The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1903-08-14
81. Paul Dispatch, Aug. l.

A1eSAOAS IA restraint ;OI ITuOSs IlOE 1Suc dSS
prohibiting the consolidating OF parallel
and competing railroads. for the reason
that 1t is not q railroad company.
The Northern Securities company is de-
scribed as an investigating company. with
no control over the operation Of the roads
whose stock 1t holds.
The judgment says there Is not a
scintilla Of evidence to show that the
Northern Securities company has ever
sought to control or interfere with either
railroad affected, in respect to operation
or management.
The merger is held guiltless Of any at.
tempt or act in direct restraint of trade.
The stock holdings Of the corporation, it
Is decided. can have nothing to do direct
ay or indirectly with trade, commerce,
transportation or rates.
The contention that because it was to
the pecuniary interest of the incorpora-
tors OF the merger to consolidate the
Great Northern and Northern Pacific sys-
TENS. such consolidation was actually
made, is rejected on the ground that an
act to advance pecuniary interest cannot
be held to imply intent to commit penal
offense.
$40 NSSASAoAA AAdSAy fSOASIVVcTlS 'llS COU.
tentions Of counsel for the state that the
merger can in any sense be considered a
railroad company, because it owns ma
jority in the stock Of both. 1t holds the
stock as an investment, and has never
attempted to control the operation of ell
Their system.
The claim of states counsel that the
acquisition OF majority Of the stock OF
any railroad is in fact purchase Of that
road IL controverted in the decision.
The Judge frankly confesses that he
cannot concur in the view of the case
taken by Judges Thayer, Sanborn and
Caldwell in the suit brought by the fed
eral government against the same corpo-
ration.
The Decision.
This cause came on for final hearing
at st. Paul. June 5, 1903, upon the bill
answers ans: RS. and testimony taken and on file.
kance and that this court has rightful iu
clsdtctton Of the same was conceded by
counsel The cause was fully argued. and
upon full considera ton the following facts
appear and are exhibited:
darlington Purchase.
system by The Great 'hs aor athsalans a1d
pleted about April I, 1901, led the man
1egers Of the Union Pacific company to
railway Of the Union Pacific to the rail-
and Edward II: Hartman. representing
James pn hfc and Perygon apRM oTra to
VINO respectively represented the Great
Northern and Northern Pacific companies
n sach purchase. to permit the Union
them IN the purchase OF the Burlington
system; but his application was de-
.'Thereupon the said Hartman and
9thers acting in the interest Of the Union
Pacific company began rapidly and quiet
Y to purchase the stock OF the Northern
s paGine company ,aa ipteRdinE thus to
interest in the Burlington system.
The common stock Of the Northern
had issued. and had outstanding pre- ;.
ferred stock to the amount Of SIS, 600. 600
which had the same voting power as the
common stock, but which the company
OF at par, and thus retire on the first
day Of January, 1901, or on the first day
OF any SUGGESTING year. During the
1901. the said Hartman and others act.
ing with him In the interest Of the Union
Pacific company purchased and held a
little more than $1,000 !1 900 Of the com
L.
100000 Of the preferred stock Of the
Northern Pacific company, being more
than $Ts 600 in all, ana more than a,
mon and preferred stock Of that COM
.'But in the first week Of May, 1901 ].
z: Morgan & Co. Co becoming apprehensive.
of the Northern Pacific company, which
with their previous holding Of that stock
and those Of Mr.. Hill and other stock
holders Of the Northern Pacific company
who in this matter acted with Mr.. Nor
gan. gave the latter the control Of more
than $41.0O0.0OO of such common stock;
being more than a majority Of thattstock.
As 1t was known that Mr.. Morgan. and
ment and retirement Of the preferred
stock on Jan. l.. 1902. and that the board
Of directors of the Northern Pacific COM
pany would take action TO that end. Mr..
their attempt to obtain the control Of
sesa Z con ,,,.a e. 5' 4
3.5 The attempt in the interest Of tho
Union Pacific company to purchase a Smat
jority of the stock Of the Northern Pa.
ciac company and obtain the control OF
that company, and through It of the Bur
and stockholders Of the Northsrn Pacific
company. and led themStn consider the
sfeasibilif y6 Of forming 4 holding company
which slo uldS purchase or secure in ex-
fof a .ast sean
oiic company and hold the same secure
against any raid III the future In the In
terest OF a rival fpr host lie railroad,
TO Of the Great Northern nc colhp 3
tlikewisesAlarmedsby such d attempt in the
interest 0t the Mon iic company to
obtain eonsroi of the Northern Pacific
!. siiif & whfch 81 i,ey "a named Would