
$hibit Interstate traffic when preiudiclnl to
tho public welfare, and tho securities
case. which subjects not only the imme-
Z diate operation OF every Interstate road
but Its very ownership through the stock
shares to Federal power, are simply !nev-
liable results Of this centripetal force.
The decision makes It doubly necessary
Il TO determine as matter OF public policy
The exact and proper relation between the
railroads. upon which orr prosperity so
syitally depends, and the State.
lin this connection" concluded Mr..
Beck. 'the sagacious and conservative