The Roanoke times. (Roanoke, Va.) 1897-1977, 1897-04-03
VICTORY FOR
THE S. A. L.
Judge Hughes Renders an Import
ant Decision.
He DIsMIssEs THE BILL OF COM
PLANT TO PREVENT THE SEA-
BOARD AIR LINE FROM CUTTING
RATEs-THE JUDGE SAYS THE
BILL Is FATALLY DEFECTIVE
in MANY POINTS, WITH TOO
MANY CAUSES OF ACTION.

Hughes, of the United States district
court sitting in Norfolk, granted upon
application of the Mercantile Trust Com
pany, of Baltimore, an order restraining
the Seaboard Air Line and Southern rail
roads from cutting rates. Some time ago
argument was heard OH motion to make
the restraining order perpetual. Follow
ing is the decision handed down to-day:
"This is II bill by two trust companies
of Baltimore, claiming as owners of about
SlSO, UOO of bonds of the different ronds
composing the Seaboard Air Line system.
of which about SIG, 900 were bonds of the
Sea5oard road proper ana over 50, 500. 600
of bonds Of the di fferent roads composing
the Atlantic Coast Line and the Southern
railway system
'There is no allegation as to the pro-
portion to which the two complainants
own these bonds. The bill makes defend
ants the Seaboard and Roanoke Railroad
Company and no other road of it's system,
and various other roads connected with
the Atlantic Coast Line and Southern
railway systems. 1t alleges with some
amplificaton that II rate war has arisen
between the Scaboard system and the
Southern system; thar the result is ruin
Gus to their bonds secured on these differ
emit roads, and it prays the court to stop
it. 70 this bill a-demurrer was filed by
ants entered a general appearance and
the Others answered. When the bill was
filed temporary restraining order was
issued.
Con March 10 the case CAME ND for
hearing on bill and demurrer. On that
day n BILL called by compliments n sun.
Elemental bill, was filed, alleging a de.
mand on the Mercantile Trust Company,
of Baltimore, trustee of the Seaboard
bonds, and its refusal to bring suit on the
grou"ds stated in the original bill, but
not making it party defendant One of
the compliments also, by leave of court. in
tervencd as trustee in some of the mort.
cages and the same leave was granted to
the Central Trust Company and the Far
mers' Loan and Trust Company, inter.
veuing as trustees of many million dollars
in bonds, some of them being Seaboard
bonds. Demurrers were promptly filed
to these new papers and an orrer was
entered setting all these demurrers down
for argument the next day and the case
was deliberately argued upon the grounds
raised by these demurrers.
GAS far as the Seaboard system is con-
cerned, the objec. of the bill is to enion
1t from reducing rates on the admitted
Theory that through it the Injunction will
operate over the entire system to Atlanta.
1T appears that the Raleigh and Gas
ton railroad is, with the Seaboard, lessee
OF the Georgia, Carolina and Northern,
Neither the Raleigh and CASTOR noI the
Georgia. Carolina and Northern are mar.
ties, and yet am asked to enjoin rates
over them on the mere allegation that the
Seaboard, by virtue of owning majority
of the Raleigh and Castor stock, controls
them. Mere ownership Of stock is in no
legal sense II control and it is elementary
law in the federal courts that there is no
jurisdiction to enter decree directly
affecting the rights of absent parties.
In such case the court has no alterna-
tive but to dismiss the bill.
1t is equally clear the trustee in the
mortgage securing the Seaboard and
Roanoke bonds is necessary party in
the federal courts, when tie two bond
holders are arraigned on beth sides might
defeat the jurisdiction. the doctrine that
the trustee represents them all is too vital
to be fritterer away And mere allie
CATION or demand and refusal is not sufI-
cient, for any adjudication would bind
him and the defendant might be vexed
with second suit in his name And
besides. he is entitled to day in court
to show why he refused and to take
charge of the litigation ut any subseou ent
stage if he sees fit. | think also that the
original bill is multifarious MS combining
u'Sconnecteu causes OF action against
the different defendants, and that this
vice is ilagrantls aggravated by the audi-
tional interventions and amendments.
For these reasons will enter decree
sustaining ali the demurrers and dismiss
ing the bills and petitions. I must con-
Tess an inclination to the opinion that on
proper bill, with proper parties, IL court
may put stop to IL ruinous rate war, but
rs this case goes OFF on Il question of jul
risdiction take no ruling on that point."
a Hamilton. June 90, 1896.
IA A<sA Cyrn1sior \Ify ~ We,