The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1912-12-06
union PACIFIC
MERGER VOID
Declared Violation Of the ShGr-
man Antitrust Measure
RAILROAD MONOPOLY SMASHED

Supreme Court Says Control of the
Southern Pacific Must Be Given Up,
as the Two Lines Are Competitors
Disposition of Dividends to Go
Before Receiver
Washington, Dec. 3.-The supreme
court of the United States has or
oered the partial dissolution of the
Union Pacific merger, holding that it
constitutes a combination in restraint
of trade.
The court intimates that plan may
be greed upon by which the Union
Pacific may retain the Central Pa
cific connections from Ogden to San
Francisco, thus making a continuous
line from the Missouri river to the
coast.
Justice Day, who delivered the
opinion, said
The court reaches the conclusion
that the Union Pacific and the South
ern Pacific system, prior to the stock
purchase, were competitors engaged
in interstate commerce, acting in
dependently as to 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 oppressed competi-
ton between the systems and has eff
feeted a combination in restraint OF
interstate commerce within the pro-
hibition of the act.
In order to enforce the statutes,
the court is required to forbid the do
ing in the future of acts like those
which are found to have been done in
violation thereof, and to enter a de-
cree which will effectually dissolve
the combination found to exist in
violation of the statutes.
The decree should provide an in
junction against the right to vote this
stock while in the ownership or con-
troll OF the Union Pacific company, or
airy corporation owned by it or while
held by a corporation or persons for
the Union Pacific company, and for
bid any transfer or disposition there
Of in such wise as to conceal its con-
troll, and should provide an injunc-
tion against the payment of dividends
upon such stocks while thus held
except to a receiver to be appointed
by the court, who shall select and
hold such dividends until disposed Of
by the decree Of the court.
AS the court below dismissed the
governments bill, il was unnecessary
therefore to consider the disposition
Of the shares of stock acquired by the
Union Pacific company, which &C
QUESTION we hold constituted an I'M
lawful combine in violation of the anti
trust act. In order to effectually con-
clude the operating force Of the COM
bination, such disposition should be
made subject to the approval and de-
cree OF the court and any plans for
the disposition Of this stock must be
such as to effectually dissolve the I'M
lawful combination thus created.
Inc court snail proceed upon Ine
of any plan to hear the
and defendants, and may
bring in any additional parties whose
presence may be necessary to a final
disposition Of the stock in conformity
q the views herein expressed.
Any plan or plans shall be present.
I'd in the court within three months
rom the receipt of the mandate Of
his court. failing which, or upon the
rejection by the court OF plans sub
nitted within such time, the court
shall proceed by receivership and
sale, II necessary, to dispose of such
stock in such wise as to dissolve such
unlawful combination.