The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-04-21
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Inc foregoing order, made bv Judge
Walter H. Sanborn, of the federal
circuit court, in st. Paul yesterday.
modlfies the final decree of the circuit
court of appeals in the case of the gov
ernment against the Northern Securi-
ties company, to the extent that the
Securities company is permitted to nav
dividends pending the appeal of the
case to the United States supreme
court.
In granting the application for a
modification of that portion of the de-
cree which restrained the companv
from paying any more dividends. Juffve
Sanborn sustained every point raised
by the attorneys for the defendant
company. The government, through
its district attorney, Mr.. Houpt, on
posed any modification whatever of the
decree, contending that the court had
held the formation of the companv nm
lawful and that it had no right to per-
nit continued infraction of the law.
Judge Sanborn heard the arguments
Tor and against the allowance of the
application of the Securities company
In the forenoon, at the close of which
ne announced that he would give his
decision at noon, Promptly at the hour
Juoge Sanborn entered the circuit
court room and read the decision. The
room was filled with ATTORNEYS. rail-
road officials, stockholders and news
papermen, and as soon as the nature
OF the order was disclosed there was a
rush for the telephones, and the news
spread rapidly throughout the CITY and
the entire country.
Inc hearing on the application was
granted at 10 o'clock in the morning
united States District Attorney Houpt.
VINO was the first to address the court
OBJECTED to the allowance of the appIi-
cauon, arguing that the susnensive
power or the court was not intended to
pe used in cases of this kind. Mr..
doupt contended that a supersedeas
pond applied only in ancillary proceed
lngs where the damage that could be
lnflcted on one of the parties to the
suit, by suspension of the decree of
the court. could be measured in dollars
ana cents. He argued that the appli-
cation should be heard by at least two
judges Of the circuit, at which point
Judge Sanborn informed the speaker
that Judge Thayer had been communi-
Gated with and his views of the mat
ter were in the possession of the court
Mr. Houpt closed his argument bv
contending that the fiuctuation of the
stock on the stock market should not
be considered as having any bearing
on the question.
Judge George B. Young, representing
the Northern Securities company. ar
gued that the essence of the decree
was its provision directed against the
restraint of interstate commerce. If
prohibited the Securities company from
in any way directing the operation of
the Northern Pacific Or the Great
Northern railways, and from voting for
the election of directors of either of
these roads. 1t was the intention of
the defendants, said Judge Young. to
obey this portion of the decree untiI
the matter was finally disposed of.
Unjust to Tie Up Money.
1t was contended that no harm could
come of permitting the Securities COM
pany to continue paying dividends.
Otherwise the money would be tied I'D
at great loss to the stockholders.
Judge Young said there was at pres
ent $4,000,000 awaiting for distribution
before the supreme court could give
its decision. 1t would be a great in.
justice to the stockholders to tie this
money up, and many of them would be
compelled to dispose of their holdings
at heavy loss.
Attorney C. w. Bum could not see
that the application was an unusual
one, nor would it change the effect of
the decree in any vital point. Regard
ing Mr.. Houpt's contention that the
suspensive power of the court applied
only in ancillary cases, where damage
to one of the parties could be meas
ured in money, Mr.. Bum said the prin-
ciple on which the application was
made was based on rule applicable
in all injunction cases.
District Attorney Houpt spoke brief
ly in reply to the arguments of the Sc
curittes company attorneys, after
which Judge Sanborn announced that
he would give a decision at noon.
The order of the court, given above,
was accompanied by the following
opinion:
The defendants In this case have the
right under the acts of congress to an
peal from the decree of the circuit court
TO the supreme court They have claimed
that right. Ordinarily those who have
the right TO review a judgment or de-
Continued on Si~+b Doro