The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1905-07-17

of directors of said coal company, a
written statement setting forth in
substance the matters hereinhefore
mentioned, and requesting said Of
ficials of said company to institute
such proceedings in the courts as
might be necessary and proper, to
protect the interests of the stock
holders, and to preserve the proper
ty of the company; that such board
of directors in regular and legally
called meeting, a majority of the
board being present, duly consider
ed such request and declined to take
the action so requested, and refused
to call meeting OF the stockholders
for the purpose of considering the
same, the compliments thereby be
ing left to such redress as they might
think proper for the purpose of pro-
teeting their said interests as stock
holders. Complainants therefore
claimcd that as the corporation
through its directors and stockhold-
ers-had refused to protect its prop
arty by suitable legal proceedings,
that it was incumbent upon them 70
take such action as was necessary to
protect their respective holdings of
stock in said company.
'.The prayer of the bill was for
I'm injunction. and for general relief.
1.-The defendants have answered,
replication~ thereto has been filed,
dispositions have been taken which
With the affidayits and exhibits have
been read, and the argument of
counsel has been heard and consid-
cred.
81 do not find it necessary to dis
pose Of the contention of the de-
PENDANTS as to the insutticiency of
the bill, as the conclusion / reach
concerning the jurisdiction of the
court renders that unnecessary.
SsThe Pennsylvania Consolidated
Coal Company, a West Virginia cor
porntion. one of the defendants,
could not under the provisions of
existing law maintain Il suit in this
court against so-defendants, who arc
.iti2cns of West Virginia. It is
entirely clear from the evidence that
said company. acting by and through
some of its officials, in connection
with some of its stockholders, en-
deavorcd to crcate Il condition of af-
fairs that would Justify an applica-
ton TO this court for an injunction,
and that would make applicable to
this litigation the requirements OF
The o4tE Equity rule as announced
bv TIE Supreme Court of the United
States. Ut appears that said com
pauv. in its own name, acting by its
directors and other officials, had be-
fore The institution of these proceed
ings, filed in the Circuit Court of
TAYLOR county, West Virginia, suit
the object of which was to obtain
from that jurisdiction, in substance.
the relief now asked of this court.
That said suit was a recognition OF
he limitations placed by law on the
jurisdiction of this court. and the
fact that it was subsequently aban-
doned after the complainants 10 this
mit-who were familiar with that
litigation and some of whom actively
engaged in its prosecution-suppos-
cd that they had qualified themselves
for this jurisdiction, emphasizes the
effort that has been made in this
case, to cvade the legislation of the
Congress and of the rules applicable
thereto relating to the diverse citi-
zenship Of litigants in this court.
"s'The OBSERVATION-DISCLOSURES
in the defendant compnny-did not
endeavor to induce the directors of
that company to institute suit in
this court. having for its object the
protection of the property and assets
Of the company, for they were wcH
aware that this court would not have
hnd jurisdiction Of such litigation,
for the reason that the parties COM
planned OF were citizens Of the State
of West Virginia. IT was not neces-
sary for the complaining stockhold-
ers to ask the directors to sue in the