Columbia courier. [volume] (Kennewick, Wash.) 1902-1905, 1904-03-18
GREAT MERGERCASE DECIDED
NORTHERN SECURITIES COM.
PANY Is UNLAW Full
Decision Handed Down by Supreme
Court of the United States Justice
Harlan Read the Opinion Sherman
Antitrust Law Was Violated Con-
rress Had Power to Enact the Law.

Washington.-The opinion of the
supreme court Of the United States in
the case of the Northern Securities
company versus the United States, in
volving the merger of the Northern Pa
cltic and the Great Northern COM
panies, has been handed down and was
III favor of the government.
The opinion was read by Justice Har-
Ian.
The opinion of the circuit court for
the district of Minnesota was affirmed.
The effect is to sustain the conten-
ton that the Sherman antitrust law ap
plies.
Justice Harlan said that in the mer.
ger of the two roads the stockholders
disappeared and reappeared in the Sc
curities company, the two thus becom.
ing practically consolidated in hold.
ing company, the principal object be-
ing to prevent competition.
mo scheme or device could certainly
more effectively come within the pro-
hibton of the antitrust law and it is
within the meaning of the act trust. "
The case has attracted rgeater atten.
ton than any other suit before the
court since the first insular cases were
decided and has been regarded by bench
and bar as equal in Importance with
those cases and with the income tax
case.
1t was argued In December last for
two days and attracted general atten-
ton at that time as it did previously
when the decisioon was rendered by
the circuit court for the district Of
Minnesota.
The action as brought in the circuit
court under tie law Of February II,
1908, which was for the purpose Of ex.
pediting the case and was heard by the
fourth circuit court justices Of the cir.
cult.
They united in decision favorable
to the United States and opposed to the
contention of the railroad companies.
The suit was instituted by the United
States against the Northern Securities
company aud the two railroad COM
panies, the Northern Pacific and the
Great Northern and their leading stock.
holders, for the purpose of dissolvinR
the merger of the two roads which the
United States declared had beeb
created by the creation Of a holding
company-the securities company.
The consolidation was claimed to be
in violation of the Sherman antltrus
law. 1t was claimed on behalf Of thu
government that this consolidation was
in effect q pool created to promote the
interests, not of one system at the ex-
pense of the other, but of both at tn.
expense of the public. The railroads
claimed that the transfer Of the stock
of the two companies to the securities
company was in the nature Of a sale
perfectly legitimate.
The contention Of the securities
company was reviewed by Justice Har-
Ian, who said they had received full
attention. He quoted the various opin
ions involving the trust question, say
ing that from them it is to be gathered
that all contracts in restraint of trade,
reasonable OF unreasonable, are pro.
hibited by the Sherman antitrust law,
and that congress has the power to es.
tablish such regulations as are laid
down In that law. Congress had. the
power to enact the statute.