The Detroit times., 1912-12-02
HARTMAN R. R.
TRUST IS BUSTED
BY HIGH COURT
Merger, Monument of Rail Wiz
ard, Is Declared Illegal
and Dissolved
COURT THREATENS TO
SELL IN THREE MONTHS
Southern Pacific, Union Pacific
and Salt Lake Roads
in Merger

WASHINGTON, ID. c., Dec, DE
claring illegal the Hartman railroad
and shipping monopoly. the supreme
court today sustained the govern
ment's ''trust-busting" suit by order
Ing dissolved the merger Of the South
ern Pacific, Union Pacific and Salt
Lake railroads.
Wizard Harriman's monument OF
railroad and Pacific coast shipping
Y combines was held to be gross viola
don OF the Sherman antitrust law
Justice Day read the opinion. II said
In part:
"This court reaches the conclusion
that the Union Pacific and Southern
Pacific system-prior to the stock pur-
chase, were competitors engaged In
interstate commerce, acting independ-
emily as - large amount of carrying
+ trade, and that since the acquisition of
the stock In question, the dominating
power OF the Union Pacific has sup
pressed competition between the sys-
TENS and has effected combination In
restraint OF interstate commerce with
IN the prohibitions of the act.
In 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 and
to enter a decree which will effectual-
ly Dissolve the combination found to
exist In violation of the statute.
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 or any cor
poration owned by II, or while held by
any corporation or person for the
Union Pacific and forbid any transfer
or disposition thereof in such wise as
to continue its control, and should
provide an injunction against the pay
ment OF dividends upon such stock
while thus held. except to a receiver
to be appointed by the court who
shall collect and hold such dividend
until disposed OF by the court who
shall collect and hold such dividends
until disposed by the decree OF the
court.
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 unlawful
combination 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 plan for the
disposition OF this stock must be such
as to effectually dissolve the unlawful
combination thus created.
AS TO the suggestion made/at the
oral argument by the Acknowledgement,
In response TO query from the court
as to the nature OF the decree. that
one might be entered which, while de-
stroying the unlawful combination in
solar as the Union Pacific secured
control of the competiting lines, ex-
tending from New Orleans and Gal
weston TO San Francisco and Portland,
would permit the Union Pacific to re-
tain the Central Pacific connection
from Ogden 70 San Francisco and
thereby to control that line to the
coast, thus affecting such a continuity !
OF the Union Pacific and Central Pa
cinc from the Missouri river to the |
San Francisco as was contemplated |
by the acts OF congress under which |
hey were constructed, il should be
laid that nothing herein shall be con.
ndered as preventing the government
n any party interested, IL so desir-
ne, from presenting to the court a
Ian for accomplishing this result, or
g preventing the court from adopt.
ng any giving effect 10 any such
lans presented.
Any plan or plans shall be pre-
ented TO the court within three
nonths from the receipt OF the man.
late of this court, failing which, or,
lpon the rejection by the court or
'lans submitted within such time, the
'ourt shall proceed with receivership
lnd sale, IL necessary, to dispose or
'uch stock In such wise as TO dis
'olve such unlawful combination"
The court held that the attempts OF
ne Hartman company to acquire the
Northern Pacific stock. the Santa Fe
interests and the salt Lake route in.
terests were not illegal and sustained
the lower court Ia this part of the
case.
South Dakota laws providing civil
and criminal penalties for persons sell
ing goods lower in one city than in
another in order To suppress competi-
ton, were held valid by the court.
80