Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1903-08-06
A Far-Reaching Railroad Decision

The decision of Judge Lochren of the
United States Circuit Court at st. Paul
III the case of the state of Minnesota
against the Northern Securities company
the Great Northern Railway company and
the Northern Pacific Railway company
and against j. j. Hill as president of the
Norther Securities company, to the effect
thst the Northern SccI-itlos company
has not violated the laws of the State in
question. will have a far-reaching effect
provided it is not overturned either dir
ectly or indirectly
IT vii! Le remembered that one Of the
provisions or the charter granted the
!to.'sern Pacific in the difcrc.- states
was that it should never be consolidated
with any parallel line that nien. he con-
etructed President j. j. Hnl deyelop-
ed the Great Northern railway, which is
Is parallel line and finding it desirable to
establish a community Of interests, he
and his railroad colleagues conceived the
idea of establishing a holding company.
which should take over the stocks of the
two roads in question as well az of the
Chicago, Burlington and Quincy. The
ihe roads first named. the allegation by
the State of Minnesota being that the
holding company was merely a legal sub
terfuge devised for the purpose of onab-
ling the capitalists interested in those
lines to make them practically one sys-
TEN, so far as competition in transporta-
tion wss concerned.
In his decision Judge I,ochren saws that
the two systems of railway are as to each
other parallel and competing lines Of rail
road, at least between cities and towns
reached or traversed by both of the sys-
TENS in question; and that a reasonable
degree of competition for the traffic be-
tween places so situated has been main
tanned during the past year. If this was
the case during the past year, the chances
are that competitive rates were cstab-
lished to meet this very case. The court
holds that the Northern Securities com
many has not violated the State laws
forbidding the consolidation of parable
and competing lines of railway through
its ownership of the stock of the Great
Northern and Northern Pacific, ana there
fore refuses to grant any Injunction IN
the case.
If this principle were to be established
it would be useless, of course for tbs
State of Washington to try its case
against the Securities company, involVnl
practically the same points and consdera
lions as were presented in connection
with the action under consideration. 1t /.
practically certain, however, that Mime
sofa will not rest content with the presen
outcome but Will carry its case to tn,
Supreme Court of the United States.
In the meantime the fact remains tina
1t must ever be difficult in the extrem,
to frame legislation which will meet
case of this kind. 1T would be manifesto,
unconstitutional to say that any person
can not own the stock of any corpora
ton. Starting with this proposition |
would not be easy to prevent any in
diyidual or corporation from owning stool
In two or more corporations. If Mr.
Rockefeller, for example, purchased
sufficient amount Of stock in any tw,
railroad lines to give him control thereof
II would be manifcstly possible for hin
TO run those systems in complete har
mony. and 50 Ear ~ the public Is concern