The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1912-12-05
HARTMAN MERGER
MUST Be UND0NE
Supreme Court Holds Sherman
Law Is Violated.
NINETY DAYS TO OFFER PLAN
Long Fight Against Southern and
Union Pacifics' Combination
Ends in Victory for
the Government.

court, in an opinion announced by JUS
tice Day, held that the Union Pacific
Railroad company by the acquisition
of stock In the Southern Pacific, had
effected a combination in violation
of the Sherman antitrust law.
Justice Day. reading the opinion,
indicated that the court would enter
decree to dissolve the combination
and also an injunction to prevent the
Union Pacific from voting Southern
Pacific stock.
Competitors Before the Deal.
In announcing the opinion Justice
Day said
This court reaches the decision
that the Union Pacific aud Southern
Pacific systems, prior to the stock
purchase, were competitors engaged
in interstate commerce, being in
dependently as to a large amount OF
such carrying trade, and that since
the acquisition Of the stock in ques-
ton the dominating power of the
Union Pacific has suppressed COM
petition between the systems and has
effected a combination in restraint OF
interstate commerce within the prohi-
billions of the act.
TN order to enforce the statute the
court is required to forbid the doing
in the future Of acts like those which
are found to have been done in vio-
Iation thereof and TO enter a decree
which will effectually dissolve the
combination found to exist in viola
ton of the statute
To Prevent Voting Of Stock.
The decree should provide an in
junction against the right to vote
this stock while in the ownership or
control of the Union Pacific company,
or any corporation owned by it, or
while held by any corporation or per
son for the Union Pacific company,
and forbid any transfer or disposition
thereof in such wise as to continue
its control, and should provide an
injunction against the payment of
dividends upon such stocks while
thus held except to receiver to be
appointed by the court. which shall
collect and hold such dividends until
disposed Of by the decree of the
court.
Court to Approve Dissolution.
AS the court below dismissed the
governments bill, il was unnecessary
there to consider the disposition of
the shares Of stock acquired by the
Union Pacific company. which acquisi-
ton, we hold. constituted an unlaw-
full combination in violation of the
antitrust act. In order effectually 10
conclude the operating force of the
combination such disposition should
be made subject to the approval and
decree of the court. and any plan for
the disposition of this stock must be
such as effeCtually to dissolve the
unlawful combination thus created.
The court shall proceed upon the
presentation Of any plan to hear the
government and defendants and may
bring in any additional parties whose
presence may be necessary to a final
disposition OF the stock in conformity
to the views herein expressed
Three Months to Offer Plan.
Any plan or plans shall be pre-
sented to the court within three
months from the receipt of the man.
date of this court, failing which, or
upon the rejection by the court of
plans submitted within such time,
the court shall proceed by receiver
ship and sale, If necessary. to dispose
Of such stock in sucn wise as to dis
solve such unlawful combination"
The court instructed the circuit
court to retain its jurisdiction to see
that the decree above outlined is
made erfectual,"
Battle Is Begun in 1908
The governments fight against the
Union Pacific merger began in 1908.
In that year Attorney General Bona.
parte filed in the United States cir
cult court for Titan q petition to split
the transcontinental railroads brought
together by Edward II Hartman.
This powerful combination was al.
legged TO be in violation of the Sher-
man antitrust law.
Hartman, Jacob II. Schiff, Otto II.
Kahn, James Stillman, Henry II.
Rogers, Henry c, Frick and William
A. Clark were named by the govern
ment as the trainers of the combina.
ton and the supporters OF it's exist.
ence. The allegations set forth in
the petition stretched over the devel.
opment Of the entire nation and went
far into the years of the past.