New-York tribune., 1906-12-27
SUES GREAT NORTHERN
FIGHTS BIG STOCK ISSUE.
Minnesota Attorney General Asks
Injunction to Stop It.

S. Paul. Dec. 26.-Attorney General Young
and p A. Stone, Assistant Attorney General
began action IN the Ramsey County District
Court this afternoon on behalf OF the State OF
Minnesota against the Great Northern Railway
Company asking for permanent injunction
against the company. its officers. agents and
servants. from proceeding in any manner with
the proposed issue OF capital stock recently
authorized by the board of directors in New
York. The Attorney General also asks that the
order restrain the defendants from receiving or
collecting the amounts due on any subscrip-
tons which may have been or which viii here
seter be made, or from taking any action 10
carry out the plans until the Great Northern
Company shan frst have made application in
writing 10 the Railroad and Warehouse Com
mission of the State Of Minnesota and obtained
The cornulission's consent 70 the issue Of stock
a temporary injunction pendente lite is aIso
asked for
The Attorney General in his oil of complaint.
atJer reclting that the Great Northern is a cor
porauon Of the State OF Minnesota and that the
oor,pany's original authorized capital stock IS
Se"eoOoo. that being the limit axed by ths
oo17Ta1ls : charter. says that between February
J. leSe and March, 1906 the defendant rnade
several large Increases OF capital stock until On
March !, 1896. the total aggregated substantial
- Sl5fepOoo; thar al cf the increases were
made without applying 70 and obtaining the
consent of the Railroad and Warehouse Com
mission oe Minnesota. as required by ~haDtsr
-" O. the General Laws of 1857: general stat
Utes OF 1874, Sections 3-129-42; revised laws II
1915. Section ..s72; that before December II.
1905. the defendant determined 70 increase the
capital stock 20 S2IoOo00J0 by an. additional
issue of SGo.oO00O0. notice Of which was served
81 the stockholders by President J. !. EI.II. who
invited all 10 subscribe for a pro rata share Of
same, that the defendants officers are now pre-
pairing 10 sell and issue this stock TO stocIhold-
ers OF record January 4. 1897 and thar all neces-
ssry arran ngeneuts for the Issue and sale OF
the stock have been made
The bin OF complaint further states that. "
Jess prevented by an injunction the defend
an viI issue and sell the stock without first
applying 10 and procuring the consent OF the
State Railroad and Warehouse Commission.
thereby depriving the state and its officers Of
the right and opportunity OF Investigating the
proposed stock issue and examining into the
proprtery and purpose OF the same. All OF
which the complaint says. Is contrary 10 the
state laws The bill further says:
r the defendant increases its stock as now
proposed. the aggregate thereof viii ne S2l0-
u10No; the defendant has been and II is now
paying annual dividends ar the rate of Ter
cent on al Of lis capital stock, and VIII paw
dividends at the same rate ali OF its pres
I.alel a. now lAleIldel' ms increase or $50
100000 II effected, viii therefore increase The
@Eed annual charges Of the defendant by the
sum o. S42Oo0oO, great portion Of which viii
have 10 be paid by the defendants Minnesota
patrons as charges on freight and passenger
a-e consunrnated they VIII he Effected with
out the surveillance or the consent Of the State
~ Minnesota.
The biI alleges that the reasons for this n
crease Of stock are unknown 70 the officials %
the State Of Minnesota and that they are IN
advised q the necessity and pror-iety oc the
same.
The bill sets forth tla- - the defendants
should make due application IN writing 70 the
Railroad and Warehouse Commission and set
forth the amounts and purposes of said increase
~ its capital sock 4 hearing could be had
The application 70 determine its necessity and
the state would become fully advised Of the
facts and circumstances surrounding the pro-
posed issue Of stock and could therefore exercise
that surveillance and control. amounting 10 pro-
hfbitiou 81 the stock ISSUE should prove 70 be
Iuwarra-ted. Tho petition alleges thar by It's
''wtEful and wrongful neglect and refusal" 70
make such application TO the State Railroad and
warehouse Commission before proceeding with
rhe preparations for the proposed increase Of
rapital stock. the defendant viii prevent giving
the transaction that scrutiny and publicity con-
renaplated by the law.
The complaint says that the plaintiff has no
adequate or speedy remedy at law unless re-
strained by an injunction. and proceeds 70 set
>7rth its request for the injunction desired.
Service was made on officials OF the Great
Northern Railway this afternoon.
This matter has been fully considered BY p.
A Stone, Of this Office. and myself" AIr. Young
Eala to-day regarding the petition, and as II is
now apparent that the president. directors aud
r-Le- officers OF the Great Northern intend
proceed with their proposed 100000. coo stock
ISSUE without first making application 70 and
procuring LEe consent OF the state. through the
fZaiiroaG and Warehouse Commission. L has be-
~Cue ny duty rest the law this subject
and. Z possible. prevent the proposed enormous
Increase until the law has been complied with
The ecuion IS a very simple one, and seeks for
an injunction % prevent the proposed stock issue
until the COMPANY has shown The necessity for
The increase in is capital stock and has pro-
cured the consent Of the Railroad ana Ware
house Commission, aeteC public hearing.
80 advtces were received az the Great Sorthern's
local oHzcss yesterday from N.r1esotz concerning
-ss proceedings institta as by the Attorre- General
- that state Great Northern AID Northern Pa
c.ac stock had made slight gains n the morning
--sstag touching their high levels q the day
-s-'s and 1g-. respectively, a. about noon On the
news c. TIE court proceedings against Great
Northern n Minnesota both that stock AID North
e-r Pacific declined sharply, although the a1-
nounceraent last week rhat that step would be
aiken had market effect on the Hi stocks
Greet northern fell 10 17s a maximum loss OF 81
"a s5rdav No~-herr Paciac sold down ~ points
- f-sia TI-s.rg al 1921, q net loss OF I points
--ae stocks win which the Standard OIL party
.5erttee6 closed t-I1 with net gains OF ~ points
t1 Triop Paci-sc, I2 IN ArnalgaInated Copper. %
s. Anaconda and 4 4: st Paul Consolidated Gas
closed unchanged At 12S