The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-12-26

Action {, Will Tie Up Proposed
$6o,0o0,0oo Increase Were
Previous Issues Illegal?

If the complaint filed by Attorney
General Y Dung today us needed by the
Ramsey county district court. the Great
Northerne will, be. restrained from it's
new 500, 000, 900 issue Of stock till il
has secured thes consent Of the Min.
nesota railroad mInission, as the law
/ A copy off the, complaint was served
on the Great Northern this afternoon
by a deputy sheriff. at sets forth the
fact Of the proposed issue of stock,
and asks the court flor a perman ent
injunction, also for astemp orary: .iinjunc-
tion or restraining order to hold up
the transaction until the case is settled
on it's merits.
Attorney General Young made the
following statement: sa1 49, "a = 9zs5 -
This matter has been fully considered
by Mr.. r. A. Stone of this office and
myself and as it is now apparent that
the president, directors and other Off
GERS Of the Great Northern intend to
proceed with their proposed $50, OO0; 600
stock issue without first making appli-
cation to and procuring the consent of
the state, thru the railroad and ware
house commission; it has become my duty
to take steps to test the. law on this
subject and if possible prevent the pro-
posed enormous increase until the law
has been complied with. -,
The action is a very, simple one for
an injunction to- prevent the proposed
action until the company has made
written application to the railroad and
warehouse commission and shown after a
necessity for the commission after a
public hearing as provided by statute.
I'll s:l.. Plainly Ignoring Law. IT,, r, "
Eight days notice must be given the
defendants before the temporary in
junction can issue, SO it will hardly be
granted more than a day or two before
the Great Northern s books are to open
for the issue Of stock on Jan. 4. The
application will, be passed on by one
Of the st. Pa district Judges. The
judge who Is to be- assigned to cases
IN chambers for the January term will
probably hear the complaint. It is
likely that the temporary injunction
will be issued and the deal tied up, at
street is naturally interested. ss.5
Now. Five Times the Limit.
The complaint ia entitled estate of
Minnesota, Plaintiff, Against the Great
Northern Railway Company, Defend.
anti It recites The fact that the
original charter Of 1856, incorporating
the Minneapolis & st. Cloud, limited
its capital stock to 100000, 600. On
Feb. /, 1890, it was &20, DO0,o It
has since been increased to $780, O0,.
E000; dior most 5pf9Sthe. INCREASES were
made without sfrsta applying to che
railroad commission for consent, as re.
CURED by chapter 265 Of the laws of
1881, now section 1872 of the revised
statutes - 81 fss =,
Some time shortly prior to Dec. III
OF this year, the directors of, the com.
pany determined4rto increase the CAPT.
tai to $21O 100000, by an additional
issue of $60,000,0O0, and President, j.
~. Hill formally notified the stockhold.
ers. inviting them to subscribe for their
pro rata share. The officers are, now
preparing to issue the additional stock
to, such stockholders as are-.of record
on its books Jan. 4, 1907, and have
subscribed prior to That date. The new
issue is to be paid for in installments
during a year or more, and all prepa.
rations have been made for the. sub.
scription. No, applica ton has been made
to the railroad commission for their
consent to the issue, tas provided by
law, thereby 2depriving the state and
its officers Of thearight and opportunity
Of investigating the said proposed stock