The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-12-30
Suit Is Begun in Hennepin County
to Prevent Retirement of North
ern Pacific Preferred.
Peter Power, Supposed to Represent
Hartman Interests, Secures Tenn
porary Injunction.

Peter Power of New York commenced
an action in the district court of Henne-
pin county before Judge Elliott this morn
ing to secure an injunction restraining
the officers of the Northern Pacific rail-
road from retiring the preferred stock
of that company A temporary injunction
was granted by Judge Elliott this morn
ing
1t will be remembered it was a part of
the plan of Mr.. Hill and his associates as
holders of the controlling interest of the
common stock of the Northern Pacific to
retire the preferred stock of that company
on the first of January. Under an agree
ment entered into when the preferred
stock was issued, it may be retired at par
on the first of any year up to 1917 A suit
was Instituted in New York a few days
ago by holder Of preferred stock to pre-
vent this retirement, but that suit failed,
the court holding that the owner of pre-
ferred could not object if he were paid
at par That suit was supposed to have
been brought by some one in the Harrt-
man interests, although as to that there
has been some doubt At any rate, the
effect of that suit was apparently to re-
move all obstacles to the retirement of
this stock The Hartman interests are
said to have about 7S,OOO,0OO out of the
155, ,0000 900 of Northern Pacific common and
preferred, but although holding a major
ity of both kinds of stock have not ma
jority of the common A majority of the
gan people, and the retirement Of the
preferred would leave the control OF the
Northern Pacific in the hands of the Hill
Morgan people The inference IS, there
fore, that the suit Instituted here to-day
is in the interest of the Hartman people,
for, manifestly, if they can prevent the
retirement of the preferred stock, they
will still be in control of the company.
A Hartman MOve9
Judge w, A. Lancaster has been en-
gagged as the local attorney, but Mr.. Pow
er brings with him attorneys from New
York and Chicago who will assist IN the
prosecution of the case. 1t is understood
that this hundred shares Of common stock
is the only holding not hitherto con-
trolled and definitely located by one side
or the other, the Hartman people or
the Hill people In their contest for the
Northern Pacific, and that the holder of
this stock has been offered fabulous sums
for his stock by the Hill people. In fact,
it is said that this is the only bunch of
common stock not absolutely controlled
by them. This would indicate that this
suit is brought in the interest OF the
Hartman people, for If the holders Of the
the stock is not acting for the
Hartman people, he could make
more money selling out to the Hill
Morgan interest than he could by protect
ing it in the courts against the retirement
of the preferred. The suit is, therefore,
an unexpected and sudden development of
the great legal controversy and suggests
new complications which have not been
looked for. This action would seem to be
alt ogether in the interest of the state and
calculated to assist Governor Van SAINT
in his efforts to prevent the consolidation
Of the two roads.