Arizona republican., 1912-12-03
SUPREME COURT
 BREAKS MERGER
Holds That Purchase by Union Pacific of Forty six Per Cent of Southern Pacific Stock Violates Antitrust Law.
ASSOCIATED PRESS DIspArcHl

ASSOCIATED PRESS DISPATCH
 WASHINGTON. Dec. 2.-The great Hartman merger which was created when the Union Pacific railroad com panN bought fOrtH-siX per cent Of the stock of the southern Pacific system was split today by the su- prcme court of the United States aS iT violation of the Sherman anti trust law. Then, with the end of the merger before il, the court sent forth the portenous declaration that while the law may not be able to enforce competition. it can reach combina- tons which render competition inn practicable"
 Justice Day announced the mani nous opinion of the court. Justice Nandeventer took no part in the con sideration of the case today, but his principal finding when he was q circuit judge to the effect that the two roads were not competitors and tnat therefore no violation of the law resulted in the purchase, was reversed and annulled. Instead of following the reasoning of Justice NandeVenter and Judges Sanbern and Adams, the court in substance approved the minority holding of 1 Judge Hook that the roads were l competitors, and that it was just as
 much a violation of the law for one road to buy the controlling stock ol the two cOmpetitinG companies. as i III the Northern Securities case As ! the Northern Securities plan failed l nearly ten years ago, so the Harri- i man plan failed today, and the cir ! cult court of Utah was directed to 1 supervise the separation of the two 1 roads after the hearings and in an ! emergency to appoint q receiver 10 1 sell the stock.
 The Union Pacific, if the circuit court sees proper. may retain con-
 trol of the old Central Pacific line the oregon and san Francisco The decision of the lower court that | there was no violation of the law ir the attempt to acquire Northern Pa
 cific stock and the stock of the At
 chison. Topeka & Santa Fe company
 afterwards abandoned, and certain
 intercs, in the san Pedro, Los An
 geles X Salt Lake railroad company
 was allowed to stand.
 q
 the application of the decision t'
 the railroad situation in the countr,
 will be widespread. placing q power ful precedent in the hands of tn , attorney general to prevent the con soHdation of competing roads De } partmcnt CT justice officials. how ever were not prepared tonight L discuss the full effect of the deci sion upon the other railroads. Attor
 ney General Wickersham issued } statement in which he declared tha the opinion extended to the principle l Of the Northern Securities case an reaffirmed those of the Standard Oi r and St. Louis Terminal association decisions.
 Justice Day. in his opinion, spoll Of the Standard oil and Tohacc ? cases of last year as the final au ? tnority on the interpretation of tn sherman antitrust act. He pointe $ to decisions before the Standard O and tobacco cases as being approve
 | in those cases and tben prOceede l to apply to the merger principl ? discussed in all these decisions. . We take il. in this connection 2 Ee said That it may be ragaIde = as settled that q combination Whic places railroads engaged in interstat [ commerce in such relation as [ I create single and dominating contrC ! of one corporation whereby natura
 ! and existing competition in interstat
 ! commerce is unduly restricted an
 1 suppressed, within the cOndemnatio
 of the act While the law may nc
 l hr abe to enforce competition.
 | can reach combinations which hay