The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-12-02
Merger Has Resulted in Stop
ping Competitor in Inter-
state Business
WILL SUPERVISE THE DISPOSAL

Washington, Dec. 2.-The supreme
court today In an opinion announced
by Justice Day held that .he Union
Pacific Railroad Co., by the acGulsi-
ton of stock in the Southern Pacific
Lad effected a combination in viola
ton of the Sherman antitrust law.
Justice Day in reading the opinion,
indicated the court would enter a dee
cree 10 dissolve the combination also
an Injunction 10 prevent the Union
Pacific from voting the Southern Pa
cific stock.
In announcing his opinion. Justice
Day said: This court reaches the de-
cision that the Union Pacific aud
Southern Pacific systems prior 10 the
stock purchase, were competitors, en-
gagged in interstate commerce. acting
independently as &c a large amount uf
suck carrying trade, and that since the
acquisition of the stock IN question.
the dominating power of Union Pacific
has suppressed competition between
the, systems and has affected COM
bination in restraint of Interstate
commerce within the prohibitions OF
that act.
In order to enforce the statute the
court is required 10 forbid :he doing
in the future of acts like those which
are found to have been done in VIOLA
ton thereof and 10 enter a decree
which will effectually dissolve the
combination found 70 exist in violation
of the statue. THE decree should
provide an injunction against the right
TO vote this stock while in the owner
ship or control Of the Union Pacihs Co,
and should provide an injunction
against the payment of dividends upon
such stock while thus held. except 10
a receiver, TO be appointed by the
court, who shall collect and hold such
dividends until disposed Of by a decree
Of the court.
"As the court below dismissed tho
governments bill il was unncceasary
therefore to consider the disposition
of the shares Of stocks acquired by the
Union Pacific Co. which acquisition
we hold. constituted an unlawful COM
'ination in violation of the Antitrust
let In order 10 eftectually conclude
he operating force Of the comhina-
ion such disposition should be made
subject to the approval and decree Of
he court and any plan for the dispo-
iition Of this stock must be such rs TO
'ftectually dissolve the unlawful COM
'ination thus created. The court shall
proceed, upon the presentation Of any
'lan, 10 hear the government and de-
endants and may bring in any addi-
ional parties, whose presence may bs
Necessary TO ;he final disposition Of
he stock in conformity TO the views
erein expressed" The court instruct
d the circuit court TO retain its juris-
iction TO see that the decree above
outlined is made effecual
Stocks Decline.
New York y. Y, Dec. Union
'achc dropped ~ points and South
IN Pacific points when the news
vas received Of the governments vic
ory in the merger suit. Other active
5sues declined in sympathy Strong
upport was accorded the Hartman
ssues and they soon rallied. making
y the greater part Of the losses.
southern Pacific collateral per ceit
onds rose 90 points.
Affects Other Lines.
Omaha. Dec. THAT many other
mes including such railroads as the
Rock Island, New YorS
entral and others will be affected by
oday's decision of the supreme court
, the general belief at the Union Pa
ific headquarters. one of the officials
aid the road would have an adyan-
age OF being ahead in knowing what
In store for &C.