The labor world., 1898-01-01
MORE INJUNCTI0NS.
Judge l0chron of the Federal
Court Rostrains the
County.

its officers from selling the gas and water
plant for taxes, which sale is advertised
to take place JAN. 4, has been made by
Judge Lochren, and was filed yesterday
with Deputy Clerk Pressnell of the Uni
ted States court
The application for a restraining order
was made by the Central Trust company.
At the hearing on Tuesday at St. Paul.
when the county was required to show
cause why an injunction restraining the
sale should not be issued, the Central
Trust company was represented by J. L..
Washburn and S. T. Harrison of Duluth
and C.. A. Severance of St. Paul. The
opposition to the granting of the restrain
ing order was brought by Assistant
County; Attorney McPherrin, City Attor-
ney J. B. Richards and Assistant Attor-
ney General George B. Edgerton.
Mr.. Richards entered formal protest,
and moved to have the order discharged
on the ground that the court had not
jurisdiction. The motion was denied.
The order perpetually enjoins the coun-
ty from proceeding to dispose of the prop
erty described to collect it's claim. The
court held that it had jurisdiction and
custody of the property, and that the
special master, Victor Stearns, had been
directed in what manner to sell it, and
that the court would not permit any inter-
ference. The court holds that the decree
amply protects all parties in interest that
may have rightful claims against the
satisfied with the report Of the master
might take exceptions.
The attorneys for the trust company say
that the proceeds of the sale will not be
distributed without the court having first
passed on all such matters as are in
volved in the attempt at sale by the
county. They say that if there are any
claims for taxes that are paramount to
the claims Of the bondh0lders, they are
amply protected by the decree
City Attorney Richards is not discour-
aged by the ruling made by Judge Loch-
rem, granting an injunction to the bond
holders of the Duluth Gas & Water COM
pany to stop the selling of the gas and
water mains, on Jan. 4. He believes that
the city and county will eventually get
the amount due on personal taxes. The
only inconvenience will be the delay.
The judge ruled that, as the property of
the company, real and personal, Is now in
the hands of the master in chancery, who
is appointed to represent the court and
the sheriff in the matter, the property is
in the courts hands. It was on this
ground that the injunction was granted.
1t was provided, however, that after the
sale is made the county shall have the
~A-1 Jlo1, ;tc
claims. This is encouraging to Mr.. Rich
ards and Assistant County Attorney Nc
Pherrin, as it does not take away their
right to ask for the amount of the taxes.
They also believe they will have a slight
advantage when they go in court to es-
tablish their claim.
The opposing attorneys will have to
convince the judge that the personal
taxes have no precedence over the first
mortgage bonds Otherwise, the court
will probably order that the amount due
the county on personal taxes be taken
from the amount bid and paid for the
plant.
Mr.. Richards has but little fear that
this ruling will not be made, as the at
torney generals opinion on it is fiat. He
says that the personal taxes do take
precedence.
Sheriff Sargent returned from st. Paul
yesterday, where he was called on an
order from the United States court to be
present at the hearing of the application
of the Central Trust company of New
York for a permanent injunction restrain
ing him from disposing of the personal
property of the Duluth Gas & Water
company, on which he had levied, to sat
isfy the judgments against the company
for personal property taxes due and un-
paid. Mr.. Sargent said that Judge Loeb
ren before whom the application had
been made, had decided against the city
on every point raised, and that as the
matter now stood he believed that it rest
ed entirely with the United States court
as to- whether the taxes will ever be paid
He said that Judge Lochren. in issuing
the. permanent injunction restraining him
from selling the property, had held that
the argument Of the city and county at
torneys that the United States court had
no jurisdiction in the matter was wrong
and that it was the district court thai
had no jurisdiction, and the United State.
court was the only one that did have