The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1906-03-14
KLUGH REFUSED TO
DISSOLVE THE ID
miIliken Interests Permanently Restrained
From Holding a Meeting of Stock.
holders OF Laurens Cotton Mill,

holders OF Laurens Cotton Mill.
In the case of o. B. Simmons ct al
against N. b. Dial, S. M. Milliken ct
AL, Circuit Judge j. G. Klugh has re-
fused to dissolve the temporary in
junction restraining the defendants
from holding a meeting of stockholders
Of Laurens Cotton Mills. An order has
already been made providing a refer
ence as to the motion to dissolve and
Judge Klugh orders that his opinion be
filed as a part Of that order and that
the injunction be continued until the
hearing of the case on it's merits. The
effect of this is that the defendants,
who are the Milliken party IN the Lau-
rens Cotton Mill litigation, are pre-
vented from holding a meeting of
stockholders with the end to gain pos
session of the mill.
Judge Klugh's opinion is especially
interesting in that part referring to
the question of jurisdiction as between
State and Federal Courts. Judge Klugh
declines to yield jurisdiction in the case
and holds that the acceptance of juris-
diction by the Federal Courts does not
relieve the State Courts of the afirma-
tive duty of determining for themselves
whether or not they have jurisdiction.
H LITIGATION STRETCHED.
To refresh the readers minds it may
be worth while to recapitulate the liti-
cation. At the suit of w. e. Lucas,
who was at the time and still is, presi-
dent and treasurer of the Laurens
Mills, Judge Klugh last May granted
an injunction restraining Seth M. Mill
ken and his associates, who are named,
from voting some twelve hundred shares
in the Laurens Mills. Subsequently the
Millikens moved to transfer the case to
the Federal Court and Judge Brawley
granted their motion to dissolve Judge
Klugh's injunction. Meanwhile the
Millikens did not move in the State
Courts to dissolve the injunction, and
so far as those Courts are concerned it
is still of full force and effect. The
State Court declined to recognize the
removal and still retains it's jurisdic-
tion.
During the summer of 1905 the Mill
kens brought an action before Circuit
Judge Jeter c. Pritchard, praying that
Mr.. Lucas and his associates in the liti-
CATION be restrained from further in.
terfering with a meeting of the stock
holders which it was asked hat the
Milliken interests be permitted to call,
and further praying that the board of
directors displaced at the annual meet
ing, May 10, 1905. be restored to the
control of the mill, ousting the new or
Lucas board, then elected. Judge Pritch-
ard granted the prayer to enjoin fur
Their proceedings in the State Court by
Lucas in the pending litigation. He re-
fused to grant the other relief asked
for by the Millikens. 1t will be noted
that his restraining the further pro-
ceeding in the State Courts did not af-
feet the proceeding already taken,
namely, the original injunction granted
by Judge Klugh, which has never been
attacked in the State Courts.
The Milliken interests then called a
meeting of stockholders, but a new set
of plaintiffs, stockholders, namely, Sim
mons, Bell and Madden, obtained a
temporary injunctionfrom Judge Klugh,
prohibiting the holding of this stock
holders meeting. T~hereupon the Mil
liken interests moved before Judge R.
w. Memminger at Saluda, to dissolve
this injunction, but Judge Memminger
refused the motion on the ground that
he had no jurisdiction, that the motion
should be made before Judge Klugh.
Then such a motion was made by the
Millikens before Judge Klugh to dis
solve the injunction granted Simmons,
ct al, which he now refuses in the or
der just filed.
The stock of the mill is now quoted
by holders at $3.50. News and Courier.