Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-07-15
Judge Bradford Grants Pre-
liminary Injunction.
NORTHERN SECURITIES
RFSTRAINS PROPOSED PRO RATA
DISTRIBUTION OF ITS ASSETS.
Suit Brought by Hartman, Pierce and
Others-Opinion Is Voluminous-
Main Points in Case.

ford today granted a preliminary injunction
in the suit brought by Edward II. Harri-
man, Winslow S. Pierce and others TO re-
strain the proposed pro rata distribution
of the assets of the Northern Securities
Company. This is defeat for the Hill in
terests. The opinion is fifty typewriter
pages in length.
The litigation turned largely on the ques-
tion as to the title of the Northern Pacific
stock which f. II. Hartman and Winslow
8. Pierce put into the combination and
which amounted to about s79,00O.O 900. The
contention of the Northern Securities Com
pany was that the stock had become abso-
lutte property of that company and that 1t
was perfectly legal for the Northern Secu-
rites Company to carry out the pro rata
plan of distribution upon which the COM
pany had agreed. Hartman contended that
by reason of the corporation being declared
illegal by the United States Supreme Court
title had not passed from Hartman and
Pierce and in consequence they were en-
titled to have returned to them the paruc-
ular stock they had put into the comblna-
tion and which involved control OF the
Northern Pacific Company.
Effect on the Market.
The announcement of the Northern Secu-
rifles decision caused a convulsive bound In
Union Pacific to 95A and in Southern Pa
cifc to 51h. Both stocks then ran of, the
former z and the latter point. The de-
cision had been so accurately and confident
.ly foreseen for three days past that the dis
position was to take profits In the market
after the announcement, and prices yielded
all around under this influence. The enor-
nous absorption of Union Paclhc convert
ible bonds was feature OF the trading; ;,, On
the curb Northern Securities, after seillnS
at 1881, reacted abruptly to lOl.
Does Not Dispose of Main Points
dispose of the main points at issue In the
case which were whether or not Hartman
and Pierce should have returned to them
the stock of the Northern Pacific Company
which they put into the Northern Securities
Company, or whether they should have dis
tributed them the stock Of both the NORTH
ern Pacific and the Great Northern com
panies on the pro rata basis provided FOR
by the directors of the Northern securities
Company.
Discusses Legal Question.
Judge Bradford devotes most of his opin-
ion to the discussion of legal question
as to whether he should grant a prelimi-
nary Injunction and he takes the position
that as long as there is any doubt In the
case and no injury can come to the COM
plainants a preliminary injunction should
be granted.
He saws further that the failure to grant
a preliminary injunction would permit the
distribution of the stock in the Northern
Pacific Company, to which Hartman and
Pierce claim title and put the complain
ants in a position where they would be able
to secure relief to which they would be en-
titled should the be decided in their
favor on final hearing.
Hill Declines to Talk.
NEW YORK. July 15.-At the office of
the Northern Securities Company in this
city It was SAID that President Hill would
not say anything on the subject, at least
until after he had read the judges deci-
sion.
Benefits Of Doubt.
The Judge also said that a preliminary
injunction should only be refused where 1t
was absolutely positive that the complain
ants could not win the case when 1t came
to a final hearing The complainants were
entitled, he said to benefits OF every
sonable doubt as to the distribution OF the
case when IL should come up on final hear
ing, and he intimated that II was not al
ways easy to anticipate judicial decision,
when all the facts had been presented. In
the present case, he stated there were q
number of points upon which II would be
necessary for the presentation of more evil
dence than is now before the court
Effect of Decision.
Judge Bradford in discussing the advis-
ability of granting a preliminary injunction.
said that such injunction would not inter
fere with the operation OF either railroad
nor would II be injurious to the public He
said II might be contended that the injunc-
tion would interfere with the distribution
OF dividends the stock of the Northern
Securities Company, or at least a part
of that stock, but that II was within the
courts power to require bonds to protect
any stockholders from any possible losses
Judge Bradford in his decision does not
provide for the form OF "a decree and asks
that form be submitted to him. In grant
ing preliminary injunction the judge has
followed practically the policy that con-
trolled Judge Kirkpatrick when the latter
granted an injunction restraining the Penn
sylvania Railroad Company from taking
down the poles and wires of the Western
Union Telegraph Company when the COM
pany had been ordered to remove those
poles and wires from the railroad com
pany's property.
Point Involved
The point then. as now. was that unless a
preliminary Injunction had been granted
the relief sought could not be obtained
though a decision may be granted in favor
OF the complainant on the final hearing In
the present case Hartman and Pierce are
asking for the return of the particular stock
OF the Northern Pacific Railway Company
which they put into the combination If
the pro rata distribution were not to be en-
Joined and Hartman and Pierce would
win on the final hearing the particular
stock for which they are suing to recover
would already be distributed and their vic
tory would be barren one.