Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1904-04-01
The Merger Decision and IL. Effect

The Merger Decision and Its Effect.
The decision of the federal supreme
court that the merger Of the Northern
Pacific and Crest Northern railroads
was In violation of the Sherman anti.
trust law Is no new judicial reading of
tile act OF $780, but reatiirmation of
the courts previous rulings The same
principle was even more cogently as.
serted in the transmissouri case OF
1897.
The courts finding has been more
generally commented upon by the press
of the country than any legal decision
In recent years. The comments are
varied. instructive and significant. A
few are herewith reprinted as showing
the general tenor of public sentiment
Oh the decision and Its effects upon
The commercial interests of the coun-
try.
The New York Tribune thinks that
the decision is likely To be check upon
plans for benevolent control Of other
peoples property which have been
highly popular In financial circles and
much advertised as the safeguard OF
national prosperity and says;
1t will certainly bring home to the peo-
pie a renewed sense of the responsibility
II corporations to the law and the ade-
uacy Of the United States government to
antrol the great combinations which new
.'rces and new Industrial and commercial
onditions have invested with extraordi-
.ary powers. for the regulation OF which
t has sometimes seemed as II the law
had, through lack of foresight, made no
provision. Such decision is not disor.
ganizing. but highly conservative In its
tendency.
While regarding the Sherman law IT.
self as "a very crude and imperfect act
Of legislation the New York Evening
Post thinks the administration per
formed a public service in appealing to
it" and says:
The country now knows, at any rate,
what defense 1t has against the more dan
gerous development of the consolidation
theory. If a better weapon be needed It
is for congress to forge 1t for US
The New York Times, while admit
ting that "the language Of the law and
previous decisions Of the court left
practically no room for doubt about the
nature of the decision" takes a decid.
edly pessimistic view Of its effect upon
the commercial interests of the country
and says:
Congress has before 1t no business COM
parable in Importance and urgency with
the duty of providing prompt remedy
for the mischief done by this act, passed
fourteen years ago. We have restraints Of
trade upon every hand. Copyrights and
patents restrain trade; trade Is restrained
by the attempt of the manufacturer to
get for his product more than 1t has cost
him. All these things are lawful. But Il
Is not lawful to attempt to create an in
terstate transportation system doing busi-
ness on a large scale and sheltered from
those sources Of attack and Of weaknes
which have brought innumerable rail-
roads to bankruptcy and have caused
far more serious economic loss to the ma
ZION than 1t ever has suffered or ever will
suffer from such technical restraints Of
trade as were involved In the building up
of the great system In the northwest.
Adequate protection for the public, about
whose rights Justice harlan Is 30 properly
solicitous, may be secured-is already
within reach-through states forbiddtng
extortionate rates and unjust discrlmina-
tions.
The New York World insists that the
supreme court has proved itself ''the
protector of the people against trusts"
and says:
But in the last analysis 1t 10 not the
president who has trumphed. 1t 10 not
the court. 1t Is not the law. 1t 10 the
people--the plain people who elect presi-
dents and set up courts and through their
representatives do ordain the laws The
president did what public opinion called
for The law itself was framed because
public opinion demanded 1t. 1t is public
opinion and the peoples will that have
triumphed. as in the end they must always
triumph. in the court Of last resort.
The Philadelphia Press regards the
decision as "a more complete legal tri-
umph than Attorney Knox could have
asked and says:
The act of 1890. so long the sport Of COM
binations which evaded 1t. is by this deci.
sion given a force and scope no one an
ticipated and which most lawyers have
denied. Under 1t proof Of intent and at
tempt to end competition are enough to
set drastic penalties In motion against any
and every merger of companies engaged
in interstate commerce
i. This broad fact Is enough Congress
and the executive have the constitutional
power and legal means to destroy any
corporate combination which can be
proved to intend or attempt the restraint
of competition in interstate commerce.
The Chicago Tribune thinks the de-
cision is IA great legal victory for the
government and says:
Its right arm has been strengthened for
the contest with certain forms of trusts.
But 1t cannot be claimed that competition
between the Great Northern and the
Northern Pacific has been restored. Mr..
j. j. Hill says: 1.-THE properties OF the
Northern Securities are still there. They
are as good as ever" They are controlled
by men who do not believe In free ana
| unrestrained competition. The communi-
ties served by the two roads Will see no
| change in the situation so far as they ere
concerned after the decision.
The Chicago Daily News says:
There stands up out of the decision the
| great fact that congress has the power To
| prevent the throttling of competition py
| firms or corporations engaged In inter-
state commerce. Therefore future efforts
| to settle the trust question. II wisely
| made, should suffice to settle 1t on the side
OF the people.
.fThe Chicago Record Herald regards
| the decision as "a monument ana bea-
con marking a great victory In the long