New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1904-03-16
THE SUPREME COURT DECIDES
AGAINST NORTHERN Sc
CURITIES COMPANY.
HOLDS 1T VIOLATION
OF ANTITRUST LAW
Opinion Is Read by Justice Harlan
Declares. Principal Object of
Corporation Is to Prevent COMPETE
tion-A Noted Case. s,> f.

of the supreme court of the United
States in the case of the Northern Sc
curities company VS.. the United States,
involving the merger of the Northern
Pacific and the Great Northern Rail-
road companies, was handed down
Monday and was in favor of the gov
eminent. The opinion was read by
Justice Harlan. The opinion of the
United States circuit court for the dis
trict of Minnesota was affirmed.
The effect is to sustain the conten-
applies to railroad com binations of the
character in question. Justice Harlan
said that in the merger of the two
roads the stockholders disappeared and
reappeared in the securities company,
the two thus becoming practically con-
solidated in a holding company, the
principal object being to prevent COM
petition. mo scheme or device could
certainly more effectively come within
the prohibition of the antitrust law,
and it is within the meaning of the act
a trust
A Noted Case.
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 as equal in impor
lance with those cases and with the
income tax case. It was argued in
December last for two days, and at
tracted general attention at that time.
as it 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
II, 1908, 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 IA
vorable to the United States and op-
posed to the contentious of the rail-
road companies.
The suit was instituted by the Unit
ed States against the Northern Sc
curities company and the two railroad
companies, the Northern Pacific and
the Great Northern, and their leading
SIcChuo1uS1S III L11S pull pOSc I'll ulSSOlF'
ing the merger of the two roads which
the United States declared had been
created by the creation of holding
company the securities company
This consolidation was claimed to be
in violation Of the Sherman antitrust
law. 1t was claimed on behalf
of the government that this con-
-, 49, +ol
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
| prohibited by the Sherman law, and
| that congress has the power to estab-
l10u 0uCu SuldCiO1S DIS tlS ldlu uOW u
| in that law. He then continued to re-
ply in detail to the points made for
| the securities company
In conclusion he announced the con.
J firmation 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 was concurred in by
Justices Brown, Brewer, McKenna ans
Day while the chief justice and JUS
tees White, Peckham and Holmes dis
sented.
Justice Harlan concluded at lis
He was followed by Justice Brewer
who, while concurring in the judg-
ment did not accept all of the Ian.
guage of the opinion.
Justice Holmes then read the dis
senting opinion.