St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-09-28
ATTORNEY GENERAL CHILDs7
GROUNDS FOR ASKING A RE-
STREAMING ORDER
ARE SET FORTH IN A NOTICE,
WHICH WAS SERVED UPON THE
GREAT NORTHERN COM
PANY YESTERDAY.
THE CLAIMS OF A FRANCHISE
Denied by the Legal Departmen
of the State ON Various
Grounds.

Attorney General Ch1ldS yesterday
served notice upon the Great North
ern Railway company that he will,
at the special term of the district
court one week from today, move
for a writ of injunction to restrain
the company and it's officers and
agents from in any way entering
into or consummating the proposed
deal for the control Of the Northern
Pacific. His motion will be made
on the ground that the company
claims a franchise and corporate
right not granted to it by law-the
right to consolidate with the North
ern Pacific.
The real purpose of the attorney gem
eral in making this motion is not quite
apparent, but he is undoubtedly inspir-
ed by the feeling that it is necessary to
hurry the hearing on his original ap
plication for an injunction, or the de-
fendant might resort to dilatory tactics
for the sake of delaying the hearing as
long as possible, the work of consoli-
dation being pushed along in the
meantime. That this has been the line
of conduct mapped out by the defend
ant is evidenced by the fact that no
answer to the attorney generals orig
inal petition has as yet been filed, nor
has notice been given as to when one
will be filed. The attorney general
therefore concluded, undoubtedly, that
he would hurry things along until he
got a temporary injunction and then
let them take all the time they desire
to answer.
A me no of
tice filed in the district court is an
affidavit setting forth in detail the
ground on which the motion is based.
1t recites that an action was begun
in the United States circuit court by
Thomas w. Pearsall to restrain the
company from the anticipated con-
solidation, but that court denied the
injunction. The attorney general
then goes on to recite the facts in
connection with the appointment of
receivers for the Northern Pacific on
the petition of the holders Of the
first mortgage bonds. He next re
fers to the claims of the Great
Northern with reference to its lack
of a line to Winnipeg, Tacoma, Port
land and other points ito which the
Northern Pacific has connecting
lines, and that the Great Northern
proposes to build lines to these
points unless it can make traffic ar
rangements with the Northern Pa
cific. But If such a traffic arrange
ment is made, it will save the COM
pany the expense of building some
200 miles of road, save it the cost
| and expense of maintaining a depot
and terminals at Spokane and give
both lines the benefit of a double
track between here and Sauk Rap
ids, which, otherwise, the increasing
business will soon make necessary
for each to build for itself.
He then goes into the details of
the proposed scheme for consolida-
t1cn, reciting that the defendant,
with the approval Of majority of
the stockholders of the Northern Pa
cific and the holders of a majority
of the several classes of outstand-
ing bonds secured by the second
mortgage and third consolidated
| mortgages of that road, have en-
tered into an arrangement under
which the holders of these second
and third mortgages shall obtain
decree of foreclosure and sell the
property, subject to the first mort
gage, a committee to bid it in and
proceed to reorganize.
This new organization is to issue
bonds to the extent of $100, 200, 900,
and capital stock to like
amount, and the Great Northern is
to guarantee the interest on these
bonds to the extent of sc, 5000, 900 a
year. AS compensation for the risk
| taken in making this guarantee, the
new organization is to cause to be
issued to the Great Northern one
half the capital stock of the North
ern Pacific, which may be held in the
| name Of defendant or a trustee. In
addition to this, both lines are to
maintain a traffic arrangement on
a fair and equitable basis, the Great
Northern to have the use of the
Northern Pacific trackage to Winni-
peg, Tacoma, Portland and other
points to which the Great Northern
has no line of it's own, and to have
the privilege of joint use of the
Northern Pacific depot and termi-
| nails at Spokane.
This arrangement, concludes the
attorney general, the Great North
ern claims the right to carry out,
| and the motion is made in support
Of the application already made in
the name of the state for a tenn
porary injunction to prohibit it.