New-York tribune., 1912-12-03
Direct Connection with San
Francisco via Ogden Insured
Application of Decision
Gives Attorney General
Potent Weapon.
MAY EMBARRAss DEMOCRATS
Court Holds That While Law May
Not Be Able to Enforce Competi- h
tion It Can Reach Combina-
tions Which Render Com
petition Impracticable.
fFrom The Tribune Bureau.


Washington, Dec. I'm a brief but
clear cut decision. the Supreme Court
Of the United States to-day ordered the
dissolution of the merger of the Union
Pacific and Southern Pacific Railroad
systems, sustaining the contention Of
the government that it constituted a
combination in restraint OF interstate
commerce. in violation Of the Sherman
antitrust law.
Then with the end of the merger be-
fore il, the court sent forth this por-
tentous declarations:
"Whle the law may not be able to
enforce e>competition, it can reach COM
hinations which render competition i'm
practicable"
In its opinion the court laid down "a;
the first time the principle that a5sc.
lutte or legal control Of one corporation
by another was not necessary to ccn-
sttute an infringement Of the law. The
Union Pacific held in 1901 37lI2 per cent
and later 46 per cent of the stock Of tho
Southern Pacific. This effective con-
/ troll was declared to be in violation Of
the law.
judges of the Circuit Court retain juris-
diction and carry out.the mandate dis
solving the merger within three months
from the time it is issued. and that
ANY plan for the disposition of the
stock must be such as TO effectualy
dissolve the unlawful combination"
The lower court also receives authority
to bring in any additional parties
whose presence may be necessary to
final disposition of the stock, in con-
formity to the opinion.
The decision in the case Of the Union
Pacific Southern Pacific merger, the
gigantic plan to which the late L. ".
Hartman devoted the latter part OF
his eventful career. is the third impor-
tant decision under the antitrust law
the others ordering the dissolution Of
the Standard oil Company and the
American Tobacco Company. The last
decision reaffirms the principles laid
down in the other two.
The action of the court as inter
preted generally as another step in the
direction Of making the antitrust law
an effective check on illegal combina.
tions and as putting a damper upon
talk Of further antitrust legislation. II
is the general belief here that tho ap-
plication Of the decision to the railroad
situation Of the country will be WIDE
spread, placing powerful precedent in
the hands of the Attorney General to
prevent the consolidation Of competing
roads.
II also increases the difficulties Of this
Democratic party, which regarded anti
trust legislation, among other subjects,
as one Of the problems which il would
set out to solve at the Forthcoming spe-
ciaI session Of Congress.
Senator Cummins's Views.
II am glad to see that the court has
laid down the principle" said Senator
have the Supreme Court pass upon the
Tobacco Trust dissolution. that n le-
gal majority of the stock is not neces-
sary to constitute a violation Of the
antitrust law. This Is the first time.
| believe, that point has been absolute
~ decided. / rather regret that the
court did not also lay down definite
plan for the disposition Of the Southern
Pacific stock held by the Union Pacific.
What disposition the lower court will
make Of 1t remains 20 be seen. III IL
is parcelled out TO the large stockhold
ers of the Union Pacific the situation
will not be changed" Senator Cum
Minis EXPRESSED the opinion that the
decision would not decrease the neces-
sity for additional legislation looking to
trust regulation.
Democratic legislators found IL
difficult task to put upon the decision
the complexion of a Democratic vic
tory. "The election of Governor Will
son by the people OF the United States
will bring TO an end the period OF mo-
nopoly," said Senator Smith, of Geor-
gia, land effect the gradual dissolution
Of illegitimate corporations"
Justice Day announced the unanf-
nous opinion Of the court. Justice Van
Devanter took no part in the consid-
Grafton of the case to-day, but his prin-
cipal finding when he was judge or
the Utah Circuit Court, 10 the erect
that the two roads were not compet-
itors and therefore no violation OF
the law had resulted from the pur-
chase. was reversed and annulIed. In
stead of following the reasoning OF JUS
tce Van Devanter and Judges Sanborn
and Adams, the court, in substance. ap-