The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1904-03-17
High Court Knocks Out the
Northern Securities Go.
GOVERNMENT WINS CASE
Mos. important Case Based on Viola
tjon OF Sherman Antitrust Law.
Decision BY Majority
Of One.


tho United States in the case OF the
Northern Securities Company VS.. tne
United States involving the merger OF
the Northern Pacific and the Great
Northern railroad Company, handed
down at Washington Monday is IN Ia
vor of the government. The opinion
was read by Justice Harlan.
The opinion of the United states
circuit court for the district OF Mime
soaa was affirmed The effect is 10
sustain the contention that the Sher-
man antitrust law applies to railroad
combinations OF the character in ques'
tian.
Justice Harlan said that in the
merger of the two roads. the stockhold-
ers disappeared and re-appeared in the
Securities companies, the two thus be-
coming practically consolidated in
holding company, the principal. object
being To- prevent competition.
mo scheme or device could certain
lyzmore effectively come within the
subscription of the antitrust lay and
itsis within the meaning Of Che, act
"a Trust" 8 -: -: : !.
s 3 Case Of Great Interest.
The case has attracted more atten-
tim than any other suit before the
court since the insular cases were de-
cided, and has been regarded by
bench and bar as equal in importance
With those cases, and with the income
tax cases. 1T was argued in December
Last for two days, and attracted gen.
,eral attention at that time, as it did
previously when the decision was rem
dared by the circuit court for the dis
trict of Minnesota
Claim Of the Government.
1T was claimed on behalf Of the gov
eminent that this consolidation was
ins effect a pool. created to promote
the interests, not Of one system at the
expense Of another, but Of both at the
expense of the public. The railroads
claimed the transfer of the stock of
tie two companies to the securities
company was in the nature OF a safe
ana perfectly legitimate. The contel-
tinns of the securities company were
reviewed, and Justice Harlan said
they had received full attention.
He quoted the various opinions In
yolving 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 con-
gress has the power to establish such
regulations as are laid down in that
law. Congress had power to enact the
statute.
Very soon after Justice Harlan mad
concluded his presentation of the
case, it became evident that the court
had divided on the questions at issue,
and as other opinions were announced
1t developed that there not only had
been a very close shave for the gov
ernment, but that one of the members
Of the court who cast his vote with
the majority entertained opinions OF
his own, which fact rendered the d.
vision all the most marked and inter.
esting.
Four Justices Dissent.
This was Justice Brewer, who, while
he concurred in the result, announced
in an Independent opinion OF his own
that he held the view that previous
antitrust decisions had been more
sweeping than was justified. Four OF
the nine justices dissented outright.
These were Chief Justice Fuller and
Justices White, Psckham and Holmes.
The opinions of Justices Harlan and
White were long, while those OF JUS
tees Brewer and Holmes were com.
paratively brief.