The Savannah morning news., 1903-04-21
MAY PAY DIVIDENDS
COURT SO HOLDS IN THE NORTH
Erin SECURITIES CASE.
THE DECREE is MODIFIED
TO PERMIT THE RAILWAYS TO
MAKE THE PAYMENTS.

| Judge SanbOrn's Decision Says the
Payment of the Northern Pacific
and Great Northern Railway Divi-
dends Cannot InjuriOusly Affect
the Interests of the United States.
$4,000 to Secure the United
States.
st. Paul, Mimi, April 20.-At noon
to-day Circuit Court Judge Sanborn
handed down a decision granting the
request of the attorneys for the North
ern Securities Company to be permit
ted to pay Great Northern and North
ern Pacific dividends to the Northern
Securities Company. The decision
says, in part:
THE appeal in this case will prob
ably be determined by the Supreme
Court about November, 1903. 1t is not
perceived how the payment or reten-
ton of these dividends during the
tendency of this appeal 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 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 may be.
These dividends ultimately will go
to the stockholders of the Northern Sc
curities Company, whether paid as
they are earned, or after the final de-
cision. If the railroad companies are
permitted to pay their dividends to the
Securities Company, that company will
pay them over to it's stockholders.
1.-THE decree permits the stockholders
of the Securities Company to exchange
| their stock for the stock of the rail-
road companies for which it was is
sued. If the Supreme Court affirms
| this decree the stockholders of the
| Northern Securities Company can ex-
| change their stock for the stock of
the railroad companies and can draw
these dividends upon the latter. If
| the Supreme Court reverSes the de-
| cree, the same parties can draw these
dividends upon their Northern Secur-
tiles stock. The retention of the divi-
dends by the railroad companies while
| the appeal is pending will not en-
| nance or speed the enforcement of
| any legal right of the United States,
while it might inflict unnecessary loss
| and injury upon the stockholders who
are justly entitled to receive those
| dividends as soon as they are earn
| ed.
| Defendants Give Bond.
1.-THE order of the court will, ac-
| cordingly, be that the operation of
that portion of the decree which en-
| joins the railroad companies from pay
ing the dividends upon their stock
which is held by the Northern Securi-
ties Company be suspended during the
| tendency of the appeal upon the Civ
ing of an approved bond in the sum
| OF $4,000 by or in behalf of the de-
| PENDANTS, conditioned that they VIII
! prosecute their appeal with effect and
will pay all damages that shall result
| to the United States by reason of the
order.
ut is ordered that the giving of an
| approved bond to the United States by
or on behalf of the defendants in the
sum of $4,000, conditioned to prosecute
| their appeal with effect and to pay
| all damages which may result to the
United States from this order, that por
tion of the injunction contained in the
| final decree herein which forbids the
Northern Pacific Railroad Company and
! the Great Northern Railroad Company,
their officers, directors, their servants
and agents from paying dividends to
/ the Northern Securities Company on
| account of stock in either of the rail-
way companies, which the Securities
| Company claims to own and hold, is
suspended during the tendency of the
appeal allowed herein this day. All
| other portions of the decree and of the
| injunction it contains remain in force
| and are unaffected by this order"
After the reading of the decision the
| appeal was perfected, and the bond
! was filed this afternoon.
Argument of Counsel.
Judge George B. Young appeared for
| the Northern Securities Company; M.
D. Grover for the Great Northern Rail-
way and G. w. Bum for the North
| ern Pacific Railway. District Attor-
ney Haupt appeared for the govern
| ment. The defendants were, he main
| tanned, asking the court to nullify the
! decree, to permit a violation of law.
! The fact of losses to stockholders was,
he admitted, unfortunate, but since
| the corporation was violating law,
there was nothing for the court to do
| but to see to the enforcement of the
law The petition was in reality re-
quest to suspend a statute and not
to suspend decree.
Judge Young, for the Northern Sc
curities Company contended that the
fact of an appeal to a higher court
Vas in itself a form of suspension CT
the decree, and maintained that the
requested payment of the dividends
would not in any way affect the gen.
eral terms of the decree. This sus-
pension of a small part of the decree
would not be a violation of the law to
prevent a restraint of trade. The in
junction being obeyed, would be just
as effective whether the dividend pay
ing be permitted or not.
Mr.. Bum, general counsel for the
Northern Pacific Railway, maintained
that the petition was not for a sus-
pension of a decree against a violation
of law, but that this was clearly a
case in equity under the provisions of |