The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-03-15
THE MERGER DECISION.

BY a majority of one, the su-
preme court of the United States has
affirmed the decision of the circuit
court declaring the formation of the
Northern Securities company to be
contrary to the so-called Sherman
antitrust act. It is distinctly unfor-
tunate that. the most important de-
cisions of recent years, that relating to
an income tax, that covering the insu-
lar cases, and now this latest, were all
rendered by divided court; and in
nearly every case by a court SO equally
divided that the final decision came
as the voice of some one justice. The
misfortune deepens as we read the
conflicting opinions rendered by the
majority and the minority, and realize
that they differ not on mere matters of
detail but upon the great, fundamental
principles involved.
The arguments used in explaining
or supporting the decision in this case
are too voluminous to be reviewed here,
and are stated fully in our news col
jority, delivered by Justice Harlan, is,
merely an expansion of the views set
forth by the circuit court. 1t holds, as
one vital point of the dispute, that the
act Of congress applies to railroad op-
terms the power and the right of fed
eral control over all forms and devel-
opments of commerce, when interstate,
regardless of the acts of any state. 1t
assumes that the creation Of a holding
company is a measure of monopoly;
and it goes to the strange length Of
even subscribing to the doctrine that it
is not necessary to show that given
combination actually restraints trade,
but merely that it 'tends" to restrain.
it. AT the same. time Justice Brewer
separately affirms the right Of an in,
dividual to do exactly what the court
says that a corporation may not do, an
unlimited freedom in the purchase and
ownership of stock.
The two opinions that convey the
views of the four dissenting judges are
equally interesting and full of logical
force. Justice Holmes denies the ap-
pNcation of the statute to cases such
as that in question, and declares that
1t should be construed and enforced as
a criminal act. He notes that all rail-
roads are, by the necessities of the
business, natural monopolies, and
points out the inpossibility of sup
pressing or eliminating this feature
The public is saved from injury by
the legislative power to regulate rates.
Justice White stands on other broad
ground, asserting that ownership of
stock is not commerce; that it cannot
be brought within the operation of the
act at all; that if it is legal for indi-
viduals, it cannot be illegal for cor
porations; and concludes, ''tIe doctrine
must in reason lead to a concession Of
the right in congress to regulate con-
corning the aptitude, the character and
capacity Of persons
From this summary it will be seen
not only how close was the division of
the court, but how irreconcilable5 are
the differences of principle and of le-
gal construction that separate them
This, however, does not affect the
practical result. The Northern Securi-
ties, as constituted, is declared Illegal
and it goes without saying that the
direction of the court will be obeyed
and its mandates followed in good
faith. There is ample justification, in
what we have quoted, for the belief so
candidly and firmly held by those who
: formed the corporation, that every
step they took was with full warrant
VI low elAlO III SOl1lOiIIIlly 10 It's IAN
guage and intent.
The whole country will hope that
this far-reaching decision may not af-
feet unfavorably the vast and impor-
tant interests in every part of the land
that are equally interested with the
Northern Securities, and that must be
equally disturbed by a general appli-
cation Of the principles laid down. AS
to practical results, it follows as a
matter Of course that the Immensely
beneficial results following from the
management in harmony of these great
properties in the Northwest will not
be destroyed. Every inch of country
and every line of occupation from the
Great Lakes to the Pacific has felt the
impetus to industry and prosperity
following the low freight rate which
this policy has made possible and real
lied. The country is there. the prop