Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-04-20
PETITION GRANTED
Merger. Companies May Pay
Dividends.
DECREE SUSPENDED
ARGUMENT BEFORE JUDGE SAN
BORN AT ST. PAUL.
District Attorney Haupt Opposes the
Motioh-Appea1 in Case
Perfected.

States Circuit Judge W. H. Sanborn today
| appeared attorneys for the Northern Sc
curities Company and the Northern Pacific
and the Great Northern Railway compa-
MES to present their request that the re-
cent decree against the Northern Securities
Company be SO far suspended as to permit
| the payment by the railroads Of the regu-
lar May dividends to the securities COM
pany. They maintain that the money would
| ultimately reach the same individuals
| whether paid to them direct or through the
medium Of the Northern Securities Com
pany. On all other points of the decree
no modification was asked.
The attorneys presented this petition to
| Judge Sanborn Friday, but United States
tions from Attorney General Knox. OBJ
jected, and the case was set for argument
today. little over 100000 will be re-
| leased for the May dividends, If the petit
ton is granted, and nearly $14, 600 900 would
be paid out before a decision can be Sc
cured from the Supreme Court of the
United States.
Further instructions from Attorney Gen
eral Knox this morning were to the effect
that he should continue to oppose the peti-
ton and not to agree to any suspension of
the decree.
George B. Young appeared for the North
ern Securities Company, M. D. Grover for
the Great Northern railway and c. w.
Bum for the Northern Pacific railway.
Argument Against Petition.
District Attorney Haupt appeared for the
government and at once opened the argu-
ment against the petition presented last
Friday by the attorneys for the securities
| and railway companies Under the provis-
ions of the act for expediting such matters
all the judges should sit, and he thought
the action not one which could properly
even in part-be set aside. The govern
ment had sought to prevent the violation
of law, and that was what the decree en-
joined. The defendants were, he main
tanned. asking the court to nullify the de-
cree, to permit violation of law. The de-
cree was in accordance with public policy
and really enjoined nuisance. He cited
cases to sustain his contention that such a
suspension was not permissible except in a
case where the damages could be estima ted
in dollars and cents, whereas this was
purely a request to permit violation of a
statute. The fact of losses to stockholders
was, he admitted, unfortunate, but since
the corporation was violating law there
to the enforcement of the law. The pc
tition was in reality request to suspend a
statute and not to suspend decree.
Contention Of the Petitioners.
Mr.. Young, for the Northern Securities
Company, contended that the fact of an
appeal to a higher court was in itself
form of suspension of the decree, and
maintained that the requested payment of
the dividends would not in any way af-
feet the general terms of the decree. This
suspension of small part of the decree
would not be violation of the law to pre-
vent a restraint of trade. The injunction
being obeyed would be just as effective
whether the dividend paying be permitted
or not He maintained that the dividend
injunction practically ancillary and
did not come under the main injunc-
ton. which referred to the running
of the railroads No harm could result If
the Northern Securities was permitted to
distribute the dividends, instead of having
the money accumulate in the banks of New
York He insisted the money would reach
the same people ultimately and that to
give it to them now would benefit them and
harm no one else.
Mr.. C.. W. Bum, general counsel for the
Northern Pacific railway, maintained that
the petition was not for suspension Of
decree against violation of law but that
this was clearly case in equity under the
provisions of common law. He considered
the request perfectly fair and just, but
that the action in opposing 1t was unfair.
Mr.. Haupt repeated his contentious as to
the violation of the statutes, arguing
against the points presented by Mr.. Young
and Mr.. Bum.
The Petition Granted.
The petition was granted, Judge Sanborn
announcing the decision at noon.
The appeal has been perfected and tho
bond will be filed at once.
WILL NOT BE MODIFIED.