The Sentinel=record., 1912-12-03
UNION PACIFIC SOUTHERN PA ciFlc COMBINE IS SuNDERED
 BY SUPREME COURT.
OPINION WAS UNANIMOUS ONE
"Law Cannot Enforce Competition. But Can Make it lmpracticable," Says Justice Day in Handing
 Down the Opinion.


 Washington, Dec 2--The great liar riman merger created when the Union Pacific railroad company sought 4t per cent of the stTek of the Southern Pacific railway syJRgd, ss.ssr- split lasunder today by the supreme coul' of the United States as violation of the Sherman antitrust law Then with the end of the merger before it the court sent forth it's portentious not be- able 60 enforce competition it can reach combinations which ren. der competition impraticable."
 Justice Day announced the unan imaus opinion of the court Justice Van Deventer took no part in the con sideration of the case today but his personal finding when he was a judge of the Utah circuit court, to the effect that the two roads were not competi- tors and therefore no violation of the law had resulted from the purchase was reversed and annulled Instead of following the reasoning of Justice Van Deyoater in the court below the |court in substance approved the minor ity holding of Judge Hook, that the roads were competitors and that il was just as much a violation of the law for one road to buy the controll- ing stock of competitor as 1t was for a holding company, as in the North ern gSeeustie case .to--.buy the 1enn' trolling stock of two competing com ps,nies. As the Northern Securities company plan failed nearly 10 years ago, So the Hartman plan fell to- day.
 The circuit court for the district of Utah was directed to supervise the separation of the two roads after hearings and in emergency to appoint Ia receiver to sell the stock. The Union Pacific, if the circuit court sees proper may retain control of the old Central Pacific line from Ogden to San Francisco. The decision of the lower court, that there was no viola. tion of the law in the attempt to ac- quire the Pacific stock and then stock of the Atchison, Topeka & Sante Fe railroad company afterwards aban- doned. and a certain interest in the San Pedro, Los Angeles & Salt Lake railroad company was allowed 90 stand.
 It is the general belief here that the application of the decision to the railroad situation of the country will be widespread, placing a powerful precedent in the hands of the attorney general to prevent consolidation of competing roads.
 Department et justice officials how ever, were not prepared tonight to Attorney General Wickersham is elated over the outcome and issued a statement in which he simply declared the case extended principles of the Northern Securities case and reaffrm. ed those of the Standard Oil and St Louis terminal association case.
 Justice Day in his opinion first dealt with the law in the case He spoke of the Standard oil and tobacco cases of last year as the final author Iitv on the interpretation of the sherman antitrust act. He pointed to the decisions fthe Standard oil
 
 ,n those eases and then proceeded % Ianplv to this merger the principles dis cussed in all those decisions.
 We take 1t therefore" he said, in this connection. "that it may be re- garded as settled that a combination which places railroads engaged in in terstate commerce in such relation as to create a single dominating control in one corporation whereby natural and existing competition in interstate commerce is unduly restricted or sup pressed Is within the condemnation of the act While the law may not be able to enforce competi.ion, it can reach combinations which render com petition impracticable.
 Nor do we think it can make any difference that instead of resorting to a holding compaiv as was done in the Northern Securities case. the con- trolling interest in the stock of one corporation Is transferred to the oth- Ter. The domination and control and the power to suppress competition are acquired in the one case no less than in the other and the resulting mischief at which the statute was aim ed is equally effective whichever form is adopted.'
 He added that more effectual form of combination to gain the control of a competing railroad than for one road to acquire a dominating stock interest in the other could hardly be conceiv- ed
 One by one Justice Day took up the arguments upon waich the rail ways hoped to defeat the govern ment's suit. He first considered the