The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-08-24
1T is A NEW MOVE.
The Original Plan of the Hill People to
BE Put to Test in Court.

Ine Originai fian OF the Hill People to
BE Put to Test in Court.
Special Dispatch to the Standard
st. Paul, Aug. 23.-Therc was filed in
the United States circuit cour this af-
ternoon a bill In equity by Thomas w.
Pearsall of New York against the
Great Northern Railway company. A
copy Of the bill was served upon Col
w. p. Clough, vice president of the
Great Northern. While the nominal
purpose of the suit is to prevent the
consummation Of the proposed scheme
OF cooperation between the Great
Northern and the Northern Pacific, 1t
Is thought that the suit Is brought
with friendly intent. 1t is said that
the action is rather welcomed than
deprecated by the Great Northern, as
1t Will bring to speedy settlement all
the legal questions involved.
The bill charges that the Great
Northern and the holders Of a MAJOR
ity OF outstanding bonds secured by
the second. third and consolidated
mortgages OF the Northern Pacific
Railroad company, have entered into
an arrangement or agreement stated
to be as follows: The holders of the
said several classes of bonds shall
cause each Of said mortgages to be
foreclosed. and the railroads and other
property franchises of the Northern
Pacific railroad to be sold at foreclos-
ure sale, and that there shall be a re-
organization of such new corpora ton
under the various acts of congress re-
lating to the Northern Pacific.
This being done, the reorganized CON-
pany shall issue its bonds in the aggre.
gate amount of over si00,O 900 and It's
full paid UP capital stock of 100000
900. and shall enter into a traffic con-
tract whereby the two companies shall
divide the common earnings on the
basis OF business done on the two sys
tens respectively. and. in consideration
OF such traffic contract. the Great
Northern shall guarantee the holders
of said bonds so to be Issued 10 IL BY
said reorganized company. the net in.
come Of the latter company. which
shall not fall below $4,000, 900. and Il
execute upon each Of the said bonds ii.
guarantee for interest UP to such az.
gregate amount, as compensation foi
the risk from loss by the stockholders
Of the Great Northern. which said
guarantee might produce by diversion
of portions of its earnings. such com,
pany shall transfer TO the shareholder
of the Great Northern. or to some per.
son or corporation for their use, hall
of the capital stock of the reorganized
company.
The bill in equity asserts that tn,
acts OF the legislature of Minnesota dc
not confer upon the Great Northern
such right. and that the same is pro
hibited by TIE general laws OF tn,
state. The relief sought is that tn,
Great Northern shall be restrained
from entering into and carrying ou
such arrangement. The complainant
Mr. Pelrsall. makes this complaint
as 4 s,ockholder in the Great Northern
The theory of the bill Is that he ant
others similarly situated will be iniur
ed, so far as the value OF their stock /!
concerned. by the proposed arrange
men..
The complainant has also served mo
tion papers for an Injunction pendins
the litigation before Judge Sanborn. :,
be heard Aug. 2s. Davis. Kellogg a
Severance and John r. and Z. r. San
born have been retained by .he Grea
Northern. Il Is their opinion that tn,
territorial legislation Of 1856 and n.
acts amendatory thereof confer upo,
the Great Northern the power TO enter
into the arrangement complained Of.