The midland journal., 1904-03-18
R, R. MERGER IS ILLEGAL
Isag- Expected Decision Rendered Against
Northern Securities Company.
SUPREME COURT LDSGOvERNMENT
Harlan, Brown, McKenna, Day and Brewer
0utvote Others-Chief Justice Supported
By White, Peckham and Holmes Sherman
Antitrust Law Applies to Railroad Combi-
nations Holding Company Mere Dodge.

Washington, D. c.. (SpeciaD.-The
opinion of the Supreme Court of the
United States in the case of the
Northern Securities Company VS.. the
United States, involving the merger
of the Northern Pacific and the Great
Northern Railroad Companies, was
handed down Monday, and was in fav-
or OF the Government. The opinion
was read by Justice Harlan.
The decision was by bare MAORI
fy. Justice Harlan was supported by
Justices Brown, McKenna, Day and
Brewer, the last-named concurring for
reasons different from those of the
Others Chief Justice Fuller, Justices
White, Peckham and Holmes dis
scented.
The opinion of the United States
Circuit Court for the District of Mimi
esota was affirmed.
The effect is to sustain the conten-
fion that the Sherman antitrust law
applies to railroad combinations of the
character in question.
Justice Harlan said that in the mer-
ger of the two roads the stockholders
disappeared and reappeared in the Sc
curities Company. the two thus be-
coming practically consolidated in
holding company, the principal object
being to prevent competition.
mo scheme or device could GER
tainly more effectively come within
the prohibition of the antitrust law
and it is within the meaning OF the act
a trust"
The contentious of the Securities
Company were reviewed, and Justice
Harlan said they had received full at
tention He quoted the various op1n-
ions involving the trust question, saw
ing that from them it is to be gather
ed that all contracts in restraint OF
trade, reasonable or unreasonable, are
prohibited by the Sherman law, and
that Congress has the power to estab-
1ish such regulations as are laid down
in that law. Congress had power to
enact the statute.
Replying in detail to the points
made for the Securities Company. JUS
tice Harlan said that the contention
that the law is an interference with
the rights of the individual States by
which the companies are incorporated
was not well founded. In such cases,
he said, the authority of Congress is
supreme. He also declared it to be
unnecessary to determine the right of
owners of railroad stock to sell their
property, nor was it true that the
right of the Securities Company to
own and hold railroad stock is the
only question involved. Such conten-
tions are wide of the r-,ark-mere men
of straw. All that the Government
complains of is the existence of a
corporation to repress commercial and
is not concerned with the other points.
Justice Harlan said that in this day
there should be no doubt of the COM
piete power of Congress to control
interstate commerce, and that all aD-
propriate means might be resorted to
for that purpose All the prior trust
cases were in support of that con-
tention Whether free and unre-
strained competition was wise. he said,
was an economic question with which
the court need not concern itself: the
question was that OF statutory law.
He asserted the power of Congress
over Interstate commerce to be as
complete as the power of State over
domestic commerce.
Coming to the plea of the railroads
that the antitrust law should he de-
clared unconstitutional. he said that
the court could not see its wav to that
end. "If." he went on. "the Securities
Company's contentious are sound whv
may not all the railroads of the United
States enter into combination. and,
BY the device of holding corporation,
control rates throughout the country
in defiance of Congress?"