Evening journal., 1903-04-21
JUDGE sANBORN
MODIFIES DECREE
So AS to Permit Payment of
Dividends to Securities
Company
DECISION RELEASES Sl,OOO,NOO

ST. Paul, Mimi, April 21.-The United
States circuit court here has granted |
the petition Of the Northern Securities
Company. asking that the recent de-
cree against the company be so modi- |
ned as to permit the payment OF divi-
dends by the constituent railroads to
the Securities Company.
The granting Of the petition was an /
nounced by Judge Sanborn, after argu- |
ments had been made for it by counsel
for the holding company and the
Northern Pacific Railway Company, |
and against it by the United States
district attorney. The regular May
dividend, about $4,000 000 is released
by this decision, and will be paid next
month. and nearly s14,OO0,OOO more
will be paid to the Securities Company
before the supreme court passes finally
on the appeal which was flied.
The railroad attorneys in their argu-
ment maintained that the money would
ultimately reach the same individuals,
whether paid to them directly or
through the medium OF the Northern
Securities Company.
Judge Sanborn in his decision said
in part:
ITO enable the courts to prevent un-
necessary loss OF injury to the parties
to litigation in such cases as this. the
supreme court provides by Rule SO
that when an appeal is allowed from a
final decree granting an injunction. a
judge who took part in the decision
may make an order suspending the in
junction during the pendency Of the
appeal upon such terms as to bond or
otherwise as he man consider proper
for the security of the opposite party.
1T is the customary practice for the
courts to exercise this power whenever
their action will not injuriously affect
the rights Of the party who has Sc
cured the injunction. In this case that
party is the United States.
This is not an application to sus-
pend this injunction. The defendants
ask only that the part of the injunction
which forbids the payment Of the divi-
dends be suspended during the pen
dency of the appeal.
These dividends do not belong and
cannot in any event be paid to the
United States 1t does not claim to
: have and it has not any pecuniary in
t terest in them. Its purpose in prose-
e cutting this suit and its interest in this
= injunction are only thereby to enforce
$ the law against illegal combinations in
restraint of trade. and to prevent the
Northern Securities Company from
/ L..
terferng with the competing railroads.
: The appeal in this case will prob
u ably be determined by the supreme
court about November, 1903. 1t is not
perceived how the payment OF the re-
] tention of these dividends during the
! pendency of this appeal can injurious
y ly affect any right Of the United States
K in this litigation, and the only question
: here is whether these dividends shall
I. be piled up in the treasures of the
railway companies or paid to the stock
holders to whom they legally belong,
and who must ultimately receive them
whatever the final decision in the case
ie may be-
y The order of the court will accord
= ingly be that the operation of that por-
l. tion of the decree which enjoins the
le railway companies from paying the
ie dividends upon their stock which is
n held by the Northern Securities Com
pany be suspended during the pend
ency of the appeal upon the giving OF
u an approved bond in the sum OF
l. $4,000"
After the reading of the decision the
: appeal was perfected and the bond was
filed.
Thirty-four points Of error are al.
legged by the counsel for the Northern
Securities Company and other defend
ants in their appeal from the decision
Of the circuit court. Exceptions are
noted to every paragraph in the decree
and the court is claimed to be in errol
in rendering any decree save one for {
dismissal Of the petition and proceed
frra