The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-27
Injunction Proceedings Begun
Against Great Northern R. R.
MINNESOTA LAW INVOLVED
Attorney Generals Bill OF Complaint
Reotes Corporation Increases Were
Made Without Permission of
tho Proper Authorities.

81. Idult Mlnntt leeelllDef Ghs-8tlbInt9
General Young and II. \. Stone, assistant
attorney general, this afternoon began
an action In the Ramsey county district
court on behalf of the zthto of Minnesota
against the Great Northern Railroad
company asking for permanent injune-
tlon against the company. It's officers.
agents and servants from proceeding In
any manner with the proposed Issue of
capital stock recently authorized by tine
board OF directors In New York. He also
asks that the order restrain the defend
ants from receiving or collecting tho
amounts due on any subscriptions which
may have been or which will hereafter
be made, or from taking any action To
carry out the plans until the Great
Northern Railroad company shall first
have mado application In writing TO the
railroad and warehouse commission of
the state Of Minnesota and procured its
consent to that issue of stock. 1t also
asks for a temporary injunction pendente
| lite.
Bill of Complaint.
The attorney general. in his bill of
complaint. after reeiting the fact that
! the Great Northern Is a corporation of
the state of Minnesota and that its orig
inal authorized capital stock was $300oo,-
coo, that being the limit fixed by its char
ter. says:
THAT between February /, 1890, and
March T. 1906, the defendant made several
large Increases of its capital until on
March /, 1906, its capital stock aggre-
gated substantially sl50m0,C00
THAT all of these increases were first
made without application to and obtain
ing the consent Of the railroad and ware.
house con.aHsson of the state of Minne-
sofa as required by the state law. that
PRIOR to December Il, 1906. the defendant
determined to increase its capital stock
to S21O 100000 by an additional issue of
56o0o0O0o. notice of which was served on
its stockholders by its president, James
J. Hill who invited them all to subscribe
for their pro rata share of same.
"That the defendants officers are now
preparing to sell and issue this stock TO
its stockholders of record on its books
of January A. 1901 and who have duly
subscribed therefor prior to that date"
Continuing the petition says that al
necessary arrangements for the issue and
sale of the stock had been made
Contrary to Laws.
The bill OF complaint further states that
| unless prevented by an injunction, the
defendant win issue and sell the stock
without first applying to and procuring
the consent OF the state railroad and
warehouse commission, and thereby de-
! priving the state and its officers of the
right and opportunity of operating the
said proposed stock issue and examining
| irto the proprety and purpose of the
same. All OF which the complaint says Is
contrary to the state law.
| The bill further says:
| IF the defendant increases its stock
as now proposed. the aggregate thereof
| will be $2lO.00O,000 That the defendant
has been and is now paying annual divi-
dends at the rate Of per cent on all of
| its capital stock. and will pay dividends
at the same rate on all of its present cap
| ital stock and the proposed increase, II
this increase is eonsummated as now in
| tended. That this increase of $600O0,001
| If effected will therefore increase the
| fixed annual charges of the defendant by
the sum of s42o0,o0o a great portion of
which will have to be paid by the de-
| PENDANTS Minnesota patrons, as charges
on freight and passenger traffic local
to Minnesota. And that it is further al
lodged that If these plans are consum-
mated they Will be effected without the
surveillance or the consent Of the state
| of Minnesota
Reason Unknown.
The bill alleges that the reasons for this
| increase of stock is unknown to the Of
| ffcials of the state of Minnesota, and that
| they are unadvised Of the necessity and
| propriety of the same.
| The bill sets forth that If the defend
ants should make due application In due
writing 10 the railroad and warehouse
| commission and set froth the amounts
| and purposes of said increase of its cap
ital stock, a hearing could he had on
the application to determine its necessity
and the state would become fully advised
| of the facts and circumstances surround
| ing the proposed issue of stock, and could
! therefore exercise that surveillance and
| control amounting TO prohibition II the
stock issue should prove to be unwar-
| ranted.
The petition alleges that by its wilful
and wrongful neglect and refusal to make
| such application to the state railroad and
warehouse commission before proceeding
| with the preparations for the proposed in
| crease of capital stock, the defendant will
| deprive the state of Minnesota in the
presses and prevent it giving its transac-
| ton that scrutiny and publicity eontem-
| plated by the law.
| The complaint says that the plaintiff
| has no adequate speedy remedy at
! law unless restrained by an injunction.
| and proceeds TO set forth its request for