The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-03-09
HAVE LEGAL RIGHT
AGAINST STRIKERS
Bondholders Can Seek Injunction
Law as 1t Affects Walkout
ploy Strike Breakers.


In n precedent making opinion
handed down yesterday. the United
States Circuit Court OF Appeals af-
tirmed tho right Of bondholders of cor
poratlons to seek relief through injunc-
ton proceedings from threatened do
probation OF their holdings. as tho re-
suit of conspiracy upon tho part of
striking employees to reduce earnings
by preventing tho employment of
strike breakers.
The case In which tho question arose
was bitterly fought by the striking en-
ploycs OF tho Merchants Coal Company,
of West Virginia. In the United States
District Court for the northern district
of the State, at Philippi. This court. on
June %. 1911. Judge Dayton presiding.
found for the bondholders The case
was taken on numerous assignments OF
error TO tho Court of Appeals. which, In
per curtain opinion. yesterday stated
that 1t finds no merit in the assign
ments OF error, and affirms Judge Day
TONS verdict
Bondhoiders Against Strikers.
The Merchants Coal Company, of West
Virginia, owns valuable coal lands in
ing contracts for the delivery of coal
to the Baltimore and Ohio Railroad
and other companies. 1t is stated. give
the mines operated by theaIerchants'
Coal Company n value OF between $780,
900 and 100000.
a dcpressed'market, according to tho
bondholders. caused tho coal company
to announce. in March, 1908. a 10 per
cent reduction in wages. The men de-
clined to work, and the plant was shut
down until August, 1905. Continued
refusal to work on the part of the
miners caused the plant to close again
until December. 1908. when some of
the miners accepted their old Jobs at
the reduced pay.
Tho plant it was found, could not
be operated with tho limited number
who were willing to work. and labor
ers were imported from other sections.
Upon the arrival of the new miners. n
back to the mines. struck. and aided
by other men In the vicinity began a
systematic war upon the "scabs."
Ask for Injunction.
With affairs in this condition ana
profits steadily declining. Melville ii.
Carter, Michael Sheehan Harry W. At
kinson and James 7. Doyle, Baltimore
bondholders of the coal company in the
sum of $4,000, made application in the
United states District Court at Philippi,
for temporary injunction To restrain
Osbourne Fortney and thirty three
other individual citizens OF West Nir
GINA from interfering with the i'm
pcrtation and employment OF new men.
The bondholders set forth in support
of their position that the value OF the
coal company's property depends upon
substantially continuous and uninter-
rupted operation of the mining plant,
that they were lien creditors of the
company, and that to interfere with
the operation OF the mines jeopardized
the value of their holdings.
The bill charged that the thirty
four individuals nansed were conduct
ing an active fight upon the new men,
assaulting them In person, intimidat-
ing them by threats, and applying TO
them in person such names as "scaps
blacklegs, black sheep yellow dogs
and even viler and more opprobrious
epithets'
Grants Restraining Order.
determined fight upon the injunc-
ton was at once opened by the de-
PENDANTS, who attacked the right of the
bondholders TO interfere with q matter
which they held was purely between
themselves and the coal company. The
assets OF tho company, they claimed.
were ample to protect the bondholders
from loss.
The whole proceeding. IT was claim
ed, was merely cloak under which
the coal company was using the names
OF the plaintiffs az a means OF insti-
tuting the suit and obtaining an in
junction in q Federal court upon the
alleged ground of diverse citizenship
The plaintiffs themselves. they claimed.
did not seek to institute such suit or
obtain such Injunction
More than 1,GO0 pages OF printed
matter sets forth the evidence taken
in the various hearings on the appli-
cation for tho Injunction. The court
finally granted a temporary injunction.
and later. In decree entered as the
result OF Judge Daytons decision on
June %, 1911. the injunction was made
permanent
Sets Important Precedent.
The action of the Circuit Court OF
Appeals yesterday in affirming the
lower court, ends the fight and writes
an important precedent into the court
records. The conditions surrounding
the difficulty thus adjusted Is repeated
constantly in all branches OF industry
According to the Circuit Court of APP
peals. bondholders have 4 legal right
when 1t is shown that their interests
are In jeopardy, to secure an injunction
against strikers who interfere with
the employment OF strike breakers
Judge Dayton's opinion. agreed to
yesterday by the appellate court. held
that the Injunction was needed to pre-
vent irreparable injury threatened to
the bondholders by the acts Imputed
to the strikers; that the number Of
the strikers guilty OF this misconduct
was large enough to prove conspiracy:
and that it was imInaterial whether
the coal company as such had aided
the bondholders in the prosecution OF
the suit or not, since no question or
collision could arise.