The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-12-31
WRIT OF INJUNCTION SUED OUT
Judge Elliott Grants Temporary Restraining
Order Against Northern Pacific.
1t Will Prohibit the Directors from Retiring the
Preferred Stock of that Company-A
Big Fight Is On.

Minneapolis. MINI, December so. Judge
Elliott OF the district court OF Hcnepn
county today granted temporary order
restraining the officers of the Northern ia
cihc Railroad company from retiring the
preferred stock Of that company. The or
der was issued on the application Of Peter
Power OF New York. Il IS feared although
1t does not appear. that the present action
Is brought In behalf of the Hartman inter
est to prevent control passing out Of its
hands for another year OF until the legal
standing OF tue Northern Securities CON
pany Is settled. II is understood that tho
block of 100 shares held by Power Is the
only block Of common stock not hitherto
controlled and definitely located upon one
side or the other Of the Hartman people
or the Hin Morgan interests.
The restraining -rAer -ulualso be teie
graphed 10 New York ana served ON the Of
Itclals there
ihe induction cujoins the Northern IA
cinc company from placing The management
or lts ralirnud system iu tue system or con
liVi OF Fue Northern SCcuiIitc~ company ur
from entering lnto any arrangement through
tne m"utum ni the Northern securities com
| mny or otherwise, with the Great North
I era railroad ut ltc Chicago, burlington and
quincy Railway company for the purpose
! w 'NNHtAN lhf AN1IbNflN lHtiNt EulifNNI 10
| operate 10 connection or uuder tho same
! rules or by the samy authority as the Great
| northern halfway company ana the Chicl-
| go, burlington aud Quincy railway or from
entering lutn ans srcement with said com.
l1hles, or either of them for the Jurpose
| OF avoiding competition and fixing rates
] ne NH alleges that tue Northern Pacific
/ hallEoad company ana the Great Northern
! company are parallel lines to the Paridr
/ ocean and ina the Chicago. Burlington and
| quincy Railroad company has q parallel
| llne from Billings, Mont. TO Chicago and
| tuat All such Ines are competing lines for
! the business Of the Northwest. N Is all
! legged that the officers of the Northern Pa
| enc Railway company, combined with the
| Great Northern ana the Chicago, Burliug.
! ton and Quincy 10 consolidate the three
systems under one monogram and knowing
7 that II could not be legally effected the
directors Of the three companies caused go
! be organized the Northern Securities com
I Tpny the intention being 10 CJurt Il ma
JoritY of the stoH X OF All three railway
/ companies 10 Zee transferred 90 the North
tfh Securities company, thereby controlling
2 tue three systems VI railways through the
medium Of the securities company. sup
! pressing compel tOu, regulating The tariff
/ rates and conducting the entire business "
/ Tue thfeo systems AS ON" corporation. That
| thereupou the Northern Securities company
/ auNtlusrd publicly uppn terms ~ exchange
/ All the stock OF the Great Northern com.
| pany Thai the whole scheme was illegal
! IN violation OF he law OF This state aud
the other states through which the railway
/ lines pass, against pubic laws Of the
/ United States and each Of the States The
| bill also alleges that under and by yirtul
Z Of the character OF the Northern pps1ii,
( Railway company ana under the prgrfsion'
OF the reorganization Agreemeps, thc pre-
feIred stock can only be ptgT for aud re
tired out Of the net suVSlils earnings O
the Northern Pacific kTtallway company
That. 'withstandingxShe directors. as thu
frst step in c9grlias out their plan o
transferrly y~-tfS control of the defendan
corporation 10 the Northern Securities. nav,
served 6otice that on Janunry ], 1902, the!
would retire the preferred stock, the bill
alleges that the Northern Pacific Railwa!
\ company has not on hand exceeding $1,000,
, GEO derived from the earnings of the rOa,
whcrewth 20 pay the So, 100000 Of pre-
ferrcd stock Al par, but In order TO retire
such stock the directors are threatenin!
10 sell certificates Of Indebtedness or de
benture bonds amounting 10 S73,mooo0 o
the Northern ruoihc 10 pay of the stock
holders Of the preferred stock az par. Tina
II IL proposed 10 substitute for the prcscn
preferred stock, which has No prior riCh
over the common stock except In prlort,
Of dividends convertible negotiable se'nr
) ity or debcnturC bond bearing I per cen
interest which amount ls nNed rh1rs
against tho earnings ~ the company an,
Its property and must be paid whethe