The Red Cloud chief., 1904-03-18
defeat 1.-THE MERGER
Supreme Judges Decide Against
Northern Securities Co.
OPINION BY JUSTICE HARLAN
Who Declares the only Object Of Merger
Was to Prevent Competition In Re-
straint Of Interstate Commerce

The opinion of the supreme court u
the United States In the case of the
Northern Securities company against
the United States. involving the merger
OF the Northern Pacific and the Great
Northern companies Is in favor Of the
government. The opinion was read By
Justice Harlan.
The opinion of the United States
circuit court for the district OF Min.
nesota was affirmed, The effect Is to
sustain the contention that the Shcr-
man antitrust law applies to railroad
combinations Of the character in ques-
ton.
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 importance
with those cases and with the income
tax case. IL was argued in December
last for two days and attracted the gem
eral attention of the public at that time
as IL did previously when the decision
was rendered by the circuit court for
the district of Minnesota.
The action was brought in the cir
cult court under the law Of February
l. 1903, which was for the purpose of
expediting the case and was heard by
the four circuit court judges of the
circuit. They united in a decision
favorable to the United States and
opposed to the contentious of the rail-
road companies.
The suit was instituted by the
United States against the Northern
Securities company and the two rail
road companies, the Northern Pacific
and the Great Northern and the lead
Ing stockholders tor the purpose of
dissolving the merger of the two rail
roads which the United states declared
had been created by the creation of a
holding company, the Northern Securi-
ties company. This consolidation was
claimed TO be in violation of the Sher-
man antitrust law. II was claimed On
behalf of the government that this on
solidation was in effect a pool created
to promote the interests. not of one
system at the expense of the other.
but of both at the expense OF the pub
lie.
The railroads claimed that the
transfer of the stock of the two COM
panies TO the Securities company was
in the nature OF a sale and perfectly
legitimate. The contentious Of the
Securities company were reviewed and
Justice Harlan 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
prohibite1 by the Sherman law. and
that congress has the power TO es-
tablish such regulations as are laid
down in the law. Congress had power
to enact the statute.
Justice Harlan declared that the
only object of the merger was to pre-
vent competition. and he said that If
no n else knew this to be the case
j.. Plerponto Morgan, II of the de-
PENDANTS, knew that to have been the
case. Extracts from Mr.. Morgan's tes-
timony were quoted in support OF this
statement.
Justice Harlan said that in this day
there should be no doubt Of the com
plete power Of congress to control in
terstate commerce. All appropriate
means might be resorted to for that
purpose. All the prior trust cases
were in support of that contention.
The defendants could not complain
OF the finding of the circuit court and
Justice Harlan In conclusion announced
the confirmation of the decision of that
court, saying:
THE judgment of this court Is that
the decree below of the circuit court
be and hereby is affirmed with liberty
to the circuit court to proceed in the
execution OF the decree as the circum-
stances may require"
The decision vas concurred in by
Justices Brown, Brewer, McKenna and
Day, while the chief justice and JUS
tices White, Peckham and Holmes dis
scented.