The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1904-03-17
Government Wins
| THE Il merger Case;
THE SUPREME COURT DEclD1D
AdAINsT NoRTHERN ~
. cuRITIEs COMPANY.
HOLDS IT VIOLATION
OF ANTITRUST law
Opinion Is Read BY Justice Harlan
Declares Principal object o.
Corporation Is to Prevent Compost
tion-A Noted Case. as.

Washington, March 15.-The optnioa
sf tho supreme court OF the Uated
States In the Ease OF the Northern Sc.
curities company vs.. the United ststea.
involving the merger Of the Northern
Pacific and the Great Northern Rail-
road companies, was handed down
Monday and was in favor Of the row
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 eject Is to sustain the coAten-
ton that the Sherman Anti-trust law
applies to railroad combinations 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 q holding company. the
principal object being to prevent N
petition. mo scheme or device could
certainly mor effectively come within
the prohibition OF the antitrust law,
and 1t is within the meaning Of the act
q trust"
A Noted Case.
The case has attracted more atten-
ton than any other suit before this
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
vas 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, 1903, which was for the purpose OK
sxpeditinE the case, and was heard by
tho four circuit court judges OF the
circuit. They united in a decision "a.
vorable to the United States and OPP
posed to the contentious Of the rail-
road companies.
The suit vas instituted by the Unit
ed States against the Northern Be-
curities company and the two railroad
companies, the Northern Pacific and
the Great Northern, and their leading
stockholders for the purpose OF dissolv-
ing the merger Of the two roads which
the United States declared had been
created by the creation Of q 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.
s%olidation was in effect a pool created
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 waa
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 ali contracts in restraint OF
trade. reasonable or unreasonable, are
prohibited by the Sherman law, and
that congress has the power to estab-
fish such regulations as are laid down
in that law. He then continued to re.
ply in detail to the points made for
the securities company.
In conclusion he announced the COL.
hrmation 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 circurn.
stances may require"
The decision was concurred in BY
Justices Brown, Brewer, McKenna ana
Day, while the chief justice and Jus.
tices White, Peckham and Holmes dis.
seAted.
Justice Harlan concluded at 1:1s.
He was9 followed by Justice Brewer
who, while concurring in the judg.
nent, did not accept all Of the Lam