New-York tribune., 1905-03-07
ROOT WINS HIS CASE.
Supreme Court Decides for HW
Partv an Northern Securities Smt.
IrnoM THE rR1BUNE BUREAU. ]

i
| washington March 6.-Elhu Root. ex-Secretary
of War. to-day won his first great legal battle in
| the United States Supreme Court since nus reue
ment from the Cabinet. Representing the Northe'n
Securities Company. he opposed the Hartman IN
terests in regard the rata Distribution OF the
| Northern Pacific and Great Northern Railway
| shares held by the Securities Company and whiie
the action of the court did not at this tme deter
mine the method of distribution. the opinion 10 Dc
delivered later will. it is obvious. sustain in every
! important particular the contention of The Hill
Morgan faction.
This celebrated case grew out of differences OF
opinion over the distribution of the assets held Dy
| the Northern Securities Company after it had been
declared an illegal combination by the supreme
| Court and was dissolved, year ago this MONTH
Some of the abest legal talent of the country was
employed by the warning factions, and the case was
bitterly contested through the courts up TO the
highest judicial tribunal in the land which has
finally decided the involved problem. The decision
to-day unexpected to those interested in the
suit. for the that the court failed to holo
the consultation last Saturday which usually pre-
cedes action of the Importance of that taken to-
day After numerous opinions had been, handed
down. the lips of the Chief Justice were observed
TO move and it was assumed by those seated with
in the inclosure that he was making an important
announcement. In consequence of this impression
all eyes were focussed the venerable turlst ana
ears were strained to Identify word that might
serve cew Finally members of the bar learned
that u decision had been rendered in the famous
Northern,
office of the clerk OF the court intent securing
confirmation of their information. There it was
found that from the bench had been delivered an
opinion OF grave import TO the world of finance
words which settled one of the greatest questions
now before that august tribunal for adjudication.
The decision of the court was announced by Chief
Justice Fuller. He delivered written opinion,
said that one would be filed later. There was
no dissenting opinion.
The decree OF the Circurt Court Of Appeals, which
VSad tha daCrpa on
the Circuit Court for the District of New-Jersey.
The latter court issued injunction restraining
the Securities Company from transferring or dis
trbuting 77,3I0 shares Of the common stock of the
Northern Pacific Railroad Company acquired by
the Securities Company in the merger Of the North
ern Pacific and the Great Northern roads. This de-
was overruled by the Circuit Court OF Ap-
peals sitting in Philadelphia, and to-days verdict
sustains the reversing decision.
The Court OF Appeals held in effect that the Sc
curities Company had become the absolute legal
and equitable owner the stock Of the railroad
companies. and that the question of ownership had
not been involved even incidentally passed upon
by the Supreme Court OF the United states IN tne
government ca Sc for the dissolution of the merger
The suit was brought by b II. HARTMAN, WINS
Pacific stock held by the Securities Company TO
detsted by them and to restrain the company
from pursuing its plan OF distribution. which was
Of the stock OF the railway companies -, -,
The value Of the stock nyoyed & Is %g fbe
decision came with promptness that was unex-
pected.
Although no formal statement could be obtained
Yesterday afternoon from either Hartman or NOR
gan Hin interests. IN advance Of the receipt mere
of the text Of Chief Justice Fulers remarks In an
nOuncing the decision Of the Supreme Court the
opinion was universally held in Wall street that
the Northern Securities litigation was ended ana
that the company's original plan OF distrloutng l.s
Northern Pacific and Great Northern stock hold
ings would without further delay be carried into
effect The Northern Securities Company hoids
Sl53 80 $40 of the S1550O000 stock Of the Northern
Pacific ana Sis 200 of the $2i192o stock OF the
Great Northern which were acquired by 1t on the
basis OF s0e for sfJ $780, respectively In North
ern Securities stock. The stockholders voted on
April u 1904 TO reduce the stock from SSso4Oo" 10
SO $50 the par value of shares TO remain S' IN
return for each 100 shares of Northern Securities
stock owned the holders were to receive ninety
,na +ir,es 500 u stock OF the Northern Pacifc or
ss7 49, ninety times $50 II stock or the Treat
Northern or 1856 50, and stun lot per cent
ts1OM OF the original Northern SECURITIES STOCK
owned the latter representing the remaining 'sSS
IN the treasury pending completion OF dissolution
II addition TO these securities. the shareholders
OF the Northern Securities Company VIII receive the
accumulated dividends at the rate OF Az per cent d
year payment OF which has been enjoined since the
heotnn,ne Of 1904 The Union Pacific interests turned
I,to tho Northern Securities combination $7023D0
common and 81 OS5 coo preferred stock tpar Vaiue)
of The Northern Pacific. receiving i'll exchange
$50 4S1 81 Cpar value) of Northern securities STOCK
and IS e5 62g cash. and It has been their contention
that as the dissolution of the Northern Securities
Company has been ordered by the Supreme Court
they should receive back their original Northern
Pacific stock In exchange for the Northern Securi
ties stock held by them land upon the payment OF
such sum as the court shall fix in the restoration
of the status quo" For many weeks there has been
an active movement in Northern Securities stock in
the curb market, the buying being attributed by
Wall Street in part to the Hartman party.
on the announcement from Washington of the
Supreme Courts decision Northern Securities rose
RAPIDLY from 1875 TO 1925. extensive dealings
easing off TO 1611a at the close. Union Pacific de-
clned about point 1926 and then rallied
to 1885, later in the afternoon touching 1856 and clos
ing al 134I5 net gain of 4 per cent. Its strength
was aseribed to the fact that the company would
soon receive the dividends. amounting TO about
So 700 coo which due il upon its Northern Sc
curities stock holdings. st. Paul, Southern Pacific
and Chicago and Northwestern also We're strong in
the late trading.