The Birmingham age-herald., 1903-04-21
Circuit Judge SanbOrn Sets Aside Part of Injunction
 in the Merger Case
NORTHERN SECURITIES CO.
 REQUIRED ID GIVE BOND
Order VIII Allow Payments of DivI- dends to Northern Pacific and the Great Northern Railroads.
 Interesting Decision.

St. Paul. Minn., April 2o.--At noon today Circuit Court Judge sanborn handed down the following decisions granting the request of the attorneys for the North ern Securities company to be permitted to pay Great Northern and Northern Pacific dividends to the Northern Securities com pany
 "rhe 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 that right Ordinarily those who have the right to view a judgment or decree of the Circuit court also have the right upon giving a proper bond to supercede the ef- feet of the judgment or decree during the pendency of appeal, but whereas. as in the case at the bar. the decree awards an injunction in the ordinary supercedeas stays proceedings but does not raise the injunction.
 To Prevent Unnecessary Loss.
 To enable the courts to prevent unnec- essary loss or injury to the parties to litigation in such cases, the Supreme court provided by rule 93, that when an appeal Is allowed from final decree granting an injunction judge who took part in the decision may make an order suspending the injunction during tho pendency of the appeal upon such terms as he may consider proper for the se- oP t.. customary practice for the courts to ex- ercse this power whenever their action will not injurlously affect the rights of the party who has secured the injunction. In this case that party is the United States. The main purpose and effect of the decree is to prevent the Northern Securities from controlling and operating the Great Northern and Northern Pacific railroads, and to accomplish this end 1t enjoins that company from exercising any control over their operation and from acquiring or voting any of the stock of the railroad companies and 1t also enjoins the railroad companies from paying the Northern Securities company any divi- dends on their stock
 Only Part Suspended.
 This Is not an application to suspend the injunction. The defendants ask only that the part of the injunction which for bids the payment of the dividends be suspended during the pendency of the ap- peal.
 These dividends do not belong and can not in any event be paid to the United States It does not claim to have such right. This suit and the interest in this injunction are only to enforce the law against Illegal combinations in restraint f. Securities company from controlling, d. rectng, owning, operating or interfering with the competing railroads. This inter- est it 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 It from voting or ac- quiring any stock of these railroad com- panies. This portion of the injunction, indeed, every part of the decree and this injunction is in force, and will continue in force during the pendency of this ap- peal. in any event. During this time the United States has and will have, under thls portion of the decree. which will not be modified or suspended, a complete remedy for any violation of the Sherman antitrust act. should 1t occur. both by proceedings for contempt under this in- junction and by proceedings under the penal clause of the Sherman anti-trust act.
 Appeal Determined in November.
 The appeal in this case will probably be determined by the SupIefne court about November, 1903. It is hot perceived how the payment or the retention of the dividends during the pendency of this appeal can injuriously affect any right of the United States in this litigation, and the only question here Is whether these dividends shall be piled up in the treasuries of the railroad companies or paid to the stockholders to whom they legally belong, and who must ultimately receive them. whichever the final decis- ion in the case may be. The dividends will ultimately go to the stockholders of the Northern Securities company wheth- CT paid as they are earned or after the final decision. If the railroad companies are permitted to pay their dividends to the Securities company that company will pay them over to its stockholders. The decree permits the stockholders of the Securities company to exchange their stock for the stock of the railroad com panies for which 1t was issued. If the Supreme court affirms this decree the stockholders of the Northern Securities company can exchange their stock for the stock of the railroad companies and can draw the dividends upon the latter If the Supreme court reverses the decree the same parties can draw these divi- dends upon their Northern Securities stock. The retention of the dividends by the railroad companies while the ap- peal is pending will not enhance or speed the enforcement of any legal right of the United States while it might infict un- necessary loss and injury upon the stock holders, who are justly entitled to re- celve these dividends as soon as they are earned.
 Portion of Decree Suspended.
 The order of the court will accordnly be that the operation of that portion of the decree which enjoins the railway