New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1904-03-16
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
Declares Principal Object of
Corporation Is to Prevent Competi-
tion-A Noted Case. rsa# ..E

Washington, March 15.-The opinion
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 com binations 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
a trust
A Noted Case.
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
| II, 1903, which was for the purpose of
| expediting the case, and was heard by
the four circuit court judges of the
| circuit. They united in a decision IA
J vorable to the United States and op-
! 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. 1t was claimed on behalf
of the government that this con
sOlidatiOn was in effect pool created
to promote the interests, not of ons
system at the expense of the other
lie. The railroads claimed that the
transfer Of the stock Of, the two com
| panies to the securities company wa!
in the nature of a sale and perfectly
legitimate. The contentious of thu
securities company were reviewed, ant
Justice Harlan said they had received
full attention. He quoted the variou!
opinions involving the trust question
saying that from them it is to be gath
cred that all contracts in restraint O.
trade, reasonable or unreasonable. ar
prohibited by the Sherman law, ant
that congress has the power to estab
fish such regulations as are laid dow,
in that law. He then continued to re
ply in detail to the points made fo
the securities company
In conclusion he announced the con
J firmation of the decision of that court
saying:
''The judgment of this court is tina
the decree below of the circuit cour
be and hereby is affirmed, with libert,
to the circuit court to proceed in tn
execution of the decree as the circum
stances may require
The decision was concurred in b.
Justices Brown, Brewer, McKenna an
Day, while the chief justice and Jus
tees White, Peckham and Holmes dis
sented.
Justice Harlan concluded at lis
He was followed by Justice Brewe
who, while concurring in the judg
ment, did not accept all of the Ian
guage of the opinion.
Justice Holmes then read the dis
senting opinion.
Gov. Van SAINT Highlv Elated.