The Washington times., 1904-03-14
U. 5. Government Wins Brilliant Victory in
Northern Securities Case Before High
est Tribunal in the Land.
HARLAN READS OPINION DEALING
DEATHBLOW TO RAILROAD TRUST
Decision Reached by Vote of Five to Four,
justices Holmes, Peckham, White,
and Fuller Dissenting.

The Supreme Court Of the United
States today handed down it's decision
in the case Of the Northern Securities
Company VS.. the United States. The
contentious Of the Government are up
held and the merger is declared to be in
violation Of the anti-trust act. Justice
Harlan read the opinion OF the court
The decision in the case was by vote
OF FIVE to four. Justices Holmes. Peck
ham. White, and Fuller dissenting.
Justice Harlan first explained the
questions at issue, the enforcement of
the antitrust act, IN which Congress
declares Illegal contracts or cornbina-
tions in restraint Of trade. and provides
penalties.
Charges Fully Sustained.
In our opinion" he said. the evil
oenee fully sustains the charge"
The Northern Securities was organized
as the holding corporation. or the Gus
todian CT more than nine-tenths of the
stock of the Northern Pacific and three
quarters of the Great Northern he
said. Both lines were held as If held
by one owner The holding company
dominated the roads for the exclusive
benefit of It's stockholders It became
one powerful corporation. so that COM
petition between the constituent COM
panies might end. The profits were 20
be distributed on the basis Of stock held
by the Northern Securities Company.
The combination is one ia the shape
Of trust No scheme or device could
more thoroughly be a combination in
the fern OF trust in restraint of COM
nserce- II is a menace TO and a re-
straint Of the freedom OF commerce"
All Restraint Unlawful.
The contention Of the defendants that
an opinion in Its favor would not be con
tTary 10 the spirit OF the antitrust law
IS negatived. The decision in the Joint
Traffic Association. the Trans Missouri
cases. the Addyston Pipe Company. and
others, were quoted to sustain the Gov
ernments contention
We deem It sufficient to say" con-
tinued Justice Harlan, that certain de-
ductions may be drawn from these de-
cisions. Every contract, combination or
conspiracy which operates in restraint
OF trade is unlawful, whether it be an
unreasonable or a reasonable restraint
There is no distinction. The law for
bids such combination even among pri-
vate manufacturers or dealers.
Congress Has Power.
Congress clearly has the power to
establish rules governing commerce be-
tween the States and with foreign coun-
tries. Free competition is the rule pre-
scribed- Whatever extinguishes compe-
tition between railroads is made Illegal
The natural effect OF competition is TO
increase commerce. 1t need not be
shown that the combination resulted in
a total suppression OF trade; II IS un-
lawful if it tends TO create a monopoly
or restrain trade. Such tendency alone
is against the law
The liberty of contracts is not i'm
paired by the act. which Congress had
the authority to enact. These princi.
pies, said Justice Harlan, have been
ulsIlhctiy announced in other cases. "a
Constitution Supreme.
He then considered the objections &c
the Governments contention. raised by |
the argument of the Northern Securities
Company's counsel and demolished them !
one by one. The objection that the act
deprives the company of the privilege |
Of doing what it might lawfully do un-
der State law was sternly met
The Constitution Of the United States
Is the supreme law" he said "A law
iul constitutional act OF Congress is a
binding on the States as though il were
in the Constitution OF the United States
the constitution OF States to the con
trary Notwithstanding. No State. let
alone one of its artificial creatures. can
stand in its way"
The ownership of stock in a rail-
road. If that railroad does an Interstate
business, is in itself interstate com
nerce' declared the justice. in reply
to that objection which contended thar
Congress cannot forbid im individual
from disposing of his STOCK in corpora
tlcns. or from investing his money as
he may see MT. If the contentious of
tho Northern Securities We're sound. why
could not all the railroads in the United
States enter into a combination, and by
.he device of a holding corporation.
control rates all over the United States.
against the Will OF Congress? Congress
may protect the freedom of interstate
rates by lawful means No State cor
roration can stand in the way Of the
of popular viii. lawfully
expressed"
As to States Rights.
The power of Congress over Interstate
commerce extends to all the instru-
Of such commerce and may
remove everything that tends to inter
fere with IL.
Justice Harlan denied the sacred |
ness OF the doctrine that the right OF
States was being trespassed on by the
law. If a State should allow a railroad
to do those things which interfere with !
interstate commerce, should Congress !
be impelled TO hold aioof on the ground /
that il would invade State rights?
Such doctrine could not be given ef- |
feet without destroying the power eE |