The times. [volume] (Richmond, Va.) 1890-1903, 1897-04-03
SEABOARD INJUNCTION.
JUDGE HUGHhs SCSfAfNS
RhRs AND DfsMISSES THE BILLS.
AProper Bill Would stop the Rate War;
bat He avs fts a Question" oil Juris-
dictiou and Makes No Ruling.

NORFOLK. VA. April last fan
judge Hughes. OF the United states DIS
trlct Court. sitting In Norfolk. grantee
unon npplication of the Mercantile Trust
Company. Of Baltimore. an order restrain
ing the Seaboard Air Line and southern
railways from cutting rates. Some time
ago argument was heard on a motion TO
make the restraining order perpetual.
THE DECISION.
The following Is the decision handed
down to-day.
This IL a bill OF two trust companies
OF baltimore, claiming. as owners OF ABOUT
SlsO.UOO OF bonds OF the onterent rOaoS
composing the Scauoard Air Line system,
Of Which about $1,000 were bOnus OF inc
SeabCard road proper. ana over s-'DDO'VOV
OF bonds Of different roaos composing the
Atlantic Coast Line ana INC SCuthVi"
railway system.
There is no allegation as TO the proper
ton TO which the two cOmpl3inahts own
these bonds. The bill makes defendants
the ScaboaTd and Roanoke Railroad Com,
pany. and no other road OF IL syss,in' aru
various otucr roads connected with thc
Atlantic Coast Line and Southern railway
systems. IL alleges with some ampll"'a-
ton that a rate war has arisen between
the Scaboard system ana t"e southern
system; that the result Is ruinous TO thelr
bonds secured on those Inherent ROADS
and IL prayS the courts TO stop H. 10 TINS
bill n demurrer was hicd by the SeaDoatu.
Some other general defendants entered Il
general appearance, and the others an
swtred. Mnen the bill was fled a tenn
porary restraining order was Issued.
SUPPLEMENTAL BILL.
on March 10th the case came up lot
hearing on the bill ana demurrer On
fha day "A bill. called by Complaints Il
supplemental bill, was Med. alleging u
demand on the Mercantile Trust COM
pany. of Baltimore. trustee OF the Sea-
board bonds. and its refusal 10 bring suit
on the grounds stated in the original bil.
but not making II "a party defendant. one
of the compliments also. by leave OF
court, interviewed as trustee IN some OF
the mortgages. ana the same leave was
granted to the Central Trust Company
and the Farmers Loan and Trust COM
pany. intervening as trustees OF many mn
lion dollars in bonds. none of them being
Seaboard bonds. Dcmurrers were prompt
~ filed 10 these new papers. and an order
was entered setting all these demurrers
down for argument the next day. and
the case was elabOrately argued upon the
grounds raised by these deinurrers.
nAHriDH AND GASlON.
As far as the Seaboard system Is con-
cerned, the object Of the bill Is 10 ei)Oinl
IL from reducing rates on the admitted
theory that through II the injunction VIII
operate over the entire system 10 Atlanta.
II appears that the Raleigh and Castor
railroad Is. with the Seaboard, lessee or
the Georgia. Carolina and Northern.
Ntitrtf the lkditlNn anu bhTAOH ~ " '"N
Georgia. Carolina and Northern are par
ties. and yet l am asked 10 en1Oin rates
over them on the mere allegation that the
SeabOard. by virtue Of Wnlne "A majority
OF the Raleigh and CASTOR stock, con
trols" them. Mere ownership OF STOCK IS
In no legal sense a control. and II Is ele-
mentary law I'm the Federal Courts that
there is no Jurisdiction 10 enter a decree
directly affecting the rights OF absent
In such case the court has no alterna-
tive but 10 dismiss the bin.
IL is equally clear that the trustee In
the mortgage securing the Seaboard ami
Roanoke bonds is a necessary party IN
the Federal courts, when any two bond
holders rInged on different sides nIlSjt
defeat the jurisdiction. the doctrine that
the trustee represents them all is too
vital to be frittered away. And a mere
allegation or demand and refusal is not
sufficient, for any adjudication would not
hind him. and defendant might b. veXed
with a second suit i'm his name. And
besides. ne Is entitled TO a day in court
To show why he refused and TO tdHe
charge Of the litigation at any subsequent
stage IL he sees fit.
think. also. that the original bill Is
multifaTiOus as combining disconnected
causes Of action AGAINST different d"tcuu-
ants. and that this vice is %nasrantly ag-
%gravated by the additional intsrvcntlons
and amendments.
THE SUMMARY.
For these reasons, I will enter n decree
sustaining all the demurrer's and dis
missing the bills ana petitions. must
confess an inclination to the opinion that
on a proper bill viii proper parties a
court may put a stop 10 a ruinous rate
war. but as this case goes off on a ques-
tion of jurisdiction. | make no ruling on
that point.