The Montgomery advertiser., 1902-01-01
DISSOLVED INJUNcT1oH.
Judgs Lochren Decides in Favor of Railroad Company.

Judgo Lochreu Oec10eo ID 1evor VI
 Railroad Company.
 Minneapolis, Dec. u.-Judge William Lochren of the United States Circuit Court; today disolved the temporary. in- junction issued siE the case of Peter Power against .iie Northern Pacific Raii- way Company by Judge Elliott of the district of Hennepin County, Monday.
 The injunction restrained the Northern Pacific from issuing any evidences of in- debtedness to retire the preferred stock of the company or to retire the preferred stock in any other manner than by the use of the surplus net earnings or the road.
 1t 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.
 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 proceedings in the lower court pending the appeal Judge lfOCuTen Tctubcu Io dikOW 9 ohROA e~oCcS bond in any amount to be given. Judge w. A. Lancaster. representing Mir. Power. the plaintiff. asked the court.
 Docs your honor mean to say that the damage which would result to the North ern Pacific Railway Company if an ap- peal from your order dissolving the tem- porafy injunction were taken and a supersedeas bond staying proceedings were filed. would be so great that a bond could not be given large enough to reim- buse the defendant?
 .,As the question of granting . super sedeas," the Judge replied, lis discre- tionary with the court, I decline to per- init the staying of the proceedings or the force of the order by a supersedeas bond on appeal.'' =
 Judge Lochren held that the Northern Pacific was acting within the authority of its, charter. of the contract entered into between 1t and it's stockholders as Incorporated in the certificates of pre- ferred Stock and of the agreement enter ee into November l3 in attempting to re tire the ,$75. ooo of preferred stock in tho mannef. opposed by Mir. Power. IT, also held that railroad corporations couid not do Indirectly what the law prevented them from doing directly and that any method by which consolidation of two or more competing and parallel lines would be brought about would De illegal and writ of injunction would properly restrain the consummation of the plan But there was nothing in the case as now presented 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 Monday night by the Northern Pacific Railroad Company from the State to the Federal court and an order to show cause. re- turnable this morning. why the tempora- " injunction granted by Judge Elliott should not be dissolved was secured from Judge Lochren and served late last night upon MT. Powers's attorneys. The an- swer of the defendant was filed in the district court and an order removing the case to the federal court was secured from Judge Brooks of the Hennepin district court.
 MT. Powerss attorneys tonight au- thorize the statement that the fight had just commenced and that an appeal to the United States Supreme Court will be taken.