New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-03

il Ieqal to acquire the entire system,
i LARGELY engaged in interstate conmeroe
in composition with the purchasing
road"
Justice Day replied to the argument
4 that a majority of the stock had not
been purchased, and therefore no con-
troll had been acquired. He quoted Mr..
| Hartman as saying that compact,
united ownership of as per cent of
/ big corporation was sufficient to con-
troll 1t.
Justice Day said further:
This court reaches the decision that the
/ Union Pacific and Southern Pacific sys-
TENS, prior to the stock purchase, were
| competitors engaged in interstate COM
merce, acting Independently as 10 a large
amount of such carrying trade, ana tnat
/ since the acquisition OF the stock in ques-
/ tion the dominating power OF tne Union
Pacific has suppressed competition pc
/ tween the systems and effected a COM
/ bination in restraint OF interstate COM
merce within the prohibitions or the aC',
In order 10 enforce the statute the
court is required TO forbid the dong IN
| the future OF acts like. those when arc
! found 10 have been done In violation
! thereof. and 10 enter decree when VII,
effectually dissolve the combination founo
| TO exist in violation of the statute.
Decree Should Provide Injunction.
The decree should provide an Injunction
against tho right 10 vote this stock Whl!e
( in the ownership or control or the Cnion
Pacific company, or any corporation
owned by it, or while held BY any cor
/ poration or person for the Union Pacihc
/ company, and forbid any transfer or ais
position thereof in such wise as 10 coh-
tinue its control, and should proVioe an
. I'D, nat M
| dends upon such stock while thus neiu,
except TO receiver to be appointed by
/ the court, who shall collect and hold such
dividends until disposed OF by the decree
| OF the court.
As the court below dismissed the gov
ernments bill ii was unnecessary there
/ 10 consider the disposition OF the SHARES
| of stock acquired by the Union Pacinc
/, company, which acquisition, We hold' CON
| stituted an unlawful combination IN Vlo-
! lation Of the antitrust act. In order 10
| efectually conclude the operating iorSs
| Of the combination such disposition snoul9
| be made subject to the approval anu
/ decree OF the court, and any pan IoI
| the disposition Of this stock must De
such as to effectually dissolve the I'M
| lawful combination thus created. Inc
| court shall proceed upon the presenta
| ton Of any plan TO hear the government
| and defendants and may bring IN any
| additional parties whose presence may
! be necessary TO a final disposition or the
stock in conformity to the views herein
| expressed.
As TO the suggestion made at the oral
argument by the Attorney General as 10
| the nature of the decree, that one must
be entered which. while destroying the
unlawful combination, in so far as inc
Union Pacific secured control OF the com
peting line OF road extending from New
Orleans and Galveston to San Francisco
and Portland, would permit the Union Pa
ciic to retain the Central Pacific connec,
ton from ogden TO San Francisco ana
thereby 10 control that line TO the Coast,
thus effecting such continuity Of the
Union Pacific and Central Pacific from
the Missouri River TO San Francisco as
was contemplated by the acts OF Congress
under which they were constructed. II
should be said that nothing herein shall
he considered as preventing the govern
ment or any party In interest, II so deslr-
| ing, from presenting TO the court pan
| for accomplishing this result or as pre-
| venting the court from adopting and CIV
| ing effect OF any such plan so presented.
Provision for Stock Disposal.
Any plan or plans shall be presented to
| the court within three months from the
receipt of the mandate OF this court, fall
! ing which. or. upon the rejection by the
court of plans submitted within such time.
| the court shall proceed by receivership and
| sale, IL necessary, to dispose or such stock
In such wise as to dissolve such unlawful
| combination.
The government has appealed from the
decree, which is a general one, Diminishing
the bill SO far as concerns the attempt
to acquire the Northern Pacific stock and
the stock of the Atchison, Topeka 4 Santa
Fe Railway Company, afterward aban-
doned, and certain interest In the san
Pedro, Los Angeles & Salt Lake Railroad
, Company, and other features OF the case
dealt with and disposed Of by the decree
and opinion Of the court below, II Is SUM-
cient without going into these matters In
detail. TO say as TO them that We find no
rea son 10 disturb the action OF the court
below, but for the reasons stated the de-
cree shall be reversed and one entered In
conformity to the views herein expressed,
so far as concerns the acquisition Of the
Southern Pacific stock.
The court instructed "the Circuit Court
to retain its Jurisdiction TO see that the
decree above outlined Is made effectual.'