United States v. Northern Securities Co.

Citations

• 120 F. 721
• 1903 U.S. App. LEXIS 5307

Syllabus

<p>L Monopolies — Combination in Restraint of Interstate Commerce — Construction of Anti-Trust Law.</p> <p>The generality of the language used in the anti-trust act of 1890 (Act July 2, 1890, 26 Stat. 209, c. 647 [U. S. Comp. St. 1901, p. 3200]), declaring illegal “every contract, combination or conspiracy in restraint of trade or commerce among the several states or with foreign nations,” indicates the purpose of Congress to include in the prohibition every combination which directly and substantially restricts interstate commerce, whatever its form.</p> <p>2. Same — Application of Act to Interstate Carriers.</p> <p>The anti-trust act (Act July 2, 1890, 26 Stat. 209, c. 647 [U. S. Comp. St. 1901, p. 3200]) applies to interstate carriers of freight and passengers, and any contract or combination which directly and substantially restricts the right of such a carrier to fix its own rates, independently of its natural competitors, places a direct restraint upon interstate commerce, in that it tends to prevent competition, and is in violation of the act, whether the rates actually fixed be reasonable or unreasonable.</p> <p>8. Same — Corporation to Acquire Stock of Competing Railroads — Legality.</p> <p>The real control of a corporation is in its stockholders, who have the power to determine all important corporate acts and policies, and any contract or combination by which a majority of the stock of two railroad companies owning and operating parallel and competing interstate lines of road is transferred to. a corporation organized for the purpose of holding and voting the same, and receiving the dividends thereon, to be divided pro rata among the stockholders of the two companies so transferring their stock, directly and substantially restricts interstate trade and commerce, and is in violation of the anti-trust act (Act July 2, 1890, 26 Stat. 209, c. 647 [U. S. Comp. St. 1801, p. 3200]), since it destroys any motive for competition between the two roads; and it is im