The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1906-12-27
INJUNCTION IS ASKED
STATE OF MINNESOTA OPPOSES
INCREASE OF GREAT NORTH
ERN CAPITAL STOCK.
ACTION TAKEN WITHOUT PERMISSION
CONSENT OF RAILROAD COMMITS
SION NEEDED, ACCORDING
TO THE STATUTES.

st. Paul, Dec. 27.-Attorney General
Young has begun an action in the
Ramsey county district court on be.
half of theastate of Minnesota against
the Great Northern Railway company
asking for a permanent injunction
against the company, it's officers
agents and servants from proceeding
in any manner with the proposed is.
sue of capital stock recently author.
lied 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 subscriptions
which may have been or which will
hereafter be made. or from taking any
action to carry out those plans until
the Great Northern Railroad company
shall first have made application in
writing to the railroad and warehouse
commission Of the state Of Minnesota
and procured it's consent to that issue
of stock. 1t also asks for a temporary
Injunction pendente lite.
The attorney general, in his bill OF
complaint, after reciting the fact that
the Great Northern is a corporation
Of the state of Minnesota and that its
original authorized capital stock was
$30,000,0OO, that being the limit fixed
by its. charter, says:
Former Increases Unauthorized.
That between Feb. 1, 1890, and
March /, 1906, the defendant made
several large increases of it's capital
stock until on March 1, 1906, its cap
ital stock aggregated substantially
50,000,000. That all of these in.
creases were first made without appli.
cation to and obtaining the consent OF
the railroad and warehouse commits
sion of the state of Minnesota as re.
quired by law.
That prior to Dec. II, 1906, the de.
PENDANT determined to Increase its
capital stock to $210,000,O00 by an ad
ditional issue of S6O,O00.0 600, notice OF
which was served on it's stockholders
by it's president, James J. Hill, and
invited them all to subscribe for their
pro rata share of the same.
That the defendants officers are
now preparing to sell and issue said
stock to it's stockholders of record on
its books on JAM 4, 1907, and who
have duly subscribed therefor prior to
that date. The petition further says
that all necessary arrangements for
the issue and sale Of said stock have
been made.
Procedure Contrary to Law.
The bill Of complaint further states
that unless prevented by an injunction
the defendant will issue and sell the
stock without first applying to ant
procuring the consent of the state
railroad and warehouse commission
and thereby depriving the state and
it's officers Of the right and oppor
tunity of Investigating the said pro
posed stock issue and examine into
the propriety and purposes of the
same. All of which, the complaint
says, is contrary to the state laws.
The bill further says:
If the defendant increases its stock
as now proposed the aggregate there
of will be $21O,O00,000. That the de
PENDANT has been and is now paying
annual dividends at the rate of per
cent on all of its capital stock and
will pay dividends at the same rate on
all of it's present capital stock and the
proposed increase if this increase Is
contaminated as now intended. That
this increase Of $60,000,000 if effected
will therefore Increase the fixed an
nual charges by the defendant by the
sum of $4,200,000, a great portion OF
which will have to be paid by the de
charges on freight and passenger traf
&c local to Minnesota.
Determine. Necessity Of Increase.
The bill says that if the defendants
should make due application in writ
ing to the railroad and warehouse com
mission and set forth the amounts
and purposes Of said increase of its
capital stock a hearing could be had
on the same to determine its neces
sity and the state would become fully
advised of the facts and circumstances
surrounding the said proposed issue
of stock and could therefore exercise
that surveillance and control amount.
Ing to prohibition il the stock issue
should prove to be unWarranted. The
petition further alleges that by it's
willful and wrongful neglect and re
fusal to make such an application to
the state railroad and warehouse com
mission Dsfore proceeding with the
preparations for the proposed increase
of capital stock the fendant will dc
prive the state Of Minnesota In the
premises and prevent giving the
| transaction chat scrutiny and publicity
contemplated by law.
The. bill further says that the plain
tiff has no adequate or speedy remedy
atslaW unless restrained by an injunc
ton and proceeds to set forth its re
quest for the Injunction desired
Many Jews Injured. t,ssss
Bucharest, Roumania, Dec. THE
Zionist congress in session at Craiova
was invaded by men beers Of an anti
Jewish sOciet k riot ensued, durins
which many Jews we're injured.