Evening star., 1911-06-11

the rule that even mutual restraint of
interstate trade was iieEal-that is. such
restraint as is exercised by a combina-
ton on its own mem bers.
The Trans Missouri Freight Association
was gotten up 20 regulate freight rates
of eighteen roads west of the Missouri
river. and the Joint Traffic Association
to regulate the rates of thirty-one roads
combine were very beneicent and reason
able but the Supreme Court declared both
combinations illegal under the Sherman
law. The Trans-Missouri Association
stole a march on the Supreme Court by
dissolving itself before the Supreme Court
got around to II. These railroad cases
are the ones always referred to when
one is in a hot argument over the Ques-
ton Of reasonable restraint of trade.
These two decisions taught the railroads
that the Supreme Court would not toll
crate an outr ght combination Accord
inglv, along about 1903 the Great North
ern and the Northern Pacific people got
up a device to do indirectly what they
had been told not to do directly. That de-
vice WAS the Northern Securities Com
pany This company was simply con-
Meeting link between the Great Northern
and the Northern Pacific, and was ere
ated to hold a majority OF the STOCK OF
both roads and to run both roads as II
they were one. The government asked the
Supreme Court about this
mo, no." said Justice Harlan. in 1904
speaking for the Supreme Court. you
can't work any such scheme as that.
So that company had to disband also.
All these four combinations had to do
when they were told to break up was
simply to throw their agreements to
combine in the fire and go back to their
first loves The Northern Securities case
is quite similar to the Standard OIL case,
both being holding companies. 1t Is In
terestinR. therefore. to see what the Sc
curities Company did in carrying out the
order of the Supreme Court to break up
housekeeping.
The Northern Securities Company dis
tributed Its stock pro rata among its
stockholders. by this method OF distrinu-
ton the control OF the majority Of the
stock Of the Northern Pacific passed from
the Hartman interests to James J. Hill,
president Of the Great Northern. The re-
suit was that Mr.. Hill simply took the
place vacated by the Northern Securities
than If a corporation were the connecting
ink, because stock control would have
been fixed forever in the Northern Securi-
ties Company. while now there Is some
chance-such IL the uncertainty OF life
for the stock to become scattered.
4
In discussing those combinations still
awaiting the roll call OF the government,
the argument is made that these trusts
will now make hay while the sun
shines: that. needless Of the advice of
cool-headed lawyers. and remembering
the technical delays and law chickering's
CT nearly five years in the oil trust pro-
secution, and confidently expecting In the
end only fines representing but very
small percentage Of what they can profit
by cutthroat competitive methods Cor. at
the worst seeing ahead only decree
similar to the oil trust decree ordering
the retransfer OF stock ownership. they
will sail in and cut and slash and tear,
tooth and nail. while they have the
power.
But what about those dark clouds
looming up for them in the distance? The
possibility and even probab bility now of
prison bars for directors who would dare
to vote for such doings? The trusts are
standing in the corner now, and tho eyes