New-York tribune., 1905-01-04
HILL WINS N. S. DECISION.
C4N DISTRIBUTE STOCK.
Restraining Order Obtained By Hdr-
rirag an Ne1c-JerSey Reversed.


distributing stock OF the Northern Pacific Rail-
road Company. Tie decision is a defeat for the
interests represented by f H Hartman DS
the decree Of the New-Jersey court Northern
Securities was restrained from disposing OF S'o-
23O shares Of Northern Pacific common aIleseo
10 have been received from Z. II. Hartman ana
YinsloW 8 Pierce. and of $4,000 shares OF
Northern Pacific common received by the
Northern Securities Company from the Northern
Pacific Company. To-dsy's decision gives the
Northern Securities Company the right TO dis
pose Of the stock.
Afessrs. Hartman and Pierce. when the North
srn Securities Company had been declared oy
the United States Supreme Court to be an Illegal
combination demanded the return Of the original
stock they had contributed at the time OF the
merger. The Northern Securities Company it
was declared, intended 10 make a pro rata dis
srihutjon of the stock OF the contributing COM
many. The opinion, written by Judge Dallas
said st the outset:
Hartman sverred that the shares Of railway
Etock IN question were acquired by the securlues
SeP6sitory. trustee and that the owners Of said
shares were The parties who originally eNchaIsso
she for stock in the Northern securities Ooin-
ne Northern Securities Company claims that #
anouired the stock by purchase and that II owns
the stock outright
The court, after deciding that a purchase and
not trust was contemplated and that the
Rarrirnan was present. continued;
The Northern Securities Company IS the owner
of l5S75e4 shares Of the stock OF the Northern "a
cfic Railway Company whlcn mas oeeh IesttaIte - 20
this restraint al parties agree that II should not
cordingly proposes TO assign them pro rata 70 it's
shareholders, including not less than twenty-Iyye
hundred persons whose shares are unquesuonahly
acquired by purchase. and who are not parties 70
thls sut ana rs s1C a o1,e 5tSo1
OF them among ali who are entitled TO participate
The opinion that the Injunction which prohibited it
lshould no longer remain in force
II the question before US had been involved and
decided IN the suit OF the United States agt the
Northern Securities Company. or # # had been
passed upon. though but Incidentally. by The s1;
the appeal In that case We OF course "oHld Lot %
regard il as an open one But II was nelther ae-
The petition. or bill Of the United States did pray
who had exchanged their stock therein for stock
9uired TO surrender any stock Of the Northern m
tbe snd 70 aecepy therefor 1he railway stock in
exchange for which the same is issued: but tie
sgfthef than to prohibit the doing Of the specdo
thngs which 4 being done & you'd erect the result
This all that requisite. and It was &c
been already quoted. and the added clause though
apparently suggested by the prayer Of the bill to
have any obligatory effect. II was permissive
shat IS necessary only TO direct attention TO them.
But nothing herein contained shall be construed
prohibiting the Northern Securities Company
from returning and transferring the stockholders
Of the Northern Pacific Railway Company and the
Great Northern Railway Company respectively any
companies which the Northern Securities Company
may have heretofore received from such stockhold
herein contained shall be construed as prohibiting
q such transfer and assignment Of the stock afore-
fa-9 70 sGea person or persons as may now 6e me
issued IN exchange or IN payment pa for the stock
claimed 10 have been acquired by il in the aforesaid
railway cornpanies-'
Judge George Cray, of Delaware. filed a dis
Eenting decision, in which he said:
, dsseat o from N the Judgment Of & The majority OF
ssd s oo oTe be 90 d NOT thk me Judge 3eioW eHfr
snJunction. Nothing but clear conviction that
sSgTt below in! f REFUSING @ the injupetion AS Of
established TO entte compainants 10 the protection
decree.
II Is learned the highest authority that the
I15arr1man interests viii rot accept as a final
disposition OF the Northern Securities case the
decision Of the United States Circuit Court of
Appeals IN Philadelphia. The distribution pro
rata Of the Northern Pacific and Great North
-srn stock holdings Of the Northern Securities
Company could not legally be begun until after
the mandate OF the United States Circuit Court
OF Appeals. dissolying the Injunction shall have
been filed with the United States Circuit Court
Northern Securities Company from making such
distribution Before the filing Of the mandate,
"a period Of at least several days, application
will be made 10 the United States Supreme
court by the attorneys for the Hartman inter
lssts for writ of certiorar1. TO review the de-
,oision just handed down by the Circuit Court Of
Appeals. If the Supreme Court grants the
writ the litigation viii be protracted for a
considerable period; If il does not, the dissolu-
1ton Of the injunction and the carrying into
aexeoutioa OF the Northern Securities Company's
plan Of pro rata distribution will be speedily
thereafter accomplished.
J. J. Hill was seen at his Office soon after the
news from Philadelphia reached this city. He
said he was pleased. but not surprised. at the
decision. There would be haste he said, in
distributing the assets of the Northern
Securities Company. Mr Hill was asked:
Does this mean a settlement" and an
swered: Why. yes. the court settles it."
Z. H Hartman when the bulletin announc-
sng the decision Of the court was shown him
said:
The matter now has been before four Judges
Rnd far it is even division. two having
declared for and two against US"
Nr. Hartman declined 10 say anything
further regarding the case.
After the reading OF The minutes of the pre-
Tious adjourned meeting, the meeting OF the
Northern Securities Company which was 10
have been held yesterday at Hoboken, was ad-
3oUTned until next Monday The only persons
present were Colonel CIough, fourth Vice-presi-
dent of the company, and Nicholas Terhune
assistant secretary.
The announcement OF the decision caused
jump IN the price OF Northern Securities the
curb from 1925, at which il closed Saturday
20 l35. The price then fell back to below l34
The high price Of Union Pacific was 11694. COM