The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-04-19
INJUNCTION DISMISSED.
The Houston and Texas Central Railroad
Suit Decided.

New YORK, April 1S.-A decision has
been rendered by the Supreme Court at the
general term by Justices Barrett and Whit
ing on an appeal from the order made at
the special term limiting the Injunction
and continuing it as limited, in
the suit of Michael Gernsheim and
others against Frederick P. Olcott,
Coils P. Huntington and others. This
suit was begun for the purpose of obtaining
n judgment, adjudging that the decree of the
United States Circuit Court in Texas was
fraudulent. collusive, illegal and void"
The prayer for relief asks that in the event
of the court refusing decree of inyalidity
the plaintiffs have a reasonable time to
intervene in the Texas suit or apply
thereby the original bill to set aside the de-
cree OF foreclosure and sale of the Houston
and Texas Central Railway Company under
the company and all subsequent proceed
ings.
The plaintiffs ask for an injunction re-
strainiDg the defendants from Issuing
shares of stock or bonds under the scheme
for the reorganization of the Houston and
Texas Central Railway Company, the details
of which have already been published; as to
the averment in the complaint that ''the
assessment was made unnecessarily high
and in bad faith by Huntington and his
associates" upon the stockholders of the
Houston and Texas Central Railway Com
pany to bar out the present stockholders
and to enable, under the said plan of reor-
ganization, the Southern Pacific Com
pany to acquire the entire stock on
the payment simply of the amount required
to be paid to the first mortgage bond
holders for the interest and expenses of
the reorganization. Justice Barrett holds
that such an allegation will not answer.
In his opinion, he says, there is no evil
dence showing that the trust company acted
aTDltTaTllV He decides thai hafpra the
court can interfere, it must be made
to appear that the claims were
| unjust or excessive, and should have been
included in its estimate. As the case
stands the complaint would have to be dis
missed unless the court should proceed
with general inquiry into the nature
and justice Of the floating debt. This fune-
tlon he thinks is more analogous 10 an in
yestigatlng committee than a court. He
therefore reverses the order appealed from
aud dlssolyes the injunction without preju-
| dice.
NEW YORK, April 1S.-The Commercial
Advertiser says: No action yet Of the Pa
cifc Mail has been taken regarding the
! change of the terminus to Tacoma, as both
! Gould and Huntington are absent II is
| possible that such a change is being held as
club over the head of the Union Pacific
Ey Gould. A dickerlng is believed to be
| going on. The loss of the Pacific Nails
San Francisco custom would undoubtedly
be serious to the Union Pacific.
OMAHA, April 1S.-Negotlations were
concluded last night by which the Chicago,
Rock Island aud Pacific and Chicago, Mil
waukee ana St. Paul roads will within the
next thirty days run trains solid into
Omaha over the Union Pacific bridge The
contract was signed by General Manager
HOlcomb of the Union Pacific, President
Cable of the Rock Island and President
Miller of the Milwaukee. The contract
also provides that the Union Pacific and
Rock Island shall use the track jointly tC
Beatrice by way of Lincoln, by which the
Rock island proposes to extend its lines.