The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-03-14

Ian. The opinion of the circuit court
for the district of Minnesota was af-
frmed. The effect is to sustain the con-
tention that the Sherman antitrust law
applies to railroad combinations of the
character in question
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 a holding
company, the principal object being to
prevent competition
mo scheme or device could certainly
more effectively come within the prohi-
bition Of the antitrust law and it is
within the meaning of the act, a trust"
AN IMPORTANT CASE.
The case has attracted more attention
than any other suit before the court
since the 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 attention at that
time, as it did previously when the de-
cisiOn was rendered by the circuit court
Cor the district of Minnesota. The action
was brought in the circuit court under
the law OF February II, 1903, which was
for the purpose of expediting the case
and was heard by the four circuit jus
tlces of the circuit. Then decision was
rendered favorable to the United States
and opposed to the contentious of the
railroad company. The suit was insti-
tuted by the United States against the
Northern Securities company and the
two railroad companies the Northern
Pacific and the Great Northern and
their leading stockholders, for the pur-
pose of dissOlving the merger of the two
roads which the United States declared
mad been created by the formation of
nOlQlnR q
parry This consolidation was claimed
to be in violation of the Sherman anti
trust law. 1t was claimed on behalf of
the government that this consolidation
was in effect pool created to promote
the interests, not of one system at the
expense of the other but of both at the
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
and perfectly legitimate
The contentious of the Securities
company were reviewed by Justice
Harlan, who said they had received
full attention. He quoted the various
opinions involving the trust question.
saying that from them it is to be gath
cred that all contracts in restraint of
trade, reasonable or unreasonable. are
prohibited by the Sherman law and
that congress has the power to estab-
lish such regulations as are laid down
in that law. Congress had power to
enact tiee statute.
JUSTICE HARLAN'S COMMENTS.
Replying in detail to the points made
for the Securities company. Justice
Harlan said that the contention that
the law is an interference with the
rights of the individual states bv which
the companies are Incorporated was not
well founded. In such cases, he said
the authority of congress is supreme
He also declared it to be unnecessary
to determine the right of owners of
railroad stock to sell the property, nor
was it true that the right of the Secu-
rites company to own and hold rail-
road stock is the only question in
volved. Such contentious are wide of
the mark-mere men of straw. All
that the government complains of is
the existence Of corporation to re-