New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-03

proved the minority holding of Judge
Hook that the roads were competitors
and II was just as much a violation OF
the law for one road to buy the con-
trolling stock Of a competitor as it
was for a holding company. as in the
Northern Securities case, to buy the
controlling stock of two competing
companies As the Northern Securities
plan failed nearly ten years ago. so the
Hartman plan fell to-day.
May Retain Central Pacific.
The Union Pacific, if the Circuit
Court sees proper, may retain controi
Of the old Central Pacific line from
Ogden to San Francisco.
The decision of the lower court that
there was no violation of the law in
the attempt to acquire the Northern
Pacific stock and the stock of the
Atchison. Topeka & Santa Fe Railway
Company, afterward abandoned and a
certain interest in the San Pedro, Los
Angeles & Salt Lake Railroad Com
pany. was allowed to stand.
Department Of Justice officials, how
ever. were not prepared tonight TO as
cuss the full effect of the decision upon
other railroads. Attorney General
Wickersham. elated over the outcome
issued a statement in which he simply
declared that the case extended the
principles of the Northern Securities
case and reaffrmed those Of the Stand
ard oil and st. Louis Terminal Assccia-
ton 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 anti
trust act He pointed to the decisions
before the Standard oil and tobacco
cases as being approved in those cases,
and then proceeded to apply to this
merger the principles discussed in all
these decisions.
Within Aot's Condemnation.
eve take il, 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 IS
TO create single dominating control
i'm 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 rendered compeu-
ton impracticable.
"Nor do we think il can make any
difference that instead OF resortlng to
a holding company, as was done in the
Northern Securities case, the control-
ina Interest in the stock OF one corpo-
ration is transferred to the other. The
domination and control and the power
to suppress competition are acquired m
the one case no less than in the other,
and the resulting mischief, at which
the statute was aimed, is equally et-
fective whichever form is adopted"
He added that a more eHectua form
Of combination to secure the control OF
a competing railroad than for one road
to acquire a dominating stock interest
IN the Otncf COuiO HalH'J ~ ~N'N~'
"Not Competitors, but Partners"
One by one Justice Day took up the
arguments on which the railways hoped
to- defeat the governments suit. He
first considered the argument that the
systems were not competitors, but part
ners. "To compete" said the justice. us
TO strive for something which another is
actively seeking and wishes to gain.
He quoted the testimony Of railroad
men that this was what the Union Pa
cific and Southern Pacific were doing
by the purchase.
Competition as 10 rates was not the
(.f6HaI1 SSIEEINll8ER FOUND