The Providence news. (Providence [R.I.]) 1891-1906, 1904-02-02
AMALGAMATED
GETS DECISION.
Can Hold Stock in Montana
Copper Mines.
100000 IN DIVIDENDS FREED
Supreme Court Decides Concern Is Not
TTustOr Monopoly, and Can Hold and
sOIe Stock.
$3,OOO,OOOIN IN DIVIDENDS FREED

Butte. Mont. Feb. 2.-rhe state supreme
court yesterday reversed the decision of
Judge Clancy OF the district court OF Sill
yer Bow county in the famous Injunction
case OF John Macginniss against the Bos-
ton and Montana Copper company and
others. and Macginniss and Lamm against
the Parrot and the Boston and Montana
companies from paying dividends or
transferring property TO the Amalgamated
Copper company.
The decision Is sweeping I'm favor of the
Amalgamated company and IL releases
about 100000 OF Boston and Montana
and Parrot dividends. which the Anal
gamated had been unable to collect
The court holds that the state law per-
mftting one corporation To hold stock I'm
another is constitutional This is equally
valuable for the AmaIgamated, as IL per
init ia 10 do just what II. A. Heinze, who
was the real plaintiff, contended II could
not do.
1t was Judge Clancys decision in this
injunction case last fall that brought
about the suspension of the Amalgamated
mines, as IL threatened 10 prevent that
company from ever holding Montana min
ing stock.
The court says the propriety OF the ac-
ton Of the district court in granting the
injunction restraining the payment of
dividends TO the eAmalgamated company on
stock held by IL in the Boston and Mon
tana depends upon two fundamental ques-
tons: Did the transaction by which the
Amalgamated acquired a majority OF
shares I'm the Boston and Montana have
for it's purpose, or result, in the forma-
tion OF trust Within the meaning OF the
law, and, IL not, IL II in violation OF the
rights OF the plaintiff for the Amalga-
mated TO own and vote shares OF the stock
in the Boston and Montana so hong as
its power is not used to the detriment of
the plaintiff? Both questions are an
swered in the negative.
THE NEW YORK VIEW.
New York. Feb. 2--On the New York
Stock Exchange news of the decision was
reflected in very sharp advance In the
stock of the Amaigamated Copper COM
pany. which early I'm the day had sold as
low as i7i9, but which, after the decision
was made public. rose TO 5OSs, an ad-
vance of 2Ss points for the day. For a lit
tie time there was some doubt as 20
whether the decision had been really
handed down or not, because one of the
Wall street news agencies failed to hear
OF II as quickly as the other and put out
bulletins saying that IL had not received
any such news.
William Scalion. the leading legal ad-
wiser of the Amalgamated Copper COM
pany who Is now I'm this city, made the
following statement:
The decision is one of the greatest i'm
portance. 1t involves the very righN OF
existence OF the Amalgamated Copper
company I'm the state of Montana. II in
wolves the right to own stock. 10 vote IL
and draw dividends on IT; also whether
the Amaigarnated Copper company IL a
trust prohibited by the Montana laws.
On all these points the decision IS favor
able.
IL holds that the company has the same
right as a stockholders that an individual
would have and that II Is not trust
or a monopoly. This now Is a simple act
of justice by the Montana Supreme court.
which had been denied by the lower
courts Clancy's court had held that not
only had the Amalgamated Copper no right
TO vote the stock. but that 1T could not
own Il or draw dividends on 1t; that the
stock became extinct upon its acquisition
by the Amalgamated company and that the
latter was a stranger. The decision recog-
nizes the legality of the existence of the
Amalgamated Copper company and gives
II the right OF citizenship"
Butte. Mont. Feb. 2.-William Scallon
has telegraphed from New York that he
has resigned as president OF the Ana
conda Copper company and manager Of
the amalgamated properties In Montana.
The reason given is pressure of private
affairs.