New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-15

mn. ,-opvvrpv SECURITIES DECISION
The worst has happened. The DO" y 80" 80.
Wi street declared the President was fulNrn7
-, i,,5,,st-fas Of the country has fallen le'
t,-,sf-oss il rndisturBel. The sweeping aecIsloN
ID 49,. T-rfto5 Staros supreme Court ceelaIlU7
49,, Nort,arn Securities merger Illegal ana HAl-
,-orrg suggesting the possibility that olhel 49,
railroad combinations may be oVertnIo"l' -
actually followed by a rise in price OF NoTli'''i
soc,,-itics stock itself and then by nurtualISt'
~ the general market within mario" Nus
Will street self views the decision WIN S'lil-
ness and the rest Of the country mas reaSou ~
Wow # with satisfaction. The properly VI UiO
+,,-,o railroads directly involved IN the nuga-
ton IS intact. Their business VIII continue u
l,a profitable. Nobodys wealth is destroyed
7ror,lr n rran Nv which certain men could con
troll TWO competing properties is frustrated
F,vidaptly those men, whatever may De 1helT
ACKNOWLEDGEMENT. now realize that their extreme
comments on the "reckleseness' OF the husa-
tioD and tbe disaster sure 10 follow II were eA-
o,-or7+jons born Of anger that anybody should
rlroS1rue 10 interfere with their plans.
The decision completely justitieS the much 0e
ro1rrcea action Of President Roosevelt II =
not he who stops the merger, but the supreme
Court The highest tribunal In the hauo" r'
,,s..as -ba+ rbe rfau 20 control these competing
1r.fnl, that a hard saying and wrong one Dut
t5sv cannot blame the President as an IRE
suoDsitlp d sorcauzcr FOR taking the same We"
az rlio law rs the supreme Court nor complain
hacause he requires them 90 obey the law, ana
,,ion DO thinks they are disohoyirs il submits
-,,a question 10 judicial decision. II Is now
shown tlat they were violating the law and
that II was the Presidents duty 10 proceed
against them.
II IS impossible at this tine 10 attempt any
ray-lcyv Of the opinions handed down or any dis
c,ssfoD Of the legal points at issue between the
minority and the majority OF the court No one
can tell on the instant how far reaching this
decision may be Not even Wall Street finds In
& the dreaded menace 10 property values. But
while icavin. wealth and sound business undls-
rurHed Ii may make n vast difference in the
operations OF organized wealth The decision IS
a monument 10 the supremacy and efficiency OF
law. preventing. as II does the indirect accom-
1Iishment OF ends which are directly forbidden.
II the Northern Securities merger had been sus-
talned. another instance would have been fur
uished Of the ability OF clever lawyers 10 put
their clients beyond the reach OF the statutes;
Tor. though the projectors Of the merger denied
any monopoIistic purpose the machinery they
had evolved. If permitted 10 stand. would have
made legally possible the consolidation under
one control Of all the railroads in the country.
Ia sweeping away the objection that the powe.
of Congress over interstate commerce does not
extend 10 any concern with the ownership Of
stock the court cuts through ficti0ns 20 realities:
for this matter OF stock ownership was merely
the jugglery by which the form OF consollda-
ton was avoided and its reality secured. An
other piece Of juEElery common in corporate
management which the decision strikes M IS
that Of playing the laws Of one State Off against
~
forbidden 10 combine its railroad with a parallel
line. Its stockholders form 4 new corporation
in New-Jersey. and attempt, under cover Of the
New-Jersey statute. 10 effect that combination
and operate a Minnesota railroad IN practical
defiance Of the law OF its existence II IS tine
that State lines ceased 20 furnish asylum for
such corporate fuGitives from Justice.
A practical result Of this case IS likely to be a
check upon plans for benevolent control Of other
peoples property which have been highly popu-
lar in financial circles and much advertised rs
the safeguard Of national prosperity. In its
brief the Northern Securities Company declared
that the sole purpose Of the merger was 10 make
permanent the control Of the Northern Pacific By
the interests which for the moment held a small
majority o. the common stock. hut a minority
OF the whole stock Fearing the success Of
the enemy whenever some owner should
weaken in his allegiance" they pat that prop
e~ty I'm The hands Of another corporation which
they could surely protect. by this means Il was
POSSIBLE for persons making an investment SUI
hclcnt II own only n trile more than one
fourth OF the combined capital stock Of the
Northern Pacific and Great Northern abso-
lUtoly 20 control them both. This plan of per
manently ruling corporate properties without
permanently owning them Is not directly In
terfered with by the decision. II may, as as
serted. prevent raids ly railroad wreckers and
be useful 10 the public IS wei as 70 its self
guardians. but the failure of this on
terprise will probably give once more 10 IN
vcstors something Of She responsibility for the
protection Of their own properties ard the privi-
leCe q managing them. II VIII certainly bring
home 20 the people a renewed sense a the
responsibility OF corporations 10 the law, and
the adequacy OF the United States government
10 control tie great combinations which new
forces and new industrial and commercial con-
dtions have invested with extraordinary pow
crs. for the regulation OF which Il has some
times seemed rs II the law had through lack
OF foresight made no provision. Such Il de-
cision Is not disorganizing, but highly conserva-
tive in its tendency.
-------------