Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-12-14
ARGUING MERGER CASE
Supreme Court Room Crowded
With Auditors.
T n T0HNS0Ns NpEAKS
J. G. J0HNS0N SPEAKS
HE DENIES THAT ssPoWER TO
RESTRAIN Is ILLEGAL.
Brief for the Government is Filed by
Attorney General Knox-Points
of Law in Question.

An epoch-making scene took place IN the
United States Supreme Court this morning,
when there came up for argument the case
of the Northern Securities Company the
Great Northern Railroad Company. the
Northern Pacific Company, James j. Hill,
]. Pierpont Morgan, Daniel S. Lamont and
others against the United States, coming
to this court on appeal from the decision OF
the circuit court for the district of Mime
sofa. That decision was to the effect that
the purchase of the greater share Of the
stock of the two railroad companies con-
stituted a merger and was contrary to the
Sherman antitrust law. The case involves
the community -of-interest principle.
There has been much interest in the case,
and when It was called today the court
room was crowded both inside and outside
the bar. Attorney General Knox was pres
ent, with VIM. A. Day and quite an array
of assistants from his Office. while the OPP
position also was represented by long list
of distinguished counsel, including former
Attorney General Griggs, John g. Johnson
of Philadelphia, c. w. Bum and Charles
B. Young Justice Brown was the only
member of the court not present.
In the inclosure reserved for attorneys
practicing before the court were Senators
Hoar Nelson, Clapp and Dryden and
A Most Important Case.
This case, involving the Interpretation Of
the Sherman antitrust law passed by Con-
gress, is probably of more far-reaching i'm
portance than any case that has ever come
before the Supreme Court of the United
States, so far as it's effect on the industrial
condition of the country is concerned. 1t
Is aimed at the root OF What is known as
10 Ar-n %1a ;na,1 loo Iitno n
the scene of today having been the direct
outcome of the determination Of the admin
tstration to test the laws passed by a re-
publican Congress.
When this legislation was enacted there
was general declaration on the part OF
democrats to the effect that it would result
in no practical good andHthat 1t was an ex-
hibition of ostenSible warfare on the monop-
to thwart the big corporations working TO
stif1e competition through combinations or
interests. Last winter tiiis legislation was
further strengthened by an appr0pria tion
Of 100000 for the use Of the Attorney Cen
eral to meet any extra expense that might
be incurred In prosecuting cases under anu
trust legislation.
The case of the Northern Securities Com
pany involves the control of railways in
one-sixth Of the states OF the Union and
about one-third Of the mileage OF the coun-
try. The stocks and bonds of this combina-
ton amount to more than a thousand mill
lion OF COLLARS.
John g. johnson Opens.
The hearing began at 1920 O'Clock. and
John g. johnson, representing the Northern
Securities Company, made the first argu-
ment. He announced that the three rail-
roads and the securities company would
desire to be heard by their counsel, while
it was stated in behalf Of the government
that only the Attorney General would
speak.
Mr.. Johnson. in his opening remarks, ad-
mitted that there was no doubt that the
Northern Securities Company did hold a
large majority Of the stock of the Great
Northern and the Northern Pacific rail-
ways. and had power to Go anything that
such ownership would give
1t had been claimed by the government
that the possession of the power to restrain
commerce was equivalent to the doing Of
the act.
I'm no case that has been before you
have you condemned the power, but in
every case you have condemned the doing
of the act" declared Mr.. johnson.
He denied that the United States Supreme
Court had ever decided that the power to
restrain was equivalent to restraining.
Purpose to Extend Trade.
There was, he said, no conspiracy to
restrain competition. but, on the other
hand. the purpose was to enlarge and ex-
tend trade. If there should be agreement
to restrain interstate commerce or trade
that would make the act a violation of
law;
"Our contention" he said, els that the
purpose OF the parties in the acquisition
OF ownership was not a violation of the
Sherman act, not restraint OF trade"
what the result of the combination of
interests In the Northern Securities Com
pany would be, and would not be Influenced
by its declared motives
Tho Great Northern railway came into ex-
tstence with $125 100000 of stock and 5, 500
miles of road, running through q sparsely
settled country. Its wealth was Nigely in
the forests OF oregon, and Its trade was al
most wholly to the east Mr.. Hill and eight
or nine OF his friends were the originators
OF that enterprise. and together they held
about "a per cent of lis stock.
The Northern Pacific also extended from
the same point in the east to Puget sound,
and was about 500 miles from the Great
Northern Its capital was $150.00O.OO0.
$75. 100000 preferred ana SIS O00, coo common
stock. It's business was largely Of the same
nature as that of the Great Northern.
There was but small part Of their trade
that was competing.
Mr. Bum to Follow.
At the conclusion Of Mr.. Johnson's re-
marks he will be followed by Chas. w.
Bum, general counsel for the Northern
Pacific railway.
Attorney General Knox viii then reply
and the argument will be- closed by George
B. Young. counsel for the Great Northern
Judge Day will probably dot address the
court.
The Governments Oontention.
The brief Of the government in the case
was filed In the court today The document
was prepared by, Attorney General Knox
and Assistant Attorney General Day, and
covers $50 printed pages
After stating that the bilT IN the case was
originally brought by the government to
restrain the violation OF the antitrust law
by the Securities Company In the consolida-
ton of the Northern Pacific and Great
Northern railroads. and that the decision Of
tention Of the United States, the brief en-.
ters into the following specifications as to
the reasons for the action:
The lines Of railway operated by the
defendants, the Great Northern Railway
Company and the Norfhera Pacific Railwax