The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-01-01

Minneapolis, Dec. 31-Judge William
Lochren of the United States circuit
court today dissolved the temporary
injunction issued yesterday in the case
Of Peter Power against the Northern
Pacihc Railway company IS adse q!
lott of the district court Of Hennepin
county.
The injunction which was dissolved
by the order of Judge LoClren re-
strained the Northern Pacific from is
suing any evidences of indebtedness to
retire the preferred stock of the COM
pany or to retire the preferred stock
in any other manner than by the use
Of the surplus net earnings of the road.
Il also restrained the Northern Pa
cifc and its officers from entering into
any agreement or doing any act by
which the road would be consolidated
or merged, through the medium of the
Northern Securities company, with the
Great Northern or the Burlington.
After the decision was made orally
by Judge LOChren at the close Of a
days argument by the attorneys for
both sides, an effort was made by the
plaintiffs attorneys to have the court
fix the amount of bond which would be
required in order to appeal from the
decision and to stay all further pro-
ceedings in the lower court pending the
appeal
Refuses to Accept Bond.
Judge Lochren refused to allow a su-
peTsedeas bond in any amount to be
given Attorney W +. Lancaster. rep
resenting Mr.. Power, the plaintiff,
asked in court:
Does your honor mean to say that
the damage which would result to the
Northern Pacific company if an appeal
from your order dissolving the tenn
pOrary injunction was taken and a SUI
persedeas bond staying proceedings
were fled would be so great that a
bond could not be given large enough
to reimburse the cefendant?'
As the question Of granting a su-
persedeas," the judge replied, lis dis
cretiOnary with the court, decline to
permit the staying of the proceedings
o. the force of the order by a super
sedeas bond on appeal.
Judge Lochren held that the North
ern Pacific was acting within the au-
thority of its charter of the contract
entered into between it and it's stock
holders as incorporated in the certifi-
Gates of preferred stock and of the
agreement entered into Nov. 13 in at
tempting to retire the $4,000, 600 Of pre-
ferred stock in the manner alleged by
Mr.. Power.
Declares Consolidation Illegal.
He also helu that railroad corpora
items could not do indirectly what the
law prevented them from doing direct
ly, and that any method by which the
consolidation of two or more competing
parallel lines would be brought about
would be illegal and a writ Of iniunc-
ton would lie 10 restrain the consum-
nation of the plan; but that there was
nothing in the case as presented to him
that would indicate that the stock
holders of the Northern Pacific Rail-
way company were attempting such a
consolidation or merger.
The case was transferred late Mon
day night by the Northern Pacific from
the state to the federal court, and an
order to show cause, returnable this
morning. why the temporary injunc-
ton granite by Judge Elliott should not
be dissolved, was secured from Judge
LOchren and served late last night
upon Mr.. Powers attorney
The answer Of the defendant was
filed in the district court, and an or
der removing the same to the federal
court was served from Judge Brooks Of
the Hennepin district court.
The Northern Pacifc's answer was a
lengthy document of thirty-two type
written pages. and ostensibly was pre-
pared on a few hours notice All OF
the legal staff OF the railway was on
hand at the calling Of the case in
Judge Lochren's court this morning.
They were c. w. Bum. Frank Kellogg
and former Judge Young of st. Paul.
Mr. Bum admitted in his argument
that he and his colleagues were vel
prepared TO argue the case and had
not been caught by surprise.
Representing Mr.. Power were George
A. Lamb of Lamb & Gournsey, New
York; Mr.. Moore Of Buckley, Gray &