Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-12-03
Hartman Combine Must Be
Dissolved as Violation of
Sherman Antitrust Law
Against Restraint of Trade.
COMPETITION MUST
NOT BE THROTTLED
Opinion Handed Down By Jus
tlce Day Regarded as Far
Reaching in Effect Upon
Other Corporations.

tBy Morning journal Special Leased Wire
Washington, Dec 2-rhe great
Hartman merger, created when the
Union Pacific Railroad Company
bought 46 per cent of the stock of
the Southern Pacific system, was
split asunder today by the supreme
court of the United States as a viola
ton of the Sherman antitrust law.
Then, with the end of the merger
before it, the court sent forth its por-
tentious declaration that while the
law may not be able to enforce COM
petition, it can reach combinations
which render competition impracti-
cable"
Justice Day announced the unani-
nous opinion of the court. Justice
Vandeventer took no part in the CON
sidcration Of the case today, but his
principal finding when he was a cir
cult judge, 10 the effect that the two
roads were not competitors and
therefore no violation of the law had
resulted from the purchase, was re-
verscd and annulled.
Instead of following the reasoning
Of Justice Vandeventer and judges
Sanborn 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 controlling stock
of competitor as it was for hold
ing company, as in the Northern Sc
curities case, to buy the controlling
stock of two competing companies.
As the Northern Securities Com |
pany plan failed nearly ten years ago, |
SO the Hartman plan failed today. |
The circuit court for the district of
Utah was directed to supervise the |
separation of the two roads after /,
hearings. and in emergency to APP I
point a receiver to sell the stock The |
Union Pacific, IL the circuit court /
sees proper, may retain control Of /
the old Central Pacific line from Og-
den 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 Railroad Company, after
wards abandoned, and q certain in
terest in the san Pedro. Los Angeles
& Salt Lake Railroad Company, was
allowed to stand 1t is the general
belief here that the application of the
decision to the railroad situation of
the country will be widespread. plac-
Ing Il powerful precedent in the hands
of the attorney general to prevent
the consolidation Of competing roads.
Department of justice officials
however. were not prepared tonight
to discuss the fun effect of the de-
cision upon other railroads. Attorney
General Wickersham issued a state
ment in which he declared that the
opinion extended the principles of the
Northern Securities case and reaf-
firmed those of the Standard Oil and
St Louis Terminal Association de-
cisions.
Justice Day. in his opinion, spoke
of the Standard Oil and Tobacco de-
cisions of last year as the final au-
thority on the Interpretation of the
sherman antitrust act. He pointed ,
TO the decisions before the Standard
Oil and Tobacco cases as being APP
proved In those cases. and then pro-
ceeded to apply to this merger the
principles discussed in all these de-
cisions. ~ &
We take it, in this connection" i
ne said, that ii may be regarded as c
settled that combination which {
places railroads engaged in interstate :
commerce in such relations as to ere [
ate single DONNA ting control in one |
corporation. whereby natural and ex- d
sting competition in interstate COM :
merce is unduly restricted or sup '
pressed. is within condemnation of
he act. While the law may not be :
'ble to enforce competition, it can I
each combinations which rendered a
impracticable. D
Nor do we think it can make any n
Inference that, instead of reporting
o a holding company, as was done {
n the Northern Securities case the
interest in the stock of
me corporation is transferred to the
'ther. The domination and control
nd the power to suppress competi-
ion are acquired in the one case no u
ess than in the other and the re- 4
uting mischief at which the statute 2
fas aimed. is equally effective which ~
Yer form is adopted e.
He added that a more effectual c
orm of combination to secure the II
ontrol of competing railroad than 7
or one road to acquire a dominating III
took interest in the other could p'
ardlv he conceived re
ON" by one. Justice Day took up Il
he arguments upon which the rail ~
'ads hoped to defeat the govern b,
ient's suit. He first considered the til
rgument that the systems were not pi
'napetitors. but partners.
To compete" said Justice Day. lis w
strive for something which another er