The Washington times., 1923-06-12
ANTITRUST ACT
HARD HIT BY
COURT
Pacific Railroad Decision May
Upset Hundreds of Cases and
Bring Fight in Congress.

The Sherman antitrust law.
which for a score of years has been
the DOGGY of big business IN
America, has been dealt a stagger-
ing blow by the decision OF the
United States Circuit Court OF Ap'
peals, sitting in st. Paul, permitting
the consolidation of the Southern
and Central Pacific railroads, Gov
eminent officials admitted today.
There was evident in Washington
today q good deal of confusion as
to Just how far the courts decis-
ion goes in multiplying the famous
statute under which literally thou
sands of suits have been fought-slnce
it was written on the law books
years ago. The Governments le-
gal experts were busily engaged to-
day in studying the decision.
Government Must Appeal.
The ultimate effect of the de-
cision will be, according to the con-
census Of opinion in legal circles,
that the Government will have to
appeal to the United States SUI
preme Court to decide what Is the
supreme law of the land-the Sher-
man law, or the transportation act
of 1920
It is the opinion of no less a legal
authority than James M. Beck; So
licitor General of the Government,
that the transportation act or 1870
nullifies the most important pro.
visions Of the Sherman law, as 1t
affects railroads.
Less than a year ago the SUI
preme Court ordered the Southern
Pacific to ''divest itself" Of control
and stock ownership in the Central
Pacific on the ground that such
control of one competing raairoao
by another constituted a monopoly
within the meaning of the Sherman
law.
Now comes the Circuit Court Of
Appeals in st. Paul, deciding that
under the Transportation Act Of
1920 the Southern Pacific has the
right to acquire control of the Gen.
trail Pacific il it can obtain the con-
sent of the Interstate Commerce
Commission. That permission al.
ready has been obtained.
John j. Esch, Of Wisconsin, who
as member Of Congress in 1920
was the co-author Of the Transpor-
tation Act, is now member Of the
Interstate Commerce Commission,
and as such sat in on the S. p
c.. p. hearing which granted the
Southern Pacific's application.
Vital Principle at Stake.
A vital principle is at stake in
the controversy, according to Gov
eminent officials, for if the South
ern and Central Pacific are allowed
| to consolidate, scores of other com.
binations must be permitted under
| the same conditions. One such
combination is now being consid
cred by the Il. G. G. affecting the
Van Sweringen interests. Other
consolidation appeals are being held
in allegiance.
That the st. Paul decision will
afford opponents of the Esch-Cum.
minis Act additional ammunition for
the railroad fight In the next Con.
gresS goes without saying.
Already, the bitter foes Of the
Transportation Act. headed by Sen
ator Robert M. LaFollette (R.) OF
Wisconsin, are preparing their as.
sault on the transportation law
when the railroad situation is
opened up in the new Congress.
This st. Paul decision will add
fuel to their fire. They aim at no
less than the complete repeal of the
1920 statute, and they will base
their fight on the ground that it
nullffies the Sherman law which for
decades has kept "big business" toe
ing the mark Of public interest.