The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-12-16
ARGUMENTS CONCLUDED
Judge Young Sums Up the Case for
~ the COmDany.

Judge Young Sums Up the Case for
the Company.
Washington, Dec. 16.--Judge Young
concluded the argument of the appeal
of the Northern Securities case before
the United States supreme court yes
terday afternoon and the court took
the matter under Amusement.
While 1t is impossible for anybody
to do more than hazard a guess as
to what the decision of the court will
be, there is an impression among
some of the leading lawyers who have
followed the case that there Is more
than a possibility that the government
will lose this case. In fact, it is
claimed that the case against the Sc
curities company, brought by the gov
ment under the antitrust law. is
not so strong as that brought by the
state Of Minnesota under it's laws, in
that the point which might lose the
federal case would materially
strengthen the state case. which latter
will be heard before the supreme
court on Jan. 4.
knox's Conclusion.
In concluding his argument yester-
day afternoon the attorney general
said:
AS I said In opening this argument,
specifically this suit was instituted to de-
termine whether this device, which de-
PENDANTS employed to restrain interstate
commerce by monopolizing the business
of TRANSPORTATION, will prevail against a
law making all devices to that end illegal.
1t Is this particular device that is before
the court and no other. In considering it,
have directed your honor's attention only
to it's legal aspects and I agree that il
must be Judged upon these alone. The
possible effects of such judgment upon
other devices alleged to have been en-
pIoyed to the same end, is not for pres
ent considera ton r...
The possibilities of a securities holding
company Of this kind, as a financial ma
chine for manipulating railroads and other
properties and concentrating their contro
In the hands OF powerful clique are
however, legitimate considerations. It has
again and again been pointed out. since
the organiza ton of the Northern Securi
ties company, that in its simplest form II
is possible for a group of men, by incorpor.
ating themselves as a security holding
company to control two railroad com
panies upon the holding of half the amour
Of stock that would be required in the
hands Of individuals.
How Plan Works.
individuals will be required to hold 5.
per cent of the stock of both railroads II
order to control them but If a partlcula,
group of men had the control of q securi
ties holding company that held 81 per cen
of the stock Of both roads, they woulc
control both roads upon holding Of 81 Pc
cent Of the shares Of the holding com
pany, or practically one-fourth Of the com
bined capital of the two roads.
This does violence to a simple rule o
vulgar fractions. because it works out tina
a half of half is equal to a half Of
whole. OF course, it is a simple PROPOSE
ton to bring any number Of railroads un
der the same control without increasing
the stock of the securities holding com
pany or without increasing the stock o
the holders of the control of the securi
ties holding company by employing the de
vice resorted to by the defendants in thu
purchase of the Burlington road, namely
by having one of the railroads controllet
, Continued on Second Page.