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Northern
Pacific would allow him to appoint directors to the Burlington, which could then be forced to treat Harriman's Union Pacific favorably in business matters. Harriman's stock raid in May 1901 led to the "Northern Pacific Corner". Speculators had sold shares that they did not own, and were now desperate to purchase shares at any price-some shares reportedly sold at $ 1,000. Hill, working with J.P. Morgan, took majority control of the Northern Pacific despite Harriman's best efforts.
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announced plans to file a suit against the company. When approached by J. P. Morgan to settle the issue in private, President
Roosevelt refused; he later remarked, "Mr. Morgan could not help regarding me as a big rival operator who either intended to ruin all his interests or could be induced to come
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Together, the Great
Northern and the Northern Pacific assumed control of nearly 100 percent of the Burlington's outstanding stock. Knowing that the Northern Pacific controlled almost 49.3 percent of the Burlington's stock, Harriman launched a stock raid against the Northern Pacific. Control of the
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This speculation resonated throughout the stock market and the country as a whole. The two men, their backers, and associates agreed to settle their differences and eliminate ruinous competition through a monopolistic combination. The
Northern Securities Company was formed by Hill to control the
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In 1955, the
Northern Pacific and Great Northern renewed talks of merging. The Supreme Court approved the merger, and as a result, the Great Northern, Northern Pacific, Chicago Burlington & Quincy, and the
81:, one of the first antitrust cases filed against corporate interests instead of labor. The government won its case, and the company was dissolved, so that the three railroads again operated independently.
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to an agreement to ruin none." Although
Roosevelt still believed that trusts were not always bad for society, he could not bear to feel treated as just another rival operator. The suit continued.
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A public outcry over the new company made its way throughout the country, and both state and federal officials prepared to file litigation. On
February 19, 1902, the
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Brown, R. Blake, and Bruce A. Kimball. "When Holmes
Borrowed from Langdell: The" Ultra Legal" Formalism and Public Policy of Northern Securities (1904)."
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stock of his major railroad properties. Some of
Harriman's directors were appointed as representatives for his holdings of Northern Pacific shares.
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92:, two of the largest railroads in the U.S. Both sought control of the Burlington to connect their roads to the vital railroad hub of
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Randolph, Carman F. "Considerations on the State
Corporation in Federal and Interstate Relations. The Northern Securities Cases."
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case was one of the earliest antitrust cases and provided important legal precedents for many later cases, including that against
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100:, outbid Harriman for the Burlington, by agreeing to Burlington President Charles Elliott Perkins's $ 200-a-share price.
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case. Included in these break-ups were Harriman's own holdings of the Union Pacific and Southern Pacific railroads.
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Prager, Robin A. "The effects of horizontal mergers on competition: The case of the Northern Securities Company."
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The Justice Department won the suit and the company was dissolved according to the 1904 Supreme Court ruling in
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129:. In the following seven years, 44 other Federal antitrust cases turned out rulings similar to the
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70:; and other associated lines. It was capitalized at $ 400 million, and Hill served as president.
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Encyclopedia of American Business History and Biography, Railroads in the Nineteenth Century.
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Encyclopedia of American Business History and Biography, Railroads in the Twentieth Century.
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Bulletin of the University of Wisconsin, No. 142: History of the Northern Securities Case
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All the Presidents' Bankers: The Hidden Alliances that Drive American Power
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case, decided five to four. The companies were convicted under the
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Stigler, George J. "Monopoly and oligopoly by merger."
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Chicago, Burlington and Quincy Railroad subsidiaries
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Harriman vs. Hill: Wall Street's Great Railroad War
77:of 1890 by the Justice Department under President
350:at Cornell Law School's Supreme Court Collection.
58:and their associates. The company controlled the
96:. Hill, who also had a minority interest in the
280:James J. Hill and the Opening of the Northwest.
265:(Boston: Harvard Business School Press, 1988)
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369:Great Northern Railway (U.S.) subsidiaries
348:Northern Securities Co. v. United States
122:Northern Securities Co. v. United States
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73:The company was sued in 1902 under the
68:Chicago, Burlington and Quincy Railroad
263:The Great Northern Railway, A History.
374:Northern Pacific Railway subsidiaries
295:. Madison: University of Wisconsin. (
270:The Life and Legend of E.H. Harriman.
232:The American Journal of Legal History
152:merged on March 2, 1970, to form the
150:Spokane, Portland and Seattle Railway
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379:Progressive Era in the United States
42:was a short-lived American railroad
113:United States Department of Justice
272:(U of North Carolina Press, 2000)
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344:The Northern Securities Decision
176:American Law in the 20th Century
282:(Oxford University Press, 1976)
240:Bryant, Keith L., Jr., Editor.
173:Lawrence Meir Friedman (2004).
27:American railroad trust company
251:New York: Facts on File, 1988.
244:New York: Facts on File, 1990.
84:Hill was the president of the
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305:The RAND Journal of Economics
154:Burlington Northern Railroad
88:and Harriman controlled the
206:. Nation Books. p. 6.
40:Northern Securities Company
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332:Morgan: American Financier
34:A big gun in danger (1902)
247:Frey, Robert L., Editor.
322:American Economic Review
98:Northern Pacific Railway
60:Northern Pacific Railway
261:Hidy, Ralph W., et al.
179:. Yale UP. p. 56.
287:Meyer, Balthasar Henry
90:Union Pacific Railroad
86:Great Northern Railway
64:Great Northern Railway
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314:3.3 (1903): 168–197.
142:Major League Baseball
127:Sherman Antitrust Act
75:Sherman Antitrust Act
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312:Columbia Law Review
200:Nomi Prins (2014).
138:Northern Securities
131:Northern Securities
18:Northern Securities
79:Theodore Roosevelt
46:formed in 1901 by
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334:(1999) pp 418–34.
234:(2001): 278-321.
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16:(Redirected from
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307:(1992): 123–133.
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56:J.P. Morgan
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297:other link
160:References
326:in JSTOR
316:in JSTOR
289:(1906).
236:in JSTOR
274:online
258:(2013)
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208:ISBN
181:ISBN
136:The
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