The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-06-24
Federal Court at St. Paul
Calls Combination of Un-
ion Pacific and Southern
Pacific Legal One.
RULING ENTERED is
NOT UNANIMOUS ONE
Judge Hook Dissented from
Majority Opinion Read by
Judge Adams - Govern
ment Was the Plaintiff.
(National News Association

(National News Association
st. Paul, June 24.-Edward H. Har.
riman's gigantic merger of the Union
Pacific and Southern Pacific railroads
was not combination in restrain of
trade. according to decision announc-
ed by the United States circuit court
of appeals today.
The majority opinion was read by
Judge Adams while Judge Hook dis
sented. The proof shows that after
1901 as well as before, the rates for
transcontinental traffic were the same
over both lines" says the opinion.
There has since then been, with re-
spect to both these lines, no impair
ment of service, no deterioration of
physical properties no discontinuance
of efforts to satisfy the public and no
complaints of shippers of inferior or
inadequate service"
No Complaints Made.
The decision goes on to say, THE
large number of initial carriers, striv-
ing for that traffic, have continued an
active solicitation for the business
over the line which assured them of
the longest haul or otherwise benefit
ed them most. and although some
agents of the two roads which, before
1901 were separate, are now joined,
they have continued to exercise their
influence to secure business for either
road, according to it's availability and
always in opposition to their other act
i've competitors like the Santa Fe
and the Denver and Rio Grande
roads. s q
"A substantial majority of the stock
of the Southern Pacific has been deliv-
cred by parties, other than the Union
Pacific company, but we fail to find
any complaint by such holders of any
discrimination against their road or of
any failure to properly promote its
welfare. None of the minor points
charged of having been deprived of
opportunities by the Hun
tington purchase are shown to have
suffered from the result of that pur-
chase
ION the contrary hundreds of mil
lions of dollars have, since 1901, been
expended on those roads Their ply
sical condition has been vastly i'm
proved and their efficiency for public
service, as we'll as for private profit,
has been greatly enhanced The whole
proof taken together, we think, fails to
disclose any conspiracy to restrain
either interstate or foreign commerce
in violation of the first section of the
act.
No Evidence Of Combination.
"The same considerations lead to
the conclusion that no combination or
conspiracy to monopolize or attempt
to monopolize trade or commerce
among states or with foreign nations
was entered into Moreover, the fact
that the Union Pacific company did
not secure control of the Santa Fe
road, a thoroughly sufficient, we'll
equipped and powerful rival for trans
business or the Denver
and Rio Grande road. a potential and
later an actual and powerful rival for
the same business. affords the addi-
tional and conclusive evidence of no
such combination or conspiracy.
The purchase by the Union Pacific
company soon after acquiring the
Huntington stock or the majority OF
the capital stock of the Northern Pa.
cific company tends to the opposite
but in view of the main
reason for it's acquisition and of other
facts just referred to as we'll as to the
total cessation OF any relations be-
tween that road and the Union Pa
cific we are indisposed to give to that
purchase alone, any considerable sig
nificance.
THE conclusion of facts already
stated, dispose of this case without
necessity of determining the question
much debated in the brief and areu-
ment, whether or not the securing of
the control of the Southern Pacific
company by purchasing the stock of
the individual owners could in any
view Of the case have contravened the
antitrust law On the facts of this
case, with all their reasonable and fair
inferences. We conclude the govern
ment has failed to substantiate the
of it's bill"
Two Other Decisions.
simultaneously decisions, favoring
the railroads were handed down in
the Salt Lake and st. Louis courts.
The case therefore is dismissed One
particular point of Judge Hooks dis
senting opinion was based on the be-
lief that the Union Pacific and South
ern Pacific railroads were more active
prior to the merger In
1901, than afterwards. and that two
lines in broad geographical and legal
1Contnued On Page Six.