Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-10-26
n order returnable I

and an order returnable Nov.
l, requiring the company and
its board of directors to show cause why
they should not be restrained from placing
the motgage on the property. Mr.. Field
owus 200 shares of preferred and 500 of
common stock of the Northern Pacific. He
says the charter of the company and a
joint resolution of congress, approved
May 8, 1870, gave the right to built its
main line and one branch. 1t never was
given the right to construct or possess any
other lines. The charter authorized the
company to create capital stock of 100,-
100000, but on account of its immense
land grant it was to issue no mortgage on
construction lands or lien except
bp consent of congress. 1t
was the true intent and meaning of the re-
solution of congress that the company
should have the right to make only one
mortgage. The defendants now pretend
that the company requires additional
means to the amount of between $15,O00,-
600 and $2O,OO0,O0O. The plaintiff be-
lieves the means already provided to be
sufficient, and that the additional sum
which the defendants seek to raise may be
intended to be used by them in aid of
various collateral undertakings and en-
terprise in which the company has been
involved. The Northern Pacific being
under the control of the trans-continental
company, the market value of the
stock has suffered an alarming
depreciation. The mortgage will have
precedence over the rights of stockholders,
and, will indefinitely postpone the pay
msnts of dividends on the stocks. The
company has no lawful authority to issue
the bonds or to secure them by mort
gage without the consent of congress. He
asks that the defendants shall render an
account showing what use has been made
of the money heretofore received, likewise
the present financial condition of the COM
pany. John J. Bradley, who served a no
tice on the company for suit is the owner
of 200 shares of the common stock
of the company. The allIga-
tions Of the plaintiff are merely
the same as those in the complaint OF
Field. At the Office of the company it Was
declared that Mr.. Bradley caused the stock
to be transferred to him Saturday in order
to enable him to begin the action. 1t was
claimed that the act of 1870 was authority
for the proposed mortgage as we'll as the
present first mortgage. Mr.. Vii
lard said: $50 back to the proceedings of
congress for 1870 and you will find the law
authorizing the ISSUE" 4 lawyer said if
the proposed Issue were declared illegal it
would invaldate the first mortgage. 1t is
understood the Northern Pacific bond syn
dicate consulted the best legal talent
obtalnable before taking the new second
mortgage bonds, and it is
stated that no Injunction can stand under
the charter of the company if three-quar-
ters of the preferred stockholders assent
to the issue Of it.
The'fresh short lines put out IN Ore
gon Transcontinental make the position
of the stock similar to that Of Northern
Pacific preferred before the recent squeeze,
and while it is not probable that any
corner will be attempted it is reasonably
clear that those in control of Oregon
Transcontinental can practically indicate
the terms OF settlement. The stock is still
43 points below the price at which Janu-
ary sold last, and 53 points below
the highest point reached in 1882.
Comparatively little stock is brought
out by the present advance, the largest
holders including money insiders having
purchased their shares fully 90 TO 80 per-
cent. above current prices. It is somi-
officially stated that since the opening of
the transfer books of the company, just
week ago, 10000 shares have been transfer
red and taken out of the market for in
vestment.