Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-12-03
VIOLATES ANTITRUST LAW.
CONTINUED From Page one)

Grafton Of the case, to-day. but his
principal finding. when he was a judge
Of tie [ tab circuit court. 10 the effect
that the two roads We're not COMPETE
tors ara therefore, no violation of the
law had resulted from the purchase.
was reversed and annuied. Instead of
following the reasoning of Justice Van
Devdnter, the court in substance ap-
proved the minority holding of Judge
Hook that the roads We're competitors
and il was just as much violation of
the Iaw for one road To by the controH-
ing stock of 4 competitor as il was for
q sioiGiilg com iGstfiss, as il thc Northern
Securities case, To buy the controlling
stock Of two competing companies. AS
Ike Northern Securities plan failed.
nearly 10 years ago. SO the Hartman
plaa Tell, today.
Tke circuit court for the district Of
rtah, was directed To supervise thu,
separation of the two roads after hear
ings. and in emergency to appoint A
receiver TO sell the stock. The Union
Pacific. il the circuit court sees prop
er. may retain control of the old
Central Pacific line from Oregon 10
San Francisco The decision OF the low
er court that there was no violation of
The law in the attempt 10 acquire the
Northern Pacific stock and the stock
Of the Atchison. Topeka & Santa F'e
Railway Co, afterwards abandoned
and a certain interest in The San Pedro,
Los Angeles & Salt Lake Railway Co.
was allowed TO stand.
1t is the general belief here thai the
application IF the decision to the rail-
road situation of The country will be
widespread, placing powerful prece-
dent in the hands of the attorney gen.
eral to prevent the consolidation of
competing roads,
Department of justice officials, how
ever were not prepared. tonight, To
discuss the full effect of the decision
upon other railroads. Attorney Cen
eral Wickersham. elated over the out
come. issued a statement in which he
simply declared that the case extend
ed the principles of the Northern Sc
curities cases and reaffirmed those of
the Standard Oil and st. Louis Termi-
nal Association cases.
Justice Day in his opinion first dealt
with the law in the case. He spoke of
the Standard Oil and Tobacco cases
of last year as the final authority on
the Interpretation of the Sherman an
THRUST act. He pointed to the decis-
ions before the Standard Oil and To-
bacco cases as being approved in those
cases and then proceeded to apply to
this merger the principles discussed
in all these decisions
We take it, therefore" he said in
this connection, that it may be re-
garded as settled that a combination
which places railroads engaged in in
terstate commerce in such relation as
TO create single dominating control
N one corporation. whereby natural
and existing competition in interstate
commerce is unduly restricted or sup
pressed, is within the condemnation
of the act While the law may not be
able to enforce competition, it can
reach combinations which render com
petition impracticable.
Nor do we think it can make any
difference that instead of resorting to
holding company, as was done in
the Northern Securities case, the con-
trolling interest in the stock of one
corporation is transferred to the 9TH
or. The domination and control and