The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-21
And Reasons Given for Permitting
Northern Securities Company Stock
holders to Receive Dividends.
APPEAL TO SUPREME COURT
THIRTY-FOUR POINTS OF ERROR AL
LEGGED By HILLS COUNSEL.
Exceptions Noted to Every Paragraph
I'm the Decree Granted the
United States Government.

81. PAUL, April oU---At noon lO-udy
United States Circuit Court Judge Sanborn
handed down the following decision grant
ing the request of the attorneys for the
Northern Securities Company to be per-
mitted to pay Great Northern and North
ern Pacific dividends to the Northern Sc
curities Company:
THE defendants in this case have the
right under the acts of Congress to appeal
from the decree of the Circuit Court to the
Supreme Court. They have claimed the
right. Ordinarily those who have the
right to view a judgment or decree or
the Circuit Court also have the right
upon giving proper bond to supersede the
effect OF the Judgment or decree during the
pendency of the appeal. But where, as In
the case at bar, the decree awards an in
junction the ordinary supersedeas stays
proceedings, but does not raise the inJunc-
ton:
ITO enable the courts to prevent unnec-
essary loss or injury TO the parties 10 liti-
CATION In such cases the Supreme Court
provided Rule SO that when an appeal is
allowed from a final decree granting an In
junction judge who took part in the de-
cision may make an order suspendng the
injunction during the pendency OF the ap-
peal upon such terms as to bond or other
wise as he may consider proper for the
security OF the opposite party. 1t is the
customary practice for the courts TO exer-
else this power whenever their action will
not inturiously affect the rights of the
party who has secured the injunction. In
The main purpose and effect of the de-
cree Is TO prevent the Northern Securities
Company from controlling and operating
the Great Northern and Northern Pacific
Railroads, and to accomplish this end Ii
en1oins that company from exercising any
control over their operation and from ae-
qutring or voting any. of the stock of the
railroad companies, and 1t also enjoins the
railroad companies from paying the North
ern Securities Company any dividends on
their stock. This Is not an application to
suspend this injunction. The defendants
ask only that the part OF the injunction
which forbids the payment of the dividends
oe suspended during the tendency OF the
These dividends do not belong and can
not In any event be paid TO the United
States. 1t does not claim to have and Ii
has not any pecuniary interest in them.
Its purpose in prosecuting this suit and its
interest in this injunction are only thereby
tons In restraint of trade, and to prevent
the Northern Securities Company from
controlling. directing, owning. operating or
interfering with competing roads. This in
terest, IL will be noticed, is protected by
that portion of the injunction which for
bids the management or control of these
railroads by the Northern Securities Com
pany, and forbids IL from voting or ac-
quiring any stock of these railroad compa-
nies. This portion of the injunction, indeed
every part OF the decree and this injunc-
ton. Is in force and will continue In force
during the pendency of this appeal in any
event. During this time the United States
portion
the decree, which will not be modified or
suspended. complete remedy for any viO-
latlon of the Sherman antitrust act to
occur, both by PROCEEDINGS for contemp mpt
under this injunction and by proceedings
under the penal clause Of the Sherman
antitrust act.
zine appeal in this case probably will
be determined by the Supreme Court about
November. 1903 1t is not perceived how
the payment or the retention of these div
idends curing the tendency of this appeal
.frwl.r
United States in this litigation and the
only question here Is whether these divi-
dends shall be piled up in the treasures
OF the railway companies or paid to the
stockholders TO whom they legally belong,
and who must ultimately receive them
whichever the final decision In this case
may be- These dividends will ultimately
go 10 the stockholders OF the Northern
Securities Company. whether paid as they
are earned or after the final decision. If
the railroad companies permitted to
pay their dividends to the Securities Com
pany that company will pay them over To
its stockholders. The decree permits the
exchange their stock for the stocks of the
railroad companies for which il is issued.
II the supreme Court affirms this decree
Company can exchange their stock for the
stock OF the railroad companies and can
draw these dividends upon the latter. Ii
the supreme Court reverses the decree the
same parties can draw these dividends
upon their Northern Securities stock The
retention or the dividends by the railroad
comp anies while the appeal is pending will
not enhance or speed the enforcement OF
any legal right of the United States while
if might inffict unnecessary loss and injury
upon the stockholders who are Justly en-.
titled 10 receive those dividends as soon as
they earned.
1.-The order of the court will accordingly
be that the operation of that portion OF
the decree which enjoins the railway com
panies from paying the dividends upon the
stock which is held by the Northern Securi-
ties Company he suspended during the pen
dency OF the appeal upon the giving of an
approved bond in the sum OF $4,000 by on
on behalf of the defendants conditioned
that they will prosecute their decree with
effect and will pay all damages which re.
suit TO the United States by reason of the
order
1T Is ordered that upon the giving OF an
approved bond to the United States by or
on I,ehalf Of the defendants I'm the sum OF
$4,000. conditioned to prosecute their an
peal with effect and to pay all damages
which may result 10 the United States from
this order. that portion of the injunction
contained In the final decree herein which
forbids the Northern Pacific Railway Com.
pany and the Great Northern Railroad
Company. their officers. directors, servants
and agents from paying dividends TO the
Northern Securities Company on account
OF stock In either of the railway companie:
which the Securities Company claims tC
own and hold. is suspended during the pen
dency OF the appeal allowed herein this day
All other portions OF the decree and OF the
injunction IL contains remain in force anC
are unaffected by this order"
fIteT the reading OF the decision the ap
peai was perfected and the bond was fiieC