The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-15
Illegal, says the Su-
preme Court.
Continued from First Page.)

sustains the material allegations of the
bill' and shows violation of the act OF
Congress. in so far as it declares Illegal
every combination or conspiracy IN re-
strSint OF commorcen among the several
States and with foreign nations, and for
bids attempts to monopoliZe such com
merce.'
Ii was undisputable, he continued, that
under the leadership of Hill and Morgan
the stockholders of the two railroad com
panies, having practically parallel lines OF
road, had combined under the laws OF
New Jersey by organizing corporation
for holding of the shares Of the TWO com
panies. upon an agreed basis OF value
Proceeding he said:
1.-THE stockholders of these two compel
ing companies disappeared as such, Tor
The moment, but Immediately re-appeared
as stockholders of the holding company,
which was thereafter to guard the inter
ests of both sets Of stockholders as Il unit,
and 10 manage, or cause to be managed,
both lines of railroad as if held in one
ownership. Necessarily by this combina-
ton or arrangement the holding company
in the fullest sense dominates the situa-
ton in the interest of those who were
stockholders OF the constituent companies:
as much SO, for every practical purpose,
as If it had been itself a railroad corpora
ton which had built, owned. and operated
both lines for the exclusive benefit of it's
stockholders. Necessarily. also, the con
stituent companies ceased under such a
combination, to be in active competition
for trade and commerce along their re-
spective lines, and have become, practical
Iy one powerful consolidated corporation,
by the name Of a holding corporation, the
principal, if not sole, object for the for
nation Of which was to carry out the
purpose of the original combination un-
der which competition between the con-
stituent companies would cease"
He said that the stockholders of the
two old companies are now united in their
interest in preventing all competition be-
tween the two lines, and that they would
take care that no persons are chosen di-
rectors of the holding company who Will
permit competition between the consti-
tuent companies, the result being that all
the earnings OF the constituent companies
make a common fund in the hands of the
Securities Company upon the basis of the
certificates of stock issued by the holding
company. No scheme or DEVICE could,
more certainly come within the words of
the act. combination in the form of
trust or otherwise $ in restraint
Of commerce among the States or with for
eign nations, or could more effectively
and certainly suppress free competition
between the constituent companies. This
combination IS, within the meaning of the
act a trust but if not, it is combina
ton in restraint of interstate and inter
national commerce, and that is enough to
bring it under the condemnation of the
act. The more existence of such a com
bination, and the power acquired by the
holding company as trustee for the combi
nation constitute a menace to and re-
straint upon, that freedom of commerce
which Congress intended to recognize and
protect, and which the public is entitled
To have protected. If nor destroyed, all
the advantages that would naturally come
to the public under the operation of the
general law competition, as between the
great Northern and Northern Pacific Rail
way Companies, will be lost, and the en-
tire commerce of the immense territory
in the Northern part of the United States
between the Great Lakes and the Pacific
at Puget Sound will be at the mercy OF
single holding corporation, organized in
State distant from the people of that
territory
He agreed with the summing up by the
Circuit Court of the results of the com
bination which was that it places thetrol
OF the two roads in the hands of sin
gle person, and second, that it destroyed
every motive for competition betw en-
the two lines by pooling their earnings
Notwithstanding both were engaged in in
ter State traffic.
Entering upon an investigation of the
authorities bearing upon the case JUS
tice Harlan quoted the Knight the
Freight Association, the joint traffic as
scciation, the Hopkins, the Anderson, the
Addystone Pipe and Steel Company and
the Montague Lory cases. He deuuced
from the consideration of these prece-
dents the following propositions as APP
plying to the present cases:
THAT although the act of Congress,
known as the antitrust act has no refer
cree to the mere manufacture and pro
duction of articles or commodities within
the limits of the several States, it en-
braces and declares to be illegal every
contract, combination or conspiracy, In
whatever form, of whatever nature, and
whoever may be parties to it, which
directly or necessarily operates in re-
straint Of trade or commerce among the
several States or with foreign nations.
THAT the act is not limited to re-
stra;nts of Interstate and international
trade or commerce that are unreasonable
in their nature, but is directed against
all direct restraints, reasonable or unraa-
scnable, imposed by any combination,
conspiracy or monopoly upon such trade
o. commerce.
''That railroad carriers engaged in In
tel State OF international trade or com
merce are embraced by the act.
THAT combinations even among private
manufacturers or dealers whereby Inter
State or international commerce is re
strained are equally embraced by the
act.
THAT Congress has the power to es-
tablish rules by which Interstate and in
ternational commerce shall be governed,
and, by the antitrust act, has prescribed
the rule of free competition among those
engaged i'm such commerce.
THAT every combination or conspiracy
which would extinguish competition be-
tween otherwise competing railroads, en-
Ctat