New-York tribune., 1903-04-21
MERGER APPEAL. FILED.
DIVIDENDS MAY BE PAID.
Decree Against Northern Securities
Companu Suspended an Part.

ern Securities Company 70 the United States
Supreme Court filed in the Circuit Court
here to-day, and Judge Sanborn handed down
a decision granting the request that the Great
Northern and Northern Pacific Railroad COM
panies be permitted to pay dividends to the Sc
curities Company. His opinion follows:
The defendants in this case have the right under
the acts of Congress appeal from the decree OF
the Circuit Court to the Supreme Court Ihey
nave tbe rfebt 'Ia' 10 revieS Judgment or decree
of the Circuit Court also have the right upon CIV
Judgment or decree during the pendency Of the
decree awards an Injunction. the ordinary super
seoeas stays proceedings but does not raise the IN
10 enable the courts to prevent HnneGessarg @ sc
cases the Supreme Court provided by Rule s5
that when appeal is allowed from a hnaI decree
In the decision may make an order. suspending
the injunction during the pendency OF the apPeaI
may consider proper for the security Of the oppo-
courts to exercise this power whenever their action
win not njuriously affect the rights OF the parry b
party is the United States. Inc main purpose and
seeGes i '6 copsny on 70 coRnong and opera
ing the Great Northern and Northern Pacific raii,
company from exercising any control over their ar
STOCK Of the raroad Companies and it also en-
Joins, the railroad companies from paying the
their stock This is not application to sus-
pend this injunction The defendants ask only MY
payment Of the dividends be suspended during the
These dividends % not belong to and cannot in
any event be paid to the United States It does not
claim to have and it has not any pecuniary inter-
d eSf n n them It's IS PgTPoSe & IN aI ov
20 ENFORCE the law agalst egal com VI -,
Eesraipt Of t5ade ana to prevent the Gdg N0Tnern
owning, operating or interfering with the compel
VIII be protected bT that portion Of the injunction
which forbids the management or control OF these
and forbids it from voting or acquiring any stock
Of these railroad companies, This portion Of the
injuncton-indeed, every part Of the decree and
this irjunction-is in force and will continue in
eTea 0FTPE BlPn shf fh e He 0s United a
and will nave under this portion Of the decree
plete remedy for any violation Of the Sherman
6} af Sh0Go u6e II ng 10y a3G b.
proceedings under the penal clause Of the Sherman
The appsa n this case will PToPe6Iy be detsg- sas
Il is not perceived how the payment or the reten-
ton Of these dividends during the pendency OF this
United states his litigatiGn and The only au}ssi a}5
tic ton II hT he is taee G e dendS ea 9e peq r
paid to the stockholders to whom they legally, be
ever the final decision in this case may be; These
Of te SortbeFn sesurftie npay Whether paid
as they are earned or after the final decision II
diydends to the secuTties COMPANY that Company
VII! pay them over TO It's stock9ooerS ne oecrTe &
pany to exchange their stock for the stock Of the
Supreme, Court af1rns this decree. the stockhod-
E Of the Northsrn @ Securities I Company m any can
companies and can draw these dividends upon the
the same parties can draw these dividend, upon On
the dividends bv the railroad companies while the
appeal is pending, will not enhance or spesd the
while it might infict unnecessary loss and injury
receive those dividends as soon as they are
The order Of the court will accordingly be that
the operation of that portion of the decree which
GP0 Gds5ds the 9n6n 6a3ed r SOCK Wh R h by the
Northern Securities Company be suspended during
aPoved bond in the sum Of $4,000 BY or in in behalf
cTte +hrr annea1 with effect and will pay all dam
ayes that shaI result to the United States by
ordered that upon the giving Of an aPPE4oyssd gsd
Bog 10 me n 4be Of On cogona @ ' re
prosecute their appeal with effect and to pay an
from this crdsr that portion Of the intu9ctQ9 con
Northern Pacific Railroad Company and the Great
Northern Railroad Company. their offcers dtrec-
to the Northern Securities Company on account Of
secIrtIes COMPANY claims to own and hold is sus
pended during the Pendency OF the appeal allowed r
and Of the Injunction It contains remain in force
and unaffected by this order.
After the reading of the decision the appeal
was perfected and the bond was fled
ARGUMENT ON THE PETITION
Judge George B Young appeared for the
Northern Securities Company. NJ. D. Grover for
+ the Great Northern Railroad and Z. w. BUM 1OT
the Northern Pacific District Attorney Haupt
appeared for the government. and at once
6 opened the argument against the petition pre-
sented last Friday by the attorneys for the
securities and railroad companies. Under the
provisions of the act for expediting such mat
ters all the judges should sit and he thought
the action was not which could properly
| be set aside even in part. The government had
sought TO prevent the violation OF law ana
that was what the decree enjotned. The de-
PENDANTS he maintained, asked the court 10 null
/ lify the decree and permit violation OF law
The decree was in accordance with public pol
ICY and really enjoined a nuisance. lie clleo
cases to sustain his contention that such d
suspension was not permissible, except IN case
where the damages could be estimated in dol
! lars and cents, whereas this was purely re-
! quest TO permit violation of statute me
! fact Of losses TO stockholders was, ne aonltteo
! unfortunate, but since the corporation was Nlo
Iating the law. there was nothing 1or IIle co4I
70 do but to see to the enforcement OF the law
! The petition was in reality request 10 suS-
! pend a statute. and not TO suspend decree.
Judge Young for the Northern SECURITIES
Cor7nsnv contended that the fact of an appeal
! TO higher court was in itself form OF sus-
I pension Of the decree. and maintained that pay
rnent of the dividends would not IN any MaS
affect the general terms Of the decree Sus-
! penston Of small part Of the decree Woulu hoe
be violation Of the law TO prevent resi- i.t 20
| trade The Injunction would be just as e1IectINe
| Ube+bar the navment OF dividends was per
! noi+te5 or not He maintained that the dividend
/ in 0irncrion was practically ancillary, ano d1d
-. o.o ID the main Injunction which re-
/ ferred to control of the railroads no marin
could result If the Northern Securltles company
was permitted TO distribute the olVidehus' ~
! e+aa5 of having the money accumulate IN the
banks OF New-York- He INSISTED tne IlIonieS S
would reach the same people uitlinaLe.?' an, az
/ that to give it TO them no" "oui" ooii' ~
| and harm no one else Ma ,,o,,+airad
Mr.. Bum for the Northern Paclnc' niainIalHeu s u