Evening star., 1897-04-05
WILL BE APPEALED
seaboard Air Line Legal Fight and It's
Failure.
The Decision of Judge Hughes Mt Nor
fOlk-POfnts Which Were Not
Touched On.

The contest in the United States district
court at Norfolk. Va, between the Sea-
board Air Line Railroad Company and the
Mercantile Trust Company of Baltimore.
as trustees of some of the bondholders of
the railway company, which, as already
stated in The Star. was decided Friday in
favor of the latter by Judge Hughes, will,
1t is understood, be appealed by the COM
plainants in the case-the Mercantile Trust
Company-to the district court of appeals at
once.
1t is likewise expected that the case will
eventually reach the Supreme Court of the
United States, as all parties interested re-
gard the question at issue second only in
importance to the question of the legality
of the Joint Traffic Association, which is
soon to be argued before the former tri-
bunal.
AS is well known, the question involved
in the suit of the Mercantile Trust Com
pany against the Sedboard Air Line Com
pdny was as to the right of the latter to
cut rates between competing points with
other railway companies, and the trust
company asked for a permanent INJUNCTION
to prevent the railroad company from DOING
this '''' o''''7
The petition was denied by Judge Hughes
but IN the course of his remarks on the
subject he used these words:
must confess an inclination 20 the
opinion that on proper bill with proper
parties court may put stop TO a runous
rat" war. but this case goes off on a
question of jurisdiction l make no ruling
on that point
In another part of his decree Judge
Hughes said of the bill laid before him .
ms Is a bill by two trust companies of
baltimore. claiming, owners of about
Siou,'oo OF bonds of the different roads com
posing the Seahoard Air Line system (of
winch about $1,000 are bonds of the Sea
Lpard road proper. and over S2JOoutO of
SciiI1s tT! on Ihe inherent roads composing the
Atlantic Coast Line and the Southern rail
way system. 1t alleges that a rate war
NaS arisen between the Seaboard system
t.iIt the southern system: that the result is
rulhous to their bonds, secured on these
- : sii' ,oads' ana 1t prays the court 10
Stop IL demurrer was fled by the Sea-
t'oard- When the bill was filed A temnora ~
It straining order was issued
AS far as the Seaboard system is ron
CvfEvti. the object of the bill is 10 on ioir -
rom reducing rates. on the admitted the
Viy lhat thro Ugh 1t the injunction Will on
crate over the entire system To Atlanta
IL appears that me Raleigh and Csaston
lsLlIroad is, with the Seaboard, lessee of the
Ieorgla, Carolina and Northern. Neither
the Raleigh and CASTOR nor the GEORGIA
Carollna and Northern are parties and We,
! an aShed 10 enJoin rates over them on the
me. iief t siheSatlon that the Seaboard, by vir-
tue OF owning majority of the Raleigh
ana GaSton stock, controls them
mere ownership Of stock is in no legal
sense control, and il is elementary law in
'ii tpui Is lIidL lnere Is no luriS1lic-
tioii TO enter decree directly affecting tn.
lIshtS OF absent parties. In such case the
court mas no alternative but to dismiss the
hill. 'ie
1t Is equally clear the trustee in the
mortgage securing the Seaboard and Roa-
hohe bonds is necessary party In the
leder1i courts, where any two bondhold
tFs' ranged on different sides might defeat
the jurisdiction, the doctrine that the trus-
tee represents them all is too vital to he
lrittered away. And a mere allegation of
"tlnallH ana refusal is not sufficient for
any &SJudlcation would not bind him and
l4e defendant might be vexed with a sec
ond sit IN his name And besides he is
entitled 10 day in court to show why he
refused and to take charge OF the litipa-
tlon at any subsequent stage If he sees fit
l thlhk also that the original bill is multi
IaflouS as combining disconnected causes
OF action against different Defendants and
mat TINS vice is ffagrantly aggravated by
Vhe aNdltlonal tnterventions and amend
i-thtS. for these reasons | will enter a
peeree sustaining all the demurrers and dis
missing the bill and petitions"