The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-12-16
KNOX TELLS WHY
MERGER OF GREAT PROPERTIES
SHOULD BE PROHIBITED.
NORTHERN SECURITIES CASE
HAS FURTHER ARGUMENT BE-
FORE THE SUPREME COURT.

Attorney General Knox Contends
That the Proposed Consolidation
would Be in Restraint of Inter-
stnte Commerce and That the Act
of Congress Would BE Defeated
If 1t Were Permitted-Pins Faith
to Former Decisions.
washington, Dec. 15.-Argument in
the Northern Securities case was re-
sumed in the United States Supreme
Court to-day, and again the court
room was crowded by attorneys and
others interested in the case.
Attorney General Knox was recog-
nized almost Immediately after the
court came in, and resumed his argu-
nent at the point at which he left
off when court adjourned yesterday.
He declared that by the union of the
Northern Pacific and the Great North
ern in the Northern Securities Com
pany, two competing interstate rail-
roads have been brought into such re-
lations that their independence as COM
petitive factors in interstate commerce
is destroyed.
The thing that has been done was
declared illegal, he said, when brought
about by the methods pursued in the
joint traffic and trans Missouri cases.
These were cases of contracts or agree
ments between Independent and COM
peting lines of railroad for the regu-
lation of traffic charges. The govern
rnent charged that these agreements
restrained interstate commerce, and
this court sustained that contention.
The Attorney General said that it
was not his intention to re-argue any
of the propositions settled by the
trans Missouri and Joint Traffic cases,
but to do what he could to show their
application to the facts of this case
He. however made the following
statement of the questions settled by
the court in these cases:
His Array of Questions.
First. That to shut out the opera
ton of the general law of competi-
ton between competing interstate rail-
roads is to restrain interstate COM
merce.
Second. That to bring the opera
lions of two or more competing in
terstate railroads under the control of
a single body shuts out the operation
of the general law of competition and
constitutes a restraint upon interstate
commerce.
Third. That Congress is competent
to forbid any management or combi-
nation among companies competing for
Interstate commerce, which restraints
commerce among the states by shut
ting out the operation of the general
law of competition.
Fourth That in order to maintain
a suit the government is not obliged
to show an intent to restrain COM
merce, if such restraint is the natural
and necessary effect of the arrange
ment."
The testimony shows conclusively,
I think that as matter of fact and
law the thing which these gentlemen
did was to create a combination in
the form of trust, the form specifical-
ly prohibited by the act of Congress If
it restrained interstate commerce, and
also that the Northern Securities Com
pany was formed for the purpose of
taking over the control of the Great
Northern and Northern Pacific Rail-
roads, and actually took over that con-
troll, and with that control absolute
power over both roads, the thing which
your honors have said constitutes such
restraint under circumstances substan-
TALLY the same as those of this case"
Mr.. Knox discussed the end accom-
interests, saying:
The device resorted to in this case,
If sustained, defeats the policy OF the
law, as it accomplishes all and more
in the way of effectual destruction of
competition than was accomplished in
the trans Missouri and Joint Traffic
cases.
You may call 1t a merger, a COM
bination, a pool, a conspiracy. con-
solidation. a contract, a securities COM
pany, or what you like. The thing 1t
accomplishes is not varied by paria-
ton in name or manner of bringing 1T
about.
The great object of Congress was
to declare a policy against which no
arrangement could stand by which the
parties fully equip themselves with the
power to defeat it's purpose"
Has Exercised the Power.
He declared that the power to sup
press competition has been exercised.
He asserted that they executed that
power and actua1y suppressed and
destroyed competition the moment
they parted with the legal title to
their segregated holdings and vested