The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-03-15
bids nttulnt,tg 10 nonop,lzo sucl, COM

III sWaS ltldtS rttaOiei le a
Under the leadership of 1iill nnd hors..,'
tho Stockholders OF the TWO ia,llo, ~. "a
epauics iiavit1r practical parallel lines 9. :.
ironti, had combined under the Ia WIS ", %. %
New Jersey BY organizing r corpora,t,on
for the holding Of tile shares OF ny NY, NV
cottiruries UPON nh agreed basis o. iV'' i''
Proceeding. he said 49,.
G"The stockholders or these two CON- Pm,
pctihg companies disappeared ~ ~. SUI ~
Tor tic moment. but immediately re-.
appeared is stockhodcrs OF the lio PIC y =
company, which was tl1crcnftsrl 10 nua,o
the interests of both sets OF me slooN.
holders nH IL Unit, MD 10 lnhnauts e, M i,
CAUSE to be managed, both llnes " !. ia ~
road as IL held In one ownersh'p. Ne.usr
sarily BY thls 4 combination or nfIni,so.
5n1ant the holding company IN the fullest
sense dominates the situation In ne III
Jterest Of those who were stockholders OF
tho constituent companies: ms mnch 50,
for every practical purpose, rs u ~ t ,.
bcen itself railroad corporation Wni ~.
had built, owned and opornted both iines
for the exclusive benefit Of It's stock.
holders. Necessarily also the constituent
companies ceased under such q com plllt-
ton, to be III active competition or lrnue
and commerce along their res ,i
lines and have become practically on 'e
powerful consolidated cornorHtion pS VIZ
nnnie Of n holding corpora tion. tnc prlh-
clpnl, II not sole, object Tor me lori.i..-
ton OF which was to carry out tho pur-
pose of the original combination under
which competition between tho c oi'9t''-
t,ient companies would cease.
Preventing Competition.
i a11o said that the Stockholders !, Of I, the =,
two old companies are now ai'lte -, y y.
their interest sin preventing all conlpet ltlon
between tho two lines and that they Won" f..
take care that 10 persons are ciio ...,,.
directors OF the holding company WHO
will permit competition between inc , t M
stituentS companies, the result being tnht
all the earnings of the constituent COM
panles make ~ common fund IN the hanas
Of the securities company upon the OASIS pass
of the certificates Of stock Issued ~ inc
holding company. No scheme or device
could more certainly come Wlthin t NY
words Of the act, combination n 1tne ~.
form Of n trust or otherwise ~ restra l,t,.
Of commerce among the States or VIII
foreign nations or could moro effectively
and certainly suppress free competition
between the constituent companies. rms y,
combnationfis, within the meaning o. ti'
act a f"trust,51but If not. 1t Is a comhlna-
ton in restraint of Interstate and inter-
national commerce, and that - enousl.
to bring it under the condemnation "
tho act. The mere existence OF S''s u !.
combination and the power ncaui re-. ~. ~
the holding company as trustee LOT tne
combination, constitute a menace to-, ana q
restraint upon, that freedom OF commerce
which Congress- intended to recognize ana
protect, and which tho public Is entltied
to have protected. II not DESTROYED, al
the advantages that would naturally. come cor,
to the public under the operation OF me
general law of competition as between t !. 9
Great Northern and Northern racine
Railway Companies, will be lost. and the
entire commerce OF tho immense terri
tory In the northern part Of the llnitsd
States between the Great Lakes ana inc
Pacific and Puget Sound VIII 20 at tie
mercy Of a single holding corporation Or
ganized in a State distant from the people
OF that territory
One Person Controlled.
He agreed with TIC summing up by the
Circuit Court of the results OF tho com
bination, which was that It places the
control OF the two roads In the hands OF
a single person. and second, that " de
stroyed every motive for competition. pc
tween the two lines by pooling their
earnings. notwithstanding both were en-
gagged in interstate traffic a ss
Entering upon an Investigation o. the
authorities bearing upon,the case. Justice
Harlan quoted the Knight tho freight
association. H,e Joint traffic association.
the Hopkins the Anderson the iAddy-
stone Pipe and Steel Company and the
Montague Lowry cases. lie deduced IRON
the considera ton Of these precedents the
following propositions as APPLYING 70 the
present cases: rs
"That although the act of Congress.
known as the antitrust net has no ref
erence to the mere manufacture ana
production of articles or commodities
within the limits o. the several States, IL
embraces and declares to be Illegal every
contract, combination or conspiracy, IN
whatever form of whatever nature ana
whoever may be parties TO it, which a.
rectly or necessarily operates In restraint
of trade or commerce among the sew
e,al states or with foreign notions.
',rhat the act is not limited 70 res
straints OF Interstate and iSternatonal
trade or commerce that are unreasonable
In their nature, but Is directed against
Ill direct restraints. reasonable or unrea-
sonnble, imposed by any combination,
conspiracy or monopoly upon such trade
or commerce.
"That railroad carriers engaged IN IN
.tcrstate or International trade, or COM
ncercc. are embraced by the act,
''That combination even among private
state or International commerce is re-
strained are equally embraced by the act.
Power Of Congress.
"rhat Congress has the power to es-
}tablish rules by which Interstate ana m
itcrnational commerce shall be governed,
and, by the antitrust act, Inns prescripea
Tho rule OF free competition among those
engaged in such commerce. 3S5f
..That every conf inntion or conspiracy
which would cxtinguish compatltion be-
tween otherwise competing railroads, en-
gagged in intcrs,atei trade or commerce.
ond which would III that way resirall,
such trade or commerce Is made 1llesal
by the act III
ag4RA 18G - HYENh