The Washington times., 1915-06-21
Injunction Asked by Minority
Bondholders to Protect Their
Interests.
COURT ISSUES AN ORDER
Secretary Lane Says Project for
Line viii Not Be Delayed by
Big Litigation.

The Governments project Of building
Alaska has become involved in big
litigation at the outset, as a result Of
the determination Of the Administration
to buy the Alaska Northern road, run
ming from Seward inland about seventy
three miles.
1t has been decided. on the recommen-
dation of the engineering commission.
that this road should be taken over by
the Government, entirely rebuilded, and
extended several hundred miles Tho
road was originally built by interests as
ISOLATED with the Sovereign Bank Of
Canada, at Toronto; that bank being
affiliated with the House OF Morgan in
this country. The road, built under the
name Of the Alaska Central. did not
pay. and went into the hands Of re-
ceiver. The Sovereign Bank interests
held most of the bonds as collateral.
Cause No Delay.
1t Is now charged, in a suit which has
been begun to restrain sale of the prop
erty to the Government, that the ar
rangements for this sale involved on
effort to freeze out other bondholders,
who, holding n minority Of the securi-
ties, are residents of this country. that
the contract was made to pay the money
In Canada in order that II might not
be subject to attachment here; and the
Supreme Court OF the District Of CO.
lumbia has issued a temporary order
McAdoo. Secretary of the Interior Lane.
Treasurer of the United States John
Burke, from making the payment until
the interests Of the plaintiffs shall have
been, determined.
Petitioners in tho case are e. A. Shedd
cago. They are holders OF a consider
able amount Of the bonds. which were
never nypothecated as were the securi-
ties which went to the Sovereign Bank
set forth by Attorneys Butler & Vail. OF
this city. that the petitioners believed
that their interests were to be ignored
in the distribution of the purchase
money, which amounts to o,0oo, They
claim to own oH-3,i i66 OF the bonds. and
demand that they be assured their pro
rata share of the proceeds from the pur-
chase money.
Secretary Lane. declares that the case
will not cause any delay or embarrass-
tie preliminary order of the Supreme
Court as entered by Justice Mccoy
merely requires that a proper proportion
of the purchase money to meet the
claims of the petitioners shall be held In
this country subject to disposal under
order of American courts; to this, he
says the Government had no objections
Whatever.
Attempt At Secrecy.
The petitioners. on the other hand. in
sist that efforts were made to keep the
secret. and that when they
asked to see the papers In the
transaction. in order to learn Just how
their rights were affected. they were
refused access to them. Thereupon they
went into court, explained the condi-
tons, and the court at once ordered the
documents produced. After learning
their contents, the plaintiffs determined
that further actions should be insti-
tuted and pressed.
Aside from the officials who have been
named. other defendants in the case
are the American Security and Trust
Company, of Washington; the Sovereign
Assets. Ltd, Of Toronto; o. G. Larabee
OF spokane: w. e. Stavert, G. T. Clark
son. F. G. Jemmett. and w. ]. BoIand.
II Is charged by the plaintiffs that