The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-06-09
THE MERGERS
TRUMP CARD
Recent Decision in Government Case
Hinges Upon Interstate Com
merce Involved. e
10 Follow That, Defense Urges,
Judge Lochren Must Throw
Out States Case.
Fudge Young, Followed by G. w.
Bum and Mr.. Grover for
the Defense.

Counsel for the defense in the states
bait against the Northern Securities COM
pany played their trump card before Judge
Lochren this morning.
I If his honor follows the ruling OF his
four colleagues in the ST. Louis decision
Messrs. Dung, Bum and Grover ask him
to throw out the state case on the ground
that it is an attempt on the part of the
state to regulate interstate commerce..
Their argument is along this line:
Congress has power under the constltu-
tion to regulate commerce between the
states.
That power is utilized in the Sherman
antitrust law.
The recent decision held the Northern
Securities company to exist in violation OF
that law.
Therefore the complaint involves inter-
state commerce.
States have no authority to interfere
with the jurisdiction of congress-.
Therefore, the state laws are Vold ana
the present case must be dismissed
Judge Young advanced this argument as
the conclusion of his seven-hoEr speech
this morning. 1t was the whole puroe1l
of forty minute speech by Mr.. Bum,
who declared it the real and only issue
presented. It was taken up by Mr.. Gro
yer, and for a third time pressed on the
courts attention. It was practically the
only legal argument presented by MI Gro
YER who passed from 1t to the plea IN
dustifcation," already elaborated by Judge
Young. .,,-
Mr. Grover continued his speech thls
afternoon He will be followed by M. D.
Num- who will close the case Tor the
state Arguments will not be f1n1shed De-
fore to-morrow's adjournment. ~.+
Only Direct Restraint. s..
Resurning his argument this morning,
Judge Young continued his attack on the
o,,tt tr,1s
hibition against combinations in restraint
of trade must be limited to direct re-
straint. If the states contention was up
held, and every act In possible OF III
direct restraint of trade be pronplleu'
men would be rendering themselves can
didates for the penitentiary every day IN
the most ordinary and commonplace acts
of the business world. Every act OF
labor union in raising wages or lmltlns
hours Of labor would be felon1ouss
The suit brought by the state, declared
Judge Young was an Interference with
vested rights of stockholders. most OF
them not residents Of the state, to BUY
and sell their stock as they pleased rms
was especially presumptuous IN lnterler
ing with the Northern Pacific, a Wlscon-
sin corpora ton. The state Of Minnesota
had no right to say who should hold STOCK
in that company. The fact that tine
Northern Pacific does business IN Mime
sofa does not deprive Wisconsin OF her pc
culiar powers over the company II Min
nesota can regulate the holding Of stoci
IN that company so can North Dakota
Montana and any other state thru which
the road runs. That would be absurd
Each state has authority only over ACT
done within her borders In other WORDS
Judge Young argued that railroad corpora
tions chartered outside Of Minnesota hat
the same rights in this state as hom
companies but were not subject to tn
same restrictions.
Laws Don't Apply.
The anti consolidation laws Of Mime
sofa. said Judge Young, did not apply t
the buying and selling and holding o
stock The defense relied on decision
of the supreme court to sustain this con
tention.
"Suppose the antitrust law applies,
he demanded, what is it that we hav
done in restraint Of trade? We have &C
auired a majority of the stock In tW
competing roads. We have done that an
nothing more. AS to whether that is
restraint Of trade, we rely on previous de
cisions of the supreme court.
Judge Young called attention to tn
complainants contention that the stat
act was a copy of the Sherman act, an
that the decision in this case must fol
low that in the federal case. That federe
act was a regulation of commerce betwee
the states The court at St. Louis de
cided that the merger Was a restraint
Interstate commerce. This the state ha
nothing to do with. Altho the supren
court In the Louisville & Nashville cas-
gave the state a right to prohibit cor
solicitation of interstate railroads, it mad
a rule that could not be reconciled wit
tho ST. Louis decision, and would say
the merger companies on the appeal TT
state could not interfere with or prohib
the holding Of stock in competing raj
roads.
In Hands Of Congress.
Judge Young then presented a cor
stitutonal argument to show that tt
regulation Of commerce was exclusive
in the hands Of congress, and could NJ
be interfered with by the states. Und
this authority congress passed the ant
trust act. Under that law the court
st. Louis decided the merger illegal. TIL.
therefore decided 1t matter Of int
state commerce. 1t was therefore fr
from the operation of state law al
the present suit must fall to the groun
I'VE submit this said Judge Youn
s'merely SO that If this court feels boul
by the decision in the st. Louis case III
this company Is a com bination in restrai
of trade, the court may take notice
the fact that the state has no authori
over the transactions in question, viii
are entirely in the control of the nation
ra government"
c. w. Bunn's Turn.
Judge Young at IL o'clock conclud
his argument, and G.. w. Bum, genel
counsel for the Northern Pacific. address
the court. He first took up the eviden
as to removal of the long haul rate a
urged that it was done out of respect
a law. of the state. This rate could +
be met except by permission of the ra
road commission. Mr.. Bum read from t
records of the commission to show tt
the Northern Pacific had made such a
plication on March 80 of this year, a
1t had been denied by the commissit
which would not allow them to meet
short-line rate
He then passed to the power Of |
regulation of the holding Of stock, and
Enforced Judge Young's argument that
nature of the case admits Of only G
regulation. The question Of whether &c
solidation by holding stock is unlawf
also admits of but one regulation. Stoe
holders interests are in the whole s,
tenn and cannot be interfered with in nj
than one place. Otherwise there mis-
he a consolidation as to interstate bu
f-t~r ~, ocord pa