Railroads -- United States; Railroads -- United States -- Finance
for an injunction on the ground that the combination was contrary to
the laws of the state and would prevent competition. It was said that
Mr. Childs was supported by the practically unanimous sentiment of the
people of Washington and Montana. The matter came before the Supreme
Court on suit by one Pearsall, a stockholder of the Great Northern, and
this tribunal held that the combination was contrary to the laws of
Minnesota and should, therefore, be enjoined, affirming the principle
for which Mr. Childs contended.[619] This settled the fate of the Adams
reorganization plan; and an entirely new scheme had to be devised.
But while once more progress toward reorganization seemed to have
ceased, sensational developments occurred in the factional conflicts
to which we have already referred. To Mr. Ives, barred from all
participation in the management of the road, denied a salary, and
unable to obtain the removal of the receivers by Judge Jenkins, came
the idea of appealing to another court. It will be remembered that, the
original receivership suit had been instituted in the circuit court of
Milwaukee, Wisconsin, and that that court ever since had been regarded
as possessing primary jurisdiction. Since no compulsion existed on
other courts to recognize this jurisdiction of the Milwaukee court, the
orders of which were supreme in its own district only, and the smooth
working of the receivership was due to a respect for “comity,” it was
possible, as Ives well knew, for any circuit court along the line to
throw existing arrangements into the direst confusion. Relying on this
fact, President Ives sent the General Counsel of the company to present
applications for the removal of the receivers to one court after the
other along the road.[620] In September, 1895, judges willing to take
jurisdiction were found in Seattle, in the far northwestern corner of
the United States.[621] Petition was made in two parts: first, that the
Seattle court take jurisdiction; second, that it remove Messrs. Oakes,
Rouse, and Payne. Judge Hanford of the Federal Court of the Washington
District called Judge Gilbert of the United States Circuit Court to
sit with him, and deciding on the question of jurisdiction first,
according to the request of the receivers, the two judges held that the
principle of comity did not of necessity apply in the Northern Pacific
case because no part of the railroad was within the jurisdiction of
Judge Jenkins’s court, and any court along the road could more properly
and efficiently administer the trust. The court, therefore, directed
the receivers to answer the charges of malfeasance, and to file their
answers in Seattle by October 2; also to file their accounts with
the clerk of the court at Seattle,[622] and to file each a $100,000
bond.[623]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account