In Chicago's Federal Court a month ago, Judge Michael L. Igoe handed down an apparently routine decision: he approved the reorganization of the Chicago, Milwaukee, St. Paul & Pacific Railroad Co., on the rocks since 1925. But it was not routine to 1,175 holders of the road's preferred stock.

Last week they asked the court to keep jurisdiction over the road's properties. Their reason: the reorganization would freeze out the 1,193,073 shares of preferred stock (par value: $119,307,300). The stockholders alleged that the Milwaukee Co., during the last seven years, had had annual average earnings before fixed charges of $25,963,740,...

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