Arizona republican., 1913-07-26
ESPEE'S TEST
 SUIT |S FILED
Railroad Asks U. $. Court to Enjoin the Corporation Commission from Inter- ference With Trust Notes fOl. BettelmentS

The test of the states power to in tervene in the financial affairs of
 a corporation doing business in more than one state-a test that was fore told in The Republicans Associated i Press dispatches Sunday-has been a suit in equity by the Southern Pa icific against the corporal ton commis- ision. the attorney general and the county attorney. Citing the members . of the commission. Messrs. Geary. Cole and ones, C. P. Bullard and 1 Frank Lyman as defendants, the rail road company praNS the United
 States district court for the district l of Arizona for decreeS eXempting the proposed issue of notes and bonds 1 from the objection of the commission, l for judgment decreeing that the l company has the power to issue the notes without consent of the com mission and for any little minor rep Iarations the court may see fit 10 make, 1 including the costs of the case. ! In the beginning, the <. P. con- Itemplated making certain improve ments, additions and betterments making necessary the sum of $4S.-
 
 ! happened to be available from the l earnings of the company which made 1 it imperative to issue bonds and notes
 for the balance. This was done, after the permission of the Arizona cor ! pOration commission had been re fused. And then when the refusal of the commission to assent became ! known, buyers of the notes declined to treat-alIeges the bill filed yester- l day. The company complains that i the commission has no right to in i terfere with notes issued here and sold
 in New York, by corporation, which ! is q citizen of the state of Kentucky, l and the suit is designed as trial of the powers of the commission in this direction. Frequent reference is made to the public service corpora ! lions act which the corporation com mission used as a base for it's action. Failing 10 prevent the issue of the notes. the commission declared them void. unless approved by it. and this. | declares the bill. acted as a serious damper on the note market in New l York state. It even goes so far as to
 say >>he action of the commission has made it impossible to finance the inn proVements
 1 After a Voluminous statement of 1 the places ot the several defendants and the plaintiff the bill asks for d | judgment decreeins the right of the corporation to float it's notes, secured l by personal property without the ! consent of the corporation commis- sion of the state of Arizona, and ! without the payment of certification ' fees It then prays for an injunction | preventing the members of the com mission, the state and county attor- 1 neys from taking any action against ! the plaintiff relative to the note is sue. Then the bill asks for such ! other relief as the court may see fit l to give, and the costs of the case 1 The whole ends with a copy of the charter under which the Southern Pa cific company operates.
 Frank CoX is the local attorney, serving as solicitor for the Espee. The filing of the above suit isr a formality, prescribed by the law, which says the corporation objecting to it's provisions must take some ac- ton within thirty days after the law is enforced, or forever abide by the provisions. Papers were filed on the members of the commission and upon the county attorney yesterday, giving notice of the suit