The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1912-12-07

a4ShOob
Washington, December I'm a de-
cision, more far-reaching in its effect
upon common carriers than any since
| the dissolution of the Northern Secur-
tiles merger, the United States Supreme
| Court to-day declared the Hartman
combine Of the Union Pacific, the South.
ern Pacific and the Salt Lake railroads
in restraint of trade and in violation of
the Sherman antitrust law.
At the same time q decree was en-
tered ordering these properties dissolved
| within three months. The failure to
carry ont its mandate, the Court de-
| ~clares, will throw the lines involved into
| the hands of q receiver.
"Rule of Reason" Not AAoWed
! In the American Tobacco Company
and in the Standard Oil Company cases
the Supreme Court moved decisively
against corporations olassed as Indus
| trials In the decision handed down
| to-day that Court makes it plain that
railway mergers that result in monop-
oily aud in the suppression of competi.
ton are likewise enemies of public well
fare and therefore illegal.
A futile effort was made by the de-
PENDANTS to invoke the "rule of reason
clause of the Standard Oil and Tobocco
decisions, but this failed. The Court
held that the present combination of the
Hartman lines was unreasonable In
it's operation and that it was therefore
in violation of the antitrust act.
But one bit of consolation is given the
railroads. Upon the motion OF the At
torney General the Court decreed that
the Union Pacific connection at Ogden
with the Southern Pacific. giving the
former an outlet to the Pacific Coast.
might be still maintained. This will
prevent the Union Pacific being "bottled
up" by its new and it's old rivals.
Justice Day announced the unani-
nous opinion of the Court. Justice
vandevanter took no part in the con-
sideration of the case to-day, but his
principal finding when he was a Orr
cult Judge, to the effect that the two
roads were not competitors and there.
fore no violation of the law had resulted
from the purchase, was reversed and an.
nulled.
FoHows Ruling In Hill Case
Instead of following the reasoning OF
Justice Vandevanter and Judges San
born and Adams, the Court in substance
approved the minority holding of Judge
Hook. that the roads were competitors
and that it 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 North
ern Securities case. to buy the controll-
ing stock of two competing companies.
AS the Northern Securities Company
plan failed nearly ten years ago, SO the
Hartman plan fell to day.
The Circuit Court for the District of
Utah was directed to supervise the sep
aration of the two roads. after hearings.
and in an emergency to appoint q re.
ceiver to sell the stock. The Union Pa
ciic, if the Circuit Court sees proper,
may retain control of the old Central
Pacific line from Ogden to San Francisco.
The decision Of the lower court that
- IksN. - fka lar nm in
the attempt to acquire the Northern
Pacific stock and the stock Of the
Atchison, Topeka and Santa Fe Rail.
way Company, afterward abandoned.
and a certain interest in the San Pc
dro, Los Angeles and Salt Lake Rail.
road Company, was allowed to stand.
Weapon For Government
1t is the general belief here that the
application of the decision to the rail.
road situation of the country will be
widespread. placing a powerful prece-
dent in the hands of the Attorney-Gen-
eral to prevent the consolidation OF com.
peting roads. Department of Justice
officials, however, were not prepared
tonight to discuss the full effect of the
decision upon other railroads.
Attorney-G General Wickersham issued
a statement in which he declared that
the opinion extended the principles Of
the Northern Securities case and re-
affirmed those of the Standard Oil and
st. Louis Terminal Association decisions.
Justice Day, in his opinion. spoke Of
the Standard Oil and tobacco cases Of