The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-04-21
THE DOOR OPENEDTO
PAY THE DIVIDENDS
Decree in the Great Merger
Case Modified.
DECISION BY SANB0RN
This Modification Removes all Obstacles 10
Carrying On Regular Business by Com
panes lnvoIyed---The Appeal to
The Supreme Court
(By Associated Press.)

(By Associated Press)
ST Paul. Min, April 2O.--At noon to-
day Circuit Court Judge Sanborn handed
down decision granting the request of
the attorney for the Northern Securities
Company to be permitted to pay Great
Northern ad Northern Pacific dividends
to the Northern Securities Company. The
decision says in part:
The appeal in this case will probably
be determined by the Supreme Court
about November, 1903. 1t is not perceiy
ed how the payment of the retention of
these dividends during the pendency of
this appeal can injuriously affect any
right of the the United States in this Ii
tigation and the only question here is
whether these dividends shall be piled up
in the treasures of the railway COM
panies or paid to the stockholders to
whom they legally belong and who must
ultimately receive them which ever the
final decision in this case may be-, These
dividends ultimately will go to the stock
holders of the Northern Securities Com
pany whether paid as they are earned or
after the final decision. IL the railroad
companies are permitted TO pay their di-
vidends to the securities company that
company will pay them over to its stock
holders The decree permits the stock
holders of the Securities Company to ex-
change their stock for the stock of their
railroad companies and can draw these
dividends upon the latter. IL the Supreme
Court reverses the decree. the same par
ties can draw these dividends by the
railroad companies while the appeal is
pending will not enhance or speed the
enforcement of any legal right of the
United States, while it might inflict un-
necessary loss upon the stockholders who
are justly entitled to receive those divi-
dends as soon as they are earned.
THAT order OF the court will according
ly be that the operation of that portion
of the decree which enjoins the railroad
companies from paying the dividends
upon their stocks which is held by the
Northern Securities being suspended
during the tendency of the appeal upon
the giving OF an approved bond in the
sum of $4,000 by or in behalf OF the
defendants conditioned that they will
prosecute their appeal with effect and
will pay all damages that shall result to
der.
ut is ordered that the giving of an ap-
proved bond to lne United States by or
in behalf OF the defendants in the sum
of $780, 900 conditioned to prosecute either
appeal with effect, and to pay all dam
ages which may result to the United
States from this order, that portion of
the injunction contained in the final de-
n
Railroad Company and the Great North
en- Railroad Company, their officers, di-
rectors, their servants and agents from
paying dividends to the Northern Securi-
ties Company on account of stock in
either railroad companies, which the Sc
curities Company on account of stock in
either railroad companies, which the Sc
curities 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 retains 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.
Judge George b. Young appeared for
the Northern Securities Company, NJ. ID.
Grover for the Great Northern Railway
and c. w. Bum for the Northern Pa
cific Railway District Attorney Haupt
appeared for the Government. The de-
PENDANTS were. he maintained, asking 10
court to nullfy the decree to permit a
violation OF law. The fact of losses to
stockholders was, he admitted, unfort-
unate but since the corporation was
violating law there was nothing for the
court TO do but to see to the enforce
ment of the law The petition was in
reality a request to suspend a statute
and not to suspend a decree.
Judge Young. for the Northern Sc
curlties Company, contended that the fact
OF an appeal to a higher court, was in
tselt form of suspension of the decree
ana maintained that the requested pay
meht OF the dividends would not in any
way AFFECT the general terms of the dc
cree Ihis suspension OF smsdl part
OF the decree would not be violation
OF the law to prevent a restraint of
trade The injunction hc1ng obeved
would be just as effective whether the
dividend paying be permitted or not
Mr.. Bum, general counsel for the
Northern Pacific Railway. maintained
that the petition was not for a suspension
of decree against a violation. of law
but that this was clearly case in oo,,itv
under the provisions of common law
appRAI tn Tur suppu~z -z