The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-10
SUPREME COUaT--cnaM6EaS.
The Sioux City and Pacific Railroad Litigns
Lion-Thc Injunction Vacnied.

The Sioux City and Pacific Railroad Litigns
lion-Thc Inlunciion vacnied.
Before Judge Sutherland
Ldi,noeer Us. The SiouI CITY ana Pacific Railroad
Conlpany John j. Btair ana Oaters.-This was a
suit in which plaintiff claimed that himself and
eight others were the incorporators OF the defend
ants road, each equally interested In the capital
stock, and that 1t was to he sort Of "cose corpora
tionn AFFAIR. the understanding being that in the
event OF any OF the cocorporators retiring their In
terest was to be purchased for the joint benefit of
those remaining; that plaintiff went to Europe leav.
that while he was absent OF the corporatOrs re-
tired, and the defendants, Blair & Ames, purchased
doubled the capital stock Of the company; that they
refused to allow him to participate In the benefits
IN 81 sss sa e sa
commencement OF this seton an instalment OF the
% due the BY the
ceved In bonds and partly disposed or, and that de-
PENDANTS were about to issue first mortgage bonds to
q large amount on their r0ad &c
Upon this complaint an injunction was obtained
enJoining the defendants from dsposIng OF any OF
their interest In the concern, from paying out any
moneys received as tho proceeds OF the government
bonds and restraining the engrvers from executing
the preparation OF the blank mortgage bonds. mo-
ton to vacate that injunction made at the last
term OF this court and Judge Sutherland yesterday
rendered the following opinion:-
i doubt whether the complaint makes q case for
the injunction granted. am clearly Of The opinion
thatthc pIeaaings ana proofs do not justify the con-
either Of the grounds stated In the points OF the
PLAINTIFFS counsel. l cannot say that the proofs
establish the agreement understanding alleged In
the complaint between the nine original projectors
Of the railroad scheme cannot say that the proofs
establish any trust relation between the plaintiff aud
the defenoants. Blair h Ames, other than the usual
and necessary trust relation between a stakeholder
OF corporation and its directors trustees More
over, az it Is not pretended that dividend distr
button OF the bonds or their proceeds
has been declared, and "a this action
cannot he viewed either ~ an action
N "A pnd Qr IN
enforce any alleged right lien, equitable claim in
terest OF the plaintiff IN certain share portion
parcel OF said bonds o. their proceeds claimed by
the defendants, Blair Anes, or either OF them,
as a declared dividend, cannot how the njunc-
ton can be continued without interference with
theYights or stockholders not parties and an adjudi-
cation by this court Of st0us not properly within
Its Jurisdiction. Viii add that think the weight OF
the evidence IL that the directors have not intended
and do not intend 10 declare any dividend disri
button OF the bonds or theft proceeds among the
stockholders. The motion ~ continue the Injunction
Is denied and the injunction vacated with ten dollars
costs to the Defendants who moved to vacatn.
For plaintiff, David Dudley Field and Thomas
Sherman; for defendants, luther Il. Marsh.