Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-01-03
HARTMAN INTERESTS DEFEATED
The n. 5. Company Given the Right to
Dispose Of Northern Pacific
Railway Stock,
711410 SHARES ARE INVOLVED.
Opinion by Dallas Gray Dlssented--
Mr.. Hartman Refuses to Talk
On the Matter

Philadelphia, Jan. S.--The United
States court OF appeals for the Third
judicial district, in an opinion filed here
today, reyerses decision OF the New
Jersey circuit court, which restrained
The Northern Securities company from
distributing certain stock of the North
ern Pacific Railroad company. The de-
cislon is a defeat for the interest rep
resented by ID. II. Hartman. BY a
decree Of the New Jersey court the
Northern Securities company was re-
strained from disposlng OF $40, 800 shares
Of the common stock Of the Northern
Pacific Railway company. alleged 70
have been received from II. II. Harri-
man and Wlnslow s. Pierce and OF
$4,000 shares Of the common stock OF
the Northern Pacific Railway company
received by the Northern Securities
company from the Northern Pacific
company. Todays decision, however,
gives the Northern Securities company
the right to dispose OF the stock, Har-
rlman and Pierce, when the Northern
Securities company had been declared
by the United States supreme court
so be an Illegal combination, demand
ed the return Of the original stock they
had contributed at the time OF the or
ganigation Of the combination, The
Northern Securities company, Il was
ciaimedf intended 10 make a pro-rata
distribution OF the stock OF the con.
tubuting company.
The opinion was written by Judge
Dallas. After reviewing the organiza.
ton Of the combination and subse-
quent history the decision says:
Hartman averred that the shares
Of railway stock In question were ao-
CURED by the securities company; that
It would hold them as custodian, deposit
tory, trustee and owners Of said shares
were the parties who originally ex-
changed the same for stock IN the |
Northern Securities company
The Northern Securities company
claimed that It acquired the stock by
purchase. and that it owns the stock !
outright"
After quoting the resolution under
which thu stock was acquired, the opin-
ION says the resolution contemplated |
q purchase and not trust, and that |
the resolution was adopted at meet
ing at which Hartman was present. |
The opinion continues.
The Northern Securities company is |
the owner Of 1,531,60i shares Of the |
stock Of the Northern Pacific Railway |
company which has been restrained |
from voting or receiving dividends and |
IN view OF this restraint all the parties |
eBree, and II should not continue. Tho |
Northern Securities company, accord |
ingly proposes TO assign them pro-rata |
= It's shareholders, including not less |
than $500 persons whose shares are un-
qneationably acquired by purchase and |
who are not parties 10 this suit"
Parties to this suit, and as such dis
position Of them would effect ratable,
and therefore, equitable division OF
them amongst all who are entitled to
participate In distribution OF the
cooperative assets, we are OF the opln-
Jon that tho injunction which prohibited |
should no longer remain In force IL
me question before us had been In |
Nolved and decided IN the suit of the |
United States vs. the Northern Securi-
Ties company or IL Il had been passed
upon, though but incidentally by the
supreme court OF the United States IN
disposing OF the appeal in that case.
We, or course, would not regard IL
sh an opcn one. Hut Il was neither
decided nor considered at any stage
OF that litigation. The petition or bin
OF the United States ala prnv
mat the Stockholders OF tho rail-
road companies who had exchanged
their stock therein for stock OF
me Northern Securities companv
should be required TO surrender any
SOCK OF the Northern Securities COM
pahy 40 acquired and held by them. ana
TO accept therefor the railway stock il,
exchange for which the same h issued
put the decree. insofar as Il was man
ahtory went no further than 10 pro-
hlolt the doing of the specific things
when, being done, would effect the re-
suit denounced by the act--1gO3 II &
oob This was all that was reaiistto
ana II was accomplished by that mart OF
we decree which has been already ouot-
Cd and the added clause, though op.
Larenty suggested by the PRAYER a.
me Dill to which II referred was ohvi-
ously not Intended 10 have any oblira-
tory effect. II was permlsslye merfiv
ana this so plainly appears from "a
terms that II is necessary only m al
reg attention to them. They are.
But nothing herein contained sbon
pe construed az prohibiting tho Nortbl
tern securities company from rentrm-
ing and transferring to the stockhold-
era OF the Northern Pacific RSiIwav
company and the Great Northern nan
way company respectively, any ana
al shares OF stock In either OF sald mil
way companies which said. Tho North-
~ securities. company may have baro.
t,olore received from such stockhoiaers
IN exchange for it's own gtock, and
Iothing herein contained shan be Con-
suged as prohibiting the Northern O.
tturlues company from making such
u,anster and assignment OF tho atocF
aforesaid 20 such person or peraons no
nay now be the holders and owners az
~ own stock originally issued IN oyt
'nah6e Or In payment for the stoels