The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-04-20
DIVIDENDS GO !.
TO THE n. S.
Judge w. II. sanborn Partially ST.
Ponds the Decree in the
Merger Case.
Will Permit Roads to Pay Dividends
to the Northern Securities
Company.
Bonds of $4,000 Required for the
Prompt Prosecution Of Appeal
Appeal Perfected.

AAFCSN4 = SA4SVVNAs
At noon to-day, in st. Paul, United
States Circuit Court Judge w. II. Sam
born handed down the following decision
granting. the request of attorneys for the
Northern Pacific and Great Northern
roads for permission to pay dividends to
the Northern Securities company:
The defendants in this case htve tI1a
right under the acts congress to appear
from the decree Of the circuit court to tie
supreme court. They have claimed thnt
right. Ordinarily those who have the
right to review a judgment or decree OF
the circuit court also have the right upon
giving proper bond to supersede the eff
feet OF the Judgment or decree during the
tendency of the appeal. But where, as In
the case at bar, the decree awards an In
junction the ordinary supersedeas stays
proceedings but does not raise the In
junction.
To enable the courts to prevent un.
necessary loss or injury to the parties to
limitation in such cases, the supreme
court provides by rule 90 that when an ap-.
peal is allowed from final decree grant
ing 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 other party
1t Is the customary practice for the courts
to exercise this power whenever their ac-
ton will not injuriously affect. the rights
OF the party who has secured the injunc- !.
ton. In this case that party is the
United States. The main purpose and
effect Of the decree are to prevent the
Northern Securities company from con-
trolling and operating the Great Northern
and Northern Pacific railroads and to ac-
complish this end it enjoins that company
from exercising any control over their
operation and from acquiring or voting
any of the stock of the railroad COM
panies, and it also enjoins the railroad
companies from paying to the Northern
Securities company any, dividends on their /
stock. This Is not an application to sus-e
pend this Injunction. The defendants ask
only that the part OF the Injunction which
forbids the payment Of the dividends be
suspended during the tendency Of the APP
peal. -. -: Z =. Z
interest OF the United States.
"These dividends do not belong and
cannot in any event be paid to the United
States. IT does not claim to have, and
it has not any peeuniary interest in theTp.
It's purpo74a In prosecuting this suit a.tGs
its interest in the Injunction is only,
therefore, to enforce the law against He
lgal combinations in restraint OF trade and
| to prevent the Northern Securities COM
| pany from controlling, directing, owning,
operating Or interfering with the Compel
!! ing railroads. This interest, 1t will be
noticed, is protected by that portion Of
the injunction which forbids the manage
ment or control of these railroads by the
Northern Securities company and forbids
! it from voting or acquiring any stock OF
these railroad companies. This portion OF
the injunction, indeed, every part of the
decree and Of the injunction is in force
and will continue in force during the PEN
| Of >.
! ing this time the United States has and
will provide under this order Of the de-.
cree, which will not be modified or sus-
pended a complete remedy for any yio-
Ilation Of the Sherman antitrust act,
should it occur, both by proceedings for
contempt under this injunction and by
proceedings under the penal clause Of the
Sherman antitrust act.
Final Decision About November.
.'The appeal in this case will probably
be determined by the supreme court about
November, 1908. 1t Is not perceived, how
I ever, how the payment or the retention
of these dividends during the tendency
Of this appeal can fnjuriously affect any
right of the United States in this case, 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
Ibelong, and who must ultimately receive
them, whichever way the final decision in
this case may be-
.'These dividends will ultimately go to
! the stockholders of the Northern Securi-
] ties company whether paid as they are
earned or after the final decision. II the
railroad companies are permitted to pay
their dividends to the Securities company
4 that company 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 it was is-
i sued II the supreme court affirms this
decree the stockholders OF the Northern
! Securities company can exchange their
stock for the stock OF the railroad COM
panies and can draw these dividends upon
!, the latter. II the supreme court reverses
the decree the same parties can draw
these dividends upon their Northern Sc
| curities stock The retention Of the divi-
, dends by the railroad companies while the
appeal is pending would not enhance nor
speed the enforcement Of any legal right
, of the United States while it might In
f1ict unnecessary loss and injury upon the
stockholders who are justly entitled to
receive those dividends as soon az they
are earned.
Order Of the Court.
4 "The order Of the court will. accord
Eingly be that the operation of that por.
! ton Of the decree which enjoins the rail-
i way companies from paying the dividends
Il upon their stock which is held by the
I Northern Securities company be sus-
pended during the tendency OF the ap-
i peal upon the giving Of an approved bond
in the sum OF 10000 by or on behalf Of
the defendants conditioned that they win
prosecute their appeal with effect and
q will pay all damages that shall result to
the United States by reason Of the order.
i cit is ordered that upon the giving Of
an approved bond to the United States by
81 or on behalf Of the defendants in the
sum OF $4,000 conditioned to prosecute
their appeal with effect and to pay al
damages which may result to the United
Il States from this order that portion o4
II the Injunction contained in the final de-
Il cree herein which forbids the NortheRn
q Pacific Railway company and the Great
Il Northern Railway company, their officers,
Il directors, servants and agents from pay.
i ing dividends to the Northern Securities
Il company on account OF stock In either
OF the railway companies which the So
curities company claims to own and hold
Is suspended during the tendency Of the
4 appeal allowed herein this day. All other
portions Of the decree and of the injunc-
tion it contains remain in force ana are
!. unaffected by this order. =
81 Anneat Perfected