Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-12-05
bunreme Court Declares It a Vio-
lation of Sherman Anti
Trust Law.
M AKESPOVERFUL PRECEDENT
Justices Unanimous That Law
Can Reach Combinations
Which Render Competi-
ton Impracticable.

Washington, Dec. 1.-The great Harri-
man merger, created when the Union Pa
cihc Railroad company bought 46
per cent. of the stock of the
Southern Pacific railway system.
was split asunder to-day by the SUI
preme Court Of the United States as vo-
lation OF the Sherman antitrust law.
Then with the end of the merger before
It, the court sent forth its portentious dec
1Gration that while the law may not be
nble to enforce competition, it can reach
ations which render competition
impractcable.
Justice Day announced the unanimous
opinion of the court. Justice Vandevan-
ter took no part In the consideration Of
the case to-day, but his principal finding,
when he was Il Judge of the Utah circuit
court, to the effect that the two roads
were not competitors and therefore no
violation of the law had resulted from
the purchase, was reversed and annued
the purchase, was reversed and annulled
t'ce vandevanter and Judges Sanborn and
Adams. the court in substance approved
the minority holdings Of Judge Hook and
the roads were competitors and 1t was
Just as much violation of the law for
a competitor as It was for n holding COM
pany. as in the Northern Securities case.
10 buy the controlling stock of two COM
petng companies. AS the Northern Sc
curities plan failed nearly 10 years ago,
SO the Hartman plan fell to-day.
RECEIVER If NECESSARY
The circuit court for the district of
| Utah was directed to supervise the separa-
ton of the two roads after hearings and
In emergency to appoint a receiver to
sell the stock. The Union Pacific, II the
circuit court sees proper, may retain con-
troll Of the old Central Pacific line from
Ogden to San Francisco. The decision of
| the lower court that there was no viola
| ton OF the law in 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 Pedro. Los
Angeles G. 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 wide
spread, placing a powerful precedent ir
the hands of the attorney-ge to pre-.
vent the consolid alton Of competing roads
Department OF Justice officials, however
were not prepared tonight to discuss the
full effect Of the decision upon other rail.
roads. Acknowledgement Wickersham
elated over the outcome issued a state
ment in which he simply declared thai
the case extended the principles of tho
Northern Securities case and reaffirmet
those of the Standard OIL and st. Louis
Terminal association cases.
JUSTICE DAYS OPINION.
Justice Day in his opinion first deal
with the law in the case. He spoke o.
the Standard OIL and tobacco cases o
last year as the final authority on tn
Interpretation Of the Sherman anti-trus
act. He pointed to the decisions befor
the Standard OIL and tobacco cases a
being approved In those cases and thel
proceeded to apply to this merger tn
principles discussed in all these decis
Ions.