The free lance. (Fredericksburg, Va.) 1885-1926, 1903-04-23
MAY PAY DIVIDENDS
Decree Against Northern Securities
Modified by Judge Sanborn.
DECISION RELEASES 100000
Railroad Attorneys Claimed the Money
Would Reach Same individuals.
Whether Paid to Them Directly or
Through Company-Appea Filed.

Whether Paid to Them Directly or
Through mpahy-Appesl Filed.
ST Paul. MINI. April 2I.-The United
States circuit court here has granted
the petition of the Northern Securities
Company. asking that the recent de.
eree against the company be so modi-
fed a. to permit the payment OF divi-
bends by tho constituent railroads to
the Securities Company.
The granting of the petition was an
nounced by Judge Sanborn. after argu-
ments had been made for il by counsel
Tor the holding company and the
Northern Pacific Railway Company.
and against II by the United States
district attorney The regular Nav
dividend. about $1,000. 600. is released
by this decision. and will be paid next
month. and nearly 100000 more
will be paid to the Securities COMPANY
before the supreme court passes finally
on the appeal which was fled.
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:
To enable the courts to prevent I'M
necessary loss or injury to the parties
TO litigation in such cases as this. the
supreme court provides by Rule 90
that when an appeal is allowed from n
mai decree granting an Injunction. a
Judge who took part in the decision
may make an order suspending the in
junction during the tendency of the
appeal upon such terms as to bond OF
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 thai
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. II does not claim 10
have and il has not any pecuniary in
terest in them. Its purpose in prose
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
controlling. owning, operating or in
terfernS with the competing railroads
The appeal in this case will prob
ably he determined by the supreme
court about November. 1908. II is not
perceived how the payment or the re-
tention of these dividends during the
pendency of this appeal can Injurious
ly anect any ri.ht OF the United States
in this litigation. and the only question
here is whether these dividends shall
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
may be.
~ OANtA VI tHt court Will accord
ingly be that the operation of that Dor
ton of the decree which enioins the
railway companies from paying the
dividends upon their stock which is
held by the Northern Securities Com
pany be suspended during the pend
ency of the appeal upon the giving of
an approved bond in the sum of
$50 900 -
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 error
in rendering any decree save one for q
dismissal OF the petition and proceed
ings.