Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-06
NORTHERN SECURITIES
Decision of the U. s. Supreme
Court.
HILL -MORG AN PARTY
WIN A VICTORY OVER THE HAIR
RIMAN INTERESTS.
Many Millions Involved in the Contest
Over the Distribution Of
the Assets.

The United States Supreme Court TODAY
I gave the Hill-Morgan party victory in
the suit brought against them by the
Hartman interests in regard to the dis
tribution of the assets of the Northern
Securities Company, which was dissolved
by the Supreme Court one year ago to-
morrow. The Supreme Court today up
held the circuit court of appeals, which
reversed a decision of the circuit courts
of New Jersey granting an injunction to
Hartman against the proposed distribu-
tfon of the Northern Securities assets.
The court did not hand down an opinion.
but stated that an opinion would be de-
Hvered later, and the court, therefore,
had nothing to say today on the method
of distribution.
The decision today was a complete sur
prise to everybody interested in the suit,
for the reason that the court did not hold
Its usual consultation last Saturday. and
that no one was expecting the decision.
Chief Justice Fuller made the announce
ment after other justices had handed
down opinions upon other cases, and as
the justice invariably speaks in very
low tone of voice his announcement was
not understood at first and it was some
time before members Of the bar grasped
the fact that decision had been rem
dered in this celebrated case.
Millions of Dollars Involved.
A great many millions of dollars are in.
volved in todays action of the court. AS
the case now stands on the face of it. Mr..
Hartman would seem to be the loser. but
the relations of the parties to the North
ern Securities are so intricate and involved
that no one but the counsel of the op-
posing parties could figure out just how
I>the affair stands This case is a quarrel be-
tween the parties to the famous Northern
Securities trust over the distribution Of
no int
attempted to be formed.
When the Supreme Court knocked the
Northern Securities trust into cooked hat
a year ago the parties to the combination
Immediately set about to distribute the
securities that had been put In.
The Hill-Morgan party had put in certain
shares of Great Northern stock at a stipu-
lated figure, and Mr.. Hartman had put In
certain shares of Northern Pacific stock at
a stipulated figure. both in return for cer-
tiffcates of the Northern Securities Com
pany. When the distribution came to hand
the Hill-Morgan party, being in control.
proposed that the railroad securities should
! be returned pro rata. This did not suit
Mr.. Hartman. He wanted his Northern
Pacific stock given back to him. and didn't
want to have any of Mr.. Hills Great North
ern stock loaded upon him, as would be the
case If the two railroad stocks should be
divided pro rata. Mr.. Hartman estimated
that he would lose about 100000 If the
Hill Morgan plan should be carried out.
So Mr.. Hartman applied to the circuit
court for the district of New Jersey for an
injunction prohibiting the distribution pro
rata. The circuit court granted an injunc-
tion, but Mr.. Hill appealed to the court or
appeals, which reversed the circuit court,
and the act of the court of appeals was to-
day sustained by the supreme court, TO
which body Mr.. Hartman had appealed
through writ of certiorarf.
The Two Contentious.
The brief, which was filed in the United
on 10
tiorari, showed the contentious of the
parties to the original trust scheme. For
instance, Mr.. Hartman, when the North
ern Securities case was up. contended that
the Northern Securities was the possessor
of the stock of the railroads. In this cae,
however it suited his purpose and was nec-
essary to insist that the Northern Securl-
ties had only been a holding corporation
Mr. Hartman further insisted in this case
that ii the stock should be divided pro rata
between the railroads as proposed by Mr.
Hill the original parties to the Northern
Securities Company would still be in con-
troll of the competing lines. and that as
matter of fact the very object which the
Supreme Court sought to prevent by dls-
solving the Northern Securities would be
ACCOMPLISHED in this distribution. The Hill
Morgan counsel secuted the suggestion, ana
claimed that it was Hartman who was try
ing to perpetuate a monopoly by securing
control of the Northern Pacific stock. So
far as known the government was not in
tel ested in the method of distribution, but
ONLY insisted that the Northern Securities
should be dissolved and the distribution of
assets made