New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-15
Pollution OF Law.

Having o-.lIn-d these prelirninaries. Justice
Harlan cane Immediately 10 the judicial con-
sl6eratior % the case and practically indicated
The decision Of the court in the first sentence o.
The oD!nfon proper. In thai sentence he salu.
In ou- ivdanoent the evidence fully sustains
tb- material alleeztions Of the bill, and shows
violation Of Che act Of Congress, in so far %
il declares illegal every combination or cor
spirscy in restraint Of commerce among inc
several States and with foreign nations and
forbds attempts TO monoPolize such COM
meroe.
He again REQUIRED to the facts in the case
and said that laying aside any minor thlheS'
IL was indisputabe that on the principal lac's
OF the record. under the leadership OF hil ana
Morgan the stockholders OF the two raliiosu
companies. having practically parallel lines Of
road, had combined under the laws Of Ne"-Jer-
sey by organizing a corporation for the hoIo4ie
Of The shares Of the two companies upon "''
agreed basis Of value. Proceeding, he said:
The stockholders OF these two competing com
panies disappeared such for the noIlt-l-:
but immediately -eappeared rs stocNAoIltIS "a
The bof5f~r -ar-aa1-,- which WIS thereafter 10
guard The interests ~ both sets of stochh"iueIS
n unit and 10 manage. or cause 70 ne MAJ
aced. both lines of railroad as u nt-d pa o.
ownership. Necessarily. by this coinniAl ION y.
arrangement the holding company III lIlF l-.l'S
sense dominates tho situation IN the interest," %
those who were stockholders or the constituent
COIlpauleS--as much So. Tor every pTa1'ls't4 F-4
pose as II il had been itself a railroad corpora
tio0 which had built. owned and operated nGlh
lives r7~ -ba exclusive benefit o. itS stoChhold-
ers Necessarily also the constituent com
uanies ceased. under such A conoinatloh. 70 &c
in active competition for trade ana coillil'I'5
along their respective lircs. and have become
practically one powerful consolidated corpora
tfon by the name % "a holding corporation. inc
principal II u0t sole object for The lorna
tion Of which was II carry out the purpose "A
q
tio1, between The constituent companies would
cease.
Shutting OFT COMPETITION.
He said that the stockholders % the 5wo old
companies are now united IN their interest IN
rrevsutinr a q competition between the two lines,
and that thev would take care that no persons
are chosen directors Of the holding company
who will permit competition between the con
stiruert companies the result being that all the
earnings Of the constituent companies make a
common fund in the hands Of the securities
company upon the basis Of the certificates Of
stock owned by the holding company.
mo scheme or device could more certainly
come within The words Of the act, combination
in the form OF trust or otherwise IN
restraint Of commerce among the States or
with foreign nations could more effectively
and certainly suppress free competition between
the constituent companies.
This combination IS. within the meaning o.
the act. q trust. but II not. ii, Is a combination
in restraint Of interstate and International COM
ruerce. and that is enough 10 bring IL under
the condemnation Of the act. The mere exist
ence OF such a combination, and the power &C
quired by the holding company as trustee for
the combination. constitute menace 10, and q
restraint upon. that freedom OF commerce which
Congress intended 20 recognize and protect ana
which the public IS entitled 30 have protected.
II not destroyed. all the advantages that would
naturally come 10 the public under the opera
ton OF the general law Of competition, as be-
tween the Great Northern and Northern Pacific
Railway companies. VIII be lost, and the entire
commerce Of the immense territory ia the north
ern part Of the United States between the Great
Lakes and the Pacific 81 Puget Sound VIII be
at the mercy ~ "a single holding corporation, or
gained in a state distant from the people o.
that territory"
He agreed with the summing up 10y tho Cir
cult Court Of the results Of the combination,
which was that il places the control 81 the two
roads in the hands Of q single person and sec
oud. that IL destroyed every motive Tor COM
petition between the two lines 10y pooling their
earnings. Notwithstanding both were engaged il
interstate traf7c.