Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-02
COMBINED WITH SOUTHERN
Justice Day Indicates Dissolution
Decree Will Follow.
COMPETITION IS SUPPRESSED
Restraint Placed on Interstate Com
Antitrust Statute, Is Finding.

The Supreme Court today in an opin-
On announced by Justice Day. held that
de Union Pacific Railroad Company. by
Tie ACQUISITION of stock in the Southern
Pacific had effected "A combination in VIC
alton of the sherman antitrust law
Justice Dav. reading the opinion. ind1-
sted that the court would enter a decree
n dissolve the combination. and also an
INJUNCTION to prevent the Union Pacific
rom voting Southern Pacific stock
In announcing the opinion Justice
Day said:
me Union Pacific and Southern Paclhc
tystems prior to the stock purchase
we're competitors engaged In interstate
commerce. acting Independently as 10
4 large amount OF such carrying trace.
md that since the acquisition OF the
uock in question the dominating power
If the Union Pacific has suppressed
connection between the systems, ana
las effected a combination in restraint
" Interstate commerce "lthlh tue Pio-
additions of the act.
Action Violates Law.
I'm order to enforce the statute the
court is required to forbid the doing In
he future of acts like those when are
iound TO have been done in violation
hereof and to enter a decree which VIII
.ffectuallv dissolve the combination found
n exist in violation of the statute.
.The decree should provide an intunc-
ion against the right to vote TINS STOCK
While in the ownership or controi OF the
-nion Pacific Company or any corpoi d.
ion owned by it. or whlie heIl os 1 Or
corporation or person for the Union IA
ific COMPANY and forbid any transfer
y disposition thereof in such wise as 10
Ontinue its control. and shoulo proNiue
n injunction against the payment Oh
lividerdS uron such stock while thus
ED except TO a receiver TO be appointed
" the court who shall collect and hold
UGH dividends undisposed of by the de-
rec of the court
Disposition of Shares.
"As the court below dismissed the
governments bill. it was unnecessary
here to consider the disposition of the
hares of stock acquired by the Union
'acific Company. which acquisition. We
told. constituted an unlawful compina-
ion in violation of the antitrust act.
in order to effectually conclude the
speratin force of the combination such
DISPOSITION should be made subject to the
approval and decree of the court, and any
plan for the disposition of this stock
must be such to effectuaIN dissolve
The unlawful combination thus created.
.ntation of any plan. to hear the gov
trnment and defendants, and may bring
n any additional parties whose presence
nay be necessary to hnal disposition
IF the stock in conformity to the views
herein expressed.
Nav Present Plans.
"As to the suggestion made at the oral
argument by the Attorney 6enerRas in
aesponse to a. query from the court as
10 the nature of the decree, that one
must be entered which while destroying
he unlawful combination insofar as the
Union Pacific secured control Of the COM
beting line of road extending from New
Orleans and Galveston to San Fran
nsco and Portland, would permit
he Union Pacific to retain the CEN
Ial Pacific connection from o.
EN- to San Francisco and there
by to control that line to the coast, thus
affecting such continuity of the Union
Pacific and Central Pacific from the Mis-
souri, river to San Francisco as was con-
.emplated by the acts of Congress under
which they were constructed, it should
De said that nothing herein shall be con-
'idered as preventing the government or
any party in interest, if so desiring from
presenting to the court a plan for &C
comprising this result or as preventing
he court from adopting and giving effect
% any such plan so presented.
Must Act in Three Months.
ANY plan or plans shall be presented
the court within three months from
he receipt of the mandate of this court,
aiiing which. or. upon the rejection by
he court of plans submitted within
UGH time. the court shall proceed by re-