The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-04-24

St. Paul, Mimi, April 20.-At moor
today Circuit Court Judge Sanborn
handed down a decision, granting the
request of the attorneys for the North
ern Securities Company to be permit
ted to pay the Great Northern and
Northern Pacific dividends to the
Northern Securities COMPANY. The de-
cision says in part:
The appeal in this case will prob
ably be determined by the supreme
court about November, 1903. 1t is not
perceived how the payment or the re-
tention of these dividends during the
tendency of this appeal an injurious
" affect any right of the United States
in his litigation and the only ques-
ton here is whether these dividends
shall be piled up in the treasures of
the railway companies or paid to the
stockholders to whom they legally be-
long and who must ultimately receive
them whichever the ina decision in
this case may be. These dividends ul-
timately will go to the stockholders OF
the Northern Securities Company,
whether paid as they are earned or
after their final decision. If the rail-
road companies are permitted to pay
their dividends to the Securities Com
pany, that company will pay them over
TO it's stockholders. The decree per-
mits the stockholders of the Securities
Company to exchange their stock for
the stock CT the railroad companies for
which it was issued. If the supreme
court affirms this decree the stock
holders of the Northern Securities
Company can exchange their stock for
the dividends by the railroad companies
and can draw these dividends upon the
latter. If the supreme court reVerSeS
the decree. the same parties can draw
tbs diVidnds by the railroad companies
while the appeal is pending N it will
not enhance or speed the enforcement
of any legal right of the United States,
while it might inflict Unnecessary loss
and injury upon the stockholders who
are justly entitled to receive these divi-
dends as soon as they are earned.
That order of the court will &C
cOTdingly be that the operation of that
portion of the decree which enjoins the
railroad companies from paying the
dividends upon their stock which is
held by the Northern Securities Com
pany be suspended during the PEN
dency of the appeal upon the giving
of an approved bond, in the sum of
$50, 5000 by or in behalf of the defen-
dants. conditioned that they will prose-
cute their appeal with effect and will
IA all damages that shall result to
the United States by reaSOn of the or
der.
1T is ordered that the giving of an
approved pond to the United States by
or OF behalf of the defendants in the
sum of $4,000. conditioned to prose-
cute their appeal with effect and to
"a all damages which may result to
the United states from his order, that
portion of the injunction contained IN
the final decree here forbids the
Northern Pacific Railroad Company
INT the Great Northern Railroad Com
pany. their officers, directors, their ser
wants and agents from paying divi-
n to the Northern Securities COM
nany on account of stock in either rail-
wav companies, which the Securities
Company claims to WI and hold, is
suspended during the tendency of the
appeal allowed herein this day. All
portions of the decree and of the in
junction it contains remain in force
n are unaffected by this order"
After the reading of the decision. the
appeal was perfected and the bond was
filed this afternoon.
Judge George B. Young appeared for
the Northern Securities Company. NJ.
D. Grover for the Great Northern
Railway. and c.. w. Bum for the
Northern Pacific railway.
District Attorney Haupt appeared
for the government. The defendants
We're. he maintained. asking the court
to nullify the decree. to permit a vio-
latiOn of the law. The fact of losses
to stockholders was, he admitted. I'M
fortunate. but since the corporation
was violating the law, there was moth
ing for the court to 10 but to see to
the enforcement of the law. The pc
tition was in reality a request to sus-
pend a statute and not to suspend a
decree.
Judge Young. for the Northern Sc
Curities Company. contended that the
fact of an appeal TO n higher court.
was in itself a form of suspension of
the decree. and maintained that the
requested vment of the dividends
would not in any way affect the gem
eral terms of the decree. This sus-
pension of a small part of the decree
would not be n violation of the law TO
prevent restraint of trade. The in
junction being Obeyed o be just as
effective whether the dividend paying
be permitted or not.
Mr.. Bum. general counsel for the
Northern Pacific Railway, maintained
that h petition was not for a US
pension of a decree against Il viola
!. ton of law. but that this was clearly a
kEcase in equity under the provisions of
khe common law.
PUT THE STOCK UP.
Jew York, April 2O.-The Northern
rities shares sold off to 81 rs
in the day. but just before the
news of the decision reached
ty the market turned and the
kold up TO 90 ga. Representa-
the Northern Securities Com
dressed much pleasure over
Colonel Clough, general
fourth vice-president OF
said the modification
remove all obstacles TO
tut of the company's reg