St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-08-29
GREAT QUESTION OF NORTHERN
PACIFIC REORGANIZATION
IN THE COURTS.
AN INJUNCTION ASKED
By THOMAS w. PEARSALL. a
sTOCKHOLDER OF THE
GREAT NORTHERN. I.
a STRONG ANSWER IS F1Lrn.
Arguments by Senator Davis an5
Henry j. Horn-Promfnent
Attorneys Present,

one of the most important railroad
law suits that has been tried here
In some time was begun Yesterday
before Judge Sanborn, sitting in the
united States circuit court 1t is
the injunction suit of Thomas w.
PearSall, Stockholder in the Great
Northern railroad, to restrain the
officers of that road from carving
through the deal for the control of
the Northern Pacific. AS far as the
direct interests of the parties to the
action are concerned, the suit is
not OF material consequence, but the
hnal outcome is expected to be so
far-reaching in it's effect and the pub
lie interest in the reorganization
scheme is so great that the action
becomes of the utmost importance.
The public interest is shown by the
large number of leading attorneys
who are spectators at the hearing.
Pearsall is the holder of 500 shares
OF Great Northern stock, the face
value of which is $100 per share, and
he asks for the injunction on the
ground that his interests are likely to
suffer If the Great Northern is per-
mltted to guarantee the interest on
the bonds of the Northern Pacific, as
the reorganization scheme proposes.
The Great Northern officials have
maintained that the suit was only a
friendly action to settle the legal diff
culties in the way Of carrying out the
proposed consolidation, but the man.
in rryhi inh fho IL,
torneys are fighting the case seems
to prove the contrary. Pearsall is
represented by Attorney H. ]. Horn,
and associated with him is judge
Young, of Minneapolis, while on the
other side is an array of counsel that
is really formidable. First comes Da-
Wis, Kellogg & Severance, then John
B. and e. p. Sanbopn,- with General
Solicitor Grover and Vice President
Clough of the road, two of the ablest
railroad lawyers in the state, to help
out in an emergency.
Attorney General Childs is an in
terested specta tator from the, jury box,
being present to look after the inter-
ests of the state. President Hill him.
self is also present, and seated all
around are a number of leading attor-'
neys of the city, who drop in occa-
sionally to watch the proceedings.
The facts set forth in the complaint
were published a few days ago, but
the answer was not made public until
it was read in court yesterday. It
contains the essence Of the consolida-
ton scheme and reads as follows:
THE ANSWER.
And now comes the defendant, the
Great Northern Railway company,
corporation organized and existing un-
der the laws of the state of Minneso-
ia, and a citizen and resident of said
state, and saying and reserving to
itself all manner of right of exception
ciencies in said bill of complaint con-
tanned, AYERS and says:
1t admits the paragraphs contained
in said bill of complaint from one to
ten, inclusive.
1t denies the allegations in paragraph
eleven of the bill of complaint, save
and except as hereinafter alleged. On
or about the 18th day of October, 1893,
the Farmers Loan and Trust COM
pany, as trustee, named in the mort
cages executed by the Northern Pa
cific Railroad company to secure the
second, third and consolidated mort
gage bonds referred to in paragraph
an action in the circuit court of the
United States for the Eastern district
of Wisconsin by filing its bill for the
foreclosure of said mortgages and for
property, franchises and effects of
said Northern Pacific Railroad com-
pany. Afterwards bills were filed by
said Farmers Loan and Trust coIn-
pose, in the different circuit courts Of
the United States having Jurisdiction
by reason of the extension of lines Of
the Northern Pacific company into
its of said circuits. and such actions
are still pending, and in said actions
receivers were appointed, who are now
in the, possession Of the road. The lind
defendant as lessee, and herein for
convenience called defendants line,
extends to Seattle, or to connection
with Seattle. large and prosperous
city located on Puget sound. 1t does
not extend to Winnipeg, in Canada, OF
to Tacoma and many other points in
Washington, or to Portland and other
business points TN the state of Oregon,
of railway of the Northern Pacific COM
pany. Defendants railway extends to
the boundary line between the United
States and Canada at Neehe @ and at
St Vincent, distant over 400 miles from
st. Paul, and the lines to said points
were constructed with a WED Of reach
ing business in the city of Winnipeg, I'M
Canada, and obtaining traffic, both
said city and other points in Canada.
AT the present time 1t can acquire no
rights to extend it's line of railway to
Winnipeg or to any other Canadian
in the traffic of the city of Winnipeg
and other Canadian points tributary
to- Winnipeg. except by connection
with the line Of railway owned and
controlled by the Canadian Pacific
Railroad company, and under an arbf-
trary division of earnings and upon
onerous terms and conditions
WOULD BE ADVANTAGEOUS.
1t would operate to the advantage Of
the defendant by increasing it's. traffic
over present expenses if it could obtain
the right to bill its passengers anf
freight over the line of the Northern
Pacific company to Winnipeg and 9TH
er points in Canada which are reached
by its line. It cannot acquire such
right of way of its present connection
with the Canadian Pacific railway
company, or under existing circum-
stances, upon reasonable and fair
terms, and it is necessary to it's inter-
arrangement with the Northern Pa
cific company in order that it may
reach Winnipeg and other Canadian
points. The cities of Tacoma and
and are important shipping points for
maritime commerce upon the Pacific
ocean, and afford large traffic to the :.
different transportation lines by rail-
nected, and such traffic will greatly
Increase as such cities grow in popu-
lation and wealth.
In many other instances in the states
of Minnesota and Montana and else
where, the exchange of traffic between
the said railway systems at the nearest
Junction point would greatly facilitate