Pine Bluff daily graphic., 1904-03-15
GOVERNMENT WINS
IN DECISION BY SUPREME COURT
IN THE FAMOUS MERGER
CASE.
Sherman Antitrust Law App,tee IL
All Railroad Commissions of
Character in Question.
DECISION AFFECTS MANY CASES

Washington. March 15.-The opin-
ion CT 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
read companies, was handed dOWn yes
terday and was in favor Of the govern
ment The opinion was read by JUS
tice Harlan.
The opinion of the United States
circuit court for the District of Min
nesota was affirmed The effect is to sus
tain the contention that the Sherman
antitrust law applies to railroad cc'm-
missions of the character in question
Justice Harlan said that in the mer-
ger Of the two roads the stockholders
disappeared and reappeared in the
securities companies, the two thus be-
coming practically consolidated in a
holding company, the principal object
being to prevent competition
mo scheme CIR device could GER
tainly more effectively come within
the prohibition of the antitrust law,
and it is within the meaning Of the
act trust
Financial Disaster.
Justice Harlan also discussed the
predictions of financial disaster from
the enforcement of the antitrust law,
but discouraged them by saying they
were usual under such circumstances
and need not be realized.
Justice Harlan declared that the
only object of the merger was to pre-
! vent competition, and he said that if
! no ore else knew this to be the case.
| j. P. Morgan, cMe CT the defenders,
knew it to have been the case. Ex-
tracts from Morgan's testimony were
quoted in support cf this statement
The decree C.f the circuit court could
not have been of smaller score, and it
had in no way exceeded it's authority.
The law must not be narrowly con-
strued, but reasonably construed. The
defendants could not complain of the
finding CT the circuit court, ard ,Jus-
tice Harlan. in conclusion, announced
, the confirmation Of the deoi2ica Ct
that court, saying:
Execution of Decree.
'sThe 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 hv
Justices Brown, Brewer, McKenna and
Day, while the Chief Justice and JUS
tices White, Peckham and Holmes dis
sented. Brewer, who, while concur.
ring in the judgment, did not accept
all of the language of the opinion.
Justice Holmes read the dissenting
opinion. He construed the antitrust
law as criminal statute and declar-
ed that there was nothing in it to in
dicate that it had been enacted merely
for the control of large concerns, as is
generally contended. Indeed, the law
had not been understood as applying
to railroads until so construed by the
supreme court. The act, he contend
ed, applies only to contracts and COM
binations in restraint IF trade, and
makes no reference to competition.
Prosecution Should Follow.
Logically construed, Justice Holmes
said, yesterdays decision should be
followed by the criminal prosecution
of the parties at intere:\ in this
case.
Speaking of the general understand
ing that the Sherman law applied on
ly to large corporations, the justice
said this impression was breathed
from every pcre of the statute, but
that it's language did not bear out the
conclusion. He thought this infer
ence due to the size of railroad cor.
pcrations. He took the position that