The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-03

WASHINGTON. December The grsst
Hartman merger. created whom the
Union Pacific Railroad Company
bought IS per cent of the stock OF tue
Southern Pacific Railway system. was
split asunder to-day by the supreme
Court OF the United States VIOLA
ton of the sherman antitrust law
Then with the end of the merger
before 1t. the court sent forth its
portentous declaration that "wnlle the
law may not be able to enforce conn
petition. it can reach combinations
which render competition Impractical
BILE"
Justice Day announced the unani-
nous opinion of the court Judge VAN
devanter took no part in the conHo-
Grafton of the case to-day. Ills F&er-
sonal finding as judge OF the utan
Circuit Court, that the two roads ware
not competitors and therefore no MO-
Iation of the law had resulted from Inc
purchase. was reversed and annuited-
Instead of following the reasoning OF
Justice Vandevanter and Judges san
born and Adams. the court in substance
approved the minority holding Of Juose
Hook that the roads were competitors,
and that IL was Just as much Viola
ton of the law for one road to buy
as It was for a holding company. as
in the Northern Securities case. to buy
the controlling stock of two compeu nS
companies.
The Circuit Court for the District
Of Utah directed TO supervise the
separation pf the two roads, arter
hearings, and in emergency TO appoinr
a receiver to sell the stock. The Union
Pacific, IL the Circuit Court sees prop
er. may retain control OF the old 0r-
trail 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 or
the Atchison, Topeka and Santa he
Railway Company. afterwards ahen-
doned, and a certain interest in the
san Pedro. Los Angeles and salt Lake
Railroad Company. was allowed to
stand.
II is the general belief here nlar
the application OF the decision 10 the
railroad situation of the country Will
be widespread, Wacing powerful
precedent In the hands OF the Attorney
General 10 prevent consolidation o.
competing RI Ids
wickerSham Elafed.
Department. Of Justice cfflcias. hew-
ever. were not prepared tonight n
discuss the full effect OF the deeis-
ion. Attorney General Wickersham,
eIated over the outcome. issued state
ment i'll which he simply declared the
case extended principles of tie North
ern Securities case, and reaffirmso
those of the Standard Oil and st. Louis
Terminal Association cases.
Justice Day. In his opinion, first deait
with the Jaw in the case. lie spoke
Toll
of last year as the finsl authority on
the Interpretation OF the sherman an
titr1st act. and then proceeded to ap-
ply 10 this merger the principles DIS
cusscd in those decisions.
I'VE take IL. therefore, he said IN
this connection, that 1t may be re-
garded rs settled. tina. a combination
which places railroads engaged ia an
terState commerce in such relation -
TO create "A single dominating control
I'm one corporation. whereby natural
and existing competition in interstate
commerce is unduiy restricted or sup
pressed is within the condemnation OF
the act. While the Law may not BE-
able 20 enforce competition " can reach
combinations which rendered competl-
tion imprscti-ahlc-
1T is the scope Of such combinations
and their power TO suppress and style
competition or create monopoly which
determines the applicability OF tne
act justice Dsy declared.
Justice Dav replied 20 the argument
that a majority % thu stock had not
been purchased and therefore 10 con
troll lad been acquired. lie quoted Mr.
Hartman SAVING that compact
united ownership - 90 Pc cent of
a bis corporation WAS su@cicnt 20
control &C. Announcing thc opinion.
Jusfice Day said.
This court reaches TIC decision that
the vaiou Pacific and Southern Pact
ar svstcus PRIOR 20 the stock pur-
chase. werr competitors engaged IN
fnfer-tate commerce. acting i1dcpcn-
IDENTIFY a. O. q large amount % sgch
~a--.frs trade. and that since the &c
ou.sif..- 81 fh~ stock iu question. The
dominating pover 90 the Cnion Faci-
Gr has suppressed competition be-
--e~n the systems. and perfected
combination IN restraint 90 iuterstats
commerce within tire prohibitions %
the act.
Forbtds similar tets
Tn order % enforce TIRE st..gte. tns
court - required 20 for-id the doing
.r sre Future - acts Ike thv-c which
arc foari 90 have been donc IN vio-
fafion thereof ard 20 enter a decree
uairh vii .aer;aaHs dissolve ths
ea-ahination found O. exist - si@la-
ton o. the statute.
I'm. decree should provide al Ia.
,BzSss0z against ths risht 90 vote Tie