Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1904-03-17
GOVERNMENT WINS
IN MERCER CASE
Supreme Court Hands Down a
Sweeping Opinion Against
Hill Railroad Trust.
DONE BY DIVIDED COURT
Majority Opinion by Justice Harlan is
Vigorous in Its Position That the
Combination Was Subject
to the Law.

Washington, March The SUI
preme court today handed down a de-
cision in the Northern Securities merg-
er case in favor OF the government.
The opinion was read by Justice
Harlan. 1t atfirms the opinion of the
United States circuit court for the dis
trict of Minnesota. The effect is to
sustain the contention that the ssher-
man anti-trust law applies to railroad
combinations of the charaete., in qucs-
ton.
Justice Harlan said that in the nlerg-
er of the two roads the stockholders
disappeared and reappeared again in
the securities company, the two thus
becoming practically consolidated in
the holdings of the company, the prin-
cipal object being to prevent compete
ton.
No scheme or device could certainly
more effectively come within the pro-
hibition of the anti trust law, and it is
within the meaning of the act Il trust"
Grounds for the Opinion.
Justice Harlan quoted various onn-
ions involving the trust question, say
ing that from them ii is to be gathered.
that all contracts in restraint OF trade,
reasonable or unreasonable are pros
hibited by the Sherman law and that
congress has power To establish such
regulations us ace laid down in that
law. Congress had power To enact the
statute.
The case has attracted universal at
tention and has been regarded BY
bench and Lar Us equal i'll Importance
with the inSular and income tax cases
The suit WAS instituted by the United
States against the Northern Securities
company, the Northern Pacific and
Great Northern railroad companies
and their leading stockholders. for the
purpose of GissolVing the merge L Of the
two roads, Which the United States de-
clared had been created 10y the creation
OF Il holding company, li'e Securities
company.
This consultation was claimed to be in
violation of the Sherman anti-t trust LAW,
and was in effect a pool created to pro
mote the interests of both roads at the
expense Of the public. The railroads
claimed the transfer of stock of the lySo
companies TO the Securities company
was in the nature of a sale, and per
fcctly legitimate. The contentious of
the Securities company Were reviewed
by Justice Harlan. who said they had
received fun attention.
How the Court Divided.
The decision was concurrea in bv
Justices Brown. Brewer. NcKcnna and
Day. while Chief Justice iaullel. aud
Justices White. Peckham and Holmes
dissented. Justice Brewer concurretl in
affirming the decision, but from differ
ent reasons than those of the majority.
Sweeping Conclusions.
Justice Harlan said tne contention
rights of the Individual states bv which
the companies are incorporated Was NOT
we'll founded. IN such cases he said
the authority OF congress is supreme
ne also aeciaied ~ TO be unnecessary
20 ue.eiiilll'e tl,e iiShl on me owners
ol Iaiiieaa s'oSh 10 Sea lne property
ii''i M't9 IL tlue VA eng ilSilt OF th@ Sc
Gufltles company to own and hold rail
road STOCK Nas ING only question IN
No!N-e9i.
ne asserted however, me power OF
so'''sieas oNeE ititefstale commerce 10
DC as compete i'S 'le power OF the
state over domestic commerce.
Noilll!ls 20 me lpiea OF the railroads
earod 'l'louna ~ s
Tho court could NOT SEQ its y.lv Ia maj
end.
..If." he went on. "the Securities COM
paIy,s contentions ;l. sm,nd whv m,'v3
nor all the railroads or tba I-ni,e1
states enter into continuation ANA
by the device of i oldinoe ror,,o'attnn
control rates thru,rhout t,es ,.o,,,,t,.,,
In defiance of congressa,
Justice Harlan took oce.Sio,, ~, s.,
that there had been nothing Ia 10 &C..
crritios COMMENCES certifiaaSa ar iocn,,-
10 indicata lie ,,,,ynoe. -, ha
that of destroying commerce, and he.
therefore, absolved the state of New
Jersey from amy charge Of such knowl- |
edge in advance.
No Disaster to Be Feared.
Justice H.r,,n s1so ,lis,,,ss1. ~. ~
diotions of fin.nc.,I di...,st,., erd,,,
rorcanan+ og ~. a,,ti 80, i -,
+ba,,, s.a,,i,s.s ,, 49, IVY
us,,al ,,t,1ar s,,,., 1'il.s s,.s ~ "e'
need not ~, ,..sIi.1e,a '''''' ~ Gnu
He (ec,a,e.d mo .a,.. .,,io,
,na,r,a,. ,,s, oi li'
said If ~ IT,. a,la
n.sa p;',.,t W. ING " p's tiie
-. -. l,oiie Ilolsa' ki.e" ~ 70
NJ niar,,. n iAtiaels from MI.
49,. 80 ~. tee.ihioiis we're quoted IN
"u'poi. W tn!s s.a.ei eh'.
he Dissenting Opinion.
Justice Holmes read the dissenting
opinion. He construed the antitrust
law as criminal statute and declared
there was nothing in ii 10 Indicate ti,ut