The Montgomery advertiser., 1906-12-27
STOP BOND ISSUE
INJUNCTION WANTED AGAINST
 GREAT NORTHERN COMPANY
State Railroad and WarehoWse COm- mission of D8IBncROta Was Eguor- ed by James J. HIll sn Hts
 FIEuFing.

st. Paul, Minn. Dec. 2s t-Attorney General Young and R. A. 5tdne, assis- tant attorney general this Afternoon began an action in the Ramsey County District Court on behalf of the State of Minnesota againstthe Great North efn Railway Company asking for permanent injunction against the coni- pany, It's officers. agents and servants from proceeding in any manner with the proposed Issue of capital stock re- centiy authorized by the board of direc- tors in New York.
 He also asks, that the order restrain the defendants from receiving or col lecting the amounts due on any suo- scriptions which may have been or which will hereafter be made, or from taking any action to carry out these plans until the Great Northern Rail- road Company shall first have made application in writing to the Railroad and Warehouse Commission of the State of Minnesota and pI ocured its consent to that issue of stock It also asks for a temporary injunction pen- dente lite.
 The attorney general in his bili of complaints after reciting .hc fact that the Great Northern is a corporation of the State of Minnesota and that its original authorized capital Ftock was s30.00O.O00: that being che limit fixed by it's charter. says:
 That between February I. 1890. and March 1, 1896. the defendant made sev- eral large increases of ts capital stock until on March i. 1706 it's capital stoHk aggregated substantially Si50,000.o90.
 That all of these increases were first made without application to and obtaining the consent of the Railroad and Warehouse Commission of the State of Minnesota as required by th" State law. That prior to December ii. 1906, the defendant determined 10 increase it's capital stock to $2i0,e00.- 900 by an additional issue of $60,000,- 900, notice of which was served on It's stockholders by its president, James J. Hill, who invited them all to sub scribe for their pro rata share foame.
 That the defendants officers are now preparing to sell and issue this stock to It's stockholders of record on its books of January 4, 1907. and who have duly subscribed therefor prior to that date"
 Continuing. the petition says that all necessary arrangements for the issue and sale of the stock had been made. The bill of complaint further states that unless prevented by an injunction the defendant will issue and sell the stock without first applying to and procuring the consent of the State Rail road and Warehouse Commission and thereby deprivinE the State and it's oficers of the right and opportunity of Investigating the said proposed stock issue and examining into the proprlety and purpose of the same. All of which, the complaint says, is contra ry to the State laws.
 'If the defendant increases It's stock as now proposed, the aggregate thereof will be $2f0.000. That the defendant has been and Is now paying annual u y-.r- IL -a | on all of its capital stock and will pay | dividends at the same rate on all of | It's present capital stock and the pro- posed increase, if this increase Is cou- summated as now intended That this | increase of $6o 900 900 If effected will therefore increase the fixed annual charges of the defendant by the sum will have to he maid by the defendants Minnesota patrons. as charges on freight and passenger traffic local to | Minnesota. And that 1t Is further dl- leRed that if these plans are consun- mated they will be effected without the surveillance or the consent of the State of Minnesota"
 The bill alleges that the reasons Tor this increase of stock is unknown a the officials of the State of Minnesota and that they are unadvised of the ne- cessity and propriety of the same.
 The bill sets forth that if the defcn- dants should make due annlicaticn In writing to the Railroad md warehouse Commission and set forth the amounts of the said increase of the capital stock a hearing could be h1d on tn; application to determine its neeesslty and the State would become fully ad- yised of the facts and circumstanccS surrounding the proposed issue o
 stock and could therefore exercise tha
 surveillance and control amounigt tC prohibition if the stock issue should
 prove to be unwarranted. The peti'
 ton alleges that by it's "wilful ant wrongful neglect and refusal" to make such application to the State Railroad
 and Warehouse Commission tefore p?r
 ceeding with the preparations for tho
 proposed increase of capital stock. tho defendant will deprive the State oi Minnesota in the premises and prevon
 giving the transaction that scrutin, and publicity contemplated by the law
 The complaint says that the plqintif
 has no adequate or-speedv Iemedv
 law unless restrained by an iniunc
 ton and proceeds to set forth tts rc ty19,