The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-05-22
ROOT ARGUES
MERGER CASE
Defends Plan to D;Strib-
ute Assets.
HE DISCUSSES THE DECISION
Defines Effect Of Supreme Court RuI-
in Northern Securi-
tics Case.
He DISCUSSES THE DECISION

NEWARK. n. J., May 21.-Elihu Root
began the session of the second day in
the hearing Of arguments In the suit
o. Edward II Hartman Winslow S
Pierce, the Oregon Short Line Railroad
Company. against the Northern Securi-
ties Company. in the United States cir
cult court this morning. Judge Edward
G. Bradford, Of the Delaware district.
presided.
Mr. Root Started his argument yester-
day afternoon. continuing for an hour
and a half After Richard V. Linda
bury, for the cOmplainants, had finished
his plea, be outlined the argument for
the defense, and elaborated some OF his
points. lie went along the same line
this morning.
Distinguished Counsel
The case has gathered a distinguished
group Of counsel. and all were present
this morning. 1t WAS settled this morn
ing that the rest OF the session today
should be devoted 10 the closing portion
OF Mr.. Roots argument. and to the
plea Of Thomas Thatcher. who asked
yesterday 10 be heard IN behalf Of Eric
P. Dagren, a holder OF bonds, in the
possession Of the Equitable Trust Com
pany. w. c. Guthrie. counsel for the
compliments, and John G. Johnson. of
Philadelphia. for the defendants. are to
divide the time of the court at the
at 1:30 o'clock Each one of the lat
ter expressed his belief that he could
finish in his half of the allotted time
Supreme Court Decision.
Mr.. Root. in resuming his argument
suggested by the court at the close Of
the session yesterday afternoon. Coun-
SCI referred to the decision Of the SUI
preme Court Of the United States In the
Government case. saying that the de-
cision had done little more than to re-
strain the Northern Securities Com
pany from exercising the right Of con-
troll over the railroad companies whose
stock II had held. enjoining II from &C
qIlring more stock or from voting upon
stock in its possession. and enjo!ning the
roads involved from paying dividends on
their stock.
The Attorney General. he said. had
asked that the court order the return
Of the Northern Pacific and Great
Northern stocks to those who had de-
posted them in exchange for securities.
and that the court had not granted this
request.
Judge Bradford asked II the decision
Of the court had not been limited to
the concern Of the Government IN the
transactions in litigation. and Mr. Root
replied that the interest OF the Gov
eminent had been covered fully by the |
orders contained in the decision. so far
as the court believed It extended.
Price of Stock.
Mr.. Root, for the second time in his !
argument referred 70 the difference in /
The price Of the Northern Pacific stock |
since 1t was put in. and said in that lay |
he only reason for the demands OF the |
1t had been agreed. he |
said. that it should go in at a certain /
price. but. since then. Northern Pacific /
stock had gone up and Great Northern /
lad gone down
counsel. why the complainants were 4
skiing for the return OF their Northern 1
Pacific and refusing to consent TO the I
Aquitablc pro rata division of all the as !
tets OF the Northern Securities Com
amy.
Referring 10 the decision In the Gov
.rnment case again. he said that there |
vas nothing In II TO forbid the dis
ributiOn or the assets according to the I
Ian since adopted by the Northern
Securities Company.