Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-03-14

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 attract
ed general attention at that time, as it did
previously, when the decision was rendered
by the circuit court for the distrc of Min
nesota.
The action was brought in the circuit
court under the laws of February IL, 1903,
which was for the purpose of expeditng
the case, and was heard by the four circuit
Judges OF the circuit. They united in a de-
cision favorable TO the United States and
opposed to the contentious of the railroad
companies.
The suit was instituted by the United
States against the Northern Securities
Company and the two railroad companes,
the Northern Pacific and the Great North
ern, and theif leading stockholders. for the
purpose of dissolvng the merger of the two
roads, which the United States claimed
had been created by the creation of a hold
ing company, the Securities Company This
consolidation was claimed to be I'm yiola>
uon of the Sherman antitrust law 1t was
cialmed on behalf of the government that
this consolidation was in effect a pool.
created to promote the interests not of one
system at the expense of the other but or
both at the expenSe OF the public G The
railroads claimed that the transfer OF tbe
stock of the two companies TO the securi-
ueS company was In the nature of sale
and perfectly legitimate
Court Room Crowded.
The court room was crowded this morn
ing, IN anticipation of the possibility of this
decision being handed down. ATTORNEY
General Knox and other representatives of
the Department of Justice as well as dis
tfQguiSned counsel wera attan,iya iy.4o,o..
Outside the portion of the court reserved
FOR members of the bar were also many
men OF prominence. Secretary of War Taft
was present with Senator Lodge Ex-Sen-
etor Turner of Washington was also
present.
The decision in the merger case was tho
first rendered after the Chief Justice had
called the court to order. 1t was in case
RT, being the case of the United States
against the Northern Securities COMPANY
the Great Northern Railway Company. the
Northern Pacific Railway Company, a cor
poratlon OF Wisconsin; ]. j. Hill, j. Pier
pont Morgan and others. and involved the
Interpretation of the antitrust law of lime
2. 1890. in relation to the recent merger of
the Great Northern Railway Company and
the Northern Pacific Railway Company NV
the acquisition of majority of their stock
by the Northern Securities Company as the
holding corporation.
Claims of the Railways.
Counsel for these companies had argued
that the fact that majority of the stock
OF the two companies was held by the
Northern Securities Company as a trustee
and necessarily the final authority in the
management of the companies was not
equivalent to declaration that competi-
ton between these companies would cease
This. II was claimed. was especially so be-
cause the two railroads to a large extent
traverse territory separated by 400 miles
and are not today in competition.
It was also claimed by counsel for the
railroad companies that before a restraint
ef trade could be determined to sufficient
extent to warrant the court in holding that
there was such restraint there should be
evidence to show that there had been a
4essening Of trade, or an increase Of rates,