The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-10


EnJoined From Paying Dividends 10
Securities Ce.-St0cks Break AMI Re
sct-Decision Regarded In wsshlnstsa
As . Great Victory for the Government.
The United States Circuit Court Of Appeals
for the Eighth Circuit handed down. at
st. Paul yesterday. a unanimous decision
declaring the $500, coo 600 Northern Secui-
ties merger to be illegal and in violation
OF the Sherman Antitrust law. The court
enjoins the Northern Securities Company
from acquiring any more stock Of the North
ern Pacific and Great Northern railroads
and from voting on the stocks ii holds;
permits II to return such stocks to its stock
holders and enjoins the Great Northern
and the Northern Pacific from paying any
dividends on such stocks to the company
or permitting the company TO exercise any
control over the affairs Of the two roads
The plaintiff in the case was the United
States, and the action was brought by
Attorney General Knox.
II was officially announced in this city yes
terday that an appeal against the decision
will be taken to the United States Supreme
Court and will act az a stay, 30 that the
existing situation il not disturbed. A de-
cision by tn Supreme Court. 1t Is expected,
will be reached In the fall. On hearing OF
the decision, j. p. Morgan said:
STEP NEARER TO AsCERTAININd THE Law,
SAYS J. p. MORGAN.
Until see the full text Of the decision.
I should not care to express an opinion
on II. This much Is certain. however.
1t will not rest where II Is.
The question Of ths right Of two or more
railroads to be operated BY holding COM
pany will be taken TO the United States
Supreme Court in Washington. Instead
Of looking upon the decision Of the court
to-day as q blow to railroad enterprise,
should say that the reverse Is the case.
Capital all over the country Is anxious to
know its rights in the matter Of railroad
construction and operation. Railroad men
want TO know where they stand.
The decision to-day In just one step
closer to a decision from the United States
Supreme Court which shall be final, for.
even II the Northern Securities had won
to-day, the Governments attorneys would
probably have appealed.
THE question was Of such importance
that an appeal was assured, no matter
who won. These facts are plain. Both
railroads held by the Northern Securities
Company still exist and are doing q good
business.
when railroad men know exactly how
the law is TO be interpreted, they will prob
ably find good ways to see that properties
are operated economically and proftably.'
ROADS STILL THERE. sAYs PsEsIDENT HIIA.
President James j. Hill OF the Northern
Securities Company, who has just returned
from Europe, and landed from the Teutonio
early in the forenoon, was at his apartment
in the Savoy when the news Of the decision
reached Wall Street. The gist Of the de-
cision was at once telephoned to Mr.. Hill
from the Office Of the Northern Securities
Company at 20 Liberty street. He hurried
down TO the Offices Of the company, where
he was in conference until late in the after
noon with Jacob H. Schin and other
Northern Securities interests.
Mr.. Hill said that he had no comment
to make on the decision, as his only
knowledge OF it at the time had como
through news agencies.
The decision ia, Of course. stated clearly
added Mr.. Hill, 'but not the reasons leading
up to it. At present can only say that
we will appeal from it at once and obtain
an ultimate decision from the United States
Supreme Court as soon as possible.
In any event no decision can Affect the
fact that we own roads which are splendid
properties Of proved earning capacity.
and I don't believe they can be taken
away from U.S."
NO 'roREIoN SUCCESSION PLANNED.
Mr.. Hill was told that there was Q story
current in Wall Street that the object OF his
trip abroad was TO organize an English
corporation to replace the Northern g.
cur.ties Company, in the belief that the
courts would decide adversely TO the
latter's legality.
There Ia absolutely no truth in that
story declared Mr.. Hill. st IL absurd,
and so are reports that Q similar Canadian
corporation would be formed. or that three
trustees will succeed the Northern Securi-
ties Company. Ny trip was purely for
pleasure. We propose to sec the present
case through to the end. and We bslisvS
We viii win it,
DTvrDIND0 MAI arIlL BE PAID.
Col. W. p. Cough, counsel TO the North
sm Securities Company. said that hs had
received no Official notification Of ths
Prom ths reports We havo SEEM added
Col. Cough, Il am utterly unable 10 80 b.
what PROOFS Of reasoning the dscasion vas
reached. Ths main contention, OF oouss.
h that the conduct Of the company b In
restraint Of trade, but how or why = nos
shown. This may be made clsarer vhsn
The TAM Of tbs dedson reaches u.
I'VE viii. Of oourse. take an immediate
appeal. which viii act - . say. Ths
ability Of the company to receive and nay