The Caucasian. (Clinton, N.C.) 188?-1913, 1904-03-17

Commerce between the States
OF the Union.
Washington, March 1.-THE
. opinion Of the supreme court OF the
. United Stases in the case of the
q Northern Securities Company
against the United States, involving
the merger Of the Northern Pacific
and Great Northern Railroad COM
panies was rem Tered to-day and was
handed down by Justice Harlan. 1t
was in favor Of the government.
The opinion of the circuit court for
the district of Minnesota was affirm
cd. The effect is to sustain the
trust law applies TO railroad combi-
nations of the character in question.
The decision was roncurre1 in by
81 Justices Brown, Brewer, McKenna
and Day, while the chief justice and
Justices White, Peckham and
Holmes dissented.
The case has attracted more atten-
ton than any other suit before the
court since the first insular cases
were decided, and has been regarded
by bench and bar az equal in inn
"a po,tance with those cases and with
the income tax case. 1t was argued
last December for two days and at
tracted attention at that time as 1t
did previously, when the decision
was rendered by the circuit court
for the district Of Minnesota.
The action was brought in the
circuit court under the law of Feb
ruary II, 1903, which was for the
purpose of expediting the case, and
was heard by the four circuit Judges
of the circuit. They united in de-
ci5ion favorable TO the United States
and opposed to the contentious OF
the railroad companies. The suit
was instituted by the United State:
& against the Northern Securities
Company and the two RAILROAD com
panies, the Northern Pacific and the
Great \ ern and their leading
stock $, for the purpose of dis
81 he merger of the two roads
il the United States claimed
o.. Il been created by the creation o.
holding company, the securities
company. This consolidation was
claimed to be in violation Of the
Sherman antitrust law. It was
claimed on behalf of the govern
ment that this consolidation was in
effect a pool, created to promote thu
interests, not of one system at TIT
expense of the other, but of both al
the expense of the public. Thu
railroads claimed that the transfe
of the stock of the two companie
to the securities company was in tn
nature of a sale and was perfectl.
legitimate.
THE CONTENTIOUS IN THE CASE.
Justice Harlan first explained tn
question at issue, the enforcement
of the antitrust act, in which Con
gress declares illegal contracts o
combinations in restraint or trad
and provides penalties.
ain our opinion" he said, 9Th
evidence fully sustains the charge
The Northern Securities was org.
nized as the holding corporation c
the custodian of more than nine
tenths of the stock of the NOrhther
Pacific and three-quarters Of tn
Great Northern. Both lines wer
held as if held by one owner. Til
holding company dominated til
roads for the exclusive benefit of i
stockholders. It became one pOWe
full corporation, so that competitio
81 between the constituent compani
might end. The profits were to
distributed on the basis of stot
held in the Northern Securiti
Company.
"The combination is one in u
shape of a trust. No scheme or d
"a vice could more thoroughly be
, COM binaticn in the form of tru
! in restraint of commerce. 1t is
menace to and a restraint of t
freedom of commerce. The co
tention of the defendants that
opinion in its favor would not
contrary to the spirit of the an
trust law is negative. The decisi
lin the Joint Traffic Association, t
Trans Missouri ca ses, the Addysto
Pipe Company and others, we
quoted to sustain the government
contention.
SUCH CONTRACTS UNLAWFUL.
1--WE deem it sufficient to say
continued Justice Harlan, t'that c
tain deductions may be drawn fr,
these decisions. Every contrf
combination or conspiracy VIII
operates In restraint of trade is
- lawful, whether it be an unreas
able or reasonable restraint. Tn
bis no distinction. The law forbi
such combination even amt
private manufacturers or dealers.
Congress clearly has the POI
to establish rules governing CT
merce between the states and v
foreign countries Free compel
is the rule prescribed. Whate
extinguishes competition betw