The news-democrat. (Providence, R.I.) 1906-1909, 1906-12-27
MINNESOTA WANTS
GREAT NORTHERN
R. R. ENJ0|NEO

oil. Paul Mimi. Dec. 2T.--The state OF
Minnesota through T.. II. Young. attor-
ney general. yesterday filed injunction
proceedings in the district court at st.
Paul 10 restrain the Great Northern rail-
road from making it's proposed additional
$50 100000 issue OF new stock. which was
recently announced by James J. Iiill.
president of the company.
The state also asks that the order re-
strain the defendants from receiving or
collecting the amounts due on any sub
scriptions which may have been or which
will hereafter be made or from taking
any action TO carry out those plans until
the Great Northern road shall have made
application in writing TO the railroad and
warehouse commission OF the state OF
Minnesota and procured its consent TO ti'e
issue OF stock. II is also asked that
temporary injunction be issued pending
litigations
The attorney general in his bill of COM
plant after reciting the fact that the
Great Northern is corporation OF the
state Of Minnesota and that it's original
authorized capital stock was $4,000, 900,
Wat being the limit fixed by its charter,
says:
That between Feb. T. 1890, and March 1,
1896, the defendant made several large in
creases of its capital stock until March
l. 1906. fits capital stock aggregated sub
stantially $50 100000 That all OF these
increases were made without application
for the consent OF the railroad and ware
house commission as required by statute
That prior TO Dec. l. 1906. the defendant
decided to increase it's capital stock TO
S210.OOO 600 by an additional issue Of $60,-
O00000. notice OF which was served on It's
stockholders by it's president, James j.
hn 0d all tn gflhSCrihp
their pro rata share.
That the defendants officers are now
preparing 10 sell and issue this stock TO
It's stockholders of record on its books
Jan g. 1907, 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 have been made. The
bill OF complaint states that unless pre-
vented by an injunction the defendant
will issue and sell these stocks without
procuring the consent of the railroad and
warehouse commission, thereby deprivins'
the state and it's officers OF right and op-
portunity of investigating the proposed
stock issue and examining its property
The bill further says:
''If the defendant increases its stock IS
now proposed the aggregate thereof VIII
he S2l0.0O0c00. The defendant has been
and is now paying annual dividends at the
rate OF per cent. on all its capital stock
and proposes 10 pay dividends at the same
rate on all of It's proposed increase. IL
this increase is consummated as now In
tended.
This increase OF $50, 900 If effected.
therefore. will increase the fixed annual
charges Of the defendant by the sum OF
A,200,000. a great portion of which will
have TO be paid by the defendants Min
nesota patrons as charges on freight ana
passenger traffic in Minnesota"
The bill alleges that the reasons for the
increase of stock are not known TO the
officials of the state
The petition alleges that by its 'wilful
and wrongful neglect and refusal 10
make an application TO the state commits
sion before proceeding with preparations
for the proposed increase OF capital stock,
the defendant is trying to prevent giving
the transaction the scrutiny and publicity
contemplated by the law.
In a statement regarding the petition.
Attorney-General Young says:
This matter has been fully considered
by Il. A Stone OF this office and myself,
and as IL is apparent that the president,
directors and other officials OF the Great
Northern intend TO proceed with their
proposed So. .0o0. 900 stock issue without the
consent of the state. IL is my duty to take
steps 10 test the law and IL possible, pre-
vent the enormous increase until the law
has been obeyed."
Service was had on the Great Northern
officials yesterday afternoon.