The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-12-31

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lVI lott Of the district court of Hen
nepin county today granted a
temporary order restraining the Off
GERS OF the Northern Pacific Railway
company from retiring the preferred
stock Of that company. The order was
issued on the application of Peter
Power of New York, who holds 100
shares Of common stock,
1t was Supposed that the failure of
the action brought in New York bv
holders Of preferred stock cleared away
the last obstacle to the retirement of
I me preferred ON Jan. 1, leaving the
4 Hil interest free 20 act.
3 1t is inferred. although it does not
so appear, that the present action is
brought in behalf of the Hartman in
terest to prevent control passing out
of its hands for another year or until
the legal standing of the Northern Sc
curities company is settled The claim
set up by Mr.. Power in his suit is that
the retirement of the preferred stock is
IN violation Of the agreement that such
retirement would lay no additional
burdens upon the common stock, and
he holds that the certificates of deben-
ture bonds TO be issued to effect the
retirement Of the pref FRED stock Void
become a lieE upon the common stock
and thus work an injury to his prop
erty.
Only Stock Not Controlled.
Tt 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 interest.
The restraining order will not only
be served on the officials in Minnesota,
but viii be telegraphed to New York
and served on the officials there. The
injunction restraints the Northern Pa
cif5c Railway company from issuing or
selling any certificates of indebted
ness or debenture or other evidence OF
indebtedness, or creating any indebted
ness or liability for the purpose of
raising money with which to pay or
retire the preferred stock Of the North
ern Pacific Railway company or any
part thereof, or from using or apprO-
priating any moneys or proceeds other
than the ordinary or surplus net earn
Jugs of the Northern Pacific Railway
company to the payment and retire
ment Of the preferred stock of the
company or any part thereof.
Aimed at the Trust.
1t is prohibited from creating any
Indebtedness or liability other than the
ordinary indebtedness or liability for
operating expenses Of its railway sys-
tenn and the Indebtedness and liability
now existing which would be a prefer
ence or take precedence of the COM
mon stock Of said company; also from
placing its property or any part there
of, or the management Of its railway
system or any part thereof in the pos
session or under the control, either di-
reCtly or indirectly, Of the Northern
Securities company; or from entering
into any agreement or arrangement,
either directly or indirectly, through
the medium of the Northern Securities
company, or otherwise with the Great
Northern Railroad company, the Chi
cago. Burlington & Quincy Railroad
company, or either of them for the pur-
pose of causing the railway system
oevned and controlled by the Northern
Pacific company to be operated in con-
nection with or under the same rules
or by the same authority as the Great
Northern Railway company and the
Chicago. Burlington & Quincy Rail-
way company, or either of them.
The order commands it not to enter
into any agreement with these com
lanies. or either Of them for the puT-
pose Of avoiding competition and fix
ing rates for the carriage Of freight
end passengers upon either of their
lines of railway.
The complainant goes on TO show
that the Northern Pacific, the Great
Northern and the Chicago, Burlington
& Quincy are parallel lines, and that
the Great Northern stock has been sold
by the Northern Securities company.
It IS alleged the directors of the North
ern Pacific are preparing to sell So
100000 of stock and pay preferred cred
@ors which, it is declared is Illegal
Articles of incorporation are quoted
TO show this proceeding is not legal.