The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-03-15
No Corporation Can Hereafter Hide Behind
State Charter in Execution of Plans That
Affect Interstate Commerce.
WILL STRENGTHEN
HANDS OF ADMINISTRATION
Expected to Prove Mighty Campaign Argu-
ment in Next Presidential Election
Democrats Robbed of a Pet Issue.

Not since the Supreme Court of the
United States sustained the Philippine
policy Of the Government by its decision
in the insular cases has there been 50
much qualification in Administration
circles as over the termination Of the
litigation in the merger" case.
President Roosevelt frankly shows his
satisfaction Attorney General Knox.
who has been the central figure In the
struggle, bears HIS honors mOdestly, but
offers 10 remarks 10 the contrary when
assured that yesterdays decision signal
lied the most important legal victory
achieved by the Administration since its
right to a free hand in the Philippines
and Porto Rico was established.
The Political Effect.
Politically the effect viii be wide
spread. At least such is the opinion OF
members Of Congress- who were inter-
ested in no other phase OF the cOntro-
versy. If the Republican view is the
correct one, the merger decision
strengthens the hands of the Admins
tration, in that it robs its opponents OF
the opportunity 20 make the trust qUes-
tion an important issue. Any and ali
allusiOn 70 the trust policy OF the Ad-
ministration. If OF unfriendly character,
can be met with a reference to the mer-
ger decision In the language OF Sena-
tor Foraker. of Ohio:
Has any such important step against
the trust power, crowned with so posi-
tive u victory. ever been taken by
Democratic Attorney General at the be-
hest of Democratic PRESIDENT
From Legal Standpoint.
From a legal standpoint the decision Is
no less important than from political
I he antitrust law has again stood the
test and its constitutionaiity is again
determined in precise terms.
But most important OF all is the
courts conviction that the instrumen-
talities of interstate commerce. although
they be born OF States rights, are amen
able to the control OF Congress. a cor
poratiOn cannot hide behind a State
charter in the execution Of plans that
affect interstate commerce. If these
plans so much as tend to restrain trade
between the States. the Federal power
can enjoin them.
In the language of Attorney General
Knox: THE danger of uncontrolled per
sonal power in railway management has
been averted Il between other rail
roads there exist contracts. combina-
lions and cOpspiracies by which inter
state commerce is restrained - he added,
then they violate the law"
Corporations Must Yield.
There appears to be a hint in that.
softeued by declaration that 1T is
not the Governments intention to run
amuck;' that railroad companies must
conform 10 the new order of things;
/ that a period of readjUstment is in
prospect; that other violations Of the
antitrust law, under its new interpre-
tation, must peacefully yield TO the in
evitable. 1t is evidently not the inten-
tion Immediately to force additional is
sues by bringing other railroad corpora
tions to the bar, but the eye of the De-
partment of Justice is resting upon
them and developments are expected in
which the railroads themselves will take
the Initiative.
Under the decision it becomes an i'm
portant question as to what railroads in
/ the country are unlawful X was the
contention of the attorneys for the
4 Northern Securities Company before the
/ Supreme Court in the merger case that
| if the Northern Securities merger was
Illegal number of ether big systems
We're liable TO attack.
On Anxious Bench.
/ Among these were the New York Cen
tlal. in its lease of the West Shore:
the Pennsylvania Company. in its ma
/ jority holding of Panhandle stock and
as lessee OF the Fort Wayne; the Bos-
/ ton and Maine, in its control of the
Eastern Railroad. and the New York
and New Haven. which has had a set
tied policy of leasing competing lines
cision has fortified the Supreme court
ir the attitude on antitrust matters
that it has assumed IN tie Knight. the
Freight Association, the Joint Traffic
Association, the Hopkins, the Ander-
son. the Addystone Pipe and Steel. and
the Montague-Lowry cases. the result
is looked upon at the Department OF
Justice as of Importance in the prose
cution of other unlawful combines than
railway mergers.
II is to be expected that prosecutions
IN some of these eases Will follow be-
fore many months The beef trust case
is now pending on appeal but it is the
only important one of the kind. The
Department. has a half million dollars
at its disposal to be used in trust prose
cUuons.
Second Suit Pending.
Although the Northern Securities case
rested on two suits pending in the Su-
prome Court. only one of these was de-
cided yesterday that of the Northern
Securities Company against the United
States on appeal The other case is that
of the State of Minnesota against the
Northern Securities Company
Ia this latter case there is nothing