Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1904-03-22
GOVERNMENT wins
THE MERGER Case
THE SUPREME COURT DECIDES
AGAINST NORTHERN Sc
CURITIEs COMPANY.
HOLDS 1T VIOLATION
OF ANTITRUST LAW
Opinion Is Read by Justice Harlan
Z - Declares Principal Object Of
Corporation Is to Prevent COMPETE
tion-A Noted Case.

of 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-
road companies, was handed down
Monday and was in favor of the gov
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 effect is to sustain the conten-
ton that the Sherman antitrust 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 a holding company, the
principal object being to prevent COM
petition. mo scheme or device could
certainly more effectively come within
the prohibition of the antitrust law,
and it is within the meaning of the act
trust"
"A NOtSu SdScs
The case has attracted more atten-
ton than any other suit before the
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. 1t was argued in
December last for two days, and at
tracted general attention at that time.
as it did previously when the decision
was rendered by the circuit court for
the district of Minnesota
The action was brought in the cir
cult court under the law of February
IL, 1908, which was for the purpose of
expediting the case, and was heard by
the four circuit court judges of the
circuit. They united in decision ia
vorable to the United States and OPP
posed to the contentious of the rail-
road companies.
The suit was instituted by the Unit
ed States against the Northern Sc
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 holding
company, the securities company
This consolidation was claimed to be
in violation of the Sherman antitrust
law. It was claimed on behalf
of the government that this con.
solidation was in effect 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 was
in the nature Of 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 all 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 con-
firmation 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 circum.
stances may require"
The decision was concurred in by
Justices Brown, Brewer, McKenna and
Day, while the chief justice and JUS
tees White, Peckham and Holmes dis.
sented.
Justice Harlan concluded at 1918
He was followed by Justice Brewer
who. while concurring in the judy
ment, did not accept all of the Ian.
guage of the opinion.
Justice Holmes then read the dis.
senting opinion.
A Rash Promise.
Briggs-I have promised never t,
touch liquor again, If she will MARI,
me.
Griggs-Don't you hate to have t
break your promise ?-Brooklyn Life.
Not to BE Kept.
Citiman-Do they keep servant girl.