The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1911-06-29
Gov ent Loses
Most important
Railroad Case.
NOT CoNPlRACY
Court Holds Neither Shippers
Nor Stockholders Have
Been Injured.

st. Louis, Mo.-The United States
circuit court OF appeals today dis
missed the government suit TO dis
solve the com bination of the Union
Pacific and Southern Pacific and five
subsidiary railroads BY neoling their
stock.
This decision is clear victory for
the railroads in the litigation started
against the Hartman interests three
years ago, on the ground that the
combination formed a conspiracy to
monopoliZe traffic 10 the Pacific
coast. The court, however, says that
the combination does not constitute
!; merger as defined by thos law.
The government lost the case be-
cause of its unsuccessful effort to
prove that the Hartman western
railroad combination is q railroad
trust. The court in its opinion show
ed that the reads have been greatly
improved by the combination, that
the shippers are not complaining
and that the stockholders are salts
fed.
Judge Hook, in dissenting opin-
ion, holds the merger an illegal COM
bnaton in restraint Of trade and
says it should be dissolved. He sug-
gests, however, that congress should
take up the question OF eXempting
railroads from the Sherman anti
trust act, but should pass laws gov
ming them. Az
Washington, ID. C.-The govern
ment will appeal the Hartman merg-
er case to the supreme court, off.
cials of the department of justice say
today.
Greatest of Railroad Mergers. -.
The Hartman Merger is perhaps
the most gigantic attempt to corner
railroad traffic in the history Of the
United States. 1t comprised the
union Of the Southern Pacific, an1
Union Pacific and five other rail
roads operating between the eas
and the Pacific coast. AS a result o.
the combine, competition has beel
strangled for years.
The specific allegation cf the gov
ernment was that the defendant:
;,, F,,N
conspiracy, the purpose of which was
to destroy railroad competition
through that part OF the Unitet
States lying west of Kansas City, b.
welding into one vast cooperative or
ganization all railroad companie.
specified.
The government alleged that, will
the exception of the Great Northern
and Pacific system, which control tho
Chicago. Burlington and Quincy
which the Hartman syndicate hat
failed to secure control of, there re
mains practically no competition Il
keep the railroad traffic of the whole
western part of the United States
from passing into the control Of thu
Hartman merger
/ How Combine. Was Formed.
Tho Hartman plan, according tt
! the government, was as follows
| Rogers, Frick and Clark manulipat
| ed the purchase of 100000 shares O
1 ;,, md n q
livered them to the Union Pacific
This voting control was used to elec
Union Pacific directors to simila
positions in the Southern Pacific. Th
II late Edward II. Hartman, who wa
the original and prime mover in tn
consolidation, according to the gov
eminent, was then made chairman G
the executive committee of the Soutl
| ern Pacific and later elected pres
dent of tie road. After the full dt
tails Of the merger were completed
the Northern Securities company wa
organized as a holding corporation
and not only took over the stock {
l tne Union ana ooutHefH Taclllc, w
acquired control of every road {
any prominence operating track
the Pacific coast.
Suit was brought by the goverl
ment, under the antitrust law, an
the Northern Securities comapr
was dissolved. Since then the go
ernment has been occupied in an a
tempt to prevent the joint operatio
| of the parallel transcontinental line
The common directorate of the val
Gus railroads made this joint oper
! ton, it is alleged, a comparative