Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-03-14
Supreme Court Holds That Anti
Trust Law Applies to Rail-
road Combinations
Most Important Opinion OF the
Court Since the Income
Tax Decision
Che Government Sustained and
the Circuit Court Upheld
In Their Contentious
The Northern Securities Case
Declared Simply a Device
to Evade Law
Justice Harlan Wrote the
Majority Opinion-Four
Justices Dissent

washington March 14.-The su-
Oreme court today handed down de-
eision In the Northern Securities mer-
wer case in favor Of the government.
The opinion was read by Justice Har-
IAN. 4 affirms the opinion of the Unit
I'd states circuit court for the district
81 Minnesota.
The effect is to sustain the contention
That the Sherman antitrust law ap-
plies to railroad combinations of the
character in question. Harlan said
khat in the merger Of the two roads
the stockholders disappeared and reap
peared in the Securities Company. the
two thus becoming practically consol-
ldated In the holding company, the
principal object being to prevent COM
15s1lsioa ee atnie or device could
certainly be more effectively come
within the prohibitiosl of the antitrust
law, and it is within the meaning of the
act trust"
In Restraint Of Trade.
Harlan quoted various opinions in
eolying the trust question, saying that
From them it is to be gathered that all
contracts In restraint of trade, reason
able or unreasonable, are prohibited by
the Sherman law, and that congress
has the powG to establish such regu-
lations as are in that law and con,
gress had the power to enact the stat
ute.
Very important Case.
The case has attracted universal at
4ention and has been regarded by the
bench and bar as equal In Importance
with the insular and income tax cases.
The suit was instituted by the Unita1
States against the Northern Securities
Company, Northern Pacific and Great
Northern railroad companies and their
leading stockholders for the purpose Of
dissolving the merger of the two
hoads, which the United States de-
clared had been created by the crea-
tion OF the holding company, the Sc
curities Company. This consolidation
was claimed to be in violation OF the
Sherman antitrust law, and was. in
effect, a pool created to promote the
interests of both roads at the expense
+ OF the public.
The railroads claimed the transfer of
the stock OF the two companies to the
Securities Company was in the nature
of a sale and perfectly legitimate. The
contention Of the Securities Company
was reviewed and Justice Harlan said
they had received full attention.
Four Justices Dissent.
The decision was concurred in by
Justices Brown, Brewer, McKenna and
Lay, while Chief Justice Fuller and
Justices White, Peckham and Holmes
dissented. Brewer concurred in the
Affirming decision, but from different
reasons than that of the majority.
Harlan also discussed the predictions
of financial disaster from the enforce
ment of the antitrust law, but dis
Couraged them, saying they were usual
under such circumstances and need not
be realized.
Prevented Competition
Harlan declared the only object of
the merger was to prevent competition
and said if no one else knew this to be
the case j. Pierpont Morgan knew that
to have been the case Extracts from
Morgan's testimony We're quoted in
support of this statement.
Congress- Power Complete.
Harlan said the contention that the
law is an interference with the rights
of the individual states by which COM
ranies are incorporated was not well
founded. In such cases, he said, au-
thority Of congress is supreme. He
declared it to be unnecessary to
Aine the right of the owners of
ad stock to sell the property nor