The Montgomery advertiser., 1903-04-21
THE MERGER
 GAINS POINT Court MOdifieS Recent h.
 junction. SANB0RN RENDERS OPINION Dividends to Be Paid to North ern Securities Company. In Appeal the Attorney for the Com bine Allege 34 Points of Errors in the Courts Recent Decision.
SANBORN RENDERS OPINION

St. Paul, April 20.-At noon today Cir cuit Judge Sanborn handed down the following decision. granting the request of the attorneys for the Northern Securi- ties Company to be permitted to pay Great Northern and Northern Pacific div idends to the Northern Securities Com pany:
 ..The defendants in this case have the right under the acts of Congress to ap- peal from the decree of the Circuit Court to the Supreme Court. They have calm ed that right. Ordinarily those who have the right to review e judgment or de- cree of the Circuit Court have also the right upon giving a proper bond to su- persede the effect of the judgment or de- cree during the pendancy of appeal, but whereas in the case at bar. the decree awards an injunction. the ordinary su- persedeas stays proceedings, but does not raise the injunction.
 '-ro enable the courts to prevent unnec- essary loss or injury to the parties to Mt- igation in these cases, the Supreme Court provided by Rule s3 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 sus- pending the injunction during the pend- ency of the appeal upon such terms as to bond or otherwise as he may consider proper for the security of the opposite party.
 The Effect of tho Decree.
 ''It is the customary practice for the courts to exercise this power whenever their action win not injuriously affect the rights of the party who has secured the injunction. In this case that party is the United States. The main purpose and ef- feet of the decree is to prevent the North ern Securities Company from controlling and operating the Great Northern and Northern Pacific Railroads and to ac- complish this end 1t enjoins that company from exercising any control over their operation and from acquiring or voting any of the etook of the raiiruad compa- nies. and it also enjoins the railroad companies from paying the Northern &c., ouratias Company any dividends on their stock. 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 dividends be suspended during the pendency of the appeal.
 These dividends do not belong and cannot in any event be paid to the United States. It does not claim to have, and 1t has not, this suit and its interest in this injunction are only thereby to enforce the law against illegal combinations in re- straint of trade, and to prevent the North srn Securities Company. controlling. d. recting, owning, operating or interfering with the competing railroads. This in- terest. 1t will be noticed. Is projected by that portion of the Injunction which for bids the management or controi of these railroads by the Northern Securities Com pany and forbids 1t from voting or &C., curing any stock of these railroad com pani01.
 Injunction is in Force.
 This portion If tho injunction. indeed, every part of the decree and this intunc- ton, is in force and will continue in force during the pendency of this appeal in any event. During this time the United States has and will have under this portion of the decree. which win not be modified or suspended. a complete remedy for any violation of the Sherman antitrust act, should 1t occur. both by proceedings for contempt under this injunction and by proceedings under the penal clause of the Sherman act.
 "The appeal in this case will probably be determined by the Supreme Court about November, 1908. It is not perceived, how the payment or the retention of this dividend during the pendency of this ap- peal can injuriously affect any right of the United States in this litigation and the only question here Is whether these dividends shall be piled up in the treas uries of the railway companies or paid to the stockholders to whom they legally belong and who must ultimately receive them, whichever the final decision in this case may be. These dividends will ulti- mately go to the stockholders of the Northern Securities Company whether paid as they are earned or after the final decision. If the railroad companies are permitted to pay their dividends to the Securities company that company will pay them over to the stockholders.
 Can Exchange Stock.
 '"The decree permits the stockholders of the Securities Company to change their stock for the stock of the railroad com many for which 1t was issued. If the Su- preme Court afirms this decision the stockholders of the Northern Securities Company can exchange their stock for the stock of the railroad companies and can draw the dividends upon the latter. If the Supreme Court reverses the decree, the same parties can draw these divi- dends upon their Northern Securities stock. The retention of the dividends by the railroad companies while the appeal is pending will not enhance or speed the enforcement of any legal right of the United States, while 1t might infiict un- necessary loss and injury upon the stock holders who are justly entitled to receive those dividends as soon as they are earned.
 The order of the court will accordingly be that the operation of that portion of the decree which enJoins the railway companies from paying the dividends up- on their stock, which is held by the Northern Securities Company, be sus- pended during the pendency of the ap- peal upon the giving of an appeal bond in the sum of $5o.oO0 by or in behalf of the defendants. conditions that they will prosecute their appeal with effect and will pay all damages that shall result to the United States by reason of the order.
 Bond is Provided.
 Tt is ordered that upon the giving of an approved bond to the United States, by or in behalf of the defendants in the sum of $50.0O0. conditioned to prosecute their appeal with effect, and to pay all