New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-05

Il believe the purchaser would stih have tne Tlsh'
to buy"
DO you apply that doctrine to public utility cor
porations?' asked Commissioner Clarke
Assuming that they have the power under their
charters should say yes.
'And you would regard the suppression Of COM
petition as merely incidental?' MIR. Clarke asked
Mr. IOyett responded. II inclined TO that
opiuion." He cOntended. however. that in the
Southern Pacific Union Pacific transaction the
suppression of competition had been remote as
to remove that feature as motive for the trans
action.
He also made an argument to show that it was
the design Of Congress that the Pacific roads
should be operated line, regardless of the
diversity of ownership, and he referred to tne
Southern Pacific as precedent for Mr.. Harrimans
acquisition of the Southern Pacific for the Union
Reverting to the question of the suppression Of
connection The he Outlined Ion Pacific Wheh had just
emerged from receivership. and asked: .,.o
upon this transaction for the mere purpose of sup
As a matter Of fact he said. the Union Pacific
in no position 70 control transeo1tnent9l 6usl-
ness and the men IN S SnSS e Oh soutbern Pacific TO
get an outlet to the Pacific Coast. which they must
do BY securing control the Central Pacific, then
owned by the Southern Pacific; or build a line OF
the former course The point of his argument was
that the Union Pacific must either secure the Cen
trail Pacific 1t absorbed by a rival, which II
could not consent to- even though the Soutaerh
owned
set Line as well as the Central Pacific. Hence ne
argued the transaction should be regarded as the
purchase of connecting rather than competing
BUYING FOR INVESTMENT
In reply to a question from Mr.. Clements, Mr.
I.oyett said that the Union Pacific had bought into
the Atchison. Topeka & Santa Fe an invest
ment He contended for the legality Of this trans
action and when reminded that his position was
at variance with that of Mr.. Hartman said that
might easily differ with that man on legal
line OF reasoning would lead to the conclusion that
man with sufficient money might control al
that he did not believe that the Constitution would
interfere with such a right by any man; ,s. ,.v
does not deal with the question of the acquisition
sole purpose is to prevent the suppression OF
petition In restraint of trade and he alleged that
chase OF the Southern Pacific securities. Speaking
of Senator w. A. Clarks line from Salt Lake to
Junction with the Union Pacific stockholders. Mr..
tbis entepnrise While he was willing 10 adTnit
that the law might prohibit the acquisition by one
prohibition did not extend to the construction OF
parallel line In reply to Mr. Lane, he said that
clark road since the beginning Of the hearing
the opinion that if the Southern Pachc-Unon
Pacific system was illegal, every railroad system
in the United States illegal He considered the
questions involved the most important that could
possibly be raised In connection with the railroads
more difcuity than he and his fellow counsel would
have in sustaining their contentious
He argued that the purchase of the Southern
Pacific had been legal under the Antitrust
law He said that act covered only contracts, COM
bIna atoms or conspirac!es in restraint of trade but
that 1t did not deal at all with the purchase of
property He would never admit that such
striction had been intended unless it was plainly
written in the statute.
IF you make illegal every purchase Of competing
property you stop the business OF the world he
asserted. and followed this declaration with the
statement that the wheels could not revove for
twenty-four hours under such restriction.
The great mass Of business in the acquisition Of
property interfeTes with competition he asserted.
and in support OF this he referred TO the general
tendency toward consolidation of the business In
Of the country. All these combinations rest
upon the right OF purchase. he said. and he con-
tended that such right was recognized regardless
of It's effect upon competition He will continue
morrow.