Richmond daily palladium. [volume] (Richmond, Ind.) 1876-1904, 1902-01-01
Injunction Agi-in>t Northern
Pacific Dissolved By
Higher Court.
JUDGE NOT SUSTAINED
The United States Circuit Court Does
Mt Agree With District Court
In the Matter.
Governors of the NorthwpSter States
Declare Themselves Against Pro-
posed Merger.

Minneapolis. Jan. Judge VIM.
Lochren of the United States circuit
court yesterday dissolved the temper
airy injunction issued in the case OF
Peter Power against the Northern Pa
cific railway company by Judge Eli
OFT of the district court of Hennep.n
county. Monday.
The Injunction which was dissolved
by the order of Judge Lochren 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 Pacific
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
or either of them. 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 or
der to appeal from the decision and to
stay all further proceedings in the
lower court pending the appeal. Judge
Lochren refused to allow a superse-
IDEAS bond in any amount to be given.
Judge w. A. Lancaster. representing
Mr.. Power, the plaintiff. asked the
court: Does your honor mean to say
that the damage which would result
to the Northern Pacific Railway com
pany if an appeal from your order dis
solving the temporary injunction were
taken and a supersedeas bond staying
proceedings were filed, would be so
great that bond could not be given
large enough to reimburse the defend
anti"
AS the question of granting a ST
persedeas.' the judge replied, is dis
cretionary with the court, l decline
to permit the staying of the proceed
ings or the force of the order by a
supersedeas bond on appeal. Judge
Lochren held that the Northern Pa
cific was acting within the authority
of its charter of the contract entered
as incorporated in the certificates of
preferred stock and of the agreement
entered into Nov 13 in attempting to
retire the $4,000. 900 of preferred
stock in the manner alleged by Mr..
Power.
He also held that railroad corpora
tions could not do indirectly what the
law prevented them from doing direct /
ly and that any method by which con-
solidation of two or more competing /
and parallel lines would be brought |
about would be illegal and writ of
injunction would properly restrain the /
of the plan. But there |
was nothing in the case as now pre- /
scented to him that would indicate the /
stockholders of the Northern Pacific
Railway company were attempting /
such a consolidation or merger.
The case was transferred late Mon |
day night by the Northern Pacific Rail /
way company from the state to he /
federal court and an order to show
cause. returnable yesterday morning
why the temporary injunction grant
ed by Judge Elliott should not be dis
solved. was secured from Judge Loeb
rem and served upon Mr.. Powers at
torneys. The answer of the defendant
was filed in the district court and an
order removing the case to the fed
eral court was secured from Judge
Brooks of the Hennepin district court
The Northern Pacific's answer was a
lengthy document of 80 typewriter
pages and ostenSbly was prepared on
a few hours notice