New-York tribune., 1907-01-24
STOCK ISSUE BLOCKED.
GREAT NORTHERN LOSES.
Injunction Leaves Question of Fact
Undecided. HOzceUer.

SfUCCL0COs lIOSCLEts
ST. Paul. Jan. ss.-Judge Oscar Hallam. In the
Ramsey County District Court to-day. signed an
order enJoining the officials Of the Great Northern
Railway Company from making the purposed In
crease Of s60.0O0c0o worth Of stock OF that COM
pany. or issuing the same any part thereof, dur
ing the pending litigation without first making an
application In writing therefor the Minnesota
Railroad and Warshouse Commission. and obtain
Ing its approval thereof. provided by the revised
laws Of Minnesota
The pending SUIT 20 restrain the stock issue was
brough; last month by Attorney General Young TO
compel the railroad TO apply to the State Railroad
and Warehouse Commission before issuing the
stock. the laws provide that railroads must
show IN that manner the necessity for such an IS
cue. The Great Northern Railroad attorneys clsiE
that under the corapany's original charter It could
tssue stock at VIII and that the law granting this
power to the Railway and Warehouse Commission
IS unconstitutional
AS Judge Hallam's order states that the COM
pany's contentious cannot be sustained and that
application must be made to the Railroad Commis-
zion before issuing the stock. the decision, as far
ss the county court is concerned. is final.
Judge Hallan. in his memorandum accompanying
the Injunction. says that the state comedies that
nnder the general laws Of the state the defendant
may lawfully increase its stock subject 70 the regu-
lsfion mentioned The court says the injunction
was asked compel the company TO submit TO this
regulation. which the defendant does not propose
20 do. Therefore the court holds that there is but
one issue raised in the case and the ultimate right
OF the railroad company make the proposed issue
OF stock is not involved IN this action The court
says the contention OF the state is based upon Sec
tion 2S72 Of the Revised Laws Of 1885, originally
enacted Chapter 265 OF the General Laws OF 1851
The language of the original of 1887. the court
says, does differ in substance from the language
Of the section OF the Revised Statutes Judge Hal
lam quotes the original statute. and says:
THIS language is general and its terms are rel broad
Z L
governs tIs case, but it is contended GA behalf OF
FiTst-Ihal the act is in contravention Of the
charter of the defendant and as 10 the defendant
seccnd-rhat on Its face it Is unconstitutional. as
dslegation OF leglslatlFe power 10 an au"iiiil'-
Third1Thst this act was repealed by Chapter Us
at least so far as its application TO ths case 3 con-
Fourtat the laws here Appealed % to to have 1bs de- Te
eeiyed practical construction ooIn py b Inc o. G1
tention of the state
sustained. and the defendant must. before making
the proposed increase OF stock make appIeaSSh S SO %
the Railroad and Warehouse Commission ana 80
its approval
The grounds OF said conclusions are as follows:
Defendants first contention means that it has
e shs stoGk' @ and that he act Of ISL Il otherwise
applicable IS SUCH & Tes,TaiTs e a aS 10 tonable
The Great Northern Railway Company was oTigi,
nsy ineorpoIaIsG - ss tne isI 5aTteT rranted
scy the Territorial Legislatye Assembly Of lssS ;
stock Of The corporation hereby created shall 6e
with the conse II Of the holders OF majority there
Of increase the capital stock thereof TO such sum
eject an the rights and privileges hereby granted
thereto. not exceeding $50 oO9O9 Ihere Is no AZ ~
OF 100000 But this charter was amended by the
other things. provided the said sompany shall
have power 20 create and issue in such manner
or more classes OF preferred stock. and 20 make
aTe s Soss Is s Il ax % S sefR the anGs ter
on % t Is The 9r grU ~ Eus Ss@ soe on wogt 2 gVf & he
In my judgment II does not 90 so; IL Is manltest
as q auhorse R Ot stock not Cyiginaly
euthorized, 70 wit: preferred ano special stock;
does not appear 70 have entered into the legislative
Judge Hallam. indorsng the regulations provided
by the general laws, continues:
,erasos Is h9 Se issue Of stock by rsirosl cor
poration IS matter Of public concern; ana the the
poration increases its stock there shall be value
behind the stock
On the contention that the Legislature had not
she power 70 delegate legislative powers 70 the
State Railway and Warehouse Commission because
such power might be abused in favor against
any particular railway. Judge Hallam says:
It to clear that the commission ss nm must st.
What Il q proper ana lawful occasion for the IN
crease of railroad corporation stock. Any arbi-
against the letter and the spirit OF the act
The court sustains every point raised by the
state. There were questions OF fact before the
court The facts in the were admitted, and.
while technically there should be q further trial
on a hearing for order making the Injunction
permanent It is thought by the Attorney Generals
department that the next move will be appeal
90 the Minnesota Supreme Court 10 determine the
constitutionality the and the correctness OF
Judge Hallams ruling.
Neither ". r. Begg, general solicitor OF the
Great Northern. President ]. J. Hill would
NAL HallaFl'g decision.
Nr Begg said their line OF action had not yet been
determined.
O1icials Of the Great Northern Railway Com
psny who were IN this city yesterday said they
had no doubt that the company would appeal from
the decision o. Judge Hallam. They said there was
tnfentfnn az nresanf Of abandoning the nlan