The daily banner. (Cambridge, Md.) 1897-2008, 1912-12-03
U,P,MERCER MUST
Be DISSOLVE
The Supreme Court Declares
Il Illegal
GWEN THREE MONTHS TO ACT

Highest Tribunal Declares Union Pa
cific and Southern Pacific Are Com
petitors and Stock Holding Is II.
legal.
Washington, Dec. 3.-The supreme
court of the United States in an opin-
ion announced by Justice Day held
that the Union Pacific Railroad com
pany, by the acquisition of stock in
the Southern Pacific Railroad COM
pany. had effected a combination IN
violation of the Sherman antitrust
law.
Justice Day, reading the opinion, in
dicated that the court would enter
decree to dissolve the combination
and also an injunction to prevent the
Union Pacific from voting Southern
Pacific stock.
In announcing the opinion Justice
Day said:
"This court reaches the decision
that the Union Pacific and Southern
Pacific systems, prior to the stock
purchase, were competitors engaged in
interstate commerce, acting independ-
emily as to large amount of such car
rying trade, and that in, the acquisi-
tion of the stock in question the domi-
mating power of the Union Pacific has
suppressed competition between the
systems and has effected a combina-
ton in restraint of interstate COM
merce within the prohibitions of the
act.
I'm 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 in viola
ton 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 company or
any corporation owned by it, or while
held by any corporation or person for
the Union Pacific company and forbid
any transfer or disposition thereof
in such wise as to continue it's con-
troll, and should provide an Injunction
against the payment of dividends on
such stock while thus held, except to
a receiver to be appointed by the
court, who shall collect and hold such
dividends undisposed of by the decree
of the court.
CAS- the court below dismissed the
government bill. it was unnecessary
there to consider the disposition of
the shares of stock acquired by the
Union Pacific company, which acquisi-
tion, we hold. constituted an unlawful
combination in violation of the anti
trust act.
''In order to effectually conclude the
operating force of the combination
such disposition should be made sub
ject to the approval and decree of the
court. and any plan for the disposi
ton of this stock must be such as to
enectually dissolve the unlawful com
bination thus created.
''The court shall proceed. upon the
presentation of any plan to hear the
government and defendants and may
bring in any additional parties whose
presence may be necessary to f1na'
disposition of the stock in conformity
to the views herein expressed
Amy plan or plans shall be pre-
sented to the court within three
months from the receipt Of the man
date Of this court, failing which, or,
upon the rejection by the court OF
plans submitted within such time, the
court shall proceed by receivershir
and sale, if necessary, to dispose OF
such stock in such wise as to dissolve
such unlawful combination
The government has appealed from
the decree, which is general one
dismissing the bill So far as concerns
the attempt to acquire the Northern
Pacific stock and the stock of the
Atchison, Topeka & Santa Fe Rail
way company. afterwards abandoned,
and a certain interest in the San Pc
dro, Los Angeles & Salt Lake Rail
road company, and other features Of
the case dealt withsand disposed of by
the decree and opinion of the court
below, it is sufficient, without going
into these matters in detail, to say as
tc them we find no reason to disturb
the action of the court below, but for
the reasons stated, the decree shall
b reversed and one entered in con
formity with the views herein ex
pressed, so far as concerns the acqui
sition OF the Southern Pacific stock