The sun., 1903-04-21
NAY PAY ITS DIVIDENDS.
N0RrHERN SECURITIES Cd: GETS
INJUNCTION MODIFIED.

INJUNCTION MODIFIED.
Thea Fiies the Appeal. Taking ExoeVeeo
TO Every Paragraph I'm the Decisiso
Judge Holds That United states
Has Ne Interest In the Dividends.
ST. PAUL, MINI. April 2o.-Judge San
born to-day granted the application OF the
Northern Securities Company for modi-
f,cation OF the decree OF the United States
Circuit Court as TO that portion OF It WHOM
restrained them from paying the DIVIDENDS
on their stock pending the appeal. ne
held that these dividends did not belong
to the United States. which brought the
suit; the only purpose Of the United states
was to enforce the law against any Illegal
combination In restraint OF trade. He
said
1T will be noticed this interest Ii pro-
teoted by that portion Of the injunction
which forbids the management and control
Of these roads by the Northern Securities
Company and forbids It from voting or
acquiring any stock Of these railroad COM
panies. During the tendency Of the appeal
the court, by these injunctions. will have a
complete remedy for any violation OF the
Sherman antitrust law.
THE appeal in this case will probably
be determined by the Supreme Court about
November, 1908 1t is not perceived how
the retention or the payment Of these divi-
dends meantime can injuriously affect any
right of the United States, and the only
question Is whether these dividends shall
be piled up in the treasures OF the railroad
companies or paid to the stockholders to
whom they legally belong and who must
ultimately receive them. whichever way
the final decision in this case may be.
These dividends ultimately will 60 TO
the stockholders Of the Northern Securities
Company, whether paid as they are earned
or after the final decision. II the railroad
companies are permitted to pay their divi-
dends to the Securities company that com
pany will pay them over to its stockholders.
The decree permits the stockholders OF the
Securities company to exchange their stock
for the stock OF the railroad companies for
which II was issued. -
"The order OF the court accordingly will be
that the operation OF that portion OF the
panies from paying the dividends upon
their stock, which is held by the Northern
Securities Company, be suspended during
the tendency OF the appeal upon the fling
Of an approved bond in the sum OF $4,000,
ditioned that they will prosecute their ap-
peal with effect and will pay all damages
that shall result TO the United States BY
reason OF this order
1T rs ordered that that portion Of the in
hichforbids the Northern Pacific Rairoad d
Company and the Great Northern Railroad
Company, their officers, directors, servants
nd gents, from paying dividends to the
Northern Securities Company on account OF
stock in either Of the railway companies
h,,ht he rit oof W n Tar
and hold be suspended during the pendency
Of the appeal allowed herein this day. All
other portions Of the decree and OF the in
junction II contains remain In force ana are
una hected by this order.
Following the granting Of the suspension
Of the dividend clause in the decree the
attorneys for the Northern Securities Com.
pany deposited bond for $50 900 and filed
an appeal TO the United States supreme
Court.
An exception is taken to every paragraph
in the decree. and the court r. alleged 70
be in error In rendering any decree savc
one for dismissal Of the petition and pro-
ceedinGs. The principal points, urged in
the appeal are:
That the court erred in deciding that
every combination abolishing oompetition
between parallel and competing lines 10 In
violation of the Sherman anti-trust act.
That the court erred in deciding that
the formation Of the Northern Securities
Company placed the control OF the two
railroad companies In it's hands ana
destroyed every motive for composition
between the two.
That the court erred in finding that the
amount of it's capital stock. $500 900 900.
was the amount required to purchase the
total stock Of the two railroads at an agreed
price.
That the court erred in finding that the
stockholders Of the Northern Pacific and
Great Northern agreed to use their In
fiuence with other stockholders in their
respective companies TO exchange their
holdings for stock In the Northern Securi-
| ties Company.
That the court erred in deciding that the
Northern Securities Company directly con-
| trolls the commerce Of the defendant rail-
| road companies.
| consti ution and composition OF railroad
companies chartered by States but carrying
| on interstate commerce are In themselves
| matters Of interstate commerce.
| That the court erred In deciding that
| consultations OF railroad companies
created under state laws and competitort
| in interstate commerce are enectual re-
| straints on such commerce.
! That the court erred In holding that the
defendants have attempted to interpose
| the New Jersey charter Of the Northern
| Securities Company as q shield between
themselves and the laws.
| That the court erred 10 holding that the
shares OF the defendant railway companies
held by 1t. the Northern Securities Com
pany, are not absolutely owned by II In it'
own sole right.
| That the court erred In deciding that &C
| far as the New Jersey charter was CON
cerned IL had to determine whether a chartel
| granted by a State can be used to defea
| the will Of Congress.