The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-04-18

Judge George B. Young and Attor-
neys NJ D. Grover and c. w. Butnn
counsel representing the interests of
the Northern Securities company, ap-
piled to Judge Sanborn, of the circuit
court of appeals, yesterday, asking that
they be granted SuperSedeaS bond
which would modify that portion of the
courts decree in the case of the United
States against the Northern Securities
company prohibiting the payment Of
dividends already earned.
Judge Sanborn will hear the argu-
mentS in the matter Monday, at which
time the Northern Securities company
will file its appeal from the decision
of the circuit court of appeals regard
less of the decision of Judge Sanborn
on the application for a modification of
that portion of the decree relating to
dividends
1t was explained by the counsel for
the Securities company that they de-
sired to pay the regular dividends into
the treasury of the Northern Securities
company, that the holding company
might be able to declare its quarterly
dividend on May 1.
Judge Young explained that such a
procedure would make no difference to
the government, as the money would
ultimately be paid to the persons en-
titled to it on their stock in the North
ern Securities company, no matter
whether the holding company was dis
solved by the order Of the court or not.
NJ. D. Grover stated that the ap-
plicatiOn was made for the purpose of
protecting the holders of Northern Sc
curities stock from the .manipulators on
Wall street. Unless the dividend could
be paid the stock might needleSsly de-
preciate in value. The Northern Sc
curities counsel contended that it could
h ,Jro 20
government, because the money wouU
go to the same people in the end any,
way, but it was for the purpose of pro-
tecting the stock on the market. 1t
was argued that the moral effect of
tying up millions of dollars during the
tendency of suits in the courts would
unfavorably affect the value of the
stock in question.
Government Objects to Modification.
After the application for a modifica-
ton of the decree had been argued,
District Attorney Haupt objected to the
allowance of the application. He in
formed Judge Sanborn that he had re-
ceiyed Geographic instructions from
Attorney General Knox to resist any
efforts on the part of the counsel for
the defense to secure a modification of
any part of the decree
Judge Sanborn suggested that the
application go over until May 1, at
which time three judges of the circuit
court would be in st. Paul.
This was objected to by Mr.. Grover
who said such a delay would involve
the tying up of four millions Of dollars.
In fact, the defense had not anticipated
any opposition whatever in their eff
forts TO secure a modification of that
part of the decree asked for.
Judge Sanborn continued the mat
fnY. No., H.
Mr.. Grover informed the court that
John w. Griggs, one of the counsel re-
tanned by the Securities company dur
ing the recent trial of the case had
talked the decision over with Attorney
General Knox, at which time the at
torney general stated that the govern
ment did not wish to stand in the way
Of the stockholders receiving any
money or dividends that might legiti-
mately belong to them. He thought the
action of Attorney General Knox in
instructing Mr.. Haupt to oppose pro-
ceedings which would make this every
thing possible, was more for the nur-
pose of avoiding public criticism than
from any desire to inconvenience the
stockholders of the Northern Securities
company, since the government was not
financially interested in the outcome
of the case.
The Geographic Instructions received
by District Attorney Haupt from At
torney General Knox from Washing
ton, and upon which he based his OBJ
lection to the application of the defense
for modification of the decree, are as
follows:
Attorney Generals Instructions.
cit is likely defendants in Northern Sc
curities case will forthwith and possibly
without notice appeal to circuit court or
judge there for modification of decree
pending appeal, or for order making ap-
peal operate as Supersedeas. You are di-
rected to watch this matter closely and
earnestly oppose any such application on
ground that this is not an ordinary case
OF equity Jurisdiction between private
parties, but special and enlarged statu-
tory remedy in equity to enjoin violation
of a penal law. The decree finds defend
ants guilty of violating the declared pub
lie policy of the nation. For that rea-
son the government opposes any sus-
pension or modification of the judgment
Of the court
The modification proposed would in
effect be an indulgence to continue to
the suspension of the operation of law
is not the exercise of a judicial function.
it is uncomfortable that equity rule -
contemplateS suspension or modifica ton
upon terms that will secure such things
of an opposite party as could be protect
ed by a bond to indemnify. This is not
such a case. The principal relief grant
ed by this decree is the injunction; to
suspend it would produce the same effect
as certificate of division in the cir
cult court, and deprive the decree of it's