The age-herald., 1901-12-31
Temporary Injunction Granted Against Northern Pacific R, R.
ENTIRE SCHEME EXPOSED
Action Is Said to Have Been Brought for Hartman nterests-Combina- ton Sought to Be Effected
 Which Would Evade Law.

Minneapolis, Minn., December a0.-Judge Elliott of the District Court of Connepin County, today granted a temporary order restraining the officers of the Northern Pacific Railroad Company from retiring the preferred stock of that company The order was issued on the applica- tion of Peter Power of New York.
 It is inferred although 1t does not ap- pear, that the present action is brought in behalf of the Hartman interest to prevent control passing cut of its hands for another year or until the legal stand ing of the Northern Securities Company is settled. It is understood that the block of 100 shares held by Power is the only block of common not hitherto controlled and definitely located upon one side or the other the Hartman people or the Hill-Morgan interests.
 The restraining order will be afso tele- graphed to New York and served on the officials there.
 Prevents Consolidation.
 The injunction enjoins the Northern Pacific Company from placing the man
 
 possession or control of the Northern Se- curities Company; or from entering into any arrangement through the medium of the Northern Securities Company or oth- erwise with the Great Northern Railroad or the Chicago Burlington & Quincy Railway Company for the purpose of causing the Northern Pacific Railroad to be operated In connection with, or under the same rules, or by the same author 4k...x (N-. pany, and the Chicago, Burlington & Quincy Railway, or from entering into any agreement with said companies, or either of them, for the purpose of avoid ing competition and fixing rates
 The bill alleges that the Northern Paci- fic Railway Company and the Great Northern Railroad Company are palallel lines to the Pacific ocean and that the Chicago, Burlington & Quincy Railroad Company has a parallel line from Bill ings, Montana to Chicago; and that ali such lines are competing lines for the business of the northwest
 Alleged Scheme Exposed.
 It Is alleged that the officers of the Northern Pacific railway company com bined with the Great Northern and the Chicago, Burlington and Quincy to con sclidate the three systems under one management and knowing that 1t could not be legally effected, the directors of the three companies caused to be organ ized the Northern Securities Company, the intention being to cause a majority of the stock of all three railway companies to be transferred to the Northern Securi- ties Company, thereby controlling the three systems of railways through the medium of the securities company, SUD- pressing competition, regulating the tariff rates and conducting the entire business of the three systems as one corporation. That, thereupon, the Northern Securities Company advertised publicly upon terms of exchange all the stock of the Great Northern Company. That the whole scheme was illegal, in violation of the law of this state and the other states through which the railway lines pass, against public laws of the United States and each of the states.
 The bill also alleges that under and by virtue of the charter of the Northern Pacific Railway Company, and under the provisions of the reorganization agree ment, the preferred stock can only be paid for and retired out of the net sur plus earnings of the Northern Pacific Railway Company. That notwithstand- ing the directors as the first step in carry ing on their plan of transferring the con trol of the defendant corporation to the Northern Securities Company have serv- ed notice that on January l. 1902, they would retire the preferred tosck.
 Not Over $3, ,ooo, 900 On Hand.
 The bill alleges that the Northern Pa- cific Railway Company has not on hand exceeding $3000.000 from the earnings of the road wherewith to pay the SIS, 0O0 900 of preferred stock at par, but that in or der to retire such preferred stock the di- rectors are threatening to sell certificates of indebt edness or debenture bonds amounting to $75,O00,0 900 of the Northern Pacific to pay off the stockholders of the preferred stock at par.
 That 1t Is proposed to substitute for the present preferred stock, which has no prior right over the common stock, ex- cept in priority of dividends, convertible negotiable security or debenture bond, bearing per cent interest, which amount is a fixed charge against the earnings of the company and it's property, and must be paid whether the earnings for any year amount to 4 per cent upon said issue or not, and under which, if default is made in the payment of said interest the en- tire property of the Northern Pacific Railway Company may be sold to satisfy Judgments which may be obtained there under, and all equities and rights of the common stockholders extinguished.
 The bill sets forth that the scheme has already provoked litigation and claims more will follow.
 The bill then prays for the writ of in- junction, which was issued by Judge El- liott.
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