The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-12-31
MELLEN IS ENJOINED
PRESIDENT OF N. p. RESTRAINED
FROM ISSUING DEBENTURE
BONDS
NEW YORKER THE PLAINTIFF
Peter Power, who Owns 100 Shares
of Up. Common Stock, Sc
cures Injunction From
Judge Elliott.

! Upon the application of Peter Power,
| of New York, Judge Elliott, at Mime
| apolis, yesterday issued an order re-
straining the Northern Pacific railway
from issuing any certificates of indebt-
edness or debenture bonds for the pur-
pose of retiring the preferred stock of
| the company.
Attorney Lamb, Of New York, well
| known financial lawyer; G. c.. Moore,
OF Chicago and Judge Lancaster, OF
Minneapolis, appeared for the New York
er, and after hearing their arguments
the court granted the prayer and made
the order.
There is preferred stock in the Northern
Pacific now to the extent of $75,00O,000,
and it is, it is alleged in the complaint,
the intention of the defendant company
to issue debenture bonds for this amount
and retire this preferred stock.
The company has issued a circular
stating that all preferred stock would
be retired Jan. l, 1901, but unless some
| very quick action is taken in the mat
ter of the temporary injunction issued
yesterday the stock will not be retired.
Power owns 100 shares of the common
| stock of the company which he intends
| to retain control of, and in mis- COM
| plant he states that the methods in
| tended by the company are illegal and in
| violation of the law of the state i'll
which the road is incorporated, and
| against the laws of the states in which
| it operates. Further, he alleges, that
| the purpose for which this stock is to
be retired, namely, according to the
| complaint, for the purpose of giving the
| Northern Securities company the con-
| trolling stock Of the roads is against
| 10 -
In the action brought to prevent the
retirement in New -Fork, Judge Scott
ruled that it could be done the first of
any year UP to 1907 provided no lien
or incumbrance is placed upon the road
| in so doing.
Only Point of Difference.
/ Mr.. Powers attorneys hold that it
| would be increasing the Indebtedness Of
| the company to an extent affecting the
| holders of the common stock and names
this as enc of the grounds for praying
for the Injunction. The allegation, In
| brief, further contends the only diff
| ference between the common and pre-
| ferred stock was at the time of the
reorganization of the road, that the pre-
| ferred- stock was entitled to a dividend
! of per cent prior to anything being
| pdlQ OIL common STOCK. Inc Dill Iur-
Their alleges that the preferred stock
| was subject to retirement at any time
during twenty years after the reor-
| ganization of the company and issuing
| the stock out of the surplus net earn
| ings of the company, and not otherwise;
that in other ways the rights of the
common and preferred stockholders are
| Identical.
The bill for the injunction also refers
| to the fact that the Great Northern,
Burlington and Northern Pacific operate
parallel lines in the same territory and
that as such they are competing lines
| for the business of the Northwest.
| He claims that without any knowledge
on his part, the owners of the Northern
| Pacific stock went into Z, combination