Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-12-02
Union and Southern Pa
Cific Roads Are Or
dered to Dissolve.
FORMERASTOCK BUYER
Systems Engaged in a Competi-
tive Business Prior to
the Combination.

Washington, Dec. 2.-The supreme
court today in an opinion announced
by Justice Day held that the Union
Pacific Railroad company, by acquisi-
ton Of stock in the Southern Pacific,
had effected a combination in viola
tion Of the Sherman antitrust law.
Justice Day. in reading the opinion.
indicated the court would enter a de-
cree to dissolve the combination and
also an injunction to prevent the
Union Pacific from voting the South
ern Pacific stock.
FORMER COMPETITORS.
In announcing the opinion, Justice
Day said: This court has reached the
decision that the Union Pacific and
Southern Pacific systems, prior to the
stock purchase. were competitors en-
gagged in interstate commerce. acting
independently as to a large amount of
such carrying trade, and that since
the acquisition of the stock in ques-
ton the dominating power of the
Union Pacific has suppressed competi-
tion between the systems and has eff
fected a combination in restraint of
Interstate commerce within the pro-
hibitions of that act
TO ENJOIN STOCK VOTE.
In order to enforce the statute the
court is required to forbid the doing
in future of acts like those which are
found to have been done in violation
thereof and to enter a decree which
will ecectually dissolve the combina-
ton found to exist in violation of the
statute
THE decree should provide an in
junction against the right to vote this
stock while in the ownership or con-
troll of the Union Pacific company.
and should provide an Injunction
against payment of dividends upon
such stock while thus held, except
to a receiver to be appointed by the
court which shall collect and hold
such dividends until disposed of by
decree OF the court
COMBINATION MUST DISSOLVE.
LAS the court below dismissed the
governments bill it was unnecessary
there to consider the disposition of
the shares of stocks acquired by the
, Union Pacific company, which acquisi-
/ tion, we hold, constituted an unlawful
combination. In violation of the anti
trust act. In order to effectually con-
clude the operating force of the COM
bination such disposition should be
made subject to approval and decree
of this court, and any plan for the dis
position of this stock must be such
as to effectually dissolve an unlawful
combination thus created.
The court shall proceed, upon the
| presenting of any plan, to hear the
/ government and defendants, and may
bring in any additional parties whose
I presence may be necessary to a final
/ disposition of the stock in conform
/ ity to the views herein expressed"
/ The court instructed the circuit
court to retain its Jurisdiction to see
/ that the decree above outlined is made
effectual.
DECISION AFFECTS MARKET.
/ New York, Dec. 2.-Union Pacific
dropped two and one-half and South
eiD Pacific two points when news was
ISCSlNeu Vi IAe BONeIuIuoDJ 5 victory
/ ia the merger suit. Other active is
sues declined in sympathy Strong
support was accorded the Hartman
/ issues and they soon rallied, making
up the greater part of the losses
/ Southern Pacific collateral four per
cent bonds rose six and three-quarter
! points.
/ Omaha, Neb, Dec. 2.-That many
other lines, including such railroads
as the Pennsylvania, Rock Island
! New York Central and others will
be affected by tcdays decision of the
supreme court is the general belief
at Union Pacific headquarters. Ons
of the officials said the road would
have the advantage Of being ahead
. in knowing what was In store for it..