The Savannah morning news. (Savannah, Ga.) 1900-current, 1904-03-15

in the fullest sense dominates the sit
uation in the interest of those who
were stockholders of the constituent
companies; as much so, for every prac-
tical purpose, as if it had been itself
a railroad corporation, which had
built, owned and operated both lines
for the exclusive benefit of it's stock
holders. Necessarily, also, the con-
stituent companies ceased, under such
a combination, to be in active COM
petition for trade, and commerce along
their respective lines, and have be-
come practically one powerful con-
sOlidated corporation by the name of
a holding corporation, the principal,
If not the sole, object for the forma-
ton of which was to carry out the
purpose of the original combination
under which competition between the
constituent companies would cease"
Preventing Competition.
He said that the stockholders of the
two old companies are now united in
their interest in preventing all COM
petition between the two lines, and
that they would take care that no
persons are chosen directors of the
holding company who will permit COM
petition between the constituent COM
panies, the result being that all the
earnings of the constituent companies
make a common fund in the hands of
the securities company upon the basis
of the certificates of stock issued by
the holding company. No scheme or
device could more certainly come with
in the words of the act, Combination
in the form of a trust or otherwise
y in restraint of commerce among
the states or with foreign nations or
could more effectively and certainly
suppress free competition between the
constituent companies. This combi-
nation is, within the meaning of the
act, a trust but if not, it is a COM
bination in restraint of interstate and
international commerce, and that is
enough to bring it under the condem-
nation of the act. The mere exist
ence of such combination and the
power acquired by the holding COM
pany as trustee for the combination.
constitute a menace to, and a restraint
upon, that freedom Of commerce which
Congress intended to recognize and
protect, and which the public is enti-
tied to have protected. If not destroy
ed, all the advantages that would nat
urally come to the public under the
operation of the general law of COM
petition, as between the Great North
ern and Northern Pacific Railway
companies, will be lost, and the entire
commerce of the immense territory in
the Northern part of the United States
between the Great Lakes and the Pa
cific at Puget Sound, will be at the
mercy of a single holding corporation,
organized in state distant from the
people of that territory"
Control in One Mans Hands.
He agreed with the summing UP by
the Circuit Court of the results of the
combination, which was that it places
the control of the two roads in the
hands of a single person, and second,
that it destroyed every motive for COM
petition between the two lines by pool
ing their earnings, Notwithstanding
both were engaged in interstate traffic
Entering upon an investigation of
the authorities bearing upon the case,
Justice Harlan quoted the Knight, the
Freight Association, the Joint Traffic
Associa ton, the Hopkins, the Ander-
son, the Addystone Pipe and Steel
Company and the Montague-Lowry
cases. He deduced from the consider
alton of these presidents the following
propositions as applying to the present
cases:
That although the act of Congress
known as the antitrust act has no ref
erence to the mere manufacture and
production of articles or commodities
within the limits of the several states
II ana declares TO De
every contract, combination or conspir-
acy, in whatever form, of whatever
nature and whoever may be parties to
it, which directly or necessarily oper-
ates in restraint of trade or commerce
among the several states or with for
eign nations.
THAT the act is not limited to re-
straints of interstate and International
trade or commerce that are unreason-
able in their nature, but is directed
against all direct restraints, reasona-
BILE or unreasonable, imposed by any
combination, conspiracy or monopoly
upon such trade or commerce.
THAT railroad carriers engaged in
Interstate or international trade or
commerce are embraced by the act.
That combinations even among pri-
vate manufacturers or dealers, where
by Interstate or international COM
merce is restrained, are equally en-
braced by the act.
THAT Congress has the power to es-
tablish rules by which interstate and
international commerce shall be gov
erned, and, by the antitrust act has
prescribed the rule of free competition
among those engaged in such conf
merce.
Made Illegal by the Act.
THAT every combination or con-
spiracy which would extinguish. COM
petition between otherwise competing
railroads, engaged in interstate trade
or commerce, and which would in that
way restrain such trade or commerce.
is made illegal by the act.
THAT the natural effect of compe-
tition is TO increase commerce. and an
agreement whose direct effect is to pre-
vent this play of competition, restraints
instead of promotes trade and COM
merce.
THAT to vitiate a combination, such
as the act of Congress condemns, IL
need not be shown that such oombina-
ton In fact results or viii result In
a total suppression Of trade or in a
complete monopoly, but II Il is only
essential 10 show that by its necessary
operation Il tends 10 restrain inter-
state or international trade or COM
merce or tends 10 create monopoly IN
such trade or commerce or 70 deprive
the public OF the advantages that how
from free competition.
nThaf the constitutional guarantee