The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-07
HILL WINS IN SUPREME COURT
HARRIMAN'S APPLICATION FOR
AN INJUNCTION DENIED.
Northern Securities Plan FOR Distributing
Its Holdings I'm the Northern Pacific
and Great Northern Railroads Upheld
Under the Decision the Hi Interests
nftRIn CONTROL OF nOth Roads.


and Great Northern Railroads Upheld
Under the Decision the Hill Interests
Retain Control OF Roth Roads.
WASHINGTON, March 8.-The Supreme
Court to-day announced its judgment in
the suit brought by Edward Hartman
and others to prevent the proposed dis
tribution On pro rata basis of the Northern
Pacific and Great Northern sto ks held
by the Northern Securite Company.
The decision Is au affirmation Of the decree
Of ths United States Circuit Court OF APP
peals, which in effect indorsed the ratable
distribution OF those stocks among the
stockholders OF the Securities company
and denies the right Of Hartman ct al.
to demand the return of the Northern
Pacific stock they had sold to the holding
company.
The court took very unusual course in
making known It's conclusion, merely an
nouncing that the decree of the Court Of APP
peals was affirmed without handing down its
reasons therefor, Chief Justice Fuller say
ing that its opinion would be ready later.
1t is supposed that the judgment OF the
court is unanimous, inasmuch as no dissent
Ing opinions were mentioned.
Such a prompt decision by the court was
entirely unexpected The immense fin
ancial interests and perplexing legal ques-
ton involved, upon which the two courts
below differed so widely, It was thought
would require considerable consultation
on the part OF the Judges before con-
clusion could be reached
The arguments in the case we're con-
cluded only on Thursday last, and Satur-
day. the day usually devoted TO oonsulta-
ton was entirely taken up with the cere-
monies attending the Inauguration Of the
President. Therefore the decision to-day,
and especially in view OF the fact that the
court was divided 70 on the original
judgment in the Government suit against
the Securities company and the present
suit was supposed to involve some of the
questions then decided came as a complete
surprise
After the court last spring declared the
Securities Company an illegal menace to
competition and the directors announced
their purpose In dLssolving the company
to distribute to the stockholders on a pro
rata basis the 1.lsl.242 shares OF Great
Northern and .5S7 .597 shares Of Northern
Pacific stock, Hartman and his associ-
ates applied to the United States Circuit
Court for the Northern District Of New
Jersey for an injunction TO prevent the
carrying out Of that plan. SO far as it CON
Cerned the az, 800 shares OF Northern Pacific |
formerly held by them. they also asked
that those shares be returned to them in
tact, instead of their pro rata shares in both |
companies. The court granted a prelim- |
mary injunction TO preserve the then ex-
isting status OF Affairs pending an adjudca-
ton Of the legal questions involved.
The Securities COTnDany took an aDuaai /
TO the United States Court OF Appeals for
the Third Circuit, which reversed the jldg
ment Of the Circuit Court and dissolved the
injunction Hartman thereupun applied
to the Supreme Court or writ of GER
tiorari TO review the decision Of the Court
Of Appeals the writ was granted and the
appeal was argued last week by William 4.
Guthrie and d. 1. Watson for Hartman.
Elihu Root and John G.. johnson repre-
scented the Securities Company Nearly
two days were occupied with the argu-
ments of counsel, the time being extended
to three and a half hours ON each side. and
the case went to the court late on Thurs
day.
The principal contention OF counsel for
Hartman and Pierce was that as the idenu-
cal shares OF Northern Pacific stock they
had turned over To the Securities Company
could be readily traced through the books
of the company, they should be returned
10 them and they should not I've compelled
Ai4hHi VIZ lllN quo NiA'NibANi'Ii IlAtiff'''Nl
TO accept the shares Of Great Northern |
stock against their will
The Securities Company claimed that the
identity Of the preferred shares Of Northern
Pacific purchased from Hartman had been
lost through their conversion into bonds
and then into common shares, and that
stock could not Ia returned to them
Counsel for Hartman asked Hs an alter
native that the entire assets be sold and
the cash proceeds lie distributed Another
ola i'm that Tho r1rCrp-aI teifuDla
distribution was merely plan to crcum-
vent the Courts decree in the suit brought
by the Government, which declared that
the joint ownership Of the Northern Pacific
and Great Northern stocks constituted
combination in suppression OF competition.